Final answer:
Credit Unions introduced the debit card and merchants process debit card transactions like credit cards. They are nonprofit financial cooperatives owned by their members, operating to serve their members' financial needs. They are related to, but distinct from, banks and savings and loan institutions.
Step-by-step explanation:
Credit Unions were the first financial institutions to offer a share draft account, which is essentially the credit union's version of a checking account. The name of this card is Debit Card. Merchants handle the payment transaction as they would a credit card.
Credit unions are nonprofit financial institutions that are owned and run by their members. They accept deposits and make loans primarily to their members. Due to their community-focused nature, eligibility to become a member typically relies on belonging to a particular community, group of employees, or an organization. The sustainable growth model of credit unions is reflected in their increasing total assets over time.
In the broader context of the financial sector, credit unions are part of a family that includes banks and savings institutions (savings and loans or thrifts). All three types of organizations focus on taking deposits and making loans, but they may operate under different regulations and serve different kinds of customers.