The History of Credit Cards by: Shahid Khan

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 www.onlinecreditcardsinfo.com 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.

About The Author Shahid Khan, I am a web promotion Expert for Shade Sails visit our website http://www.shadeit.net/ and for Business Credit Card visit our website http://www.CreditCardsMadeSimple.info/

Never Pay Credit Card Interest Again...Secret Method Revealed by: Patti Oar

Do you have more than one credit card? Did you know that if you make one late payment your credit card company can and will raise your APR to the highest rate they charge? And did you also know that if this happens to you, all of your other credit card companies will find out and they'll raise your rates too? You can actually end up paying way more in interest than you actually owe the credit card companies.

First let’s examine what APR is. APR stands for Annual Percentage Rate. Simply put it is the percentage per year that you would pay on your balance. This is pro-rated to a monthly rate based on what you currently owe the company. Rates can fluctuate wildly depending on your current credit rating. Credit card companies reward those customers who have good credit ratings with the lowest interest rates. These rates can have a very wide range, but you won’t be able to qualify for the better rates if your credit isn’t impeccable.

Now of course the ideal situation is to pay your balance off in full each month, but sometimes this isn’t possible and you end up carrying an outstanding balance. In some cases you may have balances on more than one card. If this happens to you,my advice would be to pay the highest payment you are able to pay on the card with the highest interest rate, rather than the highest amount owed. Just keep in mind that every dime of interest is more money that you are paying to the credit card company. We seem to be more worried about paying extra shipping on items we purchase but seem to dismiss the extra money we pay in interest payments. That’s probably because it is largely unseen and in some cases hard to figure out how much we’re actually paying.

I personally try not to carry balances when I can, but periodically I have had balances on several different cards. But I can honestly say that I haven’t paid any interest on any of my cards since 1991.

The way I have accomplished this is very simple. I get an average of 3 or more credit card applications in the mail every day. I typically look for an offer with a balance transfer. These are very competitive. You can always find one with a 0% APR. But that’s not all you’re looking for. You want to find one with 0% for at least a year (you can sometimes find them for 18 months). The next thing you look for is when the 0% will expire, and what the APR will go up to when it does. You may be able to give yourself 18 months to pay off the debt without paying any interest and if not you will most likely be at a much lower APR than you currently have. Sometimes you can find 0% for 18 months and then 3.9% after that. Start adding that up and you can save yourself a lot of money if you currently have 6% or higher. Now you transfer your balances from your other higher interest cards and you can avoid paying any more interest. You could pay more, but WHY?

NOTE: You must pay attention to the deadlines and if you haven’t finished paying off your balance, by the time the interest rates kick in you will need to find another card offer and do it again. You will need to make sure you apply within about 6 weeks of the deadline to make sure you don’t wait too long. Be aware though that you can actually make your credit look bad if you have too many cards or credit lines, so when you transfer your balance you should cancel the old card so it is not showing up on your credit report.

About The Author Patti Oar has been an online marketer since 1996. Find your http://www.topten.ecreditdirectory.com

7 Reasons to Accept Credit Cards Directly on Your Website And Get Paid Instantly to Your Paypal Account by: Egidijus Andreika

Accepting payments through credit cards online is a huge plus factor for any online merchant. Customers and potential clients, first and foremost, look for convenience and credibility when browsing websites they want to buy products or get services from. To gauge these factors, potential clients and customers look at one of the most basic components any reliable online merchant should have – an efficient and secure payment system. You can easily use Paypal to direct visitor to pay pages, so they could signup on Paypal and pay for your purchase. But… Did you know that you can easily accept credit card payments from your customers without redirecting them to Paypal pay pages that require the customer to signup for Paypal account? And you can accept direct credit card payments on your website straight to your Paypal account, so once the purchase is made with a credit card on your website, you instantly get access to the money?

When people talk of payment systems, nothing is more reliable than a PayPal account. Online merchants like you can benefit from setting up a PayPal account in order to accept credit card payments directly online.

Below are the steps in setting up and accepting credit cards directly to your PayPal account:

1. Sign up with PayPal.

Register for a PayPal Business Account to get started. Signing up is easy as PayPal will walk you through the registration process.

2. Verify sign up information details to activate your account.

You will need to verify your information by clicking the link sent to the email address you provided during registration. This is done to ensure the website’s security.

3. Opt for the Website Payments Standard option.

This is the basic option for most online merchants. You can look up information on the other payment options to see which best suits your website’s needs.

4. Choose your shopping carts and buttons.

PayPal offers custom-designed shopping carts that are free and a variety of HTML buttons you can put on your website to facilitate the payment process. You can choose from a variety of buttons for different functions like “Buy Now,” “Add to Cart,” “Subscribe,” “Donate,” and “Buy Gift Certificate.”

5. Start accepting payments online.

PayPal accounts work this way: Customers browse your site and look for products they want to purchase. When they have added all the products they want in their shopping carts, they will proceed to the checkout counter where they will be directed to a secure and encrypted PayPal page designed to match the look and feel of your own website. The credit card payment transactions as well as those for PayPal are done here. After the transaction, the customer is directed back to your website.

6. BUT! There are much more convenient ways to accept direct credit card payments to your Paypal account from your customers.

This is not just a simple buy now button to place on your website.

Did you know that you can easily accept credit card payments from your customers without redirecting them to Paypal pay pages that require the customer to signup for Paypal account?

Yes, you can easily accept direct credit cards on your website without any problems. Paypal provides the US merchants with an ability to signup for Paypal PRO merchant accounts. By having such account you can easily configure your website with a 3rd party payment script to accept credit cards directly from your customers.

What kind of benefits you will receive by providing a direct option for your customers to pay with a credit card?

Top 7 reasons to accept direct credit card payments to your Paypal PRO account:

1. You will receive money instantly to your Paypal account
2. Your customers will not be required to be redirected to Paypal pay pages to complete their purchase
3. You will be able to accept credit cards directly on your website.
4. Customer’s shopping experience much simpler and easier
5. Your customer don’t have to signup on Paypal and then pay
6. By providing a direct credit card option, your product’s sales page conversion rate will increase dramatically
7. You completely control all transactions and your funds appear instantly for you to use after the customer makes a purchase

One advantage of accepting credit card payments through your PayPal account is letting go of the things you do not really need to attend to: customer problems (they do not need a PayPal account to use your service), separate gateways, fees for setting up, application, or monthly rates, long-term contracts, and security of financial information. PayPal can solve and manage these tricky areas for you with additional benefits of efficient monthly sales reports.

You can use your PayPal account as it is or choose to work with a third-party internet marketing and affiliate network to better facilitate your online financial and payment transactions. This type of network provides basic and extra business features online merchants like you may need. It provides you with an ability to place a simple buy now button on your website, so you could receive direct credit card payments from your customers to your Paypal PRO account. Aside from having facility in processing financial transactions without waiting for days and weeks, joining internet marketing and affiliate network like Click2Sell.EU ( http://www.click2sell.eu )can also boost your sales since you can benefit from its extensive network and stable of internet marketing tools.

About The Author Egidijus Andreika is a creator of Click2Sell.EU Affiliate Marketing Network. Click2Sell provides its members the opportunity to accept direct credit card payments from customers on websites and get payments instantly to Paypal accounts. Sell products online with Click2Sell.EU and accept credit cards directly from customers to Paypal account. Visit: http://www.click2sell.eu

What To Do If You Lose Your Credit Card by: Peter Kenny

Do you know what to do if your credit cards or ATM cards are stolen? You might be surprised at how many people do not.

All consumers should know that the Fair Credit Billing Act (FCBA) and the Electronic Fund Transfer Act (EFTA) offer procedures if your cards are lost or stolen.

In general, here is what you should do:

You should report the loss or theft of your credit card or ATM card to the card issuers as soon as possible. This is easy to do as most companies have toll-free numbers and 24-hour customer service set up to deal with these types of problems. It is always a good idea to follow up the phone call with a letter. Within the letter, include your account number, when you discovered that your card was missing, and the date you first reported the loss to the company.

For Credit Card Loss: According to the FCBA, if you report the loss before the cards are used the card issuer cannot hold you responsible for any unauthorized charges. If the card is used before you report it missing, the most you will be responsible for in unauthorized charges is $50 per card. This is true even if your credit card is used at an ATM machine to access your credit card account.

Consumers should always review the next billing statements carefully. If you find any unauthorized charges, send a letter to the card company describing each unauthorized charge. You will need to let them know the date your card was lost or stolen and when you first reported the loss to them. Make sure you send this letter to the address provided for billing errors and not to the place where you send your payments unless you are told to do so.

In the event your ATM card is lost or stolen: Report your loss to the issuer as soon as possible. If you report an ATM card missing before it is used without your permission, the card issuer cannot hold you responsible for any unauthorized withdrawals. Keep in mind that if an unauthorized use occurs before you report the loss to the issuer, the amount that you can be held liable for will depend on how quickly you reported the loss. For example, if you report the loss within two business days after you realize your card is missing, you will not be responsible for more than $50 for its unauthorized use.

If you do not report the loss within two business days after you discover the loss, you could be liable for up to $500. If you wait until more than sixty days have passed, you may be liable for unlimited amounts if you fail to report an unauthorized transfer or withdrawal within 60 days after your bank statement is mailed to you. That means you could lose all the money in your bank account and the unused portion of your line of credit established for overdrafts.

If unauthorized ATM transactions are on your bank statement, report them to the card issuer as soon as possible. Once you have notified the issuer of the loss, you cannot be held liable for additional amounts, even if more unauthorized transactions are made.

About The Author

Peter Kenny is a writer for The Thrifty Scot, please visit us at http://www.thriftymortgages.co.uk/remortgages and http://www.thriftyscot.com/credit-cards/

Because of these time limits it is always a good idea to check your cards often to see that you still have them.

Credit Card Debt Reduction Services by: Peter Kenny

Credit card debt reduction services are becoming more popular as more people find themselves in financial trouble. Consumers who believe that credit card debt reduction services may be an option for them should first do some homework. Two things are important before signing up with any company. The first is to know exactly what it is you need done with your credit so that you can work with the right kind of company. The second thing to do is to make sure that you are going to be working with a reputable and honest company.

It may sound like common sense for consumers to know what they need before signing up with a company, but there is often more to it than we think. The first issue that consumers usually have to deal with is the many names that are used by companies offering to help with credit debt. In some cases, the area of expertise is apparent, but in other cases the expertise of the company may not be so easily understood.

If taken purely on face value, there are big differences between companies that offer debt consolidation loans and those that offer debt counseling. Then there are those that offer debt repair service. In some cases, there can be a mix in that one company may offer several services. In other cases, a company will work exclusively in one area.

With all these set-ups available, consumers really do need to consider what services would best fit their financial needs and will bring about the best results.

Consumers should understand that not all credit card debt reduction services work alike. Some will be more adept at helping you get lower interest rates on your current debt. Others will work to get some of your debt forgiven so that you do not have to pay on it anymore. Most will be able to help you set up a reasonable budget to help you avoid getting further into trouble.

Some of these companies will work on a performance basis. That means that you do not pay them until they actually bring about some real results. In most cases, these companies will charge you a percentage of what they save you.

The second issue as mentioned above is to make sure you are working with a reliable and honest company. Simply put, there are companies out there who will cheat you or take your money and do nothing in return. Of course, you want to avoid these folks at all costs.

Those companies that require you to send them large advance fees should be investigated carefully before you send them your money. You can often get information on a company by doing a simple Google search using the company name as your search term.

If you decide to work with a company that will take your money and in turn pay some of it to your creditors make sure that they are doing that for you. There have been cases in the past where companies took customer's money and did not forward the required amount to the creditors.

Use common sense and caution when searching for the companies that can help you.

About The Author

Peter Kenny is a writer for The Thrifty Scot, please visit us at http://www.thriftyscot.com/credit-cards/ and http://www.thriftymortgages.co.uk

Manage And Eliminate Your Credit Card Debt! by: Melissa Kellett

Credit card debt is the main contributor to personal debt and cause for many financial problems. Once your credit card debt starts growing it becomes more and more difficult to eliminate it and become debt free.

Everyday you get credit card offers, by mail, on the internet, etc. But you need to act consciously and opt out if you are not sure you will be able to afford it or if you do not trust yourself with it. If you know you overspend and have no control on your expenses, it is wise to start modifying such behaviors and avoiding getting extra credit cards would be a wise start.

However, If you trust you will act wisely, then it would be clever to follow these tips to stay on track and maximize your savings while at the same time enjoying the benefits credit cards undoubtedly offer:

Choose Your Credit Card Wisely

You should choose your credit card cautiously. The main item to look at is the interest rate; you should try to find the lowest rate available. To do so you can join one of those internet companies that offer reviews on many credit card offers, these sites also offer direct links to the credit cards application so actually you will get all the work done for you.

Control Your Spending

Once you get the credit card, be extremely careful with your spending. If you can not pay the whole balance each month, then try to pay the highest amount possible. Otherwise you will get into a vicious circle and your credit card debt will grow so much that you will find yourself unable to pay the minimum in a short time. Also, if you have multiple cards, try to pay the maximum amount possible in the credit card with the highest interest rate and leave the others with the minimum required till you pay it off completely. Then carry on with the next higher rate credit card and so on.

Transfer Debt To Better APR Credit Cards

If you can find a credit card with a better rate, do not hesitate and transfer the balance to the new card, this way you will be paying less in interests and whatever you pay will go mainly to reducing the capital. If you can grab hold of one of those 0% introductory rate credit cards, you can benefit from the promotional period by transferring the balance to this card and paying as much as possible since the whole payment will go to reducing the principal. Beware though, that 0% APR cards tend to have a higher interest rate when the promotional period ends. If you wish to use this feature, try to repay all the balance before the promotional period is finished or have another card ready to transfer the balance again.

Avoid Paying Minimums And Missing Payments

Never pay the minimum unless you have no other choice, and make sure to pay more as soon as you can. Never, I repeat, NEVER miss a payment, this will soon get recorded in your credit report and ruin your ability to get finance in the future. This kind of things is what turns a healthy credit score into a bad credit score.

About The Author

Melissa Kellett is an expert loan consultant who has worked for twenty years in the financial industry and helps people to repair their credit and get approved for home loans, unsecured personal loans, student loans, consolidation loans, car loans and many other types of loans and financial products. If you want to learn more about Credit Card Consolidation and Credit Cards you can visit her site http://www.speedybadcreditloans.com

Get In Control Of Your Credit Card Debt by: Melissa Kellett

There are some risks involved in using a Credit Card for financing everyday expenses. Credit Card debt is one of the most common financial problems and it is not easily solved. Here are some tips on how to reduce credit card debt and take control over your finances.

Vicious Circle Of Debt

The main virtue of credit cards is also the main problem when it comes to uncontrolled debt. Credit cards let you purchase goods even when you do not have the cash to do so. If you have discipline you can use this feature on your advantage by enjoying something you buy today and save to pay for it in a longer period of time. However, lack of discipline will lead you to be tempted to purchase goods without consideration and exceeding your repayment capacity.

Thus, debt accumulates in your balance. If, when payment is due, you can not cancel the balance in full, you will probably pay a smaller amount and finance the rest. This will imply interests that will add up to your balance. If you do not stop buying goods, you will not be able to pay the balance in full and debt will keep accumulating. Time will come when you will not be able to pay the minimum amount on your credit card and you will incur in penalty fees and higher interest rates will be charged on the unpaid balance.

Though exaggerated as it may seem, this scenario is very common and it often leads to default or even bankruptcy. The consequences of such events are devastating to your credit score. Your ability to get finance will shrink till it disappears completely. Recovering from such situation takes many years.

There are however many things you can do to avoid these situations and start reducing your debt till you become debt free. If you achieve some discipline and follow this advice, you will not ever need to worry about your credit again.

Avoid Minimum Payments

Most of a minimum payment is interests, thus if you pay only the minimum payments you will not be reducing your debt significantly. The key to success in reducing credit card debt is to pay as much as possible but always over the minimum. By doing so, though it may not show right away, you will end up saving thousands of dollars in interests on the long run.

If you have multiple credit cards, check which of them has the highest interest rate and if you can not transfer the balance, pay as much money as possible in that card and only the minimum on the others. Once the balance is fully paid, return the credit card and continue with the next higher interest credit card. This way, you will be saving a lot of money on interests too.

Cut On Non-Essential Expenses

At least till you reduce your debt substantially, you need to lower the amount of money you spend on non-essential expenses. Buy only what you specifically need. It is important that you make some sacrifices, in the future you will be able to retake those expenses and you will have avoided worse problems than pilling up bills and debt like default or bankruptcy.

Consolidating Your Debt

If all this does not work, you can request a consolidation loan to pay off al your debt and cancel your credit cards or contact a debt consolidation agency to negotiate with your creditors new repayment plans with lower and affordable installments. However, this should only be done as a last resort since it may affect your credit score negatively.

About The Author
Melissa Kellett is an expert loan consultant who has worked for twenty years in the financial industry and helps people to repair their credit and get approved for home loans, unsecured personal loans, student loans, consolidation loans, car loans and many other types of loans and financial products. If you want to learn more about Credit Card Consolidation and Debt Consolidation you can visit her site http://www.speedybadcreditloans.com

Credit Card Debt – Elimination Or Consolidation? by: Susan Megge

You’re at the end of your rope and you simply can’t do it anymore. You’re drowning in debt and sick and tired of trying to gather enough money each month just to make the minimum payments due on your credit cards. You can be certain that you’re not alone. There are many people who are facing a financial crisis much like the one with which you’re dealing. It’s overwhelming and scary, especially if your accounts are delinquent and you’re receiving threatening and harassing calls and letters from debt collectors. Take comfort in knowing that you will overcome this financial burden because, fortunately, there are options available to you.

Credit Counseling – When you sign up for a credit counseling service, credit counselors contact your various creditors to work out a repayment plan, usually negotiating reduced interest rates and payments. You’re then required to make one monthly payment to the consumer credit counseling service and they in turn distribute the funds each month to your various creditors. If you’re considering this option, it’s important to do your homework. Many credit counseling agencies are funded by your creditors, therefore, you’re left to wonder whether or not the credit counseling service is legitimately interested in what’s best for you, the consumer. Also, just because credit counseling services claim to be “nonprofit” organizations, it doesn’t mean their services are free or affordable. In fact, many of these firms aren’t even legitimate. Again, do your homework to be sure this is the best route for you, as entering into a credit counseling agreement can take five years or more to pay off your debt.

Debt Consolidation – If you have sufficient equity in your home, you may be eligible to obtain a second mortgage or home equity line of credit. This could possibly enable you to lower the cost of your credit with an interest rate reduction. While the thought of paying off your credit cards with a reduced interest loan is tempting, be very cautious prior to using your home as collateral. If, at any point during the term of the loan, you are unable to make your payments, you could lose your home. Also, it’s crucial to shop around, as the cost of a home equity loan can add up quickly if you’re required to pay points. When you look closely at the bottom line, you want to see that you’re ahead – not still drowning in debt.

Bankruptcy – Generally, bankruptcy is considered as a “last resort” for most people due to the fact that bankruptcy is a matter of public record and its ramifications are long-lasting. As you’re probably aware, there are two forms of bankruptcy – Chapter 7 and Chapter 13. Chapter 7 is known as “straight bankruptcy” because your debts are discharged and no repayment plan is required. As a result of the new bankruptcy law that went into effect back in October 2005, however, many people find that they’re no longer eligible for Chapter 7 bankruptcy and instead must file Chapter 13 bankruptcy. Chapter 13 bankruptcy requires a court-approved repayment plan, usually over a period of five years or so. After all payments have been made, you receive a discharge of debts. Another major hurdle as a result of the new bankruptcy law is the requirement to get credit counseling from a government-approved organization within six months before you file for any type of bankruptcy relief. If bankruptcy is your only option, be sure to ask questions and hire an attorney with whom you’re comfortable.

Debt Settlement (Debt Negotiation) – Debt settlement is a process whereby most creditors will agree to accept less than the full balance to settle outstanding debt. Debt settlement has proven to be an excellent solution for many individuals and businesses who may have otherwise found it necessary to file bankruptcy. As with all of your options to become debt-free, be very careful when choosing the debt settlement firm with you’ll be working. For instance if you’re thinking about hiring a firm who will require you to set up a trust account or pay a monthly fee, you may want to think twice about that particular firm. Work with a company with whom you feel you can trust to represent you with only your best interest in mind.

In the end, what’s most important is that you resolve your debts by choosing the option which will best meet your needs. Take a serious look at your financial situation so that you can better decide which path is best for you. Once you’ve made the decision to put your debt behind you, you’ll feel a great deal of relief. It’s not necessary to go another month with fears and concerns over your financial predicament.