A credit card refers to a thin card of plastic, which is generally 3-1/8 inches by 2-1/8 inches in size and hold ID information like signature or the picture of the user, and authorises the user to charge purchases as well as services to his account. It works on a simple system of payments, wherein, the holder is entitled to purchase goods as well as services on the basis of the promise of the holder to pay for them. A line of credit is issued to the user from which he/she can borrow money for making payment to a merchant or service provider.

A credit card differs from a charge card, in which the balance is required to be paid in total every month. In contrast to this, a credit card allows the user to pay the balance, in return for a charge in the form of interest. Credit cards are generally issued by the local banks as well as credit unions. They are supposed to be of the same shape and size, as prescribed by ISO/IEC 7810.

Credit cards get issued to a user, after his/her account gets approved by the credit card issuer. After a card has been issued to him/her, a user can use it for making purchases. When a user buys a product or service, he/she agrees to make payment to the issuer. The user signs a receipt with a mention of the card details along with the amount payable by entering a PIN. These verbal authorisations through telephone as well as electronic authorisation are also becoming very popular.

Every month, the user is offered a statement, which mentions the purchases, which have been have been made with the card, along with the outstanding fees if any, and the whole amount owed. The user is supposed to pay at least the minimum proportion of the bill, which is mentioned by the issuer. If the user feels that some items have been wrongly charged, or an extra charge has been imposed, then he/she can dispute them, as per the provisions of the law.

The history of credit cards in Australia, kick started in 1974, when Bankcard was issued. It was the first credit card and was a shared brand credit card, which was issued by the Australian financial institutions, and functioned only in Australia, New Zealand, and the Cook Islands. The card soon after its release saw a phenomenal rise and dominated the credit card market in Australia, until its transnationals counterparts like VISA and Master Card were released in Australia, during the late 1980’s.