Credit card is a payment method that you pay after consumption. As long as you have a relative official job with stable salary, you can apply a credit card from bank. But the card credit limit is different dependent on candidates’ application details. The bank will assign a credit limit for you according to your income level that presented on your profile. Generally as fresh men in working-class, when you have been successfully applied and received your credit card, the credit limit is around 8000~10000CNY in China. Along with your consumption level rises, within a couple of few years, your credit limit will be increased to 20000 to 30000.
In our daily life, credit card consumption is very universal. You can pay gas, water, phone, electricity bills by credit card. You can buy grocery in supermarket and shopping online by credit card payment to replace cash. Speak of shopping online, you may want to know, for example on Taobao, if a merchant or seller has not activated credit card payment processing, the buyer/customer will be charged a slightly fee. And the single transaction has limit of 500CNY. And the fee charged is different dependent on each bank policy. There is an special occasion for shipping on Taobao with fee charged. It’s international credit card (VISA、MasterCard、JCB) payment processing. There is around 3% processing fee. However, for a merchant, credit card payment processing has a lost pros:
The merchant has more payment options.
The credit card support large amount for single transaction, the merchant save time to receive payment by separating the order into smaller amount.
Credit card can stimulate customer consumption desire, which leads to an increase in transaction volume.
The credit card channel setup is easy and fast, the merchant can find a proper third party gateway or apply directly with their ecommerce shopping mall which supports it.