Credit cards

Those little rectangles of plastic called credit cards have become an almost ubiquitous component of modern life. So much so that if you're one of the small percentage of people without a credit card you may well find it dificult buying tickets, reserving hotel rooms or even renting a car. It's almost as if the credit card has become an extension of our identity. To own one is to be a paid-up member of modern consumer society. What, then, are these wallet-sized pieces of plastic and how do they work? First I would like to start with the history of credit cards, and then explain how each of it and the whole system works.

1. Introduction.......................................................................................................................3



2. History...............................................................................................................................4



3. How credit cards work.......................................................................................................9



4. Real usage.........................................................................................................................10



5. Stripe on a credit card.......................................................................................................11



6. «Smart credit card»...........................................................................................................14



7. Interest charges..................................................................................................................15



8. Benefits to customers.........................................................................................................16



9. Detriments to customers.....................................................................................................16



10. Parties involved................................................................................................................19



11. Transaction steps..............................................................................................................20



12. Securitiy problems and solutions.....................................................................................22



13. Conclusion.......................................................................................................................24