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ADVANTAGES AND DISADVANTAGES OF HAVING A CREDIT CARD IN SHORT WORDS
What are some advantages and disadvantages of having a credit card
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Credit Card Chips
Credit to buy goods or services has been around since the early 1900s, when consumers would use credit to buy goods or services and pay for them at a later date. The bill would send the bank containing a description of the items bough, their price, tax, and overall total. The consumer would visit to the bank and pay it before a set date set by the retailer. Today, “7 out of 10” Americans have one or more credit cards. Credit Card companies introduced the ‘chip,’ a magnetic strip in cards to prevent fraud in brick-and-mortar stores, in late 2015. Major credit card companies, such as Visa and MasterCard, pushed the new cards onto their cardholders by mailing out chip cards and letting the cardholder know their regular card
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Since the card is inserted in the card reader located at the bottom of the reader, it takes anywhere from “5 to 15 seconds” for the reader to read the chip, and then a signature is required to complete the transaction. If the card is removed before the transaction is done, the cardholder must reenter the card and restart the transaction process. At the checkout, there are still countless stores who have switched to the new readers, but have not set up the readers to their systems yet, leaving them to swipe their card. Many cardholders try to insert their card in the reader, just to be corrected to swipe, and as minor as it may sound, many Americans are annoyed by this. According to Hayley Tsukayama at The Washington Post, found that the “survey from the mobile payments firm, Square, has found that 91 percent of debit card users and 87 percent of credit card users have faced frustration with the new cards – mainly due to the time it takes to use them.” This all ties back to long and slow lines at the checkout counter that leave people frustrated. Several large retailers are concerned for the holiday season, since it is a retailer’s biggest sales time of the year. These retailers fear that the long lines and wait times at checkout will steer customers into online shopping or avoiding all together. Gregory Karp at the Chicago Tribune, states that he “still has not …show more content…
Thieves access information from cardholders and uses their information to open new accounts or other illegal activity such as purchases, or sell a cardholder’s information on the black market. Since credit cards do not require a 4-digit code, but rather a signature, it is easier for hackers to steal this information without becoming caught quickly. According to Brian Krebs, the author of a blog focused on Security, states on “All Things Considered” Broadcast show that “the new chips are to keep hackers from receiving the information quicker than they would have before.” This prevents them from being able to duplicate copies of a cardholder’s card to use. The host, Shapiro, mentions that in London they have used this chip for ‘as long as he can remember.’ England’s chip cards come with a pin instead of involving a signature. Krebs mentions how the new chip “will not stop identity thefts overnight.” The new cards construct it harder for thieves to access the information through retailer’s private computer databases. The databases hold information such as credit and debit card numbers, addresses, bank information, and more personal information. Since it makes it more challenging to get the information, that does not mean hackers will just disappear and stop trying. With technology continuing to advance, they will find new ways to hack into systems and access the information from these cards, even
In addition, “if American Express going to be successful as a brand and as a marketer, they need to understand where consumers are doing it, how consumers are spending their time, where consumers want to access information, and how can American Express engage them. American Express has be used in countries all over the world for decades. It simply grew up with the baby boomers’ generation and has earned its reputation as a card with distinction. Through the years, the company has consistently reached consumer by keeping in step with the changing needs of the population. They also has acknowledge that it is the consumers who really decide what American Express stand for and not the company pushing out marketing messages. Further, American Express belie...
They expressed that credit card companies began directing their focus on college students in an attempt to broaden their market share in the late 1980s (Robb and Sharpe, 2009, p. 25). During that time, students were encouraged to obtain credit cards by way of on-campus enrollment, direct mail promotions, on/ off-campus advertisement. “By 2001, over three-quarters of all undergraduates had one or more credit cards” (Robb and Sharpe, 2009, p. 25). These elemental advancements in how and to whom credit cards were advertised resulted in credit cards becoming a way of life for today’s college student. As the rate of college students who own credit cards grew so did the apprehension that credit card
... a candy bar. These thin wallet size magnetic strips are the keys that unlock the vaults of banks, ATMs, and any cash dispenser around the world. Credit cards have become important sources of identification holding a name and number of a cardholder in just a thin card. There are many cardholders around today such as American Express, Discover, Master Card, and Visa. These companies go head to head with customers around the world. These thin wallet sized cards are a part of most Americans everyday life and some people are very dependent on them. If you come into a situation where you don’t have cash all you have to do is use your card and pay it off later. As many Americans say “I’ll charge it”, this has become a world wide saying. The modern day credit card was invented many years ago and will be continued to be in use for many years to come.
increasingly dominating the purchases of many American consumers. The concept of the credit card dates back to the late 1800's, while the modern credit card took form in 1966. Since then credit card use has exploded (Woolsey par.1-2). Today, over half of the United States' population owns at least two credit cards. The United States should become a cashless society because the government would ultimately save money, there is more convenience for consumers, and money related crimes would decrease dramatically.
Miller, J. (2008, January). Resources: Credit Card Security . Retrieved February 21, 2011, from Arizona Society of Certified Public Accoutants : http://www.ascpa.com/Content/39591.aspx
Credit cards are something that are almost needed in everyday life now, as most dont have the money available to purchase a car or house and so need credit, thus needing credit cards to help build that credit. Those cards are hard to handle, and receiving applications in the mail daily, and commercials appearing on television don’t seem to make the struggle of staying away any easier. This starts to spark an interest. So people begin to think, "I think I 'm responsible enough to get a credit card, I 'll only use it for emergencies." Then the application process begins and it may take a couple times to finally be approved for one. This only makes it worse, of course, because realizing how long a credit card wasn’t applicable to life, but now
credit or debit cards accessible in one easy location and it’s even got the extra security of the
Your identity is unsafe in more places than you may realize. Every store you walk in has the possibility or either having someone behind the counter, or someone hacking into a business from outside, readily waiting to steal your identity. Using your credit card in any store is never safe no matter what signs are posted around the store, or how big the company is; it’s not always the people who work there that want your identity. The article Identity theft growing, costly to victims in The Arizona Republic, J. Craig Anderson ...
Over the last ten years people in the United State and around the world have heavily relied more on their debit or credit cards to process transactions of their purchases. In the old days it used to be when you would get your paycheck on Friday and rush to the bank during your break or lunch in order to cash withdraw your funds or deposit them into your account. It used to be where you carry cash to buy groceries, pay bills, and go shopping. Now some people don’t even set foot inside their bank branch because they are paid using direct deposit or the funds are loaded into a debit card provided by their employer. Many employers from around the globe don’t even issue paper check anymore.
Digital wallets are quickly becoming mainstream mode of online payment. Shoppers are adopting digital wallets at an incredibly rapid pace, largely due to convenience and ease of use. Tech -savvy shoppers are increasingly demanding seamless, Omni-channel retail experiences and looking for solutions that deliver this. There’s no question 2017 will be a pivotal year as digital wallets gain more widespread acceptance.
By offering consumers both a means to pay for goods and services and a source of credit to finance such purchases, credit cards have become the most widely used credit instrument in the United States. As a payment device, credit cards are a ready substitute for checks, cash, and debit cards for most types of purchases (Federal Reserve, 2013).
It makes it a lot harder for criminals to steal your information and exploit retailer’s payment systems, but this is only in certain cases. There is no protection against card not present fraud or having your card lost or stolen. Retailers are spending billions of dollars upgrading their payment terminals only really to help fraud against banks not really the people themselves. A lot of retailers still don’t have their payment terminals up to date so in those places, the cards containing the security chip are useless. Banks are spending all of this money to implement this new feature into their credit and debit cards, and a lot of the stores don’t even have their systems updated to use the card the way it’s meant to be used. Most chip cards do require a signature but only for certain amounts, but the problem with that is that there is no legitimate way to verify a signature made by that person at that time. Anyone could use your card the intended way, and then just sign for it, and that company would have no way of knowing if that is your card. It would be more efficient to have a pin number with every chip card, and the legitimate way of knowing that card belongs to you is by typing in your pin number. So instead of having chip and signature, they should create pin numbers for every card for every transaction no matter how much
The advent of technology, in the form of credit card, brought in convenience and made life simpler for us, but along with it came the Pandora’s Box. While credit cards have made life easy for us, they have also managed to make life easy for the crooks. While enabling us to purchase things we fancy whilst seated on our couch, it has on the other hand made it easy for fraudsters to guzzle away money that is not truly theirs.
The introduction of the credit card first came around while the economy was booming in the early 1950’s. American consumers were in buy mode and the credit card was a genius idea to let people buy now and pay later. At first look this idea seemed great but what looks and sounds great does not always mean that it is going to be great overall. Over the years credit agencies have released thousands of credit cards with several questionable polices and high interest rates. “Any given American family in the present day possesses an average of eight credit cards with about 15,000 dollars of debt”(Canner 8). Many consumers have become addicted to wasteful cyclic consumption and living beyond their income due to the ownership of credit cards. The invention and continued implementation of credit cards into the American economic and social systems appears to be the cause of the struggling economy, the weakened U.S. dollar, the sky rocketing prices of gas and grocery store goods, the all-time highs of American debt, and social deprivation in some regions.
The use of credit and debit cards today are taking a tour in the sense that electronic cash is becoming more admissible as the world makes a switch towar...