Credit card

Good Essays
Credit card, one of the greatest inventions in last century, is widely used in nowadays. The first credit card that can pay for different businesses was invented by Frank McNamara and Ralph Schneider, the founders of Diners Club, in 1950. After a long time development, it is believed that credit card is one of the popular tools for payment transaction. According to a research in 2008, there were around 80% of United State adult own at less one credit card (Foster, Meijer, Schuh, & Zabek, 2010). It seems likely that it is indispensable in today’s society. The main reason is that credit card brings lots of convenience in transaction. In this essay, I will talk about the reasons why credit card succeeds in three ways: its concept, its demand and its benefits.

The concept of credit card totally changes the payment method we already known and brings lots of convenience and efficiency in transactions. The concept is that the consumers can borrow the money for payment and pay it back to card company later (Mary, n.d.). Besides, it can use in different stores instead of one only. It is a brilliant idea and it became popular after it invented, especially for the merchants. It is because at that time, merchants might need to travel around for their business and they needed to bring a lot of money. It is danger for them to bring such large amount of cash as they might easily lose it or even be robbed. With the help of using credit card, merchants need not to worry about losing their money because only the card holders can use the credit cards. Moreover, using credit card is much more convenient for merchants as they just need to bring a card instead of a pile of cash. Because of the convenience of using credit card, people are likely to use credit cards instead of cash.

The concept of using a card for purchases is actually existed before the invention of credit card (Jennifer, n.d.). It seems that a cashless payment method was already introduced at that time. People



References: Foster Kevin, Erik Meijer, Scott Schuh, & Michael A. Zabek (2010), The 2008 Survey of Consumer Payment Choice, Federal Reserve Bank of Boston. Jennifer Rosenberg. (n.d.). The First Credit Card. Retrieved from http://history1900s.about.com/od/1950s/a/firstcreditcard_2.htm Mary Bellis. (n.d.). Who Invented Credit Cards?. Retrieved from http://inventors.about.com/od/cstartinventions/a/credit_cards.htm

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