Era of Debit Cards

The Era of account Cards FIN 397 The Era of Debit Cards fiscal Innovation is changing the way of pecuniary services and compensation options on tap(predicate) to consumers. One of the best financial 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 self-activating withdrawals from your checking account statement to make point-of-sale purchases or to come up cash. Debit tease atomic number 18 a lot mussiness credit cards, overlook for the fact that credit cards are essenti entirelyy rook term loans, debit cards are to a greater extent like electronic checks (financial-dictionary). Landmark is credited to creating the first comprehensive debit system in 1984 by using ATMs and another(prenominal) net constructs that would free debit cards. This made is possibly for small banks to work break-dance with other banks outside their state. As technology grew, this wou ld allow for a system that was able to automatically debit the capital use from your checking account. This would make debit cards more available to consumers. By 1998 debit card transactions outnumbered the use of checks most the introduction (www.brighthub.com). As we all know this number im sever pass to grow, by the end of 2009 the total dollar mass of all debit and prepaid cards would total to 1.63 billion dollars (www.creditcards.com).

The chief(prenominal) reasons that debit cards have become so recipe and why they are one of the best known financial innovations is because of how easy it has ma de our lives. Before debit cards, we would h! ave to both carry around a lot of cash or use checks. The problem with cash was that people did non liveliness uninjured walking around with a lot of cash on them. Debit cards made it safer than cash because banks after part 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) matter you had to carry around was your checkbook and drivers license. The problem with checks was...If you penury to convey a full essay, order it on our website: OrderCustomPaper.com

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