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Credit Card And It's Effect.

History of the Credit Card
The route of credit card begins around 1914. It was introduced from company such as Western Union and other department stores, hotels, and oil companies. At that time, the card can only purchases goods and services from the issuer and the full amount must also be repaid upon the due date. The first "general-purpose" charge card was not introduced until 1950. It was the Diner's Club who initiated; however, it was not until the late 50s when the banks entered the credit card industry and revolutionized it by allowing balances to be carried over from month to month.
For more than a decade, the credit card industry was growing at a very slow rate, largely due to the fact that only local bank cards were accepted by the merchants. The national system to process credit card transactions developed at 1966 when Bank of America began to license its BankAmericard credit card logo to the other banks. The system however becomes a chaos at the late 60s as the franchisees' attempts to undercut competitors by the means of cheating. In 1970, Dee Hock convinced Bank of America to separate its banking division from the BankAmericard system to resolve the issue and transformed it to what is now known as the Visa payment network. Other group of banks followed and formed the MasterCard association.

Regulations of the Credit Card Industry
Although the development of Visa and MasterCard associations was recognized by the merchants nationwide, different usury laws across the states set back the potential benefits of the system. Some states set the usury ceilings considerately low in compare to other states making it less appeal for issuers to lend loans in this states. In addition, the interpretation of the...