Breif History of Credit & Debit Cards

Credit Cards

A credit card allows consumers to purchase products or services without cash and to pay for them at a later date. To qualify for this type of credit, the consumer must open an account with a bank or company, which sponsors a card.Every month the sponsor provides a bill, which tallies the card activity during the previous 30 days. Depending on the terms of the card, the customer may pay interest charges on the amount that they do not pay for on a monthly basis. Also, credit cards may be sponsored by large retailers (such as major clothing or department stores) or by banks or corporations (like VISA or American Express).

Credits cards are a relatively recent development. The VISA Company, for example, traces its history back to 1958 when the Bank of America began its BankAmericard program. In the mid-1960s, the Bank of America began to license banks in the United States the rights to issue its special BankAmericards. In 1977 the name Visa was adopted internationally to cover all these cards. VISA became the first credit card to be recognized worldwide.

Design

Credit cards are designed with complex security features to prevent the possibility of fraud. These features involve the card's account number, million customers.)

Debit Card

An electronic card issued by a bank which allows bank clients access to their account to withdraw cash or pay for goods and services. This removes the need for bank clients to go to the bank to remove cash from their account as they can now just go to an ATM or pay electronically at merchant locations. This type of card, as a form of payment, also removes the need for checks as the debit card immediately transfers money from the client's account to the business account.

The major benefits to this type of card are convenience and security. Along with the convenience of accessing account funds at anytime it also removes the hassles associated with having to write checks as payment like showing ID and associated fees. Debit cards are also considered to be a safer form of payment as a code is required to access the account funds, while checks can be easily stolen.

Not all plastic is equal! Learn the difference between the three kinds, and how each can affect your finances. Credit, Debit And Charge: Sizing Up The Cards In Your Wallet
This owner's manual will show you what to expect from your bank. Your First Checking Account

Types of debit Card

Visa, MasterCard,Switch, Maestro, Master Card, Meastro etc


Credit & debit Cards are made off Chip & pin and magnetic tapes.New cards featuring both magnetic stripes and chips are being issued in increasing numbers by all major banks.

When a customer does not know their PIN, or the PIN verification fails, the cashier can instigate a PIN Bypass, allowing a signature to complete the

Benefits

Under the old system, a customer would have to hand their card to the assistant for each payment. In certain environments such as restaurants, for example, this often meant that the card would be taken away from the customer to the card machine. This is no longer the case with the introduction of Chip and PIN as wireless PIN pads have been introduced that can be brought to the customer's table.transaction.