Various credit cards Credit Card (English: Credit Card) is a non-cash transaction payment method and a simple credit service. A credit card is generally a plastic card with a length of 85.60 mm, a width of 53.98 mm, and a thickness of 1 mm (the size is defined by the ISO 7810 and 7816 series of documents). It is issued to the cardholder by the bank or credit card company based on the user's creditworthiness and financial resources. Cardholders do not need to pay cash when making purchases with a credit card, and repayment will be made on the settlement date. Except for some credit cards combined with debit cards, general credit cards are different from debit cards and cash cards in that credit cards will not directly deduct funds from the user's account.

Origin:

Credit cards originated in the United States in 1915.

The earliest institutions to issue credit cards were not banks, but department stores, restaurants, entertainment industries and gasoline companies. In order to attract customers, promote goods, and expand turnover, some stores and restaurants in the United States selectively issue credit chips similar to metal badges to customers within a certain range. Later, they evolved into cards made of plastic as customer purchases. As proof of consumption of goods, we have launched a credit sales service business for purchasing goods at our store or company or gasoline station with credit chips. Customers can purchase goods on credit at these stores and branches that issue chips and pay on schedule. This is the prototype of the credit card.

It is said that one day, American businessman Frank McNamara was entertaining guests for a meal in a New York hotel. After the meal, he found that he had forgotten his wallet with him. He was deeply embarrassed and had to call his wife to bring it with him. Pay cash at the hotel. So McNamara came up with the idea of ??starting a credit card company. In the spring of 1950, McNamara and his friend Schneider invested US$10,000 to establish the "Diners Club" in New York, the predecessor of Diners Club. Diners Club provides members with a card that can prove their identity and payment ability. Members can use the card to record their purchases. This kind of credit card that does not require bank processing is still a commercial credit card.

In 1952, Franklin National Bank in California, USA, was the first financial institution to issue a bank credit card.

In 1959, Bank of America issued the Bank of America card in California. Since then, many banks have joined the ranks of card-issuing banks. By the 1960s, bank credit cards were quickly welcomed by all walks of life and developed rapidly. Credit cards became popular not only in the United States, but also in the United Kingdom, Japan, Canada and European countries. Since the 1970s, developing countries and regions such as Hong Kong, Taiwan, Singapore, and Malaysia have also begun to issue credit cards.

Features;

General credit card pass features

Consumption first, pay later

Usually does not have deposit function, overpayment occurs No interest is calculated on the payment

There is interest-free repayment treatment for sales (Sales) transactions, which is generally subject to full payment 20-30 days after the settlement of the month

Interest is generally based on Interest is calculated with daily simple interest and monthly compound interest

Mainland China

They are all issued by banks

There is a minimum repayment amount

Those who fail to repay the minimum repayment amount on time will be charged punitive interest or late fees; those who overdraft maliciously will be punished with fraud.

There is no national personal credit information collection agency, so the review is more complicated. In addition to providing identity documents, you are often required to provide proof of employment, property, financial resources, and sometimes a guarantee.

A kind of credit card called "quasi-credit card" has the following characteristics: interest is calculated on deposits and there is no interest-free repayment period. It can also be regarded as an ATM card that can be overdrafted.