The definition of credit card: A credit card is a special carrier card with consumer credit issued by commercial banks to individuals and organizations, which can be used to shop and consume with special organizations and deposit and withdraw cash from banks. , in the form of a card with the name of the issuing bank, validity period, number, cardholder name and other contents printed on the front, and a magnetic stripe and signature strip on the back.

Credit cards are divided into two types: credit cards and quasi-credit cards according to whether a reserve fund is deposited with the card-issuing bank. A credit card is a certain credit limit granted by the card-issuing bank to the cardholder. The cardholder can A credit card where you spend money within the credit limit first and pay back later. A quasi-credit card is a credit card that requires a certain amount of reserve deposit to be deposited first as required by the card-issuing bank.

What we call credit cards now generally refers to credit cards only. The most popular way to put it is: when your shopping needs exceed your ability to pay, you can borrow money from the bank. A credit card is a certificate that the bank agrees to lend you money based on your integrity. Your credit card will prompt you that you can How much money should I borrow from the bank and when will I pay it back? The credit card will also record your personal information and consumption details in order to provide you with comprehensive financial services.

In appearance, a credit card is about the size of an ID card and is generally made of special plastic. The front is printed with a specially designed pattern, the name and logo of the card issuer, and is printed in embossed or flat form. The card number, name of the holder, expiration date and other information; on the back of the card, there is a magnetic strip used to record relevant information, a signature strip for the cardholder to sign, and instructions from the card issuer. It is a consumer payment tool and is currently the most popular plastic currency after cash.

A credit voucher issued by a bank or company to prove that the holder is in good standing and can make accounted purchases in designated stores or places. Ordinary credit cards are about the size of an ID card and are generally made of special plastic. The name, number, expiration date, etc. of the holder are printed on the credit card in embossed characters.

In order to prevent fraudulent claims, some credit cards in recent years have been printed with the cardholder’s photo. When a customer makes a purchase and checks out, he only needs to hand his credit card to the store, and the cashier will put the credit card on the imprinting machine to imprint it. The embossed words will be printed on a triple document, and then the cardholder will print on the document. After signing, the store cashier checks the signature on the document and the signature pattern on the credit card to confirm the debited consumption, and the cardholder can purchase the required goods without paying cash. In addition to purchasing various commodities, dining, entertainment, and accommodation at special merchants with their card signatures, credit card holders can also make a certain limit of cash overdraft to the bank designated by the card issuer. Special merchants and designated acceptance banks collect payment from the card issuer based on the bill signed by the cardholder, and then the card issuer sends it to the cardholder for verification, and the payment must be made within the specified period. When the cardholder pays off the balance, the card issuer will charge interest on the overdraft amount in accordance with regulations. If the balance is not paid when due, penalty interest will be charged. The Origin of Credit Cards 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 at a hotel in New York. After the meal, he discovered that he had forgotten his wallet with him. He was deeply embarrassed and had to call his wife to bring cash to the hotel to settle the bill. 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. In 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 card services.

What are the categories of credit cards? There are many types of credit cards, which can usually be divided according to the following six standards:

(1) According to the credit card issuer, they can be divided into bank cards and non-bank cards;

(2) According to the storage medium of credit card information, it can be divided into magnetic stripe cards and chip cards;

(3) According to different payment methods, it can be divided into: credit cards, quasi-credit cards and debit cards;

(4) According to the different settlement currencies of credit cards, they can be divided into foreign currency cards and local currency cards;

(5) According to the different circulation scope, they can be divided into international cards and regional cards;

(6) According to the number of currencies in the credit card account, it can be divided into single-currency credit card and dual-currency credit card;

(7) According to the credit card affiliation, it can be divided into main card and dual-currency credit card. Supplementary cards;

(8) According to the different objects of credit card issuance, it can be divided into corporate cards and personal cards;

(9) According to the credit status and credit status of the cardholder, it can be divided into It is unlimited card, platinum card, gold card and ordinary card.

(10) According to the different shapes of credit cards, they can be divided into standard credit cards and special-shaped credit cards.