The issue is these cards reduce the hassle of carrying cash, which can often create problems for many individuals, and most of the commercial establishments support credit cards for making payments. Today, you can use your ATM or debit card to make payments for groceries, book your tickets, buys products from internet websites, and even buy automobiles. There are different types of cards available. The major difference is with debit or ATM cards you make payments from your bank account, while in case of credit cards you make your payments first, and subsequently pay for the expenses – within a pre-designated period. The main issue with these cards is that they don’t come cheap. You are required to pay special charges for using them. If you fail to pay your monthly dues in time, which is very frequently the case with many individuals, you may have to pay hefty fines – even as high as twenty-three percent in addition to the main outstanding amount.
A thin plastic card, generally 3-1/8 inches by 2-1/8 inches in size, which contains your identification, signature, a picture, and other bank related information, and which is used to transact money can be broadly understood as a credit card. With these cards, you buy things first, and make your payments later on. The bank charges a token amount for using the transaction system. These cards are typically read by automated teller machines or ATMs, point-of-sale counters in super stores, and can be used for making online payments using the internet.
The very first universal card was introduced by an organization known as Diners Club, Inc., in 1950. The card became very popular since it could be used in a variety of ways while shopping in stores, and making your business related payments. Typically, the card company charged a nominal annual fee in the form of a “membership” on a yearly basis. Later, another company called American Express introduced a similar card with the tag line “Don’t leave home without it!” These companies pioneered the credit card systems, as we know and understand them today. Almost every banking institution offers credit cards to facilitate the monitory transaction process.