Credit card is commonly known as why card (that is, credit card)

Credit card (credit)

Card), also called credit card. It is a non-cash transaction payment method and a simple credit service.

A credit card is a credit certificate issued by a commercial bank or a credit card company to eligible consumers. Consumers with credit cards can go to specialized commercial service departments for shopping or spending, and then the bank will settle accounts with merchants and cardholders, and cardholders can overdraw within the prescribed limits.

Simply put, the bank lends you money for consumption, and you only need to repay it within the specified time.

How did the credit card come into being?

Credit card, commonly known as "overdraft card", refers to the advanced consumption mode that users can enjoy spending first and then paying back with the effective credit line in the card without saving money first. In this way, those "moonlight families" can continue to consume and enhance their spending power. There is such a joke that two people come out of a bar, and one of them mutters: without it, you can't live; With it, it will be difficult! Another man felt the same way and echoed, yes, women are like this. The first person smiled: I said credit card. The appearance of credit card has completely changed people's consumption concept and lifestyle.

More than 2,000 years ago, Confucius once said, "If you don't believe, you will stand" and "If you don't believe, you will make friends". The concept of "credit" has a long history in China. In China's folk commodity transactions, there are often ways such as "credit", and "it is easy to borrow, but it is not difficult to borrow again" is an example. In ancient times, the form of consumer credit was. Because it is easy to cause social contradictions and conflicts, it is banned by the government in some places. Since19th century, western consumer credit has developed rapidly. After 1850, manufacturers began to sell expensive high-end goods in stages.

/kloc-In the middle of the 9th century, a man named Morris invented a credit chip similar to a metal badge to flaunt the consumption concept of "enjoy first, pay later", which is the earliest credit card. In the early days, credit cards were issued by retailers, department stores, oil companies and airlines, and the distribution targets were the sales targets of enterprises, including customers with frequent business contacts and customers with business development potential. Credit card can not only prove the identity of customers, but also attract and stabilize customers and increase turnover. The income of this card is far better than expected, and it is gradually applied by more and more industries. However, this card has its obvious limitations. Can only be consumed in one store, not universal.

As for the rudiment of modern credit cards, it is generally believed that Dinka appears in 195 1. It is said that one day, Fran McNamara, an American businessman, ate in a restaurant in new york and found that he had no cash on him when he checked out. Tongda's boss said, "I know your reputation has always been good." Come together next time. " This embarrassing dining experience gave McNamara the idea of creating a credit card. 1950 In the spring, McNamara cooperated with his friend wesley sneijder and invested 10000 USD to set up Diners Club in new york. The world's first credit card institution was born.

According to the idea of McNamara and his good friend wesley sneijder, a third party can be created to provide payment services between merchants and customers. They hope to get some fees from merchants to realize the profit of card issuers, instead of charging consumers and increasing their burden. They asked some restaurant owners if they could support this practice. As a result, only one shopkeeper expressed support, and most shopkeepers did not recognize this new consumption pattern. Although there are not many supporters, McNamara and wesley sneijder insist on exploring and trying. The two men first targeted the restaurant industry in Manhattan. After many difficult negotiations with restaurant owners, a group of restaurants were finally persuaded to accept this model.

Hard work pays off, and finally some businesses are willing to try to use their own credit cards. The earliest customers were a group of sales managers, who quickly accepted this credit method. Because this can make it easy for them to know the entertainment expenses of their salesmen and control the sales cost. After the opening of the catering industry, Dinka people quickly spread to other fields such as tourism. At 195 1, Diner has more than 40,000 card members, and many big cities in the United States have merchants who accept Diner cards. Diner's card company pays the cardholder in advance and charges the merchant a handling fee, which has been used to this day.

To sum up, the operation and profit model of Dalai Club is: (1) Dalai Club signs contracts with different merchants to ensure that the credit cards issued by Dalai Club are allowed to be used, and Dalai Club charges merchants a certain proportion (7%) of the transaction amount; (2) Diners' Club issues credit cards for consumers to purchase goods and services, and Diners' Club charges cardholders an annual fee (18 USD); (3) The Dalai Club borrowed money from commercial banks to pay the credit consumption of the contracted merchants. After the cardholder returns the credit consumption amount, the Dalai Club will return the money to the bank. Dinka has been online for less than a year, and only in March of 195 1, it handled a transaction amount of 3 million US dollars and made a profit of 60,000 US dollars. By 1956, Dinka's annual turnover exceeded $290 million and its profit was $40 million.

1958, American Express Company introduced American Express Card. Unlike Dinka, American Express is a century-old shop in America. Starting from the express delivery business of 1850, it became a well-known big company after World War II. At that time, its most profitable business was traveler's checks that passed around the world. At that time, many banks had launched bank cards, and Dinka also actively expanded its market in the tourism field where express delivery companies were good at. In this situation, American Express has long planned to develop its bank card business, but it is hesitant for fear of affecting its traveler's check business.

It is said that when it was heard that Dinka planned to establish an international travel service network like American Express and issue traveler's checks, in order to prevent it from encroaching on its own business, the president of American Express finally made up his mind to start the credit card business. Regardless of the initial decision, American Express quickly opened up the situation in this business with its good reputation and broad customer base. When American Express Card was issued, more than 65,438+0 _ 70,000 merchants signed up for the network. Since then, with the addition of 6.5438+0.5 million cardholders and 4,500 member hotels of American Hotel Alliance, American Express Card has been gradually accepted by mainstream American business circles.

Also on 1958, even before American Express, Bank of America issued their first credit card. However, Bank of America did not conduct large-scale publicity, but conducted a market test in Fresno, a medium-sized city in California. In all, Bank of America sent 60,000 Bank of America credit cards to almost all families in Fresno. Unlike in the past when only a few rich people could use credit cards, ordinary families in Fresno also enjoyed this kind of card, and thousands of dollars were available overnight. In the second year of the test, people spent $59 million on shopping with American credit cards, equivalent to $350 million now.

Unlike Dinka, the credit card of Bank of America has added the credit rolling function. Consumers with American credit cards can not only pay their bills like Dinka people, but also don't have to pay off all their debts when they receive the bills at the end of the month. In this way, the outstanding balance on the card will automatically roll into the next month. Banks charge interest on this balance, which gives credit cards another way to make profits. In fact, Bank of America's credit card combines two products: if the arrears are paid off every month, this card is the same as Dinka, but compared with Dinka, the cardholder has one more choice, that is, he can not pay off all the arrears and let the balance roll as credit. The appearance of American bank credit card not only changed the composition of credit card users, but also the "rolling credit" model pioneered by it as the core feature of credit card has been preserved to this day.

What is a credit card?

Credit card is a tool card for personal small short-term interest-free consumer loans, which is different from our common bank cards.

1, credit card is also called credit card, that is, every sum of money we use is actually a bank loan, and the use of this money depends entirely on our personal credit, so we don't save money. Accordingly, the premise of using bank cards is that we save money. Only when there is money on the card can you spend or do other things.

For banks, issuing credit cards is a big business, because there is financing when there is consumption, and banks with financing can make money from this link. Similarly, some consumers' unhealthy operation methods will also lead to overdue credit cards and annual fees, and banks can also make money through this link. Of course, for individuals, reasonable use of credit cards can enjoy many benefits. At the same time, it can also help us develop good consumption habits.

1) Credit card consumption is a non-cash transaction payment method. There is no need to pay cash when spending, and it will be repaid on the day of collection. Credit cards are divided into credit cards and quasi-credit cards. Credit card refers to the credit card that the cardholder has a certain credit limit and can repay before spending within the credit limit; Quasi-credit card refers to a quasi-credit card in which the cardholder deposits a certain amount of petty cash according to the regulations, and when the balance of the petty cash account is insufficient to pay, it can be overdrawn within the prescribed credit limit. Credit cards generally only refer to credit cards.

2) According to different card issuers, credit cards can be divided into corporate cards, personal cards and corporate cards. Company cards are issued to all kinds of industrial and commercial enterprises, scientific research and education institutions, state party and government organs, military units, organizations and other legal persons. Personal card. Personal cards are issued to urban and rural residents, including workers, cadres, teachers, science and technology workers, self-employed households and other urban and rural adults with stable income sources. Personal card is applied in the name of an individual, and all responsibilities for using the card are borne by the individual.

3) Credit cards can be divided into bank cards and non-bank cards according to different card issuers. Bank cards are credit cards issued by banks. Cardholders can shop at the special merchants of the issuing bank, or withdraw cash at any time at the branches of the issuing bank or at places with ATMs. Non-bank card. This kind of card can be divided into retail credit card and travel entertainment card. Retail credit cards are credit cards issued by commercial organizations such as department stores and oil companies.

What's the difference between credit card, debit card and savings card?

Credit cards, commonly known as credit cards, have a certain amount to repay after consumption.

A savings card, commonly known as a debit card, needs to be deposited in the card before it can be used for consumption.

What is a credit card?

(China Merchants Bank) The credit card is overdraft card. 1, the credit card is mainly to spend first and then repay, and use the bank's funds to spend in advance and enjoy the interest-free period. This is a financial management method. 2. Credit card is not a savings card, and the deposit in credit card will not settle interest. 3. Credit cards can be used as payment tools, and can be directly consumed through POS machines installed by merchants or online payment platforms. 4. The bank will also provide you with various forms of integral, discount, installment, lottery, promotion and other activities. Credit card is also the main international payment tool. You can shop conveniently on overseas and international websites. If you travel and stay in a hotel, only a credit card can complete the hotel pre-authorization for you.

This is the end of the introduction of credit cards, commonly known as why cards and what kind of credit cards. I wonder if you have found the information you need?