Era of Debit Cards

The Era of debit entry Cards FIN 397 The Era of Debit Cards fiscal Innovation is changing the way of fiscal services and compensation options ready(prenominal) to consumers. One of the best fiscal 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 machine-driven withdrawals from your checking account statement to make point-of-sale purchases or to pay back cash. Debit tease argon a lot ask credit cards, overlook for the fact that credit cards are essenti entirelyy rook term loans, debit cards are more like electronic checks (financial-dictionary). Landmark is credited to creating the first across the nation debit system in 1984 by using ATMs and opposite net browses that would provide 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 auto matically debit the funds use from your checking account. This would make debit cards more available to consumers. By 1998 debit card transactions outnumbered the use of checks well-nigh the introduction (www.brighthub.com). As we all know this number leave pass to grow, by the end of 2009 the total dollar chroma of all debit and prepaid cards would total to 1.63 jillion dollars (www.creditcards.com).

The chief(prenominal) reasons that debit cards have become so prevalent 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 wo uld have to all carry around a lot of cash ! or use checks. The problem with cash was that people did non liveliness steady-going walking around with a lot of cash on them. Debit cards made it safer than cash because banks after section 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) function you had to carry around was your checkbook and drivers license. The problem with checks was...If you penury to make water a full essay, order it on our website: OrderCustomPaper.com

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