Know What Cards To Use
Sunday, March 18th, 2007Payment cards were first introduced in the U.S. in the 1920s. Since then, they have become a handy option to cash and checks. Today, credit and debit cards are considered a necessity to pay bills, withdraw cash and purchase goods and services.
Credit cards are usually linked to international card systems like Mastercard and Visa allowing them to be used anywhere around the world. These cards can be used as payments and withdraw cash up to a predetermined credit limit. Transactions are listed on a monthly statement and a minimum monthly due is required to be paid, normally three to five percent of the total outstanding balance. Interest is charged on every transaction unless the full amount is settled within the agreed period of payment. Some cards also charge an annual fee.
Debit cards, although similar to credit cards, function more like a check. The bank issues these cards and payment is taken directly from your current account. Details of your transactions are listed on your bank statement. Most debit cards can also be used to make cash withdrawals worldwide via the ATM machines.
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