Nowadays, credit cards have become increasingly popular and used more frequently than cash when it comes to making purchases. In 2012, it was found that 27% of all in-store purchases were paid for in cash, and in 2017, this percentage is expected to drop to 23%. While credit cards are clearly more widely used, many people are paying the consequences. But where and when was the credit card born? John Biggins is the man credited with creating the idea of ​​credit cards in 1946. He started with the "Charge-it" program where people could deposit sales receipts into the bank and then the the bank would then invoice the customer who used the credit cards. paper. It wasn't long before Frank McNamara founded the Diner's Club. In 1950 his charter was issued. In an article written by US News and World Reports, the author examined the many ways issuers make money on credit cards and what drives people to get one. Today a delay in payment is equivalent to two fines. Cardholders can be penalized with two surcharges for each non-compliance and will have no idea until they are charged. These penalties may take the form of a late fee of up to $35 and a penalty rate (permanent increase in interest). Once the cardholder forgets to make a payment, they easily find themselves in trouble. The longer the cardholder stays in debt, the more credit card companies can charge interest, the more money they make, and overall, things get worse. In the past, cardholders had a minimum monthly payment of 5%. This was a problem for creditors because people paid off their balances easily and quickly. Then the monthly minimum was reduced to 2%. With lower repayment requirements, people are inclined to spend more and accumulate more debt each month. Credit card companies also make money from all the different fees they have. An annual fee charges a customer each year to keep their accounts open. Another fee is the late fee which is charged when a payment is paid late. A cash advance fee is a fee to access the cash line of credit on the cardholder's account. Overall there are many ways in which credit card issuers and companies operate