It is interesting to read about debt in connection with credit cards. Nowadays, people prefer using plastic cards, the credit cards as compared to paper money. This means that, a large population worldwide cannot do without credit cards. In 2012 alone, the total value of credit card transactions was at $2.48 trillion and only 27% was made in cash.
Get to know 10 interesting facts about your beloved credit card
10. Credit Card Doesn’t Have an Expiration Date
Don’t be shocked, that is the truth. Though on the card, there is an expiration date, but you can still use it long even after the expiration date. The purpose of the expiration date on your credit card is to estimate the credit card lifetime and also gives the issuer of the card the date to send to you a new card. Another work of the expiration date is for online and over the phone transactions where the merchant is not in a position to see your card physically. It helps the unforeseen merchant to prove that you are the actual owner of the card.
9. There Are So Many Credit Cards In Circulation
The credit cards which are in circulation can span the earth 3.5 times. The major credit card companies which include American Express, MasterCard and Visa Card boast of over 1,635 million cards in circulation with visa having about 800 million cards, MasterCard has about 731 million cards and American Express has about 104 million cards. Placing those cards side by side, they will give you around 86,981 miles which is equivalent to 3.5 trips round the world.
8. Credit Card Fees Was The Biggest Settlement in History for A Private Antitrust
District Judge John Gleeson approved a $5.7 billion in December 2013 issued a settlement over Visa and MasterCard swipe fees of $7.2 billion was what was initially agreed on but it was reduced to $5.7 when 8,000 merchants which included Walmart and Amazon chose to drop out of the deal.
7. Sears is One Of The Founding Fathers of Plastic
Sears was once America’s favorite retailer whereby children used to dream of Christmas catalogues from Sears. Sears is the one who devised the first Consumer Debt to America in 1911. It has been in service up to 2013 when Citi group bought a Sears card and its membership list. They also launched the Discover card which was announced during the Superbowl in 1986. That was a year before the American Express started its first Credit Card, a time when Visa and MasterCard were controlling the credit card world.
6. The First Credit Card Could only Be Used In New York
The Diners Club card was founded in 1950 by Frank McNamara, who was the head of a Hamilton Credit Corporation. The first card which could be used in different locations. It was an instant hit, but could only be used in 28 restaurants in two hotels in New York.
5. Credit Card Companies Spent $80 To Acquire One As A Customer
They spend an average of $80 in terms of marketing and administrative costs on one individual customer. This is a good business along as the individual keeps their cards as every customer gives the company a return of $120 per year.
4. Illegal Credit Card interest Rates
Some states usury laws have been imposed so that financial institutions are checked on how much they can charge as maximum interest can charge a client. In Alabama only 6% can be maximally charged while in California, it is a maximum of 7%; in New York the maximum is at 16%. National Banks are not affected by usury laws.
3. Maximum Liability For Unauthorized Credit Card Use is $50 Per Card
The FCBA, the fair credit billing act which has set $50 on your liability usages which are not authorized by you and regardless of how many thieves steal from your account. Make sure you report for any debit card lost or stolen, otherwise you will outright be screwed.
2. Women Are The Worst Credit Card Users
Women are more likely to do expensive credit card transactions which include carrying balances on their card, make only minimum payment on their balances, and incur late fees. Women consistently score lower than men in financial literacy.
1. The First Two Digits of The Credit Card Number Represents The Industry Type That Issued The Card
If the card starts with a 1 or 2, it was offered by an airline; number 3 represents companies in entertainment and travel industry that is why all Diners Club and American Express cards start witha 3. 4 and 5 are meant for banking institutions; 4 is for visa card and 8 is about telecommunications and 5 is for MasterCard while number 7 is in gas cards Number 6 is for merchandising and banking while 9 is used for national assignments.
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