Ripple Charge Cards

Though the terms charge card and credit card are sometimes used interchangeably, they are distinct protocols of financial transactions.

In 1914, Western Union opened the first charge account for its customers and provided them with a paper identification.

A charge card is a card that provides a payment method enabling the cardholder to make purchases which are paid for by the card issuer, to whom the cardholder becomes indebted. The cardholder is obligated to repay the debt to the card issuer in full by the due date, usually on a monthly basis, or be subject to late fees and restrictions on further card use.  It can also be a smart card.

The user of the charge card has to pay the balance of their account at the end of each month and the charge card company, unlike a credit card, does not charge interest. A charge card company's main source of revenue is the merchant fee, which is a percentage of the transaction value which typically ranges between 1 and 4%, plus an interchange or minimum fee.

Trivia: Though originally charge account identification was paper-based, in 1959 American Express became the first charge card operator to issue embossed plastic cards to ISO/IEC 7810 ID-1 standard. Cards have an embossed bank card number complying with the ISO/IEC 7812 numbering standard.

An explanation regarding Ripple Charge Cards is coming soon.

Learn about Ripple Credit Cards.

 


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