A STUDY ON CUSTOMER SATISFACTION TOWARDS CREDIT CARDS WITH SPECIAL REFERENCE TO PRIVATE SECTOR BANKS IN SIVAKASI.

Credit cards are fundamentally different from the other payment methods in that they involve extending credit rather than drawing on an existing store of funds. Banks in conjunction with credit card associations such as Visa and Master card, issue general-purpose credit cards. Department stores also issues credit card to be used for purchases at that particular store. Like Electronic Fund Transfer, payment by credit card is not anonymous. Since paying with a credit card does not involve a store of funds, deposit insurance and reserve requirements are not directly relevant. The bank that issues the card is liable and thus merchants are paid if the cardholders default. If the issuing bank fails, the credit card association guarantees payment to merchants with outstanding transactions and then has a creditor’s claim on failed banks. The study has concluded that complexity in the usage of credit cards, it is necessary to make the customers to know how to operate the credit cards for specific purpose. In order to facilitate the customers to carry the cards with them, effective protective measures must be taken to protect the cards against operational and security risk.