Credit Cards Replacing Paper Money
A credit card is a small piece of rectangular plastic that is no thicker than a sheet of paper, though it cannot be folded. Initially credit cards were metal tokens in the shape of coins, then they changed to metal plates to celluloid then fiber and now plastic with perhaps a photo of the holder and a magnetic strip on the reverse containing security information such as a personal identification number enabling the card to be used at money dispensing machines (ATM’s) and merchant establishments.
What is meant by ‘Credit’?
Credit is the system of buying some produce or service without having to pay for it at the time of the transaction. The payment is made at a pre-determined later date with the addition of a fee to the bill amount. This is like loaning someone money to buy something without actually giving them the cash but instead giving them the product they want to buy. So, the system of credit is not new to humanity in fact, it is as old as civilization itself or perhaps even older. The entrepreneurs of the inhuman kind have been proclaimed responsible for identifying human needs and wants as a rollicking business, and so they invented the credit card system. Though, disputed by many, The Diners Club is credited to be the ones to invent the credit card in 1950.
When Were Credit Cards Invented?
In contradiction to the theory that ‘The Diners Club’ started the credit card system, the Encyclopedia Britannica records the origin of credit cards in the United States as far back as the 1920’s. During this time firms such as oil companies and hotel chains started issuing credit cards to their regular and valued customers who were free to use their services and pay them at a later date. These cards were only useful for purchasing goods and services from the companies and establishments that issued the card. However, references to credit cards have been found as early as 1890 in Europe. It was only in the late 1930’s that companies started accepting each other’s credit cards and this is when things began to get complicated for accountants.
Computers Promoted The Use Of Credit Cards
In the beginning there were no computers to record the credit card transactions and the process of verifying the credit balance of the card was done manually through a regularly updated credit card directory, much like a telephone directory. This system was time consuming and tedious and provided many loop holes for credit card fraud. Today, with computerization, the use of a credit card is instantaneous. All one needs to do is to ‘swipe’ the card through a slot machine and the amount entered. If there is adequate balance in the account of the holder the transaction is completed and the customer billed a month later. Usually credit cards allow for a 50 day credit free period. If the outstanding bill is paid during this time the customer does not have to pay any interest on the transactions, else there is a whopping 2.9% charge per month on the bill amount.
Who Issues Credit Cards?
Banks and financial institutions are the main issuers and promoters of credit cards. The invention of the first bank-issued credit card is credited to John Biggins of the Flatbush National Bank of Brooklyn in New York. This was the year 1946 and Biggins did not know at the time that he had hit upon an idea that would take the world of credit by storm in times to come. From this first credit card called “Charge-It” many cards have flooded the market such as the all famous “American Express” credit card and the Diners credit card. The Bank of America issued the BankAmericard in 1958. This card is now known as the “VISA” card. Around the same time the popular MasterCard came into being. These are the two prevailing cards being used today. The era of plastic money had begun.
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Small businesses have a new low cost pal to handle the online payments for their products and services. CashSender.com announced today a service designed to slash exorbitant e-commerce money transfer fees for online merchants to as low as pennies per transaction. The competition simply charges small online retailers too much in fees to handle low dollar transactions, said Henry Tenby with CashSender.com. We are going to cut the fees to spur the growth of online commerce and promote international trade while offering better service and advanced security features including sitekey technology. CashSender.com will simply charge an industry standard 1.5 percent transaction fee for every payment sent or received. Merchants can elect to pay both ends of the transaction fee, saving their customers money. Also CashSender does not allow payments via credit card which saves merchants the headaches of chargebacks, pending payments, reserves and service charges. The result is we only charge pennies per transaction compared with the competition, Tenby said. How big of a pal are they when they charge more to handle the same pay transaction. CashSender.com is also eliminating the high fees related to cross border payments; business account status; use by international residents and use of foreign currency. With the United States economy struggling, we really wanted to do everything we can to help small business grow by lowering their costs, Tenby said. After all, small business is the <b>…</b>
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FIA Credit Card services?My bank turned my credit card over to FIA Card Services, I was paid up in February 2008 and had an excellent credit score. In March they raised my APR to 30% and my minimum payment due which was $760.00. Today, it is still 30% but now my minimum payment now is $1,156.00. I am sinking fast! Is this legal? All the rest of my cards with high balances and yet I am only paying $200-300.00 for minimum payments
No doubt on it. It is just a matter of time.
We use less "real money". You can realize it, can't you?
In my country, we use smart card for bus fare, train, fast food shop, supermarket, pay bills, buy cinerma tickets, vending machine and so many more…
Credit cards, No!
Debit cards, Maybe!
I already use my debit card for everything and have for the last fifteen years. Easier and safer.
My sun sign is Pisces
my better idea is no money bills at all
because we dont have to buy a thing and everything is provided and free
what about that?
lol
Eventually, this is possibility. However, that would mean EVERY business in the country, including mom and pop shops, would have to fork over thousands for a new machine to read electronic currency of whatever form. Technology is slowly evolving towards that, but I think there are a couple hundred years until that is a reality. However, in the US, the penny needs to be eliminated. First, it costs more to make a penny that what's it's technically worth. Secondly, they're just so annoying.
We couldn't eliminate coins until we eliminated paper currency. If that happened, every item would be rounded up to the nearest dollar. As much as we get hosed already, I don't want to prices to get rounded up just because there wasn't any coinage.
im not even doing my own homework, y would i do urs?
Already. No. Things to look for when getting a card include: no annual fee, low FIXED APR. When I turned 18 I obviously didn't have credit either. So I ended up applying everywhere(which is bad for your credit) and eventually just applied to a credit card offer in the mail(When I was 19). It was a Chase card NO annual fee but the APR was a horrible 19.99% FIXED. I was approved for a $200 or $500 credit limit. Then I got a Cap 1 offer in the mail and thought well "Whats in my wallet?" lol so I was approved for that one at $500 for 19.99 FIXED. (The bad thing about Cap 1 is that they DO NOT report your credit limit, so your credit goes off the highest balance you had on the card.) The only reason I settled for those high rates was because I knew I needed to establish credit and eventually I could get the rates down. Then a year later I applied for a rewards card through my credit union and was approved for $500 at 7.9% FIXED!! So that was awesome. Then my boyfriend had to apply for a SONY card and since we like to see who has better credit I did too. Approved for $2000 at a whopping 14.99%(Not something any reasonable person would sign up for unless you are only using it to get the reward points and pay off the balance every month like we do.) Anyway, I am 21 now and the APR on my cards range from 7.9% Fixed to 9.99%Fixed. (Got Both CAP 1 and Chase to lower the APR) Oh and the credit limits are much higher. If you sign up for a crappy APR card just be sure to pay the balance off every month(just like you should with any card no matter the APR) Just be smart with your credit.
I agree. We are already on our way there
-Debit cards, credit cards, paypal accounts, phone cards, cards for stuff like photocopiers, game cards (that hold credits) for arcades, and even money cards (not sure of exact name) are already here.
-They all have money stored on a card. Debit Cards take money directly out of your account so no hassle.
-Credit cards, allow you to pay with one card and worry about the debt later
-Phone cards mean no more putting money in the machine
-Cards for photocopiers at libraries and stuff contain a certain number of dollars or credits on them so whenever you need to work with it you just put the card in the machine and takes the money or credits needed off. And when its empty just get more money put on it and refill it.
-Arcades where you pay for a game card that you swipe at each game are already here and mean you don't have to walk around with pockets full of quarters.
-Money cards, these are new but they are here. You just have money on a card, and it is swiped taking whatever money you lose off the card. I don't know much about these however.
- Then there are things like those vending machines where you dial the number on the machine and it charges your phone bill, no more money.
- And you can even pay for things like pizza and stuff delivered to your house with a credit card.
- And automatic deposit of your paycheck to your account means no more holding that paper check.
- Paypal is an online credit card that can automaitcally transfer money from your bank account so no more sending money to the person etc.
Paper money and coins are becoming a thing of the past. More quickly then you may realize.
But will it make a safer society? People will not be just carrying around stacks of money, or hiding it in their house, which means its a little hard to rob them. Bank cards and stuff enable its you who is using it. But that doesn't mean it will be safe. While someone could rob your wallet and take 30 bucks in cash, its on $30 but if someone takes your credit cards, thats hundreds or thousands of dollars spent easily, from anywhere in the world to anywhere in the world. Identity theft is a major problem with a paperless world. And with everything handled on computer it is going to be easier for someone to hack and get unwanted information. I believe it will only be a safer society if we work extremely hard to prevent that.
My mom had a credit card stolen once. They sent her an affidavit she had to sign saying she was not the one who charged to the card, and they reversed the charges and gave her back her money.