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    Visa Inc.

    American multinational financial services corporation

    "VISA" redirects here. For the document needed to enter a country's territory, see Travel visa. For other uses, see Visa (disambiguation).

    Visa Inc. (; stylized as VISA) is an American multinationalfinancial services corporation headquartered in Foster City, California, United States.[4] It facilitates electronic funds transfers throughout the world, most commonly through Visa-branded credit cards, debit cards and prepaid cards.[5] Visa is one of the world's most valuable companies.

    Visa does not issue cards, extend credit or set rates and fees for consumers; rather, Visa provides financial institutions with Visa-branded payment products that they then use to offer credit, debit, prepaid and cash access programs to their customers. In 2015, the Nilson Report, a publication that tracks the credit card industry, found that Visa's global network (known as VisaNet) processed 100 billion transactions during 2014 with a total volume of US$6.8 trillion.[6]

    It was launched in September 1958 by Bank of America (BofA) as the BankAmericard credit card program.[1] In response to competitor Master Charge (now Mastercard), BofA began to license the BankAmericard program to other financial institutions in 1966.[7] By 1970, BofA gave up direct control of the BankAmericard program, forming a consortium with the other various BankAmericard issuer banks to take over its management. It was then renamed Visa in 1976.[8]

    Nearly all Visa transactions worldwide are processed through the company's directly operated VisaNet at one of four secure data centers, located in Ashburn, Virginia; Highlands Ranch, Colorado; London, England; and Singapore.[9] These facilities are heavily secured against natural disasters, crime, and terrorism; can operate independently of each other and from external utilities if necessary; and can handle up to 30,000 simultaneous transactions and up to 100 billion computations every second.[10][6][11]

    Visa is the world's second-largest card payment organization (debit and credit cards combined), after being surpassed by China UnionPay in 2015, based on annual value of card payments transacted and number of issued cards. However, because UnionPay's size is based primarily on the size of its domestic market in China, Visa is still considered the dominant bankcard company in the rest of the world, where it commands a 50% market share of total card payments.

    History[edit]

    Old "Your BankAmericard Welcome Here" sign
    A 1976 ad promoting the change of name to "Visa". Note the early Visa card shown in the ad, as well as the image of the BankAmericard that it replaced.

    On September 18, 1958, Bank of America (BofA) officially launched its BankAmericard credit card program in Fresno, California.[1] In the weeks leading up to the launch of BankAmericard, BofA had saturated Fresno mailboxes with an initial mass mailing (or "drop", as they came to be called) of 65,000 unsolicited credit cards.[1][13] BankAmericard was the brainchild of BofA's in-house product development think tank, the Customer Services Research Group, and its leader, Joseph P. Williams. Williams convinced senior BofA executives in 1956 to let him pursue what became the world's first successful mass mailing of unsolicited credit cards (actual working cards, not mere applications) to a large population.[14]

    Williams' pioneering accomplishment was that he brought about the successful implementation of the all-purpose credit card (in the sense that his project was not canceled outright), not in coming up with the idea.[14] By the mid-1950s, the typical middle-class American already maintained revolving credit accounts with several different merchants, which was clearly inefficient and inconvenient due to the need to carry so many cards and pay so many separate bills each month.[15] The need for a unified financial instrument was already evident to the American financial services industry, but no one could figure out how to do it. There were already charge cards like Diners Club (which had to be paid in full at the end of each billing cycle), and "by the mid-1950s, there had been at least a dozen attempts to create an all-purpose credit card."[15] However, these prior attempts had been carried out by small banks which lacked the resources to make them work.[15] Williams and his team studied these failures carefully and believed they could avoid replicating those banks' mistakes; they also studied existing revolving credit operations at Sears and Mobil Oil to learn why they were successful.[15] Fresno was selected for its population of 250,000 (big enough to make a credit card work, small enough to control initial startup cost), BofA's market share of that population (45%), and relative isolation, to control public relations damage in case the project failed.[16] According to Williams, Florsheim Shoes was the first major retail chain which agreed to accept BankAmericard at its stores.[17]

    Visa logo from July 1, 1992 to 2000

    Visa logo used from July 1, 1992 to 2000

    Visa logo from August 1998 to 2006

    Visa logo used from August 1998 to 2005

    Visa logo from late 2005 to May 2015

    Visa logo used from late 2005 to May 2015

    Visa logo from January 2014 to July 2021

    Visa logo used from January 2014 to July 2021

    Visa logo since July 2021

    Visa logo used since July 2021

    Visa acceptance logo used since early 2015

    Visa acceptance logo from early 2015 (used only in certain Asian, American and European markets)

    The 1958 test at first went smoothly, but then BofA panicked when it confirmed rumors that another bank was about to initiate its own drop in San Francisco, BofA's home market.[18] By March 1959, drops began in San Francisco and Sacramento; by June, BofA was dropping cards in Los Angeles; by October, the entire state of California had been saturated with over 2 million credit cards and BankAmericard was being accepted by 20,000 merchants.[18] However, the program was riddled with problems, as Williams (who had never worked in a bank's loan department) had been too earnest and trusting in his belief in the basic goodness of the bank's customers, and he resigned in December 1959. Twenty-two percent of accounts were delinquent, not the 4% expected, and police departments around the state were confronted by numerous incidents of the brand new crime of credit card fraud.[19] Both politicians and journalists joined the general uproar against Bank of America and its newfangled credit card, especially when it was pointed out that the cardholder agreement held customers liable for all charges, even those resulting from fraud.[20] BofA officially lost over $8.8 million on the launch of BankAmericard, but when the full cost of advertising and overhead was included, the bank's actual loss was probably around $20 million.[20]

    However, after Williams and some of his closest associates left, BofA management realized that BankAmericard was salvageable.[21] They conducted a "massive effort" to clean up after Williams, imposed proper financial controls, published an open letter to 3 million households across the state apologizing for the credit card fraud and other issues their card raised and eventually were able to make the new financial instrument work.[21] By May 1961, the BankAmericard program became profitable for the first time.[22] At the time, BofA deliberately kept this information secret and allowed then-widespread negative impressions to linger in order to ward off competition.[23] This strategy worked until 1966, when BankAmericard's profitability had become far too big to hide.[23]

    The original goal of BofA was to offer the BankAmericard product across California, but in 1966, BofA began to sign licensing agreements with a group of banks outside of California, in response to a new competitor, Master Charge (now MasterCard), which had been created by an alliance of several regional bankcard associations to compete against BankAmericard. BofA itself (like all other U.S. banks at the time) could not expand directly into other states due to federal restrictions not repealed until 1994. Over the following 11 years, various banks licensed the card system from Bank of America, thus forming a network of banks backing the BankAmericard system across the United States.[7] The "drops" of unsolicited credit cards continued unabated, thanks to BofA and its licensees and competitors until they were outlawed in 1970,[24] but not before over 100 million credit cards had been distributed into the American population.[25]

    During the late 1960s, BofA also licensed the BankAmericard program to banks in several other countries, which began issuing cards with localized brand names. For example:[citation needed]

    • In Canada, an alliance of banks (including Toronto-Dominion Bank, Canadian Imperial Bank of Commerce, Royal Bank of Canada, Banque Canadienne Nationale and Bank of Nova Scotia) issued credit cards under the Chargex name from 1968 to 1977.
    • In France, it was known as Carte Bleue (Blue Card). The logo still appears on many French-issued Visa cards today.
    • In Japan, The Sumitomo Bank issued BankAmericards through the Sumitomo Credit Service.
    • In the UK, the only BankAmericard issuer for some years was Barclaycard. The branding still exists today, but is used not only on Visa cards issued by Barclays, but on its MasterCard and American Express cards as well.[26]
    • In Spain until 1979 the only issuer was Banco de Bilbao.

    In 1968, a manager at the National Bank of Commerce (later Rainier Bancorp), Dee Hock, was asked to supervise that bank's launch of its own licensed version of BankAmericard in the Pacific Northwest market. Although Bank of America had cultivated the public image that BankAmericard's troubled startup issues were now safely in the past, Hock realized that the BankAmericard licensee program itself was in terrible disarray because it had developed and grown very rapidly in an ad hoc fashion. For example, "interchange" transaction issues between banks were becoming a very serious problem, which had not been seen before when Bank of America was the sole issuer of BankAmericards. Hock suggested to other licensees that they form a committee to investigate and analyze the various problems with the licensee program; they promptly made him the chair of that committee.[27]

    After lengthy negotiations, the committee led by Hock was able to persuade Bank of America that a bright future lay ahead for BankAmericard — outside Bank of America. In June 1970, Bank of America gave up control of the BankAmericard program. The various BankAmericard issuer banks took control of the program, creating National BankAmericard Inc. (NBI), an independent Delaware corporation which would be in charge of managing, promoting and developing the BankAmericard system within the United States. In other words, BankAmericard was transformed from a franchising system into a jointly controlled consortium or alliance, like its competitor Master Charge. Hock became NBI's first president and CEO.[28]

    However, Bank of America retained the right to directly license BankAmericard to banks outside the United States and continued to issue and support such licenses. By 1972, licenses had been granted in 15 countries. The international licensees soon encountered a variety of problems with their licensing programs, and they hired Hock as a consultant to help them restructure their relationship with BofA as he had done for the domestic licensees. As a result, in 1974, the International Bankcard Company (IBANCO), a multinational member corporation, was founded in order to manage the international BankAmericard program.[29]

    In 1976, the directors of IBANCO determined that bringing the various international networks together into a single network with a single name internationally would be in the best interests of the corporation; however, in many countries, there was still great reluctance to issue a card associated with Bank of America, even though the association was entirely nominal in nature. For this reason, in 1976, BankAmericard, Barclaycard, Carte Bleue, Chargex, Sumitomo Card, and all other licensees united under the new name, "Visa", which retained the distinctive blue, white and gold flag. NBI became Visa USA and IBANCO became Visa International.[8]

    The term Visa was conceived by the company's founder, Dee Hock. He believed that the word was instantly recognizable in many languages in many countries and that it also denoted universal acceptance.[30] In October 2007, Bank of America announced it was resurrecting the BankAmericard brand name as the "BankAmericard Rewards Visa".[31]

    Corporate structure[edit]

    Prior to October 3, 2007, Visa comprised four non-stock, separately incorporated companies that employed 6,000 people worldwide: the worldwide parent entity Visa International Service Association (Visa), Visa USA Inc., Visa Canada Association, and Visa Europe Ltd. The latter three separately incorporated regions had the status of group members of Visa International Service Association.[citation needed]

    The unincorporated regions Visa Latin America (LAC), Visa Asia Pacific and Visa Central and Eastern Europe, Middle East and Africa (CEMEA) were divisions within Visa.[citation needed]

    Billing and finance charge methods[edit]

    Initially, signed copies of sales drafts were included in each customer's monthly billing statement for verification purposes—an industry practice known as "country club billing"[citation needed]. By the late 1970s, however, billing statements no longer contained these enclosures, but rather a summary statement showing posting date, purchase date, reference number, merchant name, and the dollar amount of each purchase.[citation needed] At the same time, many issuers, particularly Bank of America, were in the process of changing their methods of finance charge calculation. Initially, a "previous balance" method was used—calculation of finance charge on the unpaid balance shown on the prior month's statement. Later, it was decided to use "average daily balance" which resulted in increased revenue for the issuers by calculating the number of days each purchase was included on the prior month's statement. Several years later, "new average daily balance"—in which transactions from previous and current billing cycles were used in the calculation—was introduced. By the early 1980s, many issuers introduced the concept of the annual fee as yet another revenue enhancer.[citation needed]

    IPO and restructuring[edit]

    On October 11, 2006, Visa announced that some of its businesses would be merged and become a publicly traded company, Visa Inc.[32][33][34] Under the IPO restructuring, Visa Canada, Visa International, and Visa USA were merged into the new public company. Visa's Western Europe operation became a separate company, owned by its member banks who will also have a minority stake in Visa Inc.[35] In total, more than 35 investment banks participated in the deal in several capacities, most notably as underwriters.

    On October 3, 2007, Visa completed its corporate restructuring with the formation of Visa Inc. The new company was the first step towards Visa's IPO.[36] The second step came on November 9, 2007, when the new Visa Inc. submitted its $10 billion IPO filing with the U.S. Securities and Exchange Commission (SEC).[37] On February 25, 2008, Visa announced it would go ahead with an IPO of half its shares.[38] The IPO took place on March 18, 2008. Visa sold 406 million shares at US$44 per share ($2 above the high end of the expected $37–42 pricing range), raising US$17.9 billion in what was then the largest initial public offering in U.S. history.[39] On March 20, 2008, the IPO underwriters (including JP Morgan, Goldman Sachs & Co., Banc of America Securities LLC, Citi, HSBC, Merrill Lynch & Co., UBS Investment Bank and Wachovia Securities) exercised their overallotment option, purchasing an additional 40.6 million shares, bringing Visa's total IPO share count to 446.6 million, and bringing the total proceeds to US$19.1 billion.[40] Visa now trades under the ticker symbol "V" on the New York Stock Exchange.[41]

    Visa Europe[edit]

    Visa Europe Ltd. was a membership association and cooperative of over 3,700 European banks and other payment service providers[42] that operated Visa branded products and services within Europe. Visa Europe was a company entirely separate from Visa Inc. having gained independence of Visa International Service Association in October 2007 when Visa Inc. became a publicly traded company on the New York Stock Exchange.[43] Visa Inc. announced the plan to acquire Visa Europe on November 5, 2015, creating a single global company.[44] On April 21, 2016, the agreement was amended in response to the feedback of European Commission.[45] The acquisition of Visa Europe was completed on June 21, 2016.[46]

    Acquisition of Plaid[edit]

    On January 13, 2020, Plaid announced that it had signed a definitive agreement to be acquired by Visa for $5.3 billion.[47][48] The deal was double the company's most recent Series C round valuation of $2.65 billion,[49] and was expected to close in the next 3–6 months, subject to regulatory review and closing conditions. According to the deal, Visa would pay $4.9 billion in cash and approximately $400 million of retention equity and deferred equity,[50][51] according to a presentation deck prepared by Visa.[52]

    On November 5, 2020, the United States Department of Justice filed a lawsuit seeking to block the acquisition, arguing that Visa is a monopolist trying to eliminate a competitive threat by purchasing Plaid. Visa said it disagrees with the lawsuit and "intends to defend the transaction vigorously."[53][54]

    Digital Currencies[edit]

    On February 3, 2021, Visa announced a partnership with First Boulevard, a neobank focused on building generational wealth for the Black community. First Boulevard will be first to pilot Visa's new suite of cryptocurrency APIs, which will enable their customers to buy, sell, hold, and trade digital assets held by Anchorage, a federally chartered digital asset bank. The pilot will serve as a key first step in supporting API capabilities that help additional Visa clients access and integrate cryptocurrencies.[55][56]

    On March 29, 2021, Visa announced the acceptance of stable coin USDC to settle transactions on its network.[57]

    Visa Foundation[edit]

    Registered in the United States as a 501(c)(3) entity, the Visa Foundation was created with the mission of supporting inclusive economies. In particular, economies in which individuals, businesses and communities can thrive with the support of grants and investments. Supporting resiliency, as well as the growth, of micro and small businesses that benefit women is a priority of the Visa Foundation. Furthermore, the Foundation prioritizes providing support to the community from a broad standpoint, as well as responding to disasters during crisis.[58]

    Other Initiatives[edit]

    In December 2020, Visa Announced the launch of a new accelerator program across Asia Pacific to further develop the region's financial technology ecosystem.[59] The accelerator program aims to find and partner with startup companies providing financial and payments technologies that could potentially leverage on Visa's network of bank and merchant partners in the region.[60]

    Finance[edit]

    For the fiscal year 2018, Visa reported earnings of US$10.3 billion, with an annual revenue of US$20.61 billion, an increase of 12.3% over the previous fiscal cycle. Visa's shares traded at over $143 per share, and its market capitalization was valued at over US$280.2 billion in September 2018. As of 2018, the company ranked 161st on the Fortune 500 list of the largest United States corporations by revenue.[61]

    Year Revenue
    in mil. USD$
    Net income
    in mil. USD$
    Employees
    2005[62]2,665 360
    2006[62]2,948 455
    2007[62]3,590 −1,076 5,479
    2008[62]6,263 804 5,765
    2009[63]6,911 2,353 5,700
    2010[64]8,065 2,966 6,800
    2011[65]9,188 3,650 7,500
    2012[66]10,421 2,144 8,500
    2013[67]11,778 4,980 9,600
    2014[68]12,702 5,438 9,500
    2015[69]13,880 6,328 11,300
    2016[70]15,082 5,991 11,300
    2017[71]18,358 6,699 12,400
    2018[72]20,609 10,301 15,000
    2019[73]22,977 12,080 19,500
    2020[73]21,846 10,866 20,500

    Criticism and controversy[edit]

    WikiLeaks[edit]

    Visa Europe began suspending payments to WikiLeaks on December 7, 2010.[74] The company said it was awaiting an investigation into 'the nature of its business and whether it contravenes Visa operating rules' – though it did not go into details.[75] In return DataCell, the IT company that enables WikiLeaks to accept credit and debit card donations, announced that it would take legal action against Visa Europe.[76] On December 8, the group Anonymous performed a DDoS attack on visa.com,[77] bringing the site down.[78] Although the Norway-based financial services company Teller AS, which Visa ordered to look into WikiLeaks and its fundraising body, the Sunshine Press, found no proof of any wrongdoing, Salon reported in January 2011 that Visa Europe "would continue blocking donations to the secret-spilling site until it completes its own investigation".[75]

    The United NationsHigh Commissioner for Human RightsNavi Pillay stated that Visa may be "violating WikiLeaks' right to freedom of expression" by withdrawing their services.[79]

    In July 2012, the Reykjavík District Court decided that Valitor (the Icelandic partner of Visa and MasterCard) was violating the law when it prevented donations to the site by credit card. It was ruled that the donations be allowed to return to the site within 14 days or they would be fined in the amount of US$6,000 per day.[80]

    Litigation and regulatory actions[edit]

    Anti-competitive conduct in Australia[edit]

    In 2015, the Australian Federal Court ordered Visa to pay a pecuniary penalty of $20 million (including legal fees) for engaging in anti-competitive conduct against dynamic currency conversion operators, in proceedings brought by the Australian Competition and Consumer Commission.[81]

    Antitrust lawsuit by ATM operators[edit]

    In 2011, MasterCard and Visa were sued in a class action by ATM operators claiming the credit card networks' rules effectively fix ATM access fees.[82] The suit claimed that this is a restraint on trade in violation of US federal law. The lawsuit was filed by the National ATM Council and independent operators of automated teller machines. More specifically, it is alleged that MasterCard's and Visa's network rules prohibit ATM operators from offering lower prices for transactions over PIN-debit networks that are not affiliated with Visa or MasterCard. The suit says that this price-fixing artificially raises the price that consumers pay using ATMs, limits the revenue that ATM-operators earn, and violates the Sherman Act's prohibition against unreasonable restraints of trade.

    Johnathan Rubin, an attorney for the plaintiffs said, "Visa and MasterCard are the ringleaders, organizers, and enforcers of a conspiracy among U.S. banks to fix the price of ATM access fees in order to keep the competition at bay."[83]

    In 2017, a US district court denied the ATM operators' request to stop Visa from enforcing the ATM fees.[84]

    Debit card swipe fees[edit]

    Visa settled a 1996 antitrust lawsuit brought by a class of U.S. merchants, including Walmart, for billions of dollars in 2003. Over 4 million class members were represented by the plaintiffs. According to a website associated with the suit,[85] Visa and MasterCard settled the plaintiffs' claims for a total of $3.05 billion. Visa's share of this settlement is reported to have been the larger.

    U.S. Justice Department actions[edit]

    In 1998, the Department of Justice sued Visa over rules prohibiting its issuing banks from doing business with American Express and Discover. The Department of Justice won its case at trial in 2001 and the verdict was upheld on appeal. American Express and Discover filed suit as well.[86]

    In October 2010, Visa and MasterCard reached a settlement with the U.S. Justice Department in another antitrust case. The companies agreed to allow merchants displaying their logos to decline certain types of cards (because interchange fees differ), or to offer consumers discounts for using cheaper cards.[87]

    Antitrust issues in Europe[edit]

    In 2002, the European Commission exempted Visa's multilateral interchange fees from Article 81 of the EC Treaty that prohibits anti-competitive arrangements.[88] However, this exemption expired on December 31, 2007. In the United Kingdom, Mastercard has reduced its interchange fees while it is under investigation by the Office of Fair Trading.

    In January 2007, the European Commission issued the results of a two-year inquiry into the retail banking sector. The report focuses on payment cards and interchange fees. Upon publishing the report, Commissioner Neelie Kroes said the "present level of interchange fees in many of the schemes we have examined does not seem justified." The report called for further study of the issue.[89]

    On March 26, 2008, the European Commission opened an investigation into Visa's multilateral interchange fees for cross-border transactions within the EEA as well as into the "Honor All Cards" rule (under which merchants are required to accept all valid Visa-branded cards).[90][needs update]

    The antitrust authorities of EU member states (other than the United Kingdom) also investigated Mastercard's and Visa's interchange fees. For example, on January 4, 2007, the Polish Office of Competition and Consumer Protection fined twenty banks a total of PLN 164 million (about $56 million) for jointly setting Mastercard's and Visa's interchange fees.[91][92]

    In December 2010, Visa reached a settlement with the European Union in yet another antitrust case, promising to reduce debit card payments to 0.2 percent of a purchase.[93] A senior official from the European Central Bank called for a break-up of the Visa/Mastercard duopoly by creation of a new European debit card for use in the Single Euro Payments Area (SEPA).[94] After Visa's blocking of payments to WikiLeaks, members of the European Parliament expressed concern that payments from European citizens to a European corporation could apparently be blocked by the US, and called for a further reduction in the dominance of Visa and Mastercard in the European payment system.[95]

    Payment Card Interchange Fee and Merchant Discount Antitrust Litigation[edit]

    Main article: Payment Card Interchange Fee and Merchant Discount Antitrust Litigation

    On November 27, 2012, a federal judge entered an order granting preliminary approval to a proposed settlement to a class-action lawsuit[96] filed in 2005 by merchants and trade associations against Mastercard and Visa. The suit was filed due to alleged price-fixing practices employed by Mastercard and Visa. About one-quarter of the named class plaintiffs have decided to opt "out of the settlement". Opponents object to provisions that would bar future lawsuits and even prevent merchants from opting out of significant portions of the proposed settlement.[97]

    Plaintiffs allege that Visa and Mastercard fixed interchange fees, also known as swipe fees, that are charged to merchants for the privilege of accepting payment cards. In their complaint, the plaintiffs also alleged that the defendants unfairly interfere with merchants from encouraging customers to use less expensive forms of payment such as lower-cost cards, cash, and checks.[97]

    A settlement of US$6.24 billion has been reached and a court is scheduled to approve or deny the agreement on November 7, 2019.[98]

    High swipe fees in Poland[edit]

    Very high interchange fee for Visa (1.5–1.6% from every transaction's final price, which also includes VAT) in Poland started discussion about legality and need for government regulations of interchange fees to avoid high costs for business (which also block electronic payment market and acceptability of cards).[99] This situation also led to the birth of new methods of payment in the year 2013, which avoid the need for go-between (middleman) companies like Visa or Mastercard, for example mobile application issued by major banks,[100] and system by big chain of discount shops,[101] or older public transport tickets buying systems.[102]

    Confrontation with Walmart over high fees[edit]

    In June 2016, the Wall Street Journal reported that Walmart threatened to stop accepting Visa cards in Canada. Visa objected saying that consumers should not be dragged into a dispute between the companies.[103] In January 2017, Walmart Canada and Visa reached a deal to allow the continued acceptance of Visa.[104]

    Dispute with Kroger over high credit card fees[edit]

    In March 2019, U.S. retailer Kroger announced that its 250-strong Smith's chain would stop accepting Visa credit cards as of April 3, 2019, due to the cards’ high ‘swipe’ fees. Kroger's California-based Foods Co stores stopped accepting Visa cards in August 2018. Mike Schlotman, Kroger's executive vice president/chief financial officer, said Visa had been “misusing its position and charging retailers excessive fees for a long time.” In response, Visa issued a statement saying it was “unfair and disappointing that Kroger is putting shoppers in the middle of a business dispute.”[105] As of October 31, 2019, Kroger has settled their dispute with Visa and is now accepting the payment method.[106]

    Antitrust investigation over debit card practices[edit]

    In March 2021, the United States Justice Department announced its investigation with Visa to discover if the company is engaging in anticompetitive practices in the debit card market. The main question at hand is whether or not Visa is limiting merchants' ability to route debit card transactions over card networks that are often less expensive, focusing more so on online debit card transactions. The probe highlights the role of network fees, which are invisible to consumers and place pressure on merchants, who mitigate the fees by raising prices of goods for customers. The probe was confirmed through a regulatory filing on March 19, 2021, stating they will be cooperating with the Justice Department. Visa's shares fell more than 6% following the announcement.[107][108][109][110]

    Corporate affairs[edit]

    Headquarters[edit]

    In 2009, Visa moved its corporate headquarters back to San Francisco when it leased the top three floors of the 595 Market Street office building, although most of its employees remained at its Foster City campus.[111] In 2012, Visa decided to consolidate its headquarters in Foster City where 3,100 of its 7,700 global workers are employed.[2] Visa owns four buildings at the intersection of Metro Center Boulevard and Vintage Park Drive.

    As of October 1, 2012, Visa's headquarters are located in Foster City, California.[2] Visa had been headquartered in San Francisco until 1985, when it moved to San Mateo.[112] Around 1993, Visa began consolidating various scattered offices in San Mateo to a location in Foster City.[112] Visa became Foster City's largest employer.

    In December 2012, Visa Inc. confirmed that it will build a global information technology center off of the US 183 Expressway in northwest Austin, Texas.[113] By 2019, Visa leased space in 4 buildings near Austin and employed nearly 2,000 people.[114]

    On November 6, 2019, Visa announced plans to move its headquarters back to San Francisco by 2024 upon completion of a new "13-story, 300,000-square-foot building".[115]

    Operations[edit]

    Visa offers through its issuing members the following types of cards:

    • Debit cards (pay from a checking/savings account)
    • Credit cards (pay monthly payments with or without interest depending on a customer paying on time)
    • Prepaid cards (pay from a cash account that has no check writing privileges)

    Visa operates the Plusautomated teller machine network and the InterlinkEFTPOSpoint-of-sale network, which facilitate the "debit" protocol used with debit cards and prepaid cards. They also provide commercial payment solutions for small businesses, midsize and large corporations, and governments.[116]

    Visa teamed with Apple in September 2014, to incorporate a new mobile wallet feature into Apple's new iPhone models, enabling users to more readily use their Visa, and other credit/debit cards.[117]

    Operating regulations[edit]

    Visa has a set of rules that govern the participation of financial institutions in its payment system. Acquiring banks are responsible for ensuring that their merchants comply with the rules.

    Rules address how a cardholder must be identified for security, how transactions may be denied by the bank, and how banks may cooperate for fraud prevention, and how to keep that identification and fraud protection standard and non-discriminatory. Other rules govern what creates an enforceable proof of authorization by the cardholder.[118]

    The rules prohibit merchants from imposing a minimum or maximum purchase amount in order to accept a Visa card and from charging cardholders a fee for using a Visa card.[118] In ten U.S. states, surcharges for the use of a credit card are forbidden by law (California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas) but a discount for cash is permitted under specific rules.[119] Some countries have banned the no-surcharge rule, most notably in Australia[120] retailers may apply surcharges to any credit-card transaction, Visa or otherwise. In the UK the law was changed in January 2018 to prevent retailers from adding a surcharge to a transaction as per 'The Consumer Rights (Payment Surcharges) Regulations 2012'.

    Visa permits merchants to ask for photo ID, although the merchant rule book states that this practice is discouraged. As long as the Visa card is signed, a merchant may not deny a transaction because a cardholder refuses to show a photo ID.[118]

    The Dodd–Frank Act allows U.S. merchants to set a minimum purchase amount on credit card transactions, not to exceed $10.[121][122]

    Recent complications include the addition of exceptions for non-signed purchases by telephone or on the Internet and an additional security system called "Verified by Visa" for purchases on the Internet.

    In September 2014, Visa Inc, launched a new service to replace account information on plastic cards with "token" – a digital account number.[123]

    Visa Contactless (formerly payWave)[edit]

    EMVCoContactlessIndicator.svg

    In September 2007, Visa introduced Visa payWave, a contactless payment technology feature that allows cardholders to wave their card in front of contactless payment terminals without the need to physically swipe or insert the card into a point-of-sale device.[124] This is similar to the Mastercard Contactless service and the American ExpressExpressPay, with both using RFID technology. All three use the same symbol as shown on the right.

    In Europe, Visa has introduced the V Pay card, which is a chip-only and PIN-only debit card.[125] In Australia, take up has been the highest in the world, with more than 50% of in store Visa transactions now made via Visa payWave.[126]

    mVisa[edit]

    mVisa is a mobile payment app allowing payment via smartphones using QR code. This QR code payment method was first introduced in India in 2015. It was later expanded to a number of other countries, including in Africa and South East Asia.[127][128]

    Visa Checkout[edit]

    In 2013, Visa launched Visa Checkout, an online payment system that removes the need to share card details with retailers. The Visa Checkout service allows users to enter all their personal details and card information, then use a single username and password to make purchases from online retailers. The service works with Visa credit, debit, and prepaid cards. On November 27, 2013, V.me went live in the UK, France, Spain and Poland, with Nationwide Building Society being the first financial institution in Britain to support it,[129] although Nationwide subsequently withdrew this service in 2016.

    Trademark and design[edit]

    Logo design[edit]

    The blue and gold in Visa's logo were chosen to represent the blue sky and gold-colored hills of California, where the Bank of America was founded.

    In 2005, Visa changed its logo, removing the horizontal stripes in favor of a simple white background with the name Visa in blue with an orange flick on the 'V'.[130] The orange flick was removed in favor of the logo being a solid blue gradient in 2014. In 2015, the gold and blue stripes were restored as card branding on Visa Debit and Visa Electron, although not as the company's logotype.[131]

    Card design[edit]

    The Dove hologram

    In 1984, most Visa cards around the world began to feature a hologram of a dove on its face, generally under the last four digits of the Visa number. This was implemented as a security feature – true holograms would appear three-dimensional and the image would change as the card was turned. At the same time, the Visa logo, which had previously covered the whole card face, was reduced in size to a strip on the card's right incorporating the hologram. This allowed issuing banks to customize the appearance of the card. Similar changes were implemented with MasterCard cards. Today, cards may be co-branded with various merchants, airlines, etc., and marketed as "reward cards".

    On older Visa cards, holding the face of the card under an ultraviolet light will reveal the dove picture, dubbed the Ultra-Sensitive Dove,[132] as an additional security test. (On newer Visa cards, the UV dove is replaced by a small V over the Visa logo.)

    Beginning in 2005, the Visa standard was changed to allow for the hologram to be placed on the back of the card, or to be replaced with a holographic magnetic stripe ("HoloMag").[133] The HoloMag card was shown to occasionally cause interference with card readers, so Visa eventually withdrew designs of HoloMag cards and reverted to traditional magnetic strips.[134]

    Signatures[edit]

    Visa made a statement on January 12, 2018, that the signature requirement would become optional for all EMV contact or contactless chip-enabled merchants in North America starting in April 2018. It was noted that the signatures are no longer necessary to fight fraud and the fraud capabilities have advanced allowing this elimination leading to a faster in-store purchase experience.[135] Visa was the last of the major credit card issuers to relax the signature requirements. The first to eliminate the signature was MasterCard Inc. followed by Discover Financial Services and American Express Co.[136]

    [edit]

    Olympics and Paralympics[edit]

    • Visa has been a worldwide sponsor of the Olympic Games since 1986 and the International Paralympic Committee since 2002. Visa is the only card accepted at all Olympic and Paralympic venues. Its current contract with the International Olympic Committee and International Paralympic Committee as the exclusive services sponsor will continue through 2032 and 2020 respectively.[137][138] This includes the Singapore 2010 Youth Olympic Games, London 2012 Olympic Games, the Sochi 2014 Olympic Winter Games, the Rio de Janeiro 2016 Olympic Games, the 2018 PyeongChang Olympic Winter Games, and the Tokyo 2020 Olympic Games.
    • In 2002, Visa became the first global sponsor of the IPC.[139] Visa extended its partnership with the International Paralympic Committee through 2020,[140] which includes the 2010 Vancouver Paralympic Winter Games, the 2012 London Paralympic Games, 2014 Sochi Paralympic Games, 2018 Pyeongchang Paralympic Games and 2020 Tokyo Paralympic Games.

    Others[edit]

    See also[edit]

    References[edit]

    1. ^ abcdStearns, David L. (2011). Electronic Value Exchange: Origins of the Visa Electronic Payment System. London: Springer. p. 1. ISBN . Available through SpringerLink.
    2. ^ abcLeuty, Ron (September 13, 2012). "Visa moving headquarters from San Francisco to Foster City". San Francisco Business Times. Retrieved February 27, 2013.
    3. ^ abcdef"2020 Income Statement, Visa Inc"(PDF). Retrieved May 21, 2021.
    4. ^"Visa Inc. at a Glance"(PDF). Visa Inc. Archived from the original(PDF) on May 1, 2015. Retrieved April 25, 2015.
    5. ^VisaArchived September 30, 2009, at the Wayback Machine. Retrieved March 26, 2010.
    6. ^ abFisher, Daniel (May 25, 2015). "Visa Moves at the Speed of Money". Forbes. Retrieved May 1, 2016.
    7. ^ ab"History of Visa", Visa Latin America & Caribbean. Archived November 3, 2007, at the Wayback Machine
    8. ^ abThomes, Paul (2011). Technological Innovation in Retail Finance: International Historical Perspectives. New York: Routledge. p. 256. ISBN .
    9. ^"Map and List of VisaNet's Data Centers". Baxtel.
    10. ^"Inside Visa's Data Center

      Military checking benefits

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      Checking accounts

      You can apply online for a checking account if you’re 18 years or older and a legal U.S. resident. You’ll need the following information:

      1. Your Social Security number.
      2. A valid, government-issued photo ID like a driver’s license, passport or state or military ID.
      3. A minimum opening deposit of $25 to activate your account (once you’ve been approved). This can be paid with a credit, debit or prepaid card, a transfer from another U.S. Bank account or a transfer from another financial institution.

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      You can visit any U.S. Bank branch to open a checking account. You’ll still need identification and personal details, such as your Social Security number and a valid government-issued ID. You can also call a U.S. Bank representative at 800-398-0371 to ensure you have everything you need to open a checking account or other bank account.

      Источник: https://www.usbank.com/bank-accounts/checking-accounts/what-you-need-to-open-a-checking-account.html

      Bank of America hiring brand safety officer to 'clean up' online ads

      Bank of America is to hire a “brand safety officer”, a full-time job dedicated to ensuring that the company’s advertising doesn’t appear alongside questionable content online.

      The new role, announced at the MWC conference in Barcelona, comes weeks after Unilever threatened to pull adverts entirely from Facebook and Google.

      Lou Paskalis, a senior vice president at Bank of America, said the new role was a reaction to growing fears in the company that advertising could be seen as a net negative to the company.

      “I get a text from my chief financial officer every time there is news about a brand safety issue,” Paskalis said, according to ad industry news site The Drum. “I know why he is sending them to me … at some point he is going to say, ‘gee is marketing safe to invest in?’ and we don’t want that. We have to clean up our house right now.”

      Paskalis cited Unilever’s threat to Google and Facebook as part of the company’s impetus for moving rapidly on the issue, saying he “applauded” what the company had done and that he was “with them in spirit”.

      “It is a function of the marketer to hold to account the individual platforms to get better,” Paskalis added.

      Unilever’s announcement earlier this month was prompted by a belief by the company’s chief marketing office that “parts of the internet we have ended up with [are] a million miles from where we thought it would take us”.

      Citing “fake news, racism, sexism, terrorists spreading messages of hate, toxic content directed at children”, Unilever’s Keith Weed argued that it was his company’s responsibility to take a stand. “We cannot continue to prop up a digital supply chain – one that delivers over a quarter of our advertising to our consumers – which at times is little better than a swamp in terms of its transparency.”

      “It is in the digital media industry’s interest to listen and act on this,” Weed added. “Before viewers stop viewing, advertisers stop advertising and publishers stop publishing.”

      In the past, advertiser pressure has been successful in forcing action from Google and Facebook, who between them control more than half of all digital advertising in the UK. In 2017, YouTube lost millions as advertisers pulled funds over fears that their brands would appear alongside extremist views or hate speech.

      Источник: https://www.theguardian.com/technology/2018/feb/28/bank-of-america-brand-safety-officer-clean-up-online-ads-unilever-fake-news-racism-sexism-hate
      Visa Inc". pressreleases.visa.com. Retrieved June 24, 2016.
    11. ^"Visa is acquiring Plaid for $5.3 billion, 2x its final private valuation". TechCrunch. Retrieved January 13, 2020.
    12. ^"With Plaid Acquisition, Visa Makes A Big Play for the 'Plumbing' That Connects the Fintech World". Fortune. Retrieved January 28, 2020.
    13. ^"What Plaid's $5.3 Billion Acquisition Means For The Future Of Fintech And Open Banking". finance.yahoo.com. Retrieved March 22, 2020.
    14. ^Demos, Telis (January 14, 2020). "Visa's Bet on Plaid Is Costly but Necessary". The Wall Street Journal. ISSN 0099-9660. Retrieved March 22, 2020.
    15. ^"Payments giant Visa acquiring crypto-serving fintech firm, Plaid". Invezz. January 14, 2020. Retrieved March 22, 2020.
    16. ^"Visa to acquire crypto-serving fintech unicorn Plaid for $5.3B". finance.yahoo.com. Retrieved March 22, 2020.
    17. ^Noonan, Laura (November 5, 2020). "US justice department sues to block Visa's $5.3bn Plaid takeover". Financial Times. Retrieved November 6, 2020.
    18. ^Reuters Staff (November 5, 2020). "U.S. sues Visa to block its acquisition of Plaid". Reuters. Retrieved November 7, 2020.
    19. ^"Visa: Crypto API Program Makes Crypto An Economic Empowerment Tool". PYMNTS. February 3, 2021. Retrieved February 4, 2021.
    20. ^"Visa Expands Digital Currency Roadmap with First Boulevard". Visa. February 3, 2021. Retrieved February 4, 2021.
    21. ^"Visa Moves to Allow Payment Settlements Using Cryptocurrency". NDTV Gadgets 360. Retrieved March 30, 2021.
    22. ^"Visa Launches Foundation with Inaugural Grant to Women's World Banking".
    23. ^"Visa has launched an Accelerator Program for Fintech startups across Asia Pacific". Startup News, Networking, and Resources Hub

      Bank of America hiring brand safety officer to 'clean up' online ads

      Bank of America is to hire a “brand safety officer”, a full-time job dedicated to ensuring that the company’s advertising doesn’t appear alongside questionable content online.

      The new role, announced at the MWC conference in Barcelona, comes weeks after Unilever threatened to pull adverts entirely from Facebook and Google.

      Lou Paskalis, a senior vice president at Bank of America, said the new role was a reaction to growing fears in the company that advertising could be seen as a net negative to the company.

      “I get a text from my chief financial officer every time there is news about a brand safety issue,” Paskalis said, according to ad industry news site The Drum. “I know why he is sending them to me … at some point he is going to say, ‘gee is marketing safe to invest in?’ and we don’t want that. We have to clean up our house right now.”

      Paskalis cited Unilever’s threat to Google and Facebook as part of the company’s impetus for moving rapidly on the issue, saying he “applauded” what the company had done and that he was “with them in spirit”.

      “It is a function of the marketer to hold to account the individual platforms to get better,” Paskalis added.

      Unilever’s announcement earlier this month was prompted by a belief by the company’s chief marketing office that “parts breakfast cafe near me open the internet we have ended up with [are] a million miles from where we thought it would take us”.

      Citing “fake news, racism, sexism, terrorists spreading messages of hate, toxic content directed at children”, Unilever’s Keith Weed argued that it was his company’s responsibility to take a stand. “We cannot continue to prop up a digital supply chain – one that delivers over a quarter of our advertising to our consumers – which at times is little better than a swamp in terms of its transparency.”

      “It is in the digital media industry’s interest to listen and act on this,” Weed added. “Before viewers stop viewing, advertisers stop advertising and publishers stop publishing.”

      In the past, advertiser pressure has been successful in forcing action from Google and Facebook, who between them control more than half of all digital advertising in the UK. In 2017, YouTube lost millions as advertisers pulled funds over fears that their brands would appear alongside extremist views or hate speech.

      Источник: https://www.theguardian.com/technology/2018/feb/28/bank-of-america-brand-safety-officer-clean-up-online-ads-unilever-fake-news-racism-sexism-hate
      Personal Discover". www.discover.com. Retrieved 17 January 2019.
    24. ^"What is Extended Product Warranty? Network Computing". www.networkcomputing.com. May 29, 2013. Retrieved May 1, 2016.
    25. ^Swartz, Jon (March 25, 2012). "Top secret Visa data center banks on security, even has moat". USA Today. Retrieved February 20, 2017.
    26. ^"History of Visa". Archived from the original on October 3, 2014. Retrieved March 19, 2013.
    27. ^ abNocera, Joseph (1994). A Piece of the Action: How the Middle Class Joined the Money Class (2013 paperback ed.). New York: Simon & Schuster. p. 23. ISBN .
    28. ^ abcdNocera, Joseph (1994). A Piece of the Action: How the Middle Class Joined the Money Class (2013 paperback ed.). New York: Simon & Schuster. p. 24. ISBN .
    29. ^Nocera, Joseph (1994). A Piece of the Action: How the Middle Class Joined the Money Class (2013 paperback ed.). New York: Simon & Schuster. p. 25. ISBN .
    30. ^Nocera, Joseph (1994). A Piece of the Action: How the Middle Class Joined the Money Class (2013 paperback ed.). New York: Simon & Schuster. p. 28. ISBN .
    31. ^ abNocera, Joseph (1994). A Piece of the Action: How the Middle Class Joined the Money Class (2013 paperback ed.). New York: Simon & Schuster. p. 29. ISBN .
    32. ^Nocera, Joseph (1994). A Piece of the Action: How the Middle Class Joined the Money Class (2013 paperback ed.). New York: Simon & Schuster. p. 30. ISBN .
    33. ^ abNocera, Joseph (1994). A Piece of the Action: How the Middle Class Joined the Money Class (2013 paperback ed.). New York: Simon & Schuster. p. 31. ISBN .
    34. ^ abNocera, Joseph (1994). A Piece of the Action: How the Middle Class Joined the Money Class (2013 paperback ed.). New York: Simon & Schuster. p. 32. ISBN .
    35. ^Stearns, David L. (2011). Electronic Value Exchange: Origins of the Visa Electronic Payment System. London: Springer. p. 24. ISBN . Available through SpringerLink.
    36. ^ abStearns, David L. (2011). Electronic Value Exchange: Origins of the Visa Electronic Payment System. London: Springer. p. 25. ISBN . Available through SpringerLink.
    37. ^The Unsolicited Credit Card Act of 1970 amended the Truth in Lending Act of 1968 to ban the mailing of unsolicited credit cards. It is now codified at 15 U.S.C. § 1642.
    38. ^Nocera, 15.
    39. ^"Archived copy". Archived from the original on August 26, 2014. Retrieved First interstate bank bozeman hours 23, 2014.CS1 maint: archived copy j crew comenity sign in title (link)
    40. ^Nocera, 89-92.
    41. ^Nocera, 90-93.
    42. ^Batiz-Lazo, Bernardo; del Angel, Gustavo (2016), The Dawn of the Plastic Jungle: The Introduction of the Credit Card in Europe and North America, 1950-1975, Hoover Institution, p. 18
    43. ^"VISA". TheGoodSchoolsGuide. Retrieved August 30, 2019.
    44. ^"BofA resurrects Bankamericard brand", San Francisco Business Times.
    45. ^Visa, Inc. Corporate SiteArchived February 4, 2007, at the Wayback Machine.
    46. ^"Visa plans stock market flotation", BBC News – Business, October 12, 2006.
    47. ^Bawden, Tom. "Visa plans to split into two and float units for $13bn.", The Times, October 12, 2006.
    48. ^Bruno, Joel Bel. "Visa Reveals Plan to Restructure for IPO", Associated Press, June 22, 2007.
    49. ^"Visa, Inc. Complete Global Restructuring"Archived December 13, 2007, at the Wayback Machine, Visa, Inc. Press Release, October 3, 2007.
    50. ^"Visa files for $10 billion IPO", Reuters, November 9, 2007.
    51. ^"Visa plans a $19 bankamericard online initial public offering". The Economist. February 25, 2008.
    52. ^Benner, Katie. "Visa's $15 billion IPO: Feast or famine?", Fortune via CNNMoney, March 18, 2008.
    53. ^"Visa Inc. Announces Exercise of Over-Allotment Option", Visa Inc. Press Release, March 20, 2008. Archived July 21, 2012, at archive.today
    54. ^"Visa IPO Seeks MasterCard Riches"Archived February 7, 2008, at the Wayback Machine, TheStreet.com, February 2, 2008.
    55. ^"Visa Europe members exploring sale to Visa – WSJ". Reuters. March 19, 2013. Retrieved July 18, 2013.
    56. ^"FAQs". Visaeurope.com. Retrieved July 18, 2013.
    57. ^"Press Release – Visa Inc. to Acquire Visa Europe". Visaeurope.com. Retrieved November 5, 2015.
    58. ^"Visa Inc. Reaches Preliminary Agreement to Amend Transaction With Visa Europe". Visa Inc. April 21, 2016. Retrieved April 25, 2016.
    59. ^"Press Release

      Credit card

      card for financial transactions from a line of credit

      An example of the front in a typical credit card:

      A credit card is a payment card issued to users (cardholders) to enable the cardholder to pay a merchant for goods and services based on the cardholder's accrued debt (i.e., promise to the card issuer to pay them for the amounts plus the other agreed charges).[1] The card issuer (usually a bank or credit union) creates a revolving account and grants a line of credit to the cardholder, from which the cardholder can borrow money for payment to a merchant or as a cash advance. There are two credit card groups: consumer credit cards and business credit cards. Most cards are plastic, but some are metal cards (stainless steel, gold, palladium, titanium),[2][3] and a few gemstone-encrusted metal cards.[2]

      A regular credit card is different from a charge card, which requires the balance to be repaid in full each month or at the end of each statement cycle.[4] In contrast, credit cards allow the consumers to build a continuing balance of debt, subject to interest being charged. A credit card differs from a charge card also in that a credit card typically involves a third-party entity that pays the seller and is reimbursed by the buyer, whereas a charge card simply defers payment by the buyer until a later date.

      A credit card also differs from a debit card, which can be used like currency by the owner of the card.

      In 2018, there were 1.12 billion credit cards in circulation in the U.S., and 72% of adults had at least one card.[5]

      Technical specifications[edit]

      The size of most credit cards is 85.60 by 53.98 millimetres (3+3⁄8 in × 2+1⁄8 in) and rounded corners with a radius of 2.88–3.48 millimetres (9⁄80–11⁄80 in)[6] conforming to the ISO/IEC 7810 ID-1 standard, the same size as ATM cards and other payment cards, such as debit cards.[7]

      Credit cards have a printed[8] or embossed bank card number complying with the ISO/IEC 7812 numbering standard. The card number's prefix, called the Bank Identification Number (known in the industry as a BIN[9]), is the sequence of digits at the beginning of the number that determine the bank to which a credit card number belongs. This is the first six digits for MasterCard and Visa cards. The next nine digits are the individual account number, and the final digit is a validity check digit.[10]

      Both of these standards are maintained and further developed by ISO/IEC JTC 1/SC 17/WG 1. Credit cards have a magnetic stripe conforming to the ISO/IEC 7813. Most modern credit cards use smart card technology: they have a computer chip embedded in them as a security feature. In addition, complex smart cards, including peripherals such as a keypad, a display or a fingerprint sensor are increasingly used for credit cards.

      In addition to the main credit card number, credit cards also carry issue and expiration dates (given to the nearest month), as well as extra codes such as issue numbers and security codes. Complex smart cards allow to have a variable security code, thus increasing security for online transactions. Not all credit cards have the same sets of extra codes nor do they use the same number of digits.

      Credit card numbers were originally embossed to allow easy transfer of the number to charge slips. With the decline of paper slips, some credit cards are no longer embossed and in fact the card number is no longer in the front.[11] In addition, some cards are now vertical in design, rather amazon movies horizontal.

      History[edit]

      Edward Bellamy's Looking Backward[edit]

      The concept of using a card for purchases was described in 1887 by Edward Bellamy in his utopian novel Looking Backward. Bellamy used the term credit card eleven times in this novel, although this referred to a card for spending a citizen's dividend from the government, rather than borrowing,[12] making it more similar to a debit card.

      Charge coins, medals, and so on[edit]

      Charge coins and other similar items were used from the late 19th century to the 1930s. They came in various shapes and sizes; with materials made out of celluloid (an early type of plastic), copper, aluminum, steel, and other types of whitish metals.[13] Each charge coin usually had a little hole, enabling it to be put in a key ring, like a key. These charge coins were usually given to customers who had charge accounts in department stores, hotels, and so on. A charge coin usually had the charge account number along with the merchant's name and logo.

      The charge coin offered a simple and fast way to copy a charge account number to the sales slip, by imprinting the coin onto the sales slip. This sped up the process of copying, previously done by handwriting. It also reduced the number of errors, by having a standardized form of numbers on the sales slip, instead of various kinds of handwriting style.[14]

      Because the customer's name was not on the charge coin, almost anyone could use it. This sometimes led to a case of mistaken identity, either accidentally or intentionally, by acting on behalf of the charge account owner or out of malice to defraud both the charge account owner and the merchant. Beginning in the 1930s, merchants started to move from charge coins to the newer Charga-Plate.[15]

      Early charge cards[edit]

      Charga-Plate[edit]

      The Charga-Plate, developed in 1928, was an early predecessor of the credit card and was used in the U.S. from the 1930s to the late 1950s. It was a 2+1⁄2-by-1+1⁄4-inch (64 mm × 32 mm) rectangle of sheet metal related to Addressograph and military dog tag systems. It was embossed with the customer's name, city, and state. It held a small paper card on its back for a signature. In recording a purchase, the plate was laid into a recess in the imprinter, with a paper "charge slip" positioned on top of kohls com pay my bill. The record of the transaction included an impression of the embossed information, made by the imprinter pressing an inked ribbon against the charge slip.[16] Charga-Plate was a trademark of Farrington Manufacturing Co.[17] Charga-Plates were issued by large-scale merchants to their regular customers, much like department store credit cards of today. In some cases, the plates were kept in the issuing store rather than held by customers. When an authorized user made a purchase, a clerk retrieved the plate from the store's files and then processed the purchase. Charga-Plates sped up back-office bookkeeping and reduced copying errors that were done manually in paper ledgers in each store.

      Air Travel Card[edit]

      In 1934, American Airlines and the Air Transport Association simplified the process even more with the advent of the Air Travel Card.[18] They created a numbering scheme that identified the issuer of the card as well as the customer account. This is the reason the modern UATP cards still start with the number bankamericard online. With an Air Travel Card, passengers could "buy now, and pay later" for a ticket against their credit and receive a fifteen percent discount at any of the accepting airlines. By the 1940s, all of the major U.S. airlines offered Air Travel Cards that could be used on 17 different airlines. By 1941, about half of the airlines' revenues came through the Air Travel Card agreement. The airlines had also started offering installment plans to lure new travelers into the air. In 1948, the Air Travel Card became the first internationally valid charge card within all members of the International Air Transport Association.[19]

      Early general purpose charge cards: Diners Club, Carte Blanche, and American Express[edit]

      The concept of customers paying different merchants using the same card was expanded in 1950 by Ralph Schneider and Frank McNamara, founders of Diners Club, to consolidate multiple cards. The Diners Club, which was created partially through a merger with Dine and Sign, produced the first "general purpose" charge card and required the entire bill to be paid with each statement. That was followed by Carte Blanche and in 1958 by American Express which created a worldwide credit card network (although these were initially charge cards that later acquired credit card features).

      BankAmericard and Master Charge[edit]

      Metal signs at a plant nursery in Los Angeles County, California marketing Mastercharge and Bankamericard

      Until 1958, no one had been able to successfully establish a revolving credit financial system in which a card issued by a third-party bank was being generally accepted by a large number of merchants, as opposed to merchant-issued revolving cards accepted by only a few merchants. There had been a dozen attempts by small American banks, but none of them were able to last very long. In 1958, Bank of America launched the BankAmericard in Fresno, California, which would become the first successful recognizably modern credit card. This card succeeded where others failed by breaking the chicken-and-egg cycle in which consumers did not want to use a card that few merchants would accept and merchants did not want to accept a card that few consumers used. Bank of America chose Fresno because 45% of its residents used the bank, and by sending a card to 60,000 Fresno residents at once, the bank was able to convince merchants to accept the card.[20] It was eventually licensed to other banks around amegy bank near me United States and then around the world, and in 1976, all BankAmericard licensees united themselves under the common brand Visa. In 1966, the ancestor of MasterCard was born when a group of banks established Master Charge to compete with BankAmericard; it received a significant boost when Citibank merged its own Everything Card, launched in 1967, into Master Charge in 1969.

      Early credit cards in the U.S., of which BankAmericard was the most prominent example, were mass-produced and mass mailed unsolicited to bank customers who were thought to be good credit risks. They have been mailed off to unemployable people, drunks, narcotics addicts and to compulsive debtors, a process President Johnson's Special Assistant Betty Furness found very like "giving sugar to diabetics".[21] These mass mailings were known as "drops" in banking terminology, and were outlawed in 1970 due to the financial chaos they caused. However, by the time the law came into effect, approximately 100 million credit cards had been dropped into the U.S. population. After 1970, only credit card applications could be sent unsolicited in mass mailings.

      Before the computerization of credit card systems in America, using a credit card to pay at a merchant was significantly more complicated than it is today. Each time a consumer wanted to use a credit card, the merchant would have to call their bank, who in turn had to call the credit card company, which then had to have an employee manually look up the customer's name and credit balance. This system was computerized in 1973 under the leadership of Dee Hock, the first CEO of Visa, allowing transaction time to decrease substantially to less than one minute.[20] However, until always-connected payment terminals became ubiquitous at the beginning of the 21st century, north central university phoenix was common for a merchant to accept a charge, especially below a threshold value or from a known and trusted customer, without verifying it by phone. Books with lists of stolen card numbers were distributed to merchants who were supposed in any case to check cards against the list before accepting them, as well as verifying the signature on the charge slip against that on the card. Merchants who failed to take the time to follow the proper verification procedures were liable for fraudulent charges, but because of the cumbersome nature of the procedures, merchants would often simply skip some or all of them and assume the risk for smaller transactions.

      [edit]

      The fractured nature of the U.S. banking system under the Glass–Steagall Act meant that credit cards became an effective way for those who were traveling around the country to move their credit to places where they could not directly use their banking facilities. There are now countless variations on the basic concept of revolving credit for individuals (as issued by banks and honored by a network of financial institutions), including organization-branded credit cards, corporate-user credit cards, store cards and so on.

      In 1966, Barclaycard in the United Kingdom launched the first credit card outside the United States.

      Although credit cards reached very high adoption levels in the US, Canada and the UK during the latter 20th century, many cultures were more cash-oriented or developed alternative forms of cashless payments, such as Carte bleue or the Eurocard (Germany, France, Switzerland, and others). In these places, adoption of credit cards was initially much slower. Due to strict regulations regarding bank overdrafts, some countries, France in particular, were much quicker to develop and adopt chip-based credit cards which are seen as major anti-fraud credit devices. Debit cards and online banking (using either ATMs or PCs[clarification needed]) are used more widely than credit cards in some countries. Are at&t stores open today took until the 1990s to reach anything like the percentage market penetration levels achieved in the US, Canada, and UK. In some countries, acceptance still remains low as the use of a credit card system depends on the banking system of each country; while in others, a country sometimes had to develop its own credit card network, e.g. UK's Barclaycard and Australia's Bankcard. Japan remains a very cash-oriented society, with credit card adoption being limited mainly to the largest of merchants; although stored value cards (such as telephone cards) are used as alternative currencies, the trend is toward RFID-based systems inside cards, cellphones, and other objects.

      Vintage, old, and unique credit cards as collectibles[edit]

      Receipt from 1997 - card physically swiped and information imprinted on the receipt

      The design of the credit card itself has become a major selling point in recent years.[22] A growing field of numismatics (study of money), or more specifically exonumia (study of money-like objects), credit card collectors seek to collect various embodiments of credit from the now familiar plastic cards to older paper merchant cards, and even metal tokens that were accepted as merchant credit cards. Early credit cards were made of celluloid plastic, then metal and fiber, then paper, and are now mostly polyvinyl chloride (PVC) plastic. However the chip part of credit cards is not made from plastic san jose city college fall 2019 classes from metals.[citation needed]

      Usage[edit]

      A credit card issuing company, such as a bank or credit union, enters into agreements with merchants for them to accept their credit cards. Merchants often advertise in signage or other company material which cards they accept by displaying acceptance marks generally derived from logos. Alternatively, this may be communicated, for example, via a restaurant's menu or orally, or stating, "We don't take credit cards".

      The credit card issuer issues a credit card to a customer at the time or after an account has been approved by the credit provider, which need not be the same entity as the card issuer. The cardholders can then use it to make purchases at merchants accepting that card. When a purchase is made, the cardholder agrees to pay the card issuer. The cardholder indicates consent to pay by signing a receipt with a record of the card details and indicating the amount to be paid or by entering a personal identification number (PIN). Also, many merchants now accept verbal authorizations via telephone and electronic authorization using the Internet, known as a card not present transaction (CNP).

      Electronicverification systems allow merchants to verify in a few seconds that the card is valid and the cardholder has sufficient credit to cover the purchase, allowing the verification to happen at time of purchase. The verification is performed using a credit card payment terminal or point-of-sale (POS) system with a communications link to the merchant's acquiring bank. Data from the card is obtained from a magnetic stripe or chip on the card; the latter system is called Chip and PIN in the United Kingdom and Ireland, and is implemented as an EMV card.

      For card not present transactions where the card is not shown (e.g., e-commerce, mail order, and telephone sales), merchants additionally verify that the customer is in physical possession of the card and is the authorized user by asking for additional information such as the security code printed on the back of the card, date of expiry, and billing address.

      Each month, the cardholder is sent a statement indicating the purchases made with the card, any outstanding fees, the total amount owed and the minimum payment due. In the US, after receiving the statement, the cardholder may dispute any charges that he or she thinks are incorrect (see 15 U.S.C. § 1643, central ford in ahoskie north carolina limits cardholder liability for unauthorized use of a credit card to $50). The Fair Credit Billing Act gives details of the U.S. regulations.

      Many banks now also offer the option of electronic statements, either in lieu of or in addition to physical statements, which can be viewed at any time by the cardholder via the issuer's online banking website. Notification of the availability of a new statement is generally sent to the cardholder's email address. If the card issuer has chosen to allow it, the cardholder may have other options for payment besides a physical check, such as an electronic transfer of funds from a checking account. Depending on the issuer, the cardholder may also be able to make multiple payments during a single statement period, possibly enabling him or her to utilize the credit limit on the card several times.

      Minimum payment[edit]

      The cardholder must pay a defined minimum portion of the amount owed by a due date, or may choose to pay a higher amount. The credit issuer charges interest on the unpaid balance if the billed amount is not paid in full (typically at a much higher rate than most other forms of debt). In addition, if the cardholder fails to make at least the minimum payment by the due date, the issuer may impose a late fee or other penalties. To help mitigate this, some financial institutions can arrange for automatic payments to be deducted from the cardholder's bank account, thus avoiding such penalties altogether, as long as the cardholder has sufficient funds.

      In cases where the minimum payment is less than the finance charges and fees assessed during the billing cycle, the outstanding balance will increase in what is called negative amortization. This practice tends to increase credit risk and mask the lender's portfolio quality, and consequently has been banned in the U.S. since 2003.[23][24]

      Advertising, solicitation, application and approval[edit]

      Credit card advertising regulations in the U.S. include the Schumer box disclosure requirements. A large fraction of junk mail consists of credit card offers created from lists provided by the major credit reporting agencies. In the United States, the three major U.S. credit bureaus (Equifax, TransUnion and Experian) allow consumers to opt out from related credit card solicitation offers via its Opt Out Pre Screen program.

      Interest charges[edit]

      Credit card issuers usually waive interest charges if the balance is paid in full each month, but typically will charge full interest on the entire outstanding balance from the date of each purchase if the total balance is not paid.

      For example, if a user had a $1,000 transaction and repaid it in full within this grace period, there would be no interest charged. If, however, even $1.00 of the total amount remained unpaid, interest would be charged on the $1,000 from the date of purchase until the payment is received. The precise manner in which interest is charged is usually detailed in a cardholder agreement which may be summarized on the back of the monthly statement. The general calculation formula most financial institutions use to determine the amount of interest to be charged is (APR/100 x ADB)/365 x number of days revolved. Take the annual percentage rate (APR) and divide by 100 then multiply to the amount of the average daily balance (ADB). Divide the result by 365 and then take this total and multiply by the total number of days the amount revolved before payment was made on the account. Financial institutions refer to interest charged back to the original time of the transaction and up to the time a payment was made, if not in full, as a residual retail finance charge (RRFC). Thus after an amount has revolved and a payment has been made, the user of the card will still receive interest charges on their statement after paying the next statement in full (in fact the statement may only have a charge for interest that collected up until the date the full balance was paid, i.e. when the balance stopped revolving).

      The credit card may simply serve as a form of revolving credit, or it may become a complicated financial instrument with multiple balance segments each at a different interest rate, possibly with a single umbrella credit limit, or with separate credit limits applicable to the various balance segments. Usually this compartmentalization is the result of special incentive offers from the issuing bank, to encourage balance transfers from cards of other issuers. If several interest rates apply to various balance segments, wells fargo bank login private payment allocation is generally at the discretion of the issuing bank, and payments will therefore usually be allocated towards the lowest rate balances until paid in full before any money is paid towards higher rate balances. Interest rates can vary considerably from card to card, and the interest rate on a particular card may jump dramatically if the card user is late with a payment on that card or any 39 degrees c to f credit instrument, or even if the issuing bank decides to raise its revenue.[citation needed]

      Grace period[edit]

      A credit card's grace period is the time the cardholder has to pay the balance before interest is assessed on the outstanding balance. Grace periods may vary, but usually range from 20 to 55 days depending on the type of credit card and the issuing bank. Some policies allow for reinstatement after houses for sale in myrtle beach north carolina conditions are met.

      Usually, if a cardholder is late paying the balance, finance charges will be calculated and the grace period does not apply. Finance charges incurred depend on the grace period and balance; with most credit cards there is no grace period if there is any outstanding balance from the previous billing cycle or statement (i.e. interest is applied on both the previous balance and new transactions). However, there are some credit cards that will only apply finance charge on the previous or old balance, excluding new transactions.

      Parties involved[edit]

      • Cardholder: The holder of the card used to make a purchase; the consumer.
      • Card-issuing bank: The financial institution or other organization that issued the credit card to the cardholder. This bank bills the consumer for repayment and bears the risk that the card is used fraudulently. American Express and Discover were dollar bank customer service number the only card-issuing banks for their respective brands, but as of 2007, this is no longer the case. Cards issued by banks to cardholders in a different country are known as offshore credit cards.
      • Merchant: The individual or business accepting credit card payments for products or services sold to the cardholder.
      • Acquiring bank: The financial institution accepting payment for the products or services on behalf of the merchant.
      • Independent sales organization: Re-sellers (to merchants) of the services of the acquiring bank.
      • Merchant account: This could refer to the acquiring bank or the independent sales organization, but in general is the organization that the merchant deals with.
      • Card association: An association of card-issuing banks such as Discover, Visa, MasterCard, American Express, etc. that set transaction terms for merchants, card-issuing banks, and acquiring banks.
      • Transaction network: The system that implements the mechanics of the electronic transactions. May be operated by an independent company, and one company may operate multiple networks.
      • Affinity partner: Some institutions lend their names to an issuer to attract customers that have a strong relationship with that institution, is watermelon infused water good for you get paid a fee or a percentage of the balance for each card issued using their name. Examples of typical affinity partners are sports teams, universities, charities, professional organizations, and major retailers.
      • Insurance providers: Insurers underwriting various insurance protections offered as credit card perks, for example, Car Rental Insurance, Purchase Security, Hotel Burglary Insurance, Travel Medical Protection etc.

      The flow of information and money between these parties — always through the card associations — is known as the interchange, and it consists of a few steps.

      Transaction steps[edit]

      • Authorization: The cardholder presents the card as payment to the merchant and the merchant submits the transaction to the acquirer (acquiring bank). The acquirer verifies the 2016 lexus gs f horsepower card number, the transaction type and the amount with the issuer (card-issuing bank) and reserves that amount of the cardholder's credit limit for the merchant. An authorization will generate an approval code, which the merchant stores with the transaction.
      • Batching: Authorized transactions are stored in "batches", which are sent to the acquirer. Batches are typically submitted once per day at the end of the business day. Batching can be done manually (initiated by a merchant's action) or automatically (on a pre-determined schedule, using a payment processing platform). If a transaction is not submitted in the batch, the authorization will stay valid for a period determined by the issuer, after which the held amount will be returned to the cardholder's available credit (see authorization hold). Some transactions may be submitted in the batch without prior authorizations; these are either transactions falling under the merchant's floor limit or ones where the authorization was unsuccessful but the merchant still attempts to force the transaction through. (Such may be the case when the cardholder is not present but owes the merchant additional money, such as extending a hotel stay or car rental.)
      • Clearing and Settlement: The acquirer sends the batch transactions through the credit card association, which debits the issuers for payment and credits the acquirer. Essentially, the issuer pays the acquirer for the transaction.
      • Funding: Once the acquirer has been paid, the acquirer pays the merchant. The merchant receives the amount totaling the funds in the batch minus either the "discount rate", "mid-qualified rate", or "non-qualified rate" which are tiers of fees the merchant pays the acquirer for processing the transactions.
      • Chargebacks: A chargeback is an event in which money in a merchant account is held due to a dispute relating to the transaction. Chargebacks are typically initiated by the cardholder. In the event of a chargeback, the issuer returns the transaction to the acquirer for resolution. The acquirer then forwards the chargeback to the merchant, who must either accept the chargeback or contest it.

      Credit card register[edit]

      A credit card register is a transaction register used to ensure the increasing balance owed from using a credit card is enough below the credit limit to deal with authorization holds and payments not yet received by the bank and to easily look up past transactions for reconciliation and budgeting.

      The register is a personal record of banking transactions used for credit card purchases as they affect funds in the bank account or the available credit. In addition to check number and so forth the code column indicates the credit card. The balance column shows available funds after purchases. When the credit card payment is made the balance already reflects the funds were spent. In a credit card's entry, the deposit column shows the available credit and the payment column shows total owed, their sum being equal to the pnc smartaccess card login limit.

      Each check written, debit card transaction, cash withdrawal, and credit card charge is entered manually into the paper register daily or several times per week.[25] Credit card register also refers to one transaction record for each credit card. In this case the booklets readily enable the location of a card's current available credit when ten or bok atm cards are in use.[citation needed]

      Features[edit]

      As well as convenient credit, credit cards offer consumers an easy way to track expenses, which is necessary for both monitoring personal expenditures and the tracking of work-related expenses for taxation and reimbursement purposes. Credit cards are accepted in larger establishments in almost all countries, and are available with a variety of credit limits, repayment arrangements. Some have added perks (such as insurance protection, rewards schemes in umb online banking sign in points earned by purchasing goods with the card can be redeemed for further goods and services or cashback).

      Consumers' limited liability[edit]

      Some countries, such as the United States, the United Kingdom, and France, limit the amount for which a consumer can be held liable in the event of fraudulent transactions with first data merchant services number lost or stolen credit card.

      Specialized types[edit]

      Business credit cards[edit]

      See also: Stored-value card

      Business credit cards are specialized credit cards issued in the name of a registered business, and typically they can only be used for business purposes. Their use has grown in recent decades. In 1998, for instance, 37% of small businesses reported using a business credit card; by 2009, this number had grown to 64%.[26]

      Business credit cards offer a number of features specific to bankamericard online. They frequently offer special rewards in areas such as shipping, office supplies, travel, and business technology. Most issuers use the applicant's personal credit score when evaluating these applications. In addition, income from a variety of sources may be used to qualify, which means these cards may be available to businesses that are newly established.[27] In addition, some issuers of these card do not report account activity to the owner's personal credit, or only do so if the account is delinquent.[28] In these cases, the activity of the business is separated from the owner's personal credit activity.

      Business credit cards are offered by American Express, Discover, and almost all major issuers of Visa and MasterCard cards. Some local banks obx beach credit unions also beck i only have eyes for you lyrics business credit cards. American Express is the only major issuer of business charge cards in the United States, however.

      Secured credit cards[edit]

      A secured credit card is a type of credit card secured by a deposit account owned by the cardholder. Typically, the cardholder must deposit between 100% and 200% of the total amount of credit desired. Thus if the cardholder puts down $1,000, they will be given credit in the range of $500–1,000. In some cases, credit card issuers will offer incentives even on their secured card portfolios. In these cases, the deposit required may be significantly less than the required credit limit, and can be as low as 10% of the desired credit limit. This deposit is held in a special savings account. Credit card issuers offer this because they have noticed that delinquencies were notably reduced when the customer perceives something to lose if the balance is not repaid.

      The cardholder of a secured credit card is still expected to make regular payments, as with a regular credit card, but should they default on a payment, the card issuer has the option of recovering the cost of the purchases paid to the merchants out of the deposit. The advantage of the secured card for an individual with negative or no credit history is that most companies report regularly to the major credit bureaus. This allows the cardholder to start building (or re-building) a positive credit history.

      Although the deposit is in the hands of the credit card issuer as security in the event of default by the consumer, the deposit will not be debited simply for missing one or two payments. Usually the deposit is only used as an offset when the account is closed, either at the request of the customer or due to severe delinquency (150 to 180 days). This means that an account which is less than 150 days delinquent will continue to accrue interest and fees, and could result in a balance which is much higher than the actual credit limit on the card. In these cases the total debt may far exceed the original deposit and the cardholder not only forfeits their deposit but is left with an additional debt.

      Most of these conditions are usually described in a cardholder agreement which the cardholder signs when their account is opened.

      Secured credit cards are an option to allow a person with a poor credit history or no credit history to have a credit card which might not otherwise be available. They are often offered as a means of rebuilding one's credit. Fees and service charges for secured credit f scott fitzgerald babylon revisited often exceed those charged for ordinary non-secured credit cards. For people in certain situations, (for example, after charging off on other credit cards, or people with a long history of delinquency on various forms of debt), secured cards are almost always more expensive than unsecured credit cards.

      Sometimes a credit card will be secured by the equity in the borrower's home.

      Prepaid cards[edit]

      See also: Stored-value card

      They are sometimes called "prepaid credit card", but they are a debit card (prepaid card or prepaid debit card),[29] since no credit is offered by the card issuer: the cardholder spends money which has been "stored" via a prior deposit by the cardholder or someone else, such as a parent or employer. However, it carries a credit-card brand (such as Discover, Visa, MasterCard, American Express, or JCB) and can be used in similar ways just as though it were a credit card.[29] Unlike debit cards, prepaid credit cards generally do not require a PIN. An exception are prepaid credit cards with an EMV chip. These cards do require a PIN if the payment is processed via Chip and PIN technology. As of 2018, most debit cards in the U.S. were prepaid cards (71.7%).[5]

      After purchasing the card, the cardholder loads the account with any amount of money, up to the predetermined card limit and then uses the card to make purchases the same way as a typical credit card. Prepaid cards can be issued to minors (above 13) since there is no credit line involved. The main advantage over secured credit cards (see above section) is that the cardholder is not required to come up with $500 or more to open an account. With prepaid credit cards purchasers are not charged any interest but are often charged a purchasing fee plus monthly fees after an arbitrary time period. Many other fees also usually apply to a prepaid card.[29]

      Prepaid credit cards are sometimes marketed to teenagers[29] for shopping online without having their parents complete the transaction.[30] Teenagers can only use funds that are available on the card which helps promote financial management to reduce the risk of debt problems later in life.[citation needed]

      Prepaid cards can be used globally. The prepaid card is convenient for payees in developing countries like Brazil, Russia, India, and China, where international wire transfers and bank checks are time-consuming, complicated and costly.[citation needed]

      Because of the many fees that apply to obtaining and using credit-card-branded prepaid cards, the Financial Consumer Agency of Canada describes them as "an expensive way to spend your own money".[31] The agency publishes a booklet entitled Pre-paid Cards which explains the advantages and disadvantages of this type of prepaid card.see #Further reading

      Digital cards[edit]

      A digital card is a digital cloud-hosted virtual representation of any kind of identification card or payment card, such as a credit card.[citation needed]

      Charge cards[edit]

      The charge cards are a type of credit card.

      Benefits and drawbacks[edit]

      Benefits to cardholder[edit]

      The main benefit to the cardholder is convenience. Compared to debit cards and checks, a credit card allows small short-term loans to be quickly made to a cardholder who need not calculate a balance remaining before every transaction, provided the total charges do not exceed the maximum credit line for the card.

      One financial benefit is that no interest is charged when the balance is paid in full within the grace period.

      Different countries offer different levels of protection. In the UK, for example, the bank is jointly liable with the merchant for purchases of defective products over £100.[32]

      Many credit cards offer benefits to cardholders. Some benefits apply to products purchased with the card, like extended product warranties, reimbursement for decreases in price immediately after purchase (price protection), and reimbursement for theft or damage on recently purchased products (purchase protection).[33] Other benefits include various types of travel insurance, such as rental car insurance, travel accident insurance, baggage delay insurance, and trip delay or cancellation insurance.[34]

      Credit cards may also offer a loyalty program, where each purchase is rewarded based on the price of the purchase. Typically, rewards are either in the form of cash back or points. Points are often redeemable for gift cards, products, or move to amend california expenses like airline tickets. Some credit cards allow the transfer of accrued points to hotel and airline loyalty programs.[35] Research has examined whether competition among card networks may potentially make payment rewards too generous, causing higher prices among merchants, thus actually impacting social welfare and its distribution, a situation potentially warranting public policy interventions.[36]

      Comparison of credit card benefits in the U.S.[edit]

      The table walmart canada stock price today contains a list of benefits offered in the United States for consumer credit cards in some of these networks. These benefits may vary with each credit card issuer.

      MasterCard[37]Visa[38]American Express[39]Discover[40]
      Return extension60 days
      up to $250
      90 days
      up to $250[41]
      90 days
      up to $300
      Not Available[42]
      Extended warranty2× original
      up to 1 year
      Depends1 additional year
      6 years max
      Not Available[43]
      Price protection60 daysVariesNoNot Available[44]
      Loss/damage coverage90 daysDepends90 days
      up to $1,000
      Not Available
      Rental car insurance

      Main article: Damage waiver

      15 days: collision, theft, vandalism15 bankamericard online collision, theft30 days: collision, theft, vandalism[45]Not Available

      Detriments to cardholders[edit]

      High interest and bankruptcy[edit]

      Low introductory credit card rates are limited to a fixed term, usually between 6 and 12 months, after which a higher rate is charged. As all credit cards charge fees and interest, some customers become so indebted to their credit card provider that they are driven to bankruptcy. Some credit cards often levy a rate of 20 to 30 percent after a payment is missed.[46] In other cases, a fixed charge is levied without change to the interest rate. In some cases universal default may apply: the high default rate is applied to a card in good standing by missing a payment on an unrelated account from the same provider. This can lead to a snowball effect in which the consumer is drowned by unexpectedly high interest rates. Further, most card holder agreements enable the issuer to arbitrarily raise the interest rate for any reason they see fit. First Premier Bank at one point offered a credit card with a 79.9% interest rate;[47] however, they discontinued this card in February 2011 because of persistent defaults.[48]

      Research shows that a substantial fraction of consumers (about 40 percent) choose a sub-optimal credit card agreement, with some incurring hundreds of dollars of avoidable interest costs.[49]

      Weakens self regulation[edit]

      Several studies have shown that consumers are likely to spend more money when they pay by credit card. Researchers suggest that when people pay using credit cards, they do not experience the abstract pain of payment.[50] Furthermore, researchers have found that using credit cards can increase consumption of unhealthy food.[51]

      Detriments to society[edit]

      Inflated pricing for all consumers[edit]

      Merchants that accept credit cards must pay interchange fees and discount fees on all credit-card transactions.[52][53] In some cases merchants are barred by their credit agreements from passing these fees directly to credit card customers, or from setting a minimum transaction amount (no longer prohibited in the United States, United Kingdom or Australia).[54] The result is that merchants are induced to charge all customers (including those who do not use credit cards) higher prices to cover the fees on credit card transactions.[53] The inducement can be strong because the merchant's fee is a percentage of the sale price, which has a disproportionate effect on the profitability of businesses that have predominantly credit card transactions, unless compensated for by raising prices generally. In the United States in 2008 credit card companies collected a total of $48 billion in interchange fees, or an average of $427 per family, with an average fee rate of about 2% per transaction.[53]

      Credit card rewards result in a total transfer of $1,282 from the average cash payer to the average card payer per year.[55]

      Benefits to merchants[edit]

      An example of street markets accepting credit cards. Most simply display the acceptance marks(stylized logos, shown in the upper-left corner of the sign) of all the cards they accept.

      For merchants, a credit card transaction is often more secure than other forms of payment, such as cheques, because the issuing bank commits to pay the merchant the moment the transaction is authorized, regardless of whether the consumer defaults on the credit card payment (except for legitimate disputes, which are discussed below, and can result in charges back to the merchant). In most cases, cards are even more secure than cash, because they discourage theft by the merchant's employees and reduce the amount of cash on the premises. Finally, credit cards reduce the back office expense of processing checks/cash and transporting them to the bank.

      Prior to credit cards, each merchant had to evaluate each customer's credit history before extending credit. That task is now performed by the banks which assume the credit risk. Credit cards can also aid in securing a sale especially if the customer does not have enough cash on hand or in a checking account. Extra turnover is generated by the fact that the customer can purchase goods and services immediately and is less inhibited by the amount of cash in pocket and the immediate state of the customer's bank balance. Much of merchants' marketing is based on this immediacy.

      For each purchase, the bank charges the merchant a commission (discount fee) for this service and there may be a certain delay before the agreed payment is received by the merchant. The commission is often a percentage of the transaction amount, plus a fixed fee (interchange rate).

      Costs to merchants[edit]

      Merchants are charged several fees for accepting credit cards. The merchant is usually charged a commission of around 1 to 4 percent of the value of each transaction paid for by credit card.[56] The merchant may also pay a variable charge, called a merchant discount rate, for each transaction.[52] In some instances of very low-value carrier account number verizon, use of credit cards will significantly local weather san jose ca the profit margin or cause the merchant to lose money on the transaction. Merchants with very low average transaction prices or very high average transaction prices are more averse to accepting credit cards. In some cases merchants may charge users a "credit card supplement" (or surcharge), either a fixed amount or a percentage, for payment by credit card.[57] This practice was prohibited by most credit card contracts in the United States until 2013, when a major settlement between merchants and credit card companies allowed merchants to levy surcharges. Most retailers have not started using credit card surcharges, however, for fear of losing customers.[58]

      Merchants in the United States have been fighting what they consider to be unfairly high fees charged by credit card companies in a series of lawsuits that started in 2005. Merchants charged that the two main credit card processing companies, MasterCard and Visa, used their monopoly power to levy excessive fees in a class-action lawsuit involving the National Retail Federation and major bankamericard online such as Wal-Mart. In December 2013, a federal judge approved a $5.7 billion settlement in the case that offered payouts to merchants who had paid credit card fees, the largest antitrust settlement in U.S. history. Some large retailers, such as Wal-Mart and Amazon, chose to not participate in this settlement, however, and have continued their legal fight against the credit card companies.[58]

      Merchants are also required to lease or purchase processing equipment, in some cases this equipment is provided free of charge by the processor. Merchants must also satisfy data security compliance standards which are highly technical and complicated. In many cases, there is a delay of several days before funds are deposited into a merchant's bank account. Because credit card fee structures are very complicated, smaller merchants are at a disadvantage to analyze and predict fees.

      Finally, merchants assume the risk of chargebacks by consumers.

      Security[edit]

      Main article: Credit card fraud

      See also: Wireless identity theft

      Credit card security relies on the physical security of the plastic card as well as the privacy of the credit card number. Therefore, whenever a person other than the card owner has access to the card or its number, security is potentially compromised. Once, merchants would often accept credit card numbers without additional verification for mail order purchases. It is now common practice to only ship to confirmed addresses as a security measure to minimise fraudulent purchases. Some merchants will accept a credit card number for in-store purchases, whereupon access to the number allows easy fraud, but many require the card itself to be present, and require a signature (for magnetic stripe cards). A lost or stolen card can be cancelled, and if this is done quickly, will greatly limit the fraud that can take place in this way. European banks can require a cardholder's security PIN be entered for in-person purchases with the card.

      The Payment Card Industry Data Security Standard (PCI DSS) is the security standard issued by the Payment Card Industry Security Standards Council (PCI SSC). This data security standard is used by acquiring banks to impose cardholder data security measures upon their merchants.

      The goal of the credit card companies is not to eliminate fraud, but to "reduce it to manageable levels".[59] This implies that fraud prevention measures will be used only if their cost are lower than the potential gains from fraud reduction, whereas high-cost low-return measures will not be used – as would be expected from organizations whose goal is profit maximization.

      Internet fraud may be committed by claiming a chargeback which is not justified ("friendly fraud"), or carried out by the use of credit card information which can be stolen in many ways, the simplest being copying information from retailers, either online or offline. Despite efforts to improve security for remote purchases using credit cards, security breaches are usually the result of poor practice by merchants. For example, a website that safely uses TLS to encrypt card data from a client may then email the data, unencrypted, amazon digital charge on credit card the webserver to the merchant; or the merchant may store unencrypted details in a way that allows them to be accessed over the Internet or by a rogue employee; unencrypted card details are always a security risk. Even encrypted data may be cracked.

      Controlled payment numbers (also known as virtual credit cards or disposable credit cards) are another option for protecting against credit card fraud where presentation of a physical card is not required, as in telephone and online purchasing. These are one-time use numbers that function as a payment card and are linked to bankamericard online user's real account, but do not reveal details, and cannot be used for subsequent unauthorised transactions. They can be valid for a relatively short time, and limited to the actual amount of the purchase or a limit set by the user. Their use amazon kindle urban books be limited to one merchant. If the number given to the merchant is compromised, it will be rejected if an attempt is made to use it a second time.

      A similar system of controls can be used on physical cards. Technology provides the option for banks to support many other controls too that can be turned on and off and varied by the credit card owner in real time as circumstances change (i.e., they can change temporal, numerical, geographical and many other parameters on their primary and subsidiary cards). Apart from the obvious benefits of such controls: from a security perspective this means that a customer can have a Chip and PIN card secured for the real world, and limited for use in the home country. In this eventuality a thief stealing the details will be prevented from using these overseas in non chip and pin EMV countries. Similarly the real card can be restricted from use on-line so that stolen details will be declined if this tried. Then port washington state bank fredonia card users shop online they can use virtual account numbers. In both circumstances an alert system can be built in notifying a user that a fraudulent attempt has been made which breaches their parameters, and can provide data on this in real time.

      Additionally, there are security features present on the physical card itself in order to prevent counterfeiting. For example, most modern credit cards have a watermark that will fluoresce under ultraviolet light.[60] Most major credit cards have a hologram. A Visa card has a letter V discover card phone number check balance over the regular Visa logo and a MasterCard has the letters MC across the front of the card. Older Visa cards have a bald eagle or dove across the front. In the aforementioned cases, the security features are only visible under ultraviolet light and are invisible in normal light.

      The United States Department of Justice, United States Secret Service, Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement, and U.S. Postal Inspection Service are responsible for prosecuting criminals who engage in credit card fraud in the United States.[61] However, they do not have the resources to pursue all criminals, and in general they only prosecute cases exceeding $5,000.

      Three improvements to card security have been introduced to the more common credit card networks, but none has proven to help reduce credit card fraud so far. First, the cards themselves are being replaced with similar-looking tamper-resistant smart cards which are intended to make forgery more difficult. The majority of smart card (IC card) based credit cards comply ipad mini 1st generation 64gb the EMV (Europay MasterCard Visa) standard. Second, an additional 3 or 4 digit card security code (CSC) or card verification value (CVV) is now present on the back of most cards, for use in card not present transactions. Stakeholders at all levels in electronic payment have recognized the need bankamericard online develop consistent global standards for security that account for and integrate both current and emerging security technologies. They have begun to address these needs through organisations such as PCI DSS and the Secure POS Vendor Alliance.[62]

      Code 10[edit]

      Code 10 calls are made when merchants are suspicious about accepting a credit card.

      The operator then asks the merchant a series of YES or NO questions to find out whether the merchant is suspicious of the card or the cardholder. The merchant may be asked to retain the card if it is safe to do so. The merchant may receive a reward for returning a confiscated card to the issuing bank, especially if an arrest is made.[63][64][65][66]

      Costs and pnc bank atm locations nj of credit card issuers[edit]

      Costs[edit]

      Charge offs[edit]

      When a cardholder becomes severely delinquent on a debt (often at the point of six months without payment), the creditor may declare the debt to be a charge-off. It will then be listed as such on the debtor's credit bureau reports. (Equifax, for instance, lists "R9" in the "status" column to denote a charge-off.)

      A charge-off is considered to be "written off as uncollectible". To banks, bad debts and fraud are part of the cost of doing business.

      However, the debt is still legally valid, and the creditor can attempt to collect the full amount for the time periods permitted under state law, which is usually three to seven years. This includes contacts from internal collections staff, or more likely, an outside collection agency. If the amount is large (generally over $1,500–2,000), there is the possibility of a lawsuit or arbitration.

      Fraud[edit]

      Main article: Credit card fraud

      In relative numbers the values lost in bank card fraud are minor, calculated in 2006 at 7 cents per 100 dollars worth of transactions (7 basis points).[67] In 2004, in the UK, the cost of fraud was over £500 million.[68] When a card is stolen, or an unauthorized duplicate made, most card issuers will refund some or all of the charges that the customer has received for things they did not buy. These refunds will, in some cases, be at the expense of the merchant, especially in mail order cases where the merchant cannot claim sight of the card. In several countries, merchants will lose the money if no ID card was asked for, therefore merchants usually require ID card in these countries. Credit card companies generally guarantee the merchant will be paid on legitimate transactions regardless of whether the consumer pays their credit card bill.

      Most banking services have their own credit card services that handle fraud cases and monitor for any possible attempt at fraud. Employees that are specialized in doing fraud monitoring and investigation are often placed in Risk Management, Fraud and Authorization, or Cards and Unsecured Business. Fraud monitoring emphasizes minimizing fraud losses while making an attempt to track down those responsible and contain the situation. Credit card fraud is a major white collar crime that has been around for many decades, even with the advent of the chip based card (EMV) that was put into practice in some countries to prevent cases such as these. Even with the implementation of such measures, credit card fraud continues to be a problem.

      Interest expenses[edit]

      Banks generally borrow the money they then lend to their customers. As they receive very low-interest loans from other firms, they may borrow as much as their customers require, while lending their capital to other borrowers at higher rates. If the card issuer charges 15% on money lent to users, and it costs 5% to borrow the money to lend, and the balance sits with the cardholder for a year, the issuer earns 10% on the loan. This 10% difference is the "net interest spread" and the 5% is the "interest expense".

      Operating costs[edit]

      This is the cost of running the credit card portfolio, including everything from paying the executives who run the company to printing the plastics, to mailing the statements, to running the computers that keep track of every cardholder's balance, to taking the many phone calls which cardholders place to their issuer, to protecting the customers from fraud rings. Depending on the issuer, marketing programs are also a significant portion of expenses.

      Rewards[edit]

      Many credit card customers receive rewards, such as frequent flyer points, gift certificates, or cash back as an incentive to use the card. Rewards are generally tied to purchasing an item or service on the card, which may or may not include balance transfers, cash advances, or other special uses. Depending on the type of card, rewards will generally cost the issuer between 0.25% and 2.0% of the spread. Networks such as Visa or MasterCard have increased their fees to allow issuers to fund their rewards system. Some issuers discourage redemption by forcing the cardholder to call customer service for rewards. On their servicing website, redeeming awards is usually a feature that is very well hidden by the issuers.[69] With a fractured and competitive environment, rewards points cut dramatically into an issuer's bottom line, and rewards points and related incentives must be carefully managed to ensure a profitable portfolio.[citation needed] Unlike unused gift cards, in whose case the breakage in certain US states goes to the state's treasury,[70] unredeemed credit card points are retained by the issuer.[71]

      Revenues[edit]

      Interchange fee[edit]

      Main article: Interchange fee

      In addition to fees paid by the card holder, merchants must also pay interchange fees to the card-issuing bank and the card association.[72][73] For a typical credit card issuer, interchange fee revenues may represent about a quarter of total revenues.[74]

      These fees are typically from 1 to 6 percent of each sale, but will vary not only from merchant to merchant (large merchants can negotiate lower rates[74]), but also from card to card, with business cards and rewards cards generally costing the merchants more to process. The interchange fee that applies to a particular transaction is also affected by many other variables including: the type of merchant, the merchant's total card sales volume, the merchant's average transaction amount, whether the cards were physically present, how the information required for the transaction was received, the specific type of card, when the transaction was settled, and the authorized and settled transaction amounts. In some cases, merchants add a surcharge to the credit cards to cover the interchange fee, encouraging their customers to instead use cash, debit cards, or even cheques.

      Interest on outstanding balances[edit]

      Interest charges vary widely from card issuer to card issuer. Often, there are "teaser" rates or promotional APR in effect for initial periods of time (as low as zero percent for, say, six months), whereas regular rates can be as high as 40 percent.[75] In the U.S. there is no federal limit on the interest or late fees credit card issuers can charge; the interest rates are set by the states, with some states such as South Dakota, having no ceiling on interest rates and fees, inviting some banks to establish their credit card operations there. Other states, for example Delaware, have very weak usury laws. The teaser rate no longer applies if the customer does not pay their bills on time, and is replaced by a penalty interest rate (for example, 23.99%) that applies retroactively.

      Fees charged to customers[edit]

      The major credit card fees are for:

      • Membership fees (annual or monthly), sometimes a percentage of the credit limit.
      • Cash advances and convenience cheques (often 3% of the amount)
      • Charges that result in exceeding the credit limit on the card (whether deliberately or by mistake), called over-limit fees
      • Exchange rate loading fees (sometimes these might not be reported on the customer's statement, even when applied).[76] The variation of exchange rates applied by different credit cards can be very substantial, as much as 10% according to a Lonely Planet report in 2009.[77]
      • Late or overdue payments
      • Returned cheque fees or payment processing fees (e.g. phone payment fee)
      • Transactions in a foreign currency (as much as 3% of the amount). A few financial institutions do not charge a fee for this.
      • Finance charge is any charge that is included in the cost of borrowing money.[78]

      In the U.S., the Credit CARD Act of 2009 specifies that credit card companies must send cardholders a notice 45 days before they can increase or change certain fees. This includes annual fees, cash advance fees, and late fees.[79]

      Controversy[edit]

      One controversial area is the trailing interest issue. Trailing interest refers to interest that accrues on a balance after the monthly statement is produced, but before the balance is repaid. This additional interest is typically added to the following monthly statement. U.S. Senator Carl Levin raised the issue of millions of Americans affected by hidden fees, compounding interest and cryptic terms. Their woes were heard in setting up bb 8 sphero Senate Permanent Subcommittee on Investigations hearing which was chaired by Senator Levin, who said that he intends to keep the spotlight on credit card companies and that legislative action may be necessary to purge the industry.[80] In 2009, the C.A.R.D. Act was signed into law, enacting protections for many of the issues Levin had raised.

      Hidden costs[edit]

      In the United Kingdom, merchants won the right through The Credit Cards (Price Discrimination) Order 1990[81] to charge customers different prices according to the payment method; this was later removed by the EU's 2nd Payment Services Directive. As of 2007, the United Kingdom was one of the world's most credit card-intensive countries, with 2.4 credit cards per consumer, according to the UK Payments Administration Ltd.[82]

      In the United States until 1984, federal law prohibited surcharges on card transactions. Although the federal Truth in Lending Act provisions that prohibited surcharges expired that year, a number of states have since enacted laws that continue to outlaw the practice; California, Colorado, Connecticut, Florida, Kansas, Massachusetts, Maine, New York, Oklahoma, and Texas have laws against surcharges. As of 2006, the United States probably had one of the world's highest if not the top ratio of credit cards per capita, with 984 million bank-issued Visa and MasterCard credit card and debit card accounts alone for an adult population of roughly 220 million people.[83] The credit card per U.S. capita ratio was nearly 4:1 as of 2003[84] and as high as 5:1 as of 2006.[85]

      Over-limit charges[edit]

      United Kingdom[edit]

      Consumers who keep their account in good order by always staying within their credit limit, and always making at least the minimum monthly payment will see interest as the biggest expense from their card provider. Those who are not so careful and regularly surpass their credit limit or are late in making payments were exposed to multiple charges, until a ruling from the Office of Fair Trading[86] that they would presume charges over £12 to be unfair which led the majority of card providers to reduce their fees to £12.

      The higher fees originally charged were claimed to be designed to recoup the card operator's overall business webster bank bridgeport ct hours and to try to ensure that the credit card business as a whole generated a profit, rather than simply recovering the cost to the provider of the limit breach, the belly up solana beach calendar has been estimated as typically between £3–£4. Profiting from a customer's mistakes is arguably not permitted under UK common law, if the charges constitute penalties for breach of contract, or under the Unfair Terms in Consumer Contracts Regulations 1999.

      Subsequent rulings in respect of personal current accounts suggest that the argument that these charges are penalties for breach of contract is weak, and given the Office of Fair Trading's ruling it seems unlikely that any further test case will take place.

      Whilst the law remains in the balance, many consumers have made claims against their credit card providers for the charges that they have incurred, plus interest that they would have earned had the money not been deducted from their account. It is likely that claims for amounts charged in excess of £12 will succeed, but claims for charges at the OFT's £12 threshold level are more contentious.

      United States[edit]

      The Credit CARD Act of 2009 requires that consumers opt into over-limit charges. Some card issuers have therefore commenced solicitations requesting customers to opt into over-limit fees, presenting this as a benefit as it may avoid the possibility of a future transaction being declined. Other issuers have simply discontinued the practice of charging over-limit fees. Whether a customer opts into the over-limit fee or not, banks will in practice have discretion as to whether they choose to authorize transactions above the credit limit or not. Of course, bankamericard online approved over limit transactions will only result in an over-limit fee for those customers who have opted into the fee. This legislation took effect on 22 February 2010. Following this Act, the companies are now required by law to show on a customer's bills how long it would take them to pay off the balance.

      Neutral consumer resources[edit]

      Canada[edit]

      The Government of Canada maintains a database of the fees, features, interest rates and reward programs of nearly 200 credit cards available in Canada. This database is updated on a quarterly basis with information supplied by the credit card issuing companies. Information in the database is published every quarter on the website of the Financial Consumer Agency of Canada (FCAC).

      Information in the database is published in two formats. It is available in PDF comparison tables that break down the information according to type of credit card, allowing the reader to compare the features of, for example, all the student credit cards in the database.

      The database also feeds into an interactive tool on the FCAC website.[87] The interactive tool uses several interview-type questions to build a profile of the user's credit card usage habits and needs, eliminating unsuitable choices based on the profile, so that bankamericard online user is presented with a small number of credit cards and the ability to carry out detailed comparisons of features, reward programs, interest rates, etc.

      Credit cards in ATMs[edit]

      Many credit cards can be used in an ATM to withdraw money against the credit limit extended to the card, but many card issuers charge interest on cash advances before they do so on purchases. The interest on cash advances is commonly charged from the date the withdrawal is made, rather than the monthly billing date. Many card issuers levy a commission for cash withdrawals, bankamericard online if the ATM belongs to the same bank as the card issuer. Merchants do not offer cashback on credit card transactions because they would pay a percentage commission of the additional cash amount to their bank or merchant services provider, thereby making it uneconomical. Discover is a notable exception to the above. A customer with a Discover card may get up to $120 cash back if the merchant allows it. This amount is simply added to the card holder's cost of the transaction and no extra fees are charged as the transaction is not considered a cash advance.

      Many credit card companies will also, when applying payments to a card, do so, for the matter at hand, at the end of a billing cycle, and apply those payments to everything before cash advances. For this reason, many consumers have large cash balances, which have no grace period and incur interest at a rate that is (usually) higher than the purchase rate, and will carry those balances for years, even if they pay off their statement balance each month.

      Acceptance mark[edit]

      An acceptance mark is a logo or design that indicates which card schemes an ATM or merchant accepts. Common uses include decals and signs at merchant locations or in merchant advertisements. The purpose of the mark is to provide the card holder with information where his or her card can be used. An acceptance mark differs from the a card product name (such as American Express Centurion card, Eurocard), as it shows the card scheme (group of cards) accepted. An acceptance mark however corresponds to the card scheme mark shown on a card.

      An acceptance mark is however not an absolute guarantee that all cards belonging to a given card scheme will be accepted. On occasion close savings account ally issued in a foreign country may not be accepted by a merchant or ATM due to contractual or legal restrictions.

      Credit cards as funding for entrepreneurs[edit]

      Credit cards are a risky way for entrepreneurs to acquire capital for their start ups when more conventional financing is unavailable. Len Bosack and Sandy Lerner used personal credit cards[88] to start Cisco Systems. Larry Page and Sergey Brin's start up of Southwest missouri bank online was financed by credit cards to buy the necessary computers and office equipment, more specifically "a terabyte of hard disks".[89] Similarly, filmmaker Robert Townsend financed part of Hollywood Shuffle using credit cards.[90] Director Kevin Smith funded Clerks in part by maxing out several credit cards.[91] Actor Richard Hatch also financed his production of Battlestar Galactica: The Second Coming partly through his credit cards. Famed hedge fund manager Bruce Kovner began his career (and, later on, his firm Caxton Associates) in financial markets by borrowing from his credit card. UK entrepreneur James Caan (as seen on Dragons' Den) financed his first business using several credit cards.

      Alternatives[edit]

      Main article: Alternative payments

      Modern alternatives to credit cards are mobile payments, cryptocurrencies and pay-by-hand.

      See also[edit]

      References[edit]

      1. ^O'Sullivan, Arthur; Steven M. Sheffrin (2003). Economics: Principles in action (Textbook). Upper Saddle River, New Jersey: Pearson Prentice Hall. p. 261. ISBN .
      2. ^ ab"The 10 most exclusive credit cards in the world". finder.com. 26 September 2017. Retrieved 13 October 2021.
      3. ^"Top 10 payment cards made out of unusual materials". Payspace Magazine. 18 August 2020. Retrieved 13 October 2021.
      4. ^Schneider, Gary (2010). Electronic Commerce. Cambridge: Course Technology. p. 497. ISBN .
      5. ^ ab"The Nilson Report". October 2019. Retrieved 13 October 2021.
      6. ^ISO/IEC 7810:2003, clause 5, Dimensions of card
      7. ^ISO/IEC 7810:2003 Identification cards — Physical characteristics
      8. ^"For Merchants - MasterCard Unembossed". MasterCard.
      9. ^"Bank Identification Number (BIN)".
      10. ^"ISO/IEC 7812-1:2017 Identification cards — Identification of issuers — Part 1: Numbering system".
      11. ^Dunaway, Jaime (18 April 2018). "Why Are Credit Card Numbers on the Back Now?". Slate. Retrieved 18 April 2018.
      12. ^(Chapters 9, 10, 11, 13, 25 and 26) and three times (Chapters 4, 8 and 19) in its sequel, Equality
      13. ^"Life before plastic: Historical look at credit card materials". creditcards.com. 12 August 2021.
      14. ^Charles Boston (6 March 2013). "Shopping Days In Retro Boston". shoppingdaysinretroboston.blogspot.com.
      15. ^"The Department Store Museum: Charge Cards". departmentstoremuseum.blogspot.com.
      16. ^"Credit card imprinter". Cultureandcommunication.org. Retrieved 28 July 2011.
      17. ^"Hartford Charga-plate Associates, Incorporated, Plaintiff-appellant, v. Youth Centre-cinderella Stores, Inc., Defendant-respondent, 215 F.2d 668 (1954)". Retrieved 11 November 2014.
      18. ^"The Travel Card that gave "CREDIT" to the public". Flying. Vol. 52 no. 6. June 1953. p. 11. Retrieved 11 November 2018.
      19. ^"History Of The Credit Card". www.creditcardprocessingspace.com. Retrieved 14 February 2013.
      20. ^ abMayyasi, Alex. "How Credit Cards Tax America". Pricenomics.
      21. ^O'Neill, Paul (27 April 1970). "A Little Gift from Your Friendly Banker". LIFE.
      22. ^LaMagna, Maria. "Metal credit cards: The latest American status symbol". MarketWatch. Retrieved 7 March 2018.
      23. ^"Credit Card Lending"(PDF).
      24. ^"Understanding how credit card minimum payments are set".
      25. ^Little, Ken. 2007. Personal Finance At Your Fingertips, p. 35 Penguin. ISBN 144062562X, 9781440625626
      26. ^"Report to the Congress on the Use of Credit Cards by Small Businesses and the Credit Card Market for Small Businesses"(PDF). Federal Reserve. Board of Governors of the Federal Reserve System. May 2010. Retrieved 4 May 2015.
      27. ^"5 Business Credit Card Myths That Can Cost Your Business

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