Credit cards are a unique invention to issue a loan both in cash and in the process of buying goods or services. As you know, credit cards are massively produced not only by banking institutions, but also by large companies, restaurants and gas stations, hotel complexes. Distinguish between two varieties of credit cards – credit and payment. The former give the opportunity to pay for a month at least acquisitions with interest accrual, payment cards imply the need to pay fees for all purchases at the end of the established settlement period. It should be mentioned about such a function of credit cards as issuing personal short -term loans. It is absolutely natural that the credit cards of banks who have gained tremendous popularity could not but affect the global economy. The need for many years of accumulation of funds for the purchase of a particular thing is leveled, it is enough just to start a credit card, not forgetting to periodically cover the amount of the loan debt. Numerous business structures took credit card on service and began to use them to promote their products and services.
However, in addition to credit cards with standard functions, there are also debit cards. This type of cards is used to write off the account of the purchase or service value directly from the current account of the client bank.
Actually, the presence of a credit line is the criterion by which credit and debit cards are distinguished. In the case when the card is tied to a bank account, it is a debit. If the attached is made to the credit line, then the card is credit.
This nomenclature that has been established for a long time is used in the United States of America De Facto. In the countries of the Old World, Russia or any other country, other criteria may be present.