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The Secret History of the Credit Card

A credit card, a small plastic card containing a method of identification, such as a signature or photograph, that authorizes the person responsible to debit the account for goods or services, in which case the cardholder is charged periodically.
Credit card use began in the United States in the mid-1920s, when individual companies, such as oil companies and hotel chains, began offering customers to shop at corporate stores. The first international credit card, which could be used at multiple locations, was introduced by Diners’ Club, Inc., in 1950. Another great card of this type, known as the travel and entertainment card, was invented by the Americans.

Express Company in 1958. Under this scheme, the credit card company charges cardholders annual fees and bills them from time to time – usually monthly. Affiliate merchants around the world pay a credit card service fee of 4 to 7 percent of the total cost.
The most recent innovation was the bank credit card system, in which the bank credits the merchant’s account as a sales receipt and incorporates late payment to the cardholder, who pays the bank in full or monthly installments with interest or ” administrative costs” added. The first national program was BankAmericard, launched nationally by Bank of America in California in 1958, licensed in other states since 1966, and renamed VISA in 1976-77.

Many banks have started city or region-wide credit card schemes and have become linked to larger national banking systems as they expand their range of services (food and accommodation and in-store shopping). This update changed the personal credit type, which was no longer limited by location. The increase in access to credit networks allowed the purchase of credit cards across the country and, ultimately, around the world. The program has spread to all parts of the world. Other major bank cards include MasterCard (formerly known as Master Charge in the United States), JCB (Japan), Discover (which worked with Novus and was primarily issued in the United States), and Barclaycard (UK, Europe and the Caribbean).

In bank credit card systems, the cardholder can choose to pay in installments, when the bank receives interest on the remaining amount. Interest income allows banks to avoid charging cardholders annuities and charging participating merchants a lower service fee. An added benefit of this program is that merchants receive their payments faster by sending their sales credits to
Store cards are the third type of credit card. They do not have a wide acceptance range for bank cards or travel and entertainment cards because they are only accepted by the issuer.

In the late 20th century, the use of credit cards began to gain traction and many customers were quick to use the money they earned. Users who fail to make monthly payments on outstanding balances charged on high-interest cards are hit with high fines and quickly fall into the system. The economic slowdown and rising unemployment associated with the 2008-09 global financial crisis led to an increase in non-payment as consumers were forced to rely on debt. In April 2009, the US House of Representatives adopted a credit card rights bill, which will provide additional consumer protection and limit or eliminate credit card industry practices deemed unfair or abusive.

Credit card debt is often high in industrialized countries such as the United States – the most indebted country in the world – the UK and Australia. Non-industrialized countries and countries with strict extinction laws such as Germany, however, tend to have lower credit card debt.

Credit cards are somewhat similar to credit cards – for example, in appearance and function. However, unlike credit cards, in the case of a debit card transaction, the amount is immediately deducted from the bank account.

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