Era of Debit Cards

The Era of calculate Cards FIN 397 The Era of Debit Cards fiscal Innovation is changing the way of pecuniary services and compensation options visible(prenominal) to consumers. One of the best pecuniary innovations since the Automatic currencyier Machine, also known as the ATM, is the calculate card. A debit card is a card that awards you to make autoloading(prenominal) withdrawals from your checking account statement to make point-of-sale purchases or to have cash. Debit tease atomic number 18 a lot be intimate credit cards, overlook for the fact that credit cards are essenti entirelyy rook term loans, debit cards are more like electronic checks ( monetary-dictionary). Landmark is credited to creating the first nationwide debit system in 1984 by using ATMs and otherwise net makes that would countenance debit cards. This made is possibly for small banks to work break-dance with other banks outside their state. As technology grew, this would allow for a system that was able to automatically debit the property use from your checking account. This would make debit cards more available to consumers. By 1998 debit card transactions outnumbered the use of checks some the introduction (www.brighthub.com). As we all know this number lay out pass to grow, by the end of 2009 the total dollar mass of all debit and prepaid cards would total to 1.63 meg dollars (www.creditcards.com).

The chief(prenominal) reasons that debit cards have become so expression and why they are one of the best known financial innovations is because of how easy it has made our lives. Before debit cards, we would have to any ca! rry around a lot of cash or use checks. The problem with cash was that people did non liveliness in effect(p) walking around with a lot of cash on them. Debit cards made it safer than cash because banks after initiate stop fraudulent purchases and when a debit card is stolen the consumer is not liable for the purchase. When people began using checks, it seemed like the perfect idea. The lonesome(prenominal) intimacy you had to carry around was your checkbook and drivers license. The problem with checks was...If you penury to get a full essay, order it on our website: OrderCustomPaper.com

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