Credit Card

Abstract

The economy of the United States and, in fact, economy of all over the World has been transformed by the small molded piece of polyvinyl chloride known as the credit card , which still assures to be at the heart of the economic system of the world in the future as well. The lives of the people have been changed by the credit card as an unprecedented access is allowed by it to a world of goods. The way people live, they way they think, do things, their sense of comfort, and their values has all changed, with the emergence of credit cards as a prevailing mode of economic transaction. An affluent lifestyle could only be dreamed by ordinary people, before the entrance of credit card in to American life. However, this is not a dream any more. Credit cards changed all that. This paper reviews the history of credit card along with the perception of people about it and its significance in their life.

Table of Contents

Introduction4

Body: Discussion and Analysis5

Credit Card5

Advantages of Credit Card6

Disadvantages of Credit Card6

A Brief History of Credit Card7

Conclusion9

References10

Credit Card

Introduction

An essential component of e-commerce is Credit cards. (Gale Virtual Reference Library, 2002) Though there are other means for making payments on the Internet, payment for goods and services are received by the majority of e-commerce sites via credit card. It consists of a plastic card with a magnetic stripe, sometimes a microchip, and raised a number used to pay or get cash from an ATM. For its ability to make payments are also called plastic money or plastic money. The convenience of credit cards was improved as consumers switched from the “future orientation” of accumulating money for premeditated purchases into a “present orientation” of purchasing now and paying off at a later point for the goods or services. Simply a credit card can be defined as a card issued by a financial company, providing an option to the holder to borrow funds, generally at point of sale. Interest is charged by Credit cards and for short-term financing, they are used primarily.

Credit cards were actually invented, in 1950, by Francis X. McNamara. While entertaining clients in a restaurant of New York City, Mr. McNamara found out that he had missed to bring money with him. Though his wife drove with the money into town, McNamara came back home making a vow never to experience again such disgrace. The Diners Club Card was created by him that was a simple plastic card that would serve in lieu of cash at any institution that agreed on its acceptance. It was an innovative idea. Originally started with the paper cards, for the authorization of acquirement of restaurant meals, ultimately they evolved into plastic strips enabling the purchase of almost any good or service. This article is intended to discuss the role of credit cards in our life with a brief history of its invention and evolution. The fraudulent cases of credit cards are also discussed that are one of the ...