Credit Cards

Topics: Bank, Credit card, MasterCard Pages: 23 (3343 words) Published: July 30, 2013
BACKGROUND

MONEY & ITS PURCHASING POWER

M
oney has entered into almost all our discussion. Economy evolved from barter to indirect exchange… indirect exchange to monetary economy… ultimately to a developed economy. Money is a commodity that serves as a general medium of exchange; its exchanges therefore permeate the economic system. Like all commodities, it has a market demand and a market supply, although its special situation lends it many unique features. “Price” has no unique expression on the market. Other commodities are all expressible in terms of units of money and therefore have uniquely identifiable prices. The money commodity, however, can be expressed only by an array of all the other commodities, i.e., all the goods and services that money can buy on the market. This array has no uniquely expressible unit, and, changes in the array cannot be measured. Yet the concept of the “price” or the “value” of money, or the “purchasing power of the monetary unit,” is no less real and important for all that. It simply must be borne in mind that, there is no single “price level” or measurable unit by which the value-array of money can be expressed. This exchange-value of money also takes on peculiar importance because, unlike other commodities, the prime purpose of the money commodity is to be exchanged, now or in the future, for directly consumable or productive commodities.

A man will always earn more money at a higher wage rate, less money at a lower. But what is earning money but another name for buying money? And that is precisely what is done. People buy money by selling goods and services that they possess or can create. We are now attempting to arrive at the demand schedule for money in relation to various alternative purchasing powers or “exchange-values” of money.

MAN, ECONOMY & STATE

New metal-organic frameworks could make the transport, storage, and delivery of hydrogen much easier and open the door to what has been described as a hydrogen-based economy.

PLASTIC MONEY – CREDIT CARDS

The History of it all –

In 1950, the Diners’ Club issued the first credit card (invented by Diners' Club founder Frank McNamara) in the United States (restaurant bills only) and American Express followed in 1958. Bank of America issued the BankAmericard (now Visa), the first bank credit card later in 1958. They were first promoted to traveling salesmen (more common in that era) for use on the road. By the early 1960s, more companies offered credit cards, advertising them as a time-saving device rather than a form of credit. American Express and MasterCard became huge successes overnight, and by the mid-'70s, Congress had to start to regulate the credit card industry by banning such practices as the mass mailing of active cards to those who had not requested them.

FEATURES & BENEFITS

Global Acceptability
Buy now – pay later
Cash advance
Citiphone banking
Lost card replacement
Zero loss liability
Convenient payment options
Photocard
Banking rewards
Utility bills payment
Supplementary cards
e-card
Balance consolidation
Smart installment plan
International services
Travel desk
Credit shield
Fraud early warning system
Travel accident insurance

User – Friendly Options
• Drop boxes
• Easy Payments
• Direct Debit
• Phone Banking
• 24-hour Customer Services
• Zero Loss Liability
• Photocard Security Features
• Reward Points
• Total Travel Protection
• Cash Advance world wide

BANKS – THEIR DOMINANT PRESENCE

The fact that human wants and desires are unbound of their spending limits remains a reality. Consumers always seem to welcome any opportunity that could enable them to fulfill their wants and thus, have welcomed the concept of consumer banking wholeheartedly.

Consumer banking or financing may rightly be defined as:
“Any financing allowed to individuals for meeting their...
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