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06-Mar-2020 11:03 by 2 Comments

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A credit card is a payment card issued to users (cardholders) to enable the cardholder to pay a merchant for goods and services based on the cardholder's promise to the card issuer to pay them for the amounts so paid plus the other agreed charges.The card issuer (usually a bank) creates a revolving account and grants a line of credit to the cardholder, from which the cardholder can borrow money for payment to a merchant or as a cash advance.

The record of the transaction included an impression of the embossed information, made by the imprinter pressing an inked ribbon against the charge slip.When an authorized user made a purchase, a clerk retrieved the plate from the store's files and then processed the purchase.Charga-Plates speeded back-office bookkeeping and reduced copying errors that were done manually in paper ledgers in each store.Both of these standards are maintained and further developed by ISO/IEC JTC 1/SC 17/WG 1.Credit cards have a magnetic stripe conforming to the ISO/IEC 7813.Not all credit cards have the same sets of extra codes nor do they use the same number of digits.

The concept of using a card for purchases was described in 1887 by Edward Bellamy in his utopian novel Looking Backward.

or embossed bank card number complying with the ISO/IEC 7812 numbering standard.

The card number's prefix, called the Bank Identification Number, is the sequence of digits at the beginning of the number that determine the bank to which a credit card number belongs.

A credit card also differs from a cash card, which can be used like currency by the owner of the card.

A credit card differs from a charge card also in that a credit card typically involves a third-party entity that pays the seller and is reimbursed by the buyer, whereas a charge card simply defers payment by the buyer until a later date.

Because of this, legislatures have regulated credit card fees.