Before plastic Credit cards were invented, the concept of credit had been around for centuries. With today’s modern society and technological advancement, credit cards have come a long way.
How did the credit card start?
Credit cards started even before you were born. In fact, they started before the internet, planes, cars, trains, and the light bulb. They go back to before the French Revolution, and Benjamin Franklin discovered the power of lightning. They even go back to before the age of Victorian England, printing, and Shakespeare. When exactly did this credit system start?
The early beginnings of credit
Historical records show a written credit system that goes back to the ancient Hammurabi code. This code was named after the ruler of ancient Babylon from 1792 to 1750 BC. Chr. Named and provided an example of a written credit system. There were rules for borrowing and repaying a loan with interest. There were even rules about how the interest rate worked. Under the Code, a loan served as a financial arrangement between a borrower and a creditor or dealer.
The rise of credit cards
In the early days of the Wild West, general store owners often expanded a Credit line to their customers who were farmers and ranchers. Since these men were not paid until after the harvest or when their flock was sold in the market, the shopkeepers allowed them to buy on credit and pay their bills when profits were made.
Fast forward to the 1900s and the rise of travel, trade and an economic boom. Larger hotels and department stores issued paper cards to valued customers that they could trust to repay. In 1950, Diners Club launched its first general goods debit card. They were given out to wealthy customers and used for travel and entertainment expenses. With this credit card system developed by Ralph Schneider and Frank McNamara, customers had to pay off the remaining amount in full every month, which resulted in our modern credit card system.
In 1958, Bank of America introduced its general credit card called BankAmericard. It came with a whopping $ 300 credit limit and was the first of its kind of revolving credit offering that gave people the ability to transfer a balance.
Credit cards and modern technology
In the 1980s, cards switched from paper to plastic with a magnetic stripe on the back. This strip made it possible to read the balance using special computer equipment. They continued to evolve in the 1990s and were soon embedded in computer chips called EMV smart chips. These chips enabled encrypted bidirectional authentication between the merchant’s credit card terminal and a payment processing network.
What is the future of credit cards?
With the story of recognition Let us turn our attention to the question of their role in the future economy. What will your place be? Will there be another form of? Loan option, or do the plastic cards in our wallets stay here?
These days everything we buy from the grocery store to the movie theater is likely to be bought with a credit or debit card, or an alternative mobile wallet, a cash sharing app, or a cryptocurrency. Today there are many alternative payment options for your purchases including:
PayPal balance: PayPal has a line of credit and provides a direct payment platform.
Cryptocurrency: The most famous currency is Bitcoin, but there are others too, including Litecoin and Ethereum.
Cards with credit: These work like debit cards but come pre-loaded with cash.
Mobile wallets: The most popular options are Apple Pay and Google Wallet. These are directly linked to your bank accounts, debit or credit cards, so you can access all financial resources without the physical presence of a card.
Other security functions
Fraud prevention is a major concern with credit and debit cards. As technology advances, features are added to increase security and protect the buyer. However, the existing security system is far from complete. In the future you can expect Credit card company Integrate AI to detect and fight fraud.
Artificial intelligence in credit cards
AI technology is exploding in its uses, applications and information. Expect AI to soon be used to detect and fight fraud, as well as offering customer-centric services. Probably similar to something close to Amazon Alexa, the credit AI manages payments, identifies spending patterns and trends, makes purchase suggestions, and reminds you of upcoming payments.
Contactless payments via smartphones
Numerous banks are quickly expanding their apps to include functions with which their customers can control credit and debit cards via their app. Consumers can currently block their cards, control spending limits, report lost cards and alert the company to potential fraud the moment they do so. Ultimately, using smartphone apps for credit and debit cards could be the same as Apple Pay or Google Wallet and become a completely contactless payment method without the need for a physical card.
Are plastic credit cards disappearing?
Technology is advancing rapidly and both consumers and retailers are focusing more attention and energy on online, app and contactless payments. However, with the advent of Google Wallet, PayPal, Square, and CashApp, major credit cards have got another platform for doing business. Credit card companies, apps, and online methods have failed to attract customers and lend people to just about every situation. Large credit card companies like MasterCard, Visa and American Express have developed a mobile payment platform for their customers.
Although consumers may pay using methods other than physical credit cards, they continue to use loans given to them by the card-issuing companies.
Credit cards are far from being tied to a single merchant. Today, large corporations lend to people of all ages and economic statuses. The future possibilities of credit cards are endless.