get a book and read how select boxes work in HTML - it's not PHP at all.
The variable name will be defined by the "name" given to the select box - that's what you've called "cards". It will take the value depending on which one you select in the list - so you should have things like:
<option value="visa">Visa</option>
<option value="mastercard">Mastercard</option>
etc.
of course the value field does not have to be the same as the name that appears in the box, you could give them numerica values, but then when you refer to $cards (or preferably $_POST['cards'] if your globals are off) then you will get retruned whatever you defined the value as. ( ie mastercard or visa in the eg above).
But like I keep saying, it's a good idea to have a vague clue of how the HTML works before you try and program it in php - and as hiccup says, you dont need php at all to program this.