Charge cards are different from credit cards

See an original Diner’s Club charge card

Before credit cards, there were charge cards from companies like Diner’s Club. While credit cards allow cardholders to carry a balance from month to month (potentially accruing interest), charge cards like Diner’s Club cards had to be paid off right away.

Card issuers are financial institutions that open credit to customers, while card networks facilitate purchases between merchants and customers

Card issuers give customers credit cards, set rate limits, and collect payments. Card networks, on the other hand, dictate where credit cards can actually be used by managing relationships between the network and merchants. These networks make money on interchange fees, which merchants pay to accept a specific card network at their stores.

Merchants have to pay credit card transaction fees each time a card is swiped

Credit card networks such as Visa, Mastercard, and American Express must calculate fees for not only the customer, but also the merchant in every transaction.

Credit card issuers determine your credit limit using your payment history, income, and more

Some credit card issuers also take your other payment obligations into account when determining your credit limit, such as the cost of your rent or alimony.

Managing too many credit cards can be costly if they have annual fees

However, canceling cards must be strategic if it becomes necessary, as it can negatively impact your credit score. Before canceling, experts suggest asking if it's possible to downgrade to a no-annual-fee version in order to keep the account open, thus preventing potential hits to your credit score.

A credit card’s grace period is a minimum of 21 days

Under federal law in the United States, an individual’s credit card payment due date must fall on the same day of each month, at least 21 days after the cardholder’s statement closing date.

An explanation of hard credit checks vs. soft credit checks

Some buy now, pay later services do a soft credit check rather than a hard credit check, like credit card companies would do when someone applies for a card. While hard credit checks can impact your credit score, soft pulls typically do not.

Affirm's COO recently said that the company believes the credit card is 'going the way of the VHS tape'

Some people use buy now, pay later apps as an alternative to credit cards. BNPL services have a lower barrier to entry than credit cards—many frequent BNPL users have low credit scores.

Who actually pays for your credit card rewards?

In 2018, 92% of all credit card spending was made on a rewards card, which seems like a good deal to many who apply for rewards cards offering discounted flights, points, and more. But in actuality, the customers are often the ones who end up paying for the rewards in the grand scheme of things.

Algorithms built to detect credit card fraud can deny charges if they perceive the attempted purchase is unfamiliar or unusual based on historical data, even when a person has enough credit to make the purchase.

Since fraudulent charges are rare compared with the much greater number of transactions across purchase histories, these models have been shown to be overly sensitive, lacking sufficient training data on what legitimate fraud looks like. Models also perform less reliably for groups in low-income areas or communities of color, given less available data from which to build an accurate baseline.

US consumers collectively owe more than $1T to credit card companies—almost as much as they owe in auto loans.

Chip technology replaced magstripes to stop easy card cloning and fraud

The magstripe on bank cards always gives the same data, making it simple to copy using a device called a grabber. In contrast, embedded chips create a unique code with every transaction, making it much harder to clone or steal card information.

American Express uses co-branded cards to provide brand-specific perks

Co-branded credit cards are partnerships between a card issuer and another company. Unlike regular credit cards that offer many different kinds of benefits at different companies, co-branded cards tend to only offer perks with the partner company. For example, American Express has a co-branded card with Delta airlines that allows users to earn points specifically towards the Delta rewards program.

Different CDs can have different term lengths, interest rates, and more

For instance, if a bank needs more deposits to fund loans, then it may offer high interest rates to attract deposits. Alternatively, a large bank with sufficient deposit reserves may have less incentive to grow its CD portfolio, offering lower rates as a result.

Six bills experts say you shouldn't put on autopay

Autopay has plenty of benefits, such as helping to avoid late fees and streamlining your bill paying process. But some experts say there are a few types of bills that you shouldn't autopay, especially if you're not confident you can pay these bills in full each term. The list includes utility bills and annual subscriptions. Read the full list here.

What are business credit scores?

Businesses have credit scores the same way individuals do—with a few key differences. For one thing, business credit scores range from 0 to 100 instead of 300 to 850, and are based on factors such as bankruptcy and bill-paying habits.

Credit unions, explained

Proponents of credit unions often point to the fact they’re not-for-profit cooperatives instead of for-profit businesses as a key selling point. This explainer dives into what this looks like in action—instead of pocketing the profits from interest rates, credit unions reinvest that money into the products and services they offer. For customers, this tends to create a more personal and community-oriented experience.

Charter schools are publicly funded, autonomous schools

Charter schools are tuition-free, publicly funded institutions operating under a contract ("charter") that grants autonomy in curriculum, staffing, and budgeting in exchange for accountability to performance metrics. They serve millions of students nationwide.

Stablecoins now transfer more value than Visa or Mastercard.

Because stablecoins operate on public blockchains, transfers can occur nearly instantly without intermediaries, unlike traditional credit card networks. This has fueled stablecoins' adoption within the crypto world and in cross-border payments. Stablecoin transfer volume rose from about $3B in 2018 to roughly $18T in 2024, overtaking Visa's roughly $16T and Mastercard's $10T.

Flexible spending accounts can't be used to pay for concierge membership fees

FSAs, used by roughly half of Americans, can only cover qualified medical services—so actual care—and cannot be used to cover membership fees for a concierge medicine practice. These fees must be paid out of pocket by clients.

Learn how tax credits are applied to income taxes

Tax credits are directly subtracted from the amount of money taxpayers owe on their annual income. Unlike tax deductions, credits reduce the owed amount while deductions reduce how much income is taxable. There are different types of tax credits that are either fully or partially paid out.

Understand the differences between manga and comics

Manga and comics—often conflated with one another—are two distinct art forms. Manga is predominantly black-and-white, with long and continuous story arcs by a consistent creator. Western comics, meanwhile, are done in full color, released as individual issues, often feature multiple creative teams, and encourage shorter and self-contained narratives.

Battery life can be extended by avoiding heat and performing partial charges

Charging regularly in smaller amounts while keeping a battery between 30% and 80% helps maintain lower voltage levels, preventing long-term damage. Some devices continue to draw power when at 100%, which can cause tiny charge cycles and generate heat that degrades a battery's capacity.

Distinguishing polar and nonpolar molecules and why charges get distributed unevenly in molecules

Because each element has a unique number of protons and configuration where electrons exist, they attract electrons that are shared with other elements in chemical bonds to varying degrees. When this attraction—electronegativity—varies between two bonded elements, electrons are more likely to be near the more electronegative element and away from the less electronegative element. This can create regions of opposite charge, or poles, and thus polar molecules.

There are monthly dividend ETFs that pay you to hold them

Traditional dividend stocks and funds pay out quarterly, or four times a year. A select group of stocks and funds pay out monthly, putting cash in investors’ hands 12 times a year. These monthly dividend funds are popular because their regular payouts can help keep budgets on track.

The difference between cash flow and profit, explained

While cash flow is the net balance of cash moving in and out of a business, profit is the remaining balance after subtracting a business's operating expenses from its revenue.

The first steps to rebuilding your credit score include getting to know exactly what's on your credit report and figuring out how far you are from the '700 club,' or 'good score' range.

Hedge funds, the private investment firms that trade a wide swath of financial assets, make money by imposing steep fees on investors and from the fund's investment performance.

Play the role of a student in a game where you try to navigate college and remain debt-free, selecting different income levels, high school experience, race, ethnicity, and more.

Pure water does not conduct electricity because this flow of energy requires the movement of charged particles, and water is a neutral molecule.

Hurricanes, which rely on air consistently spinning in the same direction, cannot cross the equator because air curves in opposite directions north and south of it.

Some coin denominations have ridges etched on their sides, partly to prevent counterfeiting, in a practice called 'reeding.'

Memecoins are a type of cryptocurrency—a form of digital currency with a wide variety of uses—created around popular 'memes,' or viral internet jokes.

Netflix profits when you're not watching, and its movies are designed that way—read a detail-rich critical essay exposing lesser-known Netflix takes

The price of gas is a composite made up of several different factors, with the federal gas tax making up less than 20% of what drivers pay at the pump.

The United States is one of only around two dozen countries with a fully federal system of government, in which power is divided between national and state governments.

How fusion—which releases energy when two lighter atoms combine to form a heavier atom—differs from fission

When you complete a CAPTCHA on a website to prove you are human, you may be unknowingly training algorithms for self-driving cars, whose systems require training data to help identify crosswalks, bicycles, and other outdoor objects.

Doctors differentiate between a phobia and fear by asking patients whether their fear interferes with their day-to-day activities.

Explore chaos in this simulation of two double pendulums, where small differences in the release angles produce wildly different outcomes.

Corals are themselves not coral reefs—the term refers to the tiny marine invertebrates that build the rigid reef.

Sony set the standard for cylinder-shaped batteries when it repurposed manufacturing equipment used to make rolls of magnetic recording tape.

When caught in the mouths of cardinal fish, seed shrimp release glowing, bioluminescent chemicals, which alert predators of the cardinal fish, prompting the shrimp's ejection.

According to the physics of black holes, our 4D reality may be a hologram—a projection of information coded on a 2D surface on the edge of the universe.

Up to a million Girl Scouts sell about 200 million cookie boxes every spring, generating $800 million, largely because refusing a child is frowned upon

Explore fun facts from the USPS, including unique post office buildings, a stamp that traveled past Pluto, and more.

Bone marrow (soft tissue found inside certain bones) generates roughly 500 billion new blood cells each day

Iran's Revolutionary Guard Corps is independent of Iran's regular army and is one of the most powerful and influential military-political organizations in the Middle East.

Poison ivy can cause rashes year-round since all parts of the plant contain urushiol, the oil that triggers our allergic response.

Brandi Chastain, the star of the 1999 US victory over China in the 1999 Women's World Cup, was a last-second choice to take the penalty kick that sealed the victory.