A credit card acts as a purchasing tool that enables consumers to make purchases without having to pay the full amount in cash upfront at the time of purchase. Credit cards also offer consumers with cash in advance service when they withdraw money from the ATM machine. However, the level of interest rate applied to all purchases will depend on each consumer's bank or financial institution and type of account. In market for credit cards, there is a limited amount of brands that consumers can choose from. These brand names range from Eurocard-Mastercard, Visa, American Express, JCD, Dinners Club. All of these credit cards have different features and benefits that attract different types of consumers. Most of them use one single authorization system, which acts like a security and authentication system that involves mainly the seller, and buyer to transmit the purchased data to the main processing system.
Please refer to A1 in the appendix for the diagram of this authorisation process.
VISA Corporation is comprised of 21,000 banks and other financial institutions around the world who issues the credit cards to its customers. VISA's long-term objective is to continue to envision universal commerce (U commerce) where "buyers and sellers can conduct commerce securely and conveniently... anywhere, anytime, any way they like" (VISA website). VISA's Consumer credit cards range from VISA Classic, VISA Gold, and VISA Platinum. VISA's strong brand image is composed of delivering to consumers all transaction purchases with acceptance, convenience, flexibility, and security. However, in order to continue to promote its brand image which relies heavily on the notion of VISA credit cards as a "safer payment method", VISA needs to increase its investment into Research & Development.
Being the global market leading product service provider, VISA need not "lay back and relax", while overlooking...