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Metastable Nanosized Diamond Formation from Fluid Systems S. K. Simakova, aGeological Department, St.Petersburg University, 7/9 Universitetskaya Nab., St.Petersburg, 199034, Russia

The model of nanosized diamond particles formation at metastable P-T parameters from fluid is presented. It explains the specific of CVD diamond synthesis gases mixtures and hydrothermal growth of diamond at low P-T parameters as well as it explains the geneses of metamorphic and magmatic nano- and microdiamond in the shallow depth Earth rocks and the genesis of interstellar nanodiamond formations in the space.

The optimal gases system compositions for metastable diamond formations have been long debated in many publications during the long period. Badziag et al.1 came to the conclusion that nanometer-sized diamonds could be more stable than graphite when formed from hydrocarbons with a H/C ratio of more than 0.24. Simakov2 has shown that the addition of oxygen to the hydrocarbon gases can stabilize the diamond nucleus formation in the P-T field of graphite stability. The question of whether diamond could be grown under hydrothermal conditions mimicking those under which it is formed in the Earth has been also long debated3,4. Roy et al.5 have made the detailed study of the hydrothermal growth of diamond in the C-H-O and C-H-O-halogen systems. Shimansky et al.6 have claimed hydrothermal growth of diamond but no details were given on the composition of the liquid and the characterization of the phases. Zhao et al.7 provided the diamond hydrothermal synthesis from the mixture of the glassy carbon, powdered nickel, diamond seeds and water at 800o C and 1.4 kbar. From another hand, Bachmann et al.8 have analysed gaseous compositions of the different 78 CVD diamond syntheses and shown that their compositions lie in the corridor extended range from H to CO compositions of the C-O-H system. The triangularly shaped “diamond domain” is adjusted along the CO line of the diagram and is limited by the lines XCO2 0.57 on its carbon-rich side and XCO2 0.45 on its oxygen-rich side (see Fig. 1 in ref. 8). The main part of the synthesis compositions lies in the middle part of the domain between methane and acetylene lines meanwhile only the lesser part corresponds to hydrogen.

For diamond, it has been argued, that crystallization under P-T conditions, where diamond is actually thermodynamically unstable with respect to graphite, is possible due to kinetic factors 9,10. Nanosize diamond particles have energetic preference upon graphitic particles of the same size and could be more stable at low P-T parameters (ref.1)11-13. Fedoseev et al.14 have shown that critical radii of graphite and diamond nuclei depends upon the surface energy (s), atomic volume of carbon (V) and chemical potential of the resaturation (Dm):

rg/rd = Vgsg Dmd / Vdsd Dmg (1)

s of nanosized diamond (d) and graphite (g) particles depends upon temperature and size of the particles15. From sg/sd relation given in16 and from (ref.12) it follows that for nanoparticles Vgsg/Vdsd 1. Than rg/rd ratio could be expressed as:

rg/rd = Dmd / Dmg (2)

On the other hand the chemical potentials of the resaturation for diamond and graphite could be expressed as follows:

Dmg =RTln(Pi/Pig) (3)

Dmd =RTln(Pi/Pid) (4)

where Pi and Pig,d are the real and equilibrium pressures of carbonaceous gases

As it follows from equations (2-4), (rg/rd) depends on the ratio between real and calculated equilibrium pressures of carbonaceous gases. Within the range of graphite stability Pig <>d, which corresponds to preferable graphite formation from fluid phase. The condition of preferable diamond formation corresponds to Pig > Pid. The difference between Dmg and Dmd depends upon the difference of Pi/Pig and Pi/Pid , and at lower Picar it tends to zero, which corresponds to optimal condition of diamond formation from gaseous mixture within the range of graphite stability.

In the hydrocarbon-hydrogen mixture the gas-solid reaction of hydrocarbon destruction could be proposed for carbon formation in a fluid:

CH4 ® C + 2H2 (I)

At high temperatures equilibrated pressure of hydrogen would be greater than equilibrated pressure of methane and in vacuum PCH4(d) tends to PCH4(g) (Fig.1,A). The predomination of hydrogen under hydrocarbon in the gaseous mixture has also suppressed the growth rate of graphite more than it suppressed the growth rate of diamond (ref.10). As a result, it could stabilize the diamond growth at these conditions. Based on this effect, Deryagin and Fedoseev (ref.9) have grown diamond on the diamond seeds at vacuum conditions.

Subsequent work has shown that the addition of oxygen to the hydrocarbon gases can stabilize the diamond nucleus formation in the P-T range of graphite stability (ref.2). This conclusion coincides with the established fact that diamond is more stable in the oxygen environment than graphite, because oxygen reduces graphite to a greater degree than diamond17. Calculations done for the C-O-H system show that PCH4(car) is very low within the ranges of the system, close to the upper limit of carbon stability by oxygen (CCO buffer)18. Within the ranges at lower pressure and temperature, PCH4(g) PCH4(d), which corresponds to diamond nucleus stabilization.

The presented model explains the extended Bachmann’s “diamond domain” along the CO line from H to CO compositions in the C-O-H system (ref. 8). The fluid calculations performed at 1000o C and 10-3 bar within the wide range of oxygen fugacity show that the diamond stability range corresponds in more degree to CO composition and in less degree to H2 composition of the gases mixture (Fig. 1,A).

From the calculations it follows that this model provides a common basis for low-pressure diamond CVD methods. It comprises and connects data for more than 30 years of diamond CVD. By means of this model, special relations between very different source gasses and gas mixtures become clear. On the other hand, the model explains the possibility of metastable hydrothermal growth of the diamond too (Fig. 1, C). Our experiments at 500°C and total pressure of nearly 1000 bar from water liquid of organic matter proved the possibility of nanodiamond formation from C-O-H fluids at low temperatures and pressures without seeds 19. The determined relations may help to develop new models of the surface processes and growth species needed for diamond deposition.

It is known that the bulk of Earth diamonds is formed due to the deep upper mantle rocks - kimberlites formed at P and T corresponding to diamond thermodynamic stability. Meanwhile for the last 40 years micro- and nanodiamonds have also been found in shallow metamorphic earth rocks formed at P-T parameters corresponding to graphite thermodynamic stability 20-22 as well as in the basalts 23,24. The highest grade is observed in hydrothermal metasomatic zones of Kokchetave metamorphic massive situated in Northern Kazakhstan 25. The fluid calculations performed at P-T parameters corresponded to Hawaiian basalt formation show that the diamond stability range here corresponds to CO2 and H2O compositions of the fluid (Fig. 1,B). It explains the relationship of Hawaiian nanodiamonds with carbon dioxide fluids (ref.24). The calculations performed at lower P-T parameters corresponded to hydrothermal metasomatic zones of Kokchetave metamorphic massive formation show that the diamond stability range also corresponds to CO2 and H2O compositions of the fluid (Fig. 1,C). It explains the relationship of the Kokchetave diamonds with water and carbon dioxide26.

The origin of diamonds in the interstellar space has been a topic of intense discussion since the discovery of presolar nanodiamonds in chondrites 27. Meteoritic nanodiamonds provide information on the nucleosynthesis of evolved stars and the evolution of the astrophysical environment, which formed the solar system. Sellgren 28 identified the relationship between the interstellar diamond and water ice. Nakano et al.29 related interstellar diamond formation with organic matter. Based on these relationships Kouch et al.30 identified new formation routes of diamond in the interstellar clouds and parent bodies of carbonaceous chondrites during laboratory experiments. It’s the ice mixture of H2O, CO, NH3 and CH 4 (4 : 2 : 2 : 1). The questions of when and how does nanodiamonds originate in the Cosmos remain open, although comparative microstructural analysis of nanodiamonds extracted from meteorites, indicates that the majority of cosmic nanodiamonds are formed by low-pressure vapor condensation31. The fluid calculations performed at 250o C and 10-3 bar show that the diamond stability range here corresponds to CO2 and H2O compositions of the fluid (Fig. 1,D). It explains the relationship of interstellar diamonds with water (ref. 28).

The presented in the paper model explains the specificity of the CVD diamond synthesis gas compositions and the hydrothermal growth of diamond at low P-T parameters as well as the geneses of metamorphic and magmatic nano- and microdiamond in the shallow depth Earth rocks and of interstellar nanodiamonds in the space at P-T parameters corresponding to graphite stability. Nanosized diamond particles could be formed from carbon-bearing fluids at low temperatures and pressures without seeds in the range of the upper limit of carbon stability by oxygen.

References:

1. Badziag, P., Verwoerd, W.S., Ellis, W.P., Greimer N.R. Nanometer-sized diamonds are more stable than graphite. Nature. 343, 244-245. (1990)

2. Simakov, S.K. Thermodynamic estimation of oxygen-hydrogen conditions influence on diamond and graphite critical nucleus formation at processes of methane destruction at low pressures. Rus. J. Phys.-Chem. 69, 3460-347. (1995)

3. Shatsky, V. S., Sobolev, N. V. Origin of diamonds in metamorphic rocks. Dokl. Akad. Nauk. 331, 217-219. (1993)

4. DeVries, R. C., Roy, R., Somiya, S., Yamada, S. A review of liquid phase systems pertinent to diamond synthesis. Trans. Mat. Res. Soc. Jap. 14B, 1421-1445. (1994)

5. Roy, R., Ravichandran, D., Ravindranathan, P., Badzian, A. Evidence for hydrothermal growth of diamond in the C-H-O and C-H-O halogen system. J. Materi. Res., 11, 1164-1168. (1996)

6. Szymanski, A., Abgarowicz, E., Bakon, A., Niedbalska, A., Salacinski, R., Sentek, J. Diamond formed at low pressures and temperatures through liquid-phase hydrothermal synthesis. Diam. Relat. Mater., 4, 234-235. (1995)

7. Xing-Zhong Zhao, Rustum, R., Kuruvilla A. C., A. Badzian. Hydrothermal growth of diamond in metal–C–H2O systems. Nature 385, 513 – 515. (1996)

8. Bachmann, P.K., Leers, D., Lydtin, H. Towards a general concept of diamond chemical vapour deposition. Diam. Relat. Mater., 1, 1-12. (1991)

9. Deryagin, B.V. & Fedoseev, D.V. Growth of diamond and graphite from the gas phase. Nauka, Moscow. 115 p. (1977)

10. Chauhan, S.P., Angus, J.C. & Gardner, N.C. Kinetics of carbon deposition on diamond powder. J.Appl. Phys. 47, 4746-4754 (1976)

11. Chaikovskii, E.F., Rosenberg, G.H. Phase diagram of carbon and possibility of diamond formation at low pressures. Dokl. Akad. Nauk SSSR 279, 1372-1375. (1984)

12. Gamarnik, M.Y. Energetical preference of diamond nanoparticles. Physical Rev. B. 54, 2150-2156. (1996)

13. Tawson, V.L., Abramovich, M.G. Polymorphism of crystals and phases size effect: transformation diamond to graphite. Dokl. Akad. Nauk SSSR 287, 291-295. (1986)

14. Fedoseev, D.V., Deryagin, B.V., Varshavskaya, I.G., Semenova-Tyan-Shanskaya, A.S. Diamond crystallization. Nauka, Moscow. 134 p. (1984)

15. Magomedov, M.N. About the relationship of surface energy with size and form of nanocrystals. Phys. Tverd. Tela. 46, 924-937. (2004)

16. Nuth, J. A. Small-particle physics and interstellar diamonds. Nature. 329, 589. (1987)

17. Rudenko, A.P., Kulakova, I.I., Skvortsova, V.I. Chemical diamond synthesis. Aspects of general theory. Usp. Him. (Rus. Chem. Rev.) 62, 99-117. (1993)

18. Simakov, S.K. Redox state of Earth's upper mantle peridotites under the ancient cratons and its connection with diamond genesis. Geoch. Cosm. Acta. 62, 1811-1820. (1998)

19. Simakov, S.K., Dubinchuk, V.T., Baidakova, M.V. Synthesis of nanosize diamond and diamondlike phases at lower temperatures and pressures. NDNC2007 Abstract Book. 279. (2007)

20. Rozen, O.M., Zorin, U.M. & Zayachkovsky, A.A. Diamond foundation in connection of precambrian eclogites of Kokchetave massive. Dokl. Akad. Nauk SSSR. 203, 674-676. (1972)

21. Dobrzhinetskaya, L.F., Eide, E.A., Larsen, R.B., Sturt, B.A., Tronnes, R.G., Smith, D.C., Taylor, W.R., Posukhova, T.V. Microdiamonds in high-grade metamorphic rocks of the Western Gneiss region, Norway. Geology. 23, 597-600. (1995)

22. Sobolev, N.V., Shatsky, V.S. Diamond inclusions in garnets from metamorphic rocks; a new environment for diamond formation. Nature. 343, 742-746. (1990)

23. Novgorodova, M.I., Rasskazov, A.V. High-pressure carbon mineral phase formation as a result of heat explosion at shift transformation of graphite. Dokl. Akad. Nauk SSSR. 322, 379-381. (1992)

24. Wirth, R., Rocholl, A. Nanocrystalline diamonds from the Earth’s mantle underneath Hawaii. Earth Plan. Scie. Lett. 211, 357-362. (2003)

25. Pechnikov, V.A., Kaminsky, F.V. Diamond potential of metamorphic rocks in the Kokchetav Massif, northern Kazakhstan. Eur. J. Mineral. 20, 395–413. (2008)

26. De Corte, K., Cartigny, P., Shatsky, V.S., De Paepe, P., Sobolev, M.V., Jovay, M. Characteristics of microdiamond from UHPM rocks of the Kokchetav massif (Kazakhstan). Proc. VIIth Int. Kimb. Conf. 2, 174-182. (1999)

27. Bernatowicz, T., Zinner, E.. Astrophysical Implications of the Laboratory Study of Presolar Materials, AIP Conference Proceedings 402, New York. (1997)

28. Sellgren, K. Aromatic hydrocarbons, diamonds, and fullerence in interstellar space: puzzles to be solved by laboratory and theoretical astrochemistry. Spectrochimica Acta P.A. 57, 627-642. (2001)

29. Nakano, H., Kouchi, A., Arakawa, M., Kimura, Y., Kaito, C., Ohno, H., Hondoh, T. Alteration of interstellar organic materials in meteorites’ parent bodies: a novel route in diamond formation. Proc. Japan Acad. Ser. B. 78, 277-281. (2002)

30. Kouchi, A., Nakano, H., Kimura1, Y., Kaito, C. Novel routes for diamond formation in interstellar ices and meteoritic parent bodies. The Astrophysical Journal. 626, L129–L132. (2005)

31.Daulton, T.L. Extraterrestrial nanodiamonds in the cosmos. In: Ultrananocrystalline diamond. William-Andrew. Norwich. UK., 23-79 (2006)





Sunday, 21 February 2010

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A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrowerIn a loan, the borrower initially receives or borrows an amount of money, called the principal, from the lender, and is obligated to pay back or repay an equal amount of money to the lender at a later time. Typically, the money is paid back in regular installments, or partial repayments; in an annuity, each installment is the same amount. The loan is generally provided at a cost, referred to as interest on the debt, which provides an incentive for the lender to engage in the loan. In a legal loan, each of these obligations and restrictions is enforced by contract, which can also place the borrower under additional restrictions known as loan covenants. Although this article focuses on monetary loans, in practice any material object might be lent.Acting as a provider of loans is one of the principal tasks for financial institutions. For other institutions, issuing of debt ontracts such as bonds is a typical source of funding.SecuredA secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as collateral for the loan.A mortgage loan is a very common type of debt instrument, used by many individuals to purchase housing. In this arrangement, the money is used to purchase the property. The financial institution, however, is given security — a lien on the title to the house — until the mortgage is paid off in full. If the borrower defaults on the loan, the bank ould have the legal right to repossess the house and sell it, to recover sums owing to it.In some nstances, a oan taken out to purchase a new or used car may be secured by the car, in much the same way as a ortgage is secured by housing. The duration of the loan period is considerably shorter — ften rresponding to the useful life of the car. There are two types of auto loans, direct and indirect. A direct auto loan is where a bank gives the loan directly to a consumer. An indirect auto loan is where a car ealership acts as an intermediary between the bank or financial institution and the consumer.A type of loan especially used in limited partnership agreements is the recourse note.A stock hedge loan is a special type of securities lending whereby the stock of a borrower is hedged by the lender against loss, using options or other hedging strategies to reduce lender risk.[citation needed]A pre-settlement loan is a non-recourse debt, this is when a monetary loan is given based on the merit and awardable amount in a lawsuit case. Only certain types of lawsuit cases are eligible for a pre-settlement loan.[citation needed] This is considered a secured non-recourse debt due to the fact if the case reaches a verdict in favor of the defendant the loan is forgiven.UnsecuredUnsecured loans are monetary loans that are not secured against the borrower's assets. These may be available from financial institutions under many different guises or marketing packages: * credit card debt * personal loans * bank overdrafts * credit facilities or lines of credit * corporate bondsThe interest rates applicable to these different forms may vary depending on the lender and the borrower. These may or may not be regulated by law. In the United Kingdom, when applied to individuals, these may come under the Consumer Credit Act 1974.A credit card is part of a system of payments named after the small plastic card issued to users of the system. It is a card entitling its holder to buy goods and services based on the holder's promise to pay for these goods and services.[1] The issuer of the card grants a line of credit to the consumer (or the user) from which the user can borrow money for payment to a merchant or as a cash advance to the user.A credit card is different from a charge card, where a charge card requires the balance to be paid in full each month. In contrast, credit cards allow the consumers to 'revolve' their balance, at the cost of having interest charged. Most credit cards are issued by local banks or credit unions, and are the shape and size specified by the ISO/IEC 7810 standard as ID-1.Credit cards are issued after an account has been proved by the credit provider, after which cardholders can use it to make purchases at merchants accepting that card.When a purchase is made, the credit card user agrees to pay the card issuer. The cardholder indicates consent to pay by signing a receipt with a record of the card details and indicating the amount to be paid or by entering a personal identification number (PIN). Also, many merchants now accept verbal authorizations via telephone and electronic authorization using the Internet, known as a 'Card/Cardholder Not Present' (CNP) transaction.lectronic verification systems allow merchants to verify that the card is valid and the credit card customer has sufficient credit to cover the purchase in a few seconds, allowing the verification to happen at time of purchase. The verification is performed using a credit card payment terminal or Point of Sale (POS) system with a communications link to the merchant's acquiring bank. Data from the card is obtained from a magnetic stripe or chip on the card; the latter system is in the United Kingdom and Ireland commonly known as Chip and PIN, but is more technically an EMV card.Other variations of verification systems are used by eCommerce merchants to determine if the user's account is valid and able to accept the charge. These will typically involve the cardholder providing additional information, such as the security code printed on the back of the card, or the address of the cardholder.Each month, the credit card user is sent a statement indicating the purchases undertaken with the card, any outstanding fees, and the total amount owed. After receiving the statement, the cardholder may dispute any charges that he or she thinks are incorrect (see Fair Credit Billing Act for details of the US regulations). Otherwise, the cardholder must pay a defined minimum proportion of the bill by a due date, or may choose to pay a higher amount up to the entire amount owed. The credit provider charges interest on the amount owed if the balance is not paid in full (typically at a much higher rate than most other forms of debt). Some financial institutions can arrange for automatic payments to be deducted from the user's bank accounts, thus avoiding late payment altogether as long as the cardholder has sufficient funds.Credit card issuers usually waive interest charges if the balance is paid in full each month, but typically will charge full interest on the entire outstanding balance from the date of each purchase if the total balance is not paid.For example, if a user had a $1,000 transaction and repaid it in full within this grace period, there would be no interest charged. If, however, even $1.00 of the total amount remained unpaid, interest would be charged on the $1,000 from the date of purchase until the payment is received. The precise manner in which nterest is charged is usually detailed in a cardholder agreement which may be summarized on the back of the monthly statement. The general calculation formula most financial institutions use to determine the amount of interest to be charged is APR/100 x ADB/365 x number of days revolved. Take the Annual percentage rate (APR) and divide by 100 then multiply to the amount of the average daily balance (ADB) divided by 365 and then take this total and multiply by the total number of days the amount revolved before payment was made on the account. Financial institutions refer to interest charged back to the original time of the transaction and up to the time a payment was made, if not in full, as RRFC or residual retail finance charge. Thus after an amount has revolved and a payment has been made, the user of the card will still receive interest charges on their statement after paying the next statement in full (in fact the statement may only have a charge for interest that collected up until the date the full balance was paid...i.e. when the balance stopped revolving).[3]The credit card may simply serve as a form of revolving credit, or it may become a complicated financial instrument with multiple balance segments each at a different interest rate, possibly with a single umbrella credit limit, or with separate credit limits applicable to the various balance segments. Usually this compartmentalization is the result of special incentive offers from the issuing bank, to encourage balance transfers from cards of other issuers. In the event that several interest rates apply to various balance segments, payment allocation is generally at the discretion of the issuing bank, and payments will therefore usually be allocated towards the lowest rate balances until paid in full before any money is paid towards higher rate balances. Interest rates can vary considerably from card to card, and the interest rate on a particular card may jump dramatically if the card user is late with a payment on that card or any other credit instrument, or even if the issuing bank decides to raise its revenue.Benefits to customersBecause of intense competition in the credit card industry, credit card providers often offer incentives such as frequent flyer points, gift certificates, or cash back (typically up to 1 percent based on total purchases) to try to attract customers to their programs. However it should be noted that the incentive is insignificant to the interest charged for carrying a balance.Low interest credit cards or even 0% interest credit cards are available. However, services are available which alert credit card holders when their low interest period is due to expire. Most such services charge a monthly or annual fee.Benefits to merchantsn example of street markets accepting credit cards. Most simply display the logos (shown in the upper-left corner of the sign) of all the cards they accept.For merchants, a credit card transaction is often more secure than other forms of payment, such as checks, because the issuing bank commits to pay the merchant the moment the transaction is authorized, regardless of whether the consumer defaults on the credit card payment (except for legitimate disputes, which are discussed below, and can result in charges back to the merchant). In most cases, cards are even more secure than cash, because they discourage theft by the merchant's employees and reduce the amount of cash on the premises. Prior to credit cards, each merchant had to evaluate each customer's credit history before extending credit. That task is now rformed by the banks which assume the credit risk. Credit cards can also aid in securing a sale, especially if the customer does not have enough cash on his or her person or checking account.For each purchase, the bank charges the merchant a commission (discount fee) for this service and there may be a certain delay before the agreed payment is received by the merchant. The commission is often a percentage of the transaction amount, plus a fixed fee. In addition, a merchant may be penalized or have their ability to receive payment using that credit card restricted if there are too many cancellations or reversals of charges as a result of disputes. Some small merchants require credit purchases to have a minimum amount (usually between $5 and $10) to compensate for the transaction costs, though this is strictly prohibited by credit card companies and credit card companies attempt to get consumers to report such merchants.[4]In some countries, for example the Nordic countries, banks guarantee payment on stolen cards only if an ID card is checked and the ID card number/civic registration number is written down on the receipt together with the signature. In these countries merchants therefore usually ask for ID. Non-Nordic citizens, who are unlikely to possess a Nordic ID card or driving license, will instead have to show their passport, and the passport number will be written down on the receipt, sometimes together with other information. Some shops use the card's PIN for identification, and in that case showing an ID card is not necessary.[edit] Costs to merchantsMerchants are charged many fees for the privilege of accepting credit cards. The merchant may be charged a discount rate of 1%-3%+ of each transaction obtained through a credit card. Usually, the merchant will also pay a flat per-item charge of $0.05 - $0.50 for each transaction. Thus in some instances of very low value transactions, use of credit cards may actually cause the merchant to lose money on the transaction. Merchants choose to pay these costs in exchange for the increased profitable sales they can create. Thus, they are considering part of the overall cost of marketing. Merchants with very low average transaction prices or very high average transaction prices are more averse to accepting credit cards. But rates are often reduced in an attempt to include more of these types of merchants.Transaction steps * Authorization: The cardholder pays for the purchase and the merchant submits the transaction to the acquirer (acquiring bank). The acquirer verifies the credit card number, the transaction type and the amount with the issuer (Card-issuing bank) and reserves that amount of the cardholder's credit limit for the merchant. An authorization will generate an approval code, which the merchant stores with the transaction. * Batching: Authorized transactions are stored in "batches", which are sent to the acquirer. Batches are typically submitted once per day at the end of the business day. If a transaction is not submitted in the batch, the authorization will stay valid for a period determined by the issuer, after which the held amount will be returned back to the cardholder's available credit (see authorization hold). Some transactions may be submitted in the batch without prior authorizations; these are either transactions falling under the merchant's floor limit or ones where the authorization was unsuccessful but the merchant still attempts to force the transaction through. (Such may be the case when the cardholder is not present but owes the merchant additional money, such as extending a hotel stay or car rental.) * Clearing and Settlement: The acquirer sends the batch transactions through the credit card association, which debits the issuers for payment and credits the acquirer. Essentially, the issuer pays the acquirer for the transaction. * Funding: Once the acquirer has been paid, the acquirer pays the merchant. The merchant receives the amount totaling the funds in the batch minus the "discount rate," which is the fee the merchant pays the acquirer for processing the transactions. * Chargebacks: A chargeback is an event in which money in a merchant account is held due to a dispute relating to the transaction. Chargebacks are typically initiated by the cardholder. In the event of a chargeback, the issuer returns the transaction to the acquirer for resolution. The acquirer then forwards the chargeback to the merchant, who must either accept the chargeback or contest it.[edit] Secured credit cardsA secured credit card is a type of credit card secured by a deposit account owned by the cardholder. Typically, the cardholder must deposit between 100% and 200% of the total amount of credit desired. Thus if the cardholder puts down $1000, they will be given credit in the range of $500–$1000. In some cases, credit card issuers will offer incentives even on their secured card portfolios. In these cases, the deposit required may be significantly less than the required credit limit, and can be as low as 10% of the desired credit limit. This deposit is held in a special savings account. Credit card issuers offer this because they have noticed that delinquencies were notably reduced when the customer perceives something to lose if the balance is not repaid.The cardholder of a secured credit card is still expected to make regular payments, as with a regular credit card, but should they default on a payment, the card issuer has the option of recovering the cost of the purchases paid to the merchants out of the deposit. The advantage of the secured card for an individual with negative or no credit history is that most companies report regularly to the major credit bureaus. This allows for building of positive credit history.Although the deposit is in the hands of the credit card issuer as security in the event of default by the consumer, the deposit will not be debited simply for missing one or two payments. Usually the deposit is only used as an offset when the account is closed, either at the request of the customer or due to severe delinquency (150 to 180 days). This means that an account which is less than 150 days delinquent will continue to accrue interest and fees, and could result in a balance which is much higher than the actual credit limit on the card. In these cases the total debt may far exceed the original deposit and the cardholder not only forfeits their deposit but is left with an additional debt.Most of these conditions are usually described in a cardholder agreement which the cardholder signs when their account is opened.Secured credit cards are an option to allow a person with a poor credit history or no credit history to have a credit card which might not otherwise be available. They are often offered as a means of rebuilding one's credit. Secured credit cards are available with both Visa and MasterCard logos on them. Fees and service charges for secured credit cards often exceed those charged for ordinary non-secured credit cards, however, for people in certain situations, (for example, after charging off on other credit cards, or people with a long history of delinquency on various forms of debt), secured cards can often be less expensive in total cost than unsecured credit cards, even including the security deposit.Sometimes a credit card will be secured by the equity in the borrower's home.[6][7] This is called a home equity line of credit (HELOC).[edit] Prepaid "credit" cardsSee also: Stored-value cardA prepaid credit card is not a credit card,[8] since no credit is offered by the card issuer: the card-holder spends money which has been "stored" via a prior deposit by the card-holder or someone else, such as a parent or employer. However, it carries a credit-card brand (Visa, MasterCard, American Express or Discover) and can be used in similar ways just as though it were a regular credit card.[8][9]After purchasing the card, the cardholder loads the account with any amount of money, up to the predetermined card limit [10] and then uses the card to make purchases the same way as a typical credit card. Prepaid cards can be issued to minors (above 13) since there is no credit line involved. The main advantage over secured credit cards (see above section) is that you are not required to come up with $500 or more to open an account. [11] With prepaid credit cards you are not charged any interest but you are often charged a purchasing fee plus monthly fees after an arbitrary time period. Many other fees also usually apply to a prepaid card.[8]Prepaid credit cards are sometimes marketed to teenagers[8] for shopping online without having their parents complete thection.[12][13][14][15]Because of the many fees that apply to obtaining and using credit-card-branded prepaid cards, the Financial Consumer Agency of Canada describes them as "an expensive way to spend your own money".[16] The agency publishes a booklet, "Pre-paid cards",[17] which explains the advantages and disadvantages of this type of prepaid card.[edit] FeaturesAs well as convenient, accessible credit, credit cards offer consumers an easy way to track expenses, which is necessary for both monitoring personal expenditures and the tracking of work-related expenses for taxation and reimbursement purposes. Credit cards are accepted worldwide, and are available with a large variety of credit limits, repayment arrangement, and other perks (such as rewards schemes in which points earned by purchasing goods with the card can be redeemed for further goods and services or credit card cashback).Some countries, such as the United States, the United Kingdom, and France, limit the amount for which a consumer can be held liable due to fraudulent transactions as a result of a consumer's credit card being lost or stolen.[edit] Security problems and solutionsMain article: Credit card fraudCredit card security relies on the physical security of the plastic card as well as the privacy of the credit card number. Therefore, whenever a person other than the card owner has access to the card or its number, security is potentially compromised. Once, merchants would often accept credit card numbers without additional verification for mail order purchases. It's now common practice to only ship to confirmed addresses as a security measure to minimise fraudulent purchases. Some merchants will accept a credit card number for in-store purchases, whereupon access to the number allows easy fraud, but many require the card itself to be present, and require a signature. A lost or stolen card can be cancelled, and if this is done quickly, will greatly limit the fraud that can take place in this way. For internet purchases, there is sometimes the same level of security as for mail order (number only) hence requiring only that the fraudster take care about collecting the goods, but often there are additional measures. <--The main one is to require a security PIN with the card, which requires that the thief have access to the card, as well as the PIN. Commented out: Doesn't quite make sense in this section as PINs are not used for "card not present" transactions. Comment following is nonsense: PINs are for ATM and debit cards, not credit cards.-->The PCI DSS is the security standard issued by The PCI SSC (Payment Card Industry Security Standards Council). This data security standard is used by acquiring banks to impose cardholder data security measures upon their merchants.The low security of the credit card system presents countless opportunities for fraud. This opportunity has created a huge black market in stolen credit card numbers, which are generally used quickly before the cards are reported stolen.The goal of the credit card companies is not to eliminate fraud, but to "reduce it to manageable levels".[18] This implies that high-cost low-return fraud prevention measures will not be used if their cost exceeds the potential gains from fraud reduction - as would be expected from organisations whose goal is profit maximisation.Most internet fraud is done through the use of stolen credit card information which is obtained in many ways, the simplest being copying information from retailers, either online or offline. Despite efforts to improve security for remote purchases using credit cards, systems with security holes are usually the result of poor implementations of card acquisition by merchants. For example, a website that uses SSL to encrypt card numbers from a client may simply email the number from the webserver to someone who manually processes the card details at a card terminal. Naturally, anywhere card details become human-readable before being processed at the acquiring bank, a security risk is created. However, many banks offer systems where encrypted card details captured on a merchant's web server can be sent directly to the payment processor.Controlled Payment Numbers which are used by various banks such as Citibank (Virtual Account Numbers), Discover (Secure Online Account Numbers, Bank of America (Shop Safe), 5 banks using eCarte Bleue and CMB's Virtualis in France, and Swedbank of Sweden's eKort product are another option for protecting one's credit card number. These are generally one-time use numbers that front one's actual account (debit/credit) number, and are generated as one shops on-line. They can be valid for a relatively short time, for the actual amount of the purchase, or for a price limit set by the user.





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