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Credit Card and E- payment System in the U. S. A - Term Paper Example

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The paper informs about various benefits related to consumers, buyers and private sector authorities of the credit card and E-payment system. The paper reveals in depth about how the credit card and E-payment system proves itself beneficial for the consumers, buyers and the private sector in the USA …
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Credit Card and E- payment System in the U. S. A
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 Credit Card and E-payment System in USA Table of Contents Table of Contents 1 Credit Card and E-payment System in USA 2 Introduction 2 Thesis 3 Background 3 Benefits for Consumers 6 Benefits for Buyers 8 Benefits for Private Sector 9 Conclusion and Recommendations 11 Works Cited 12 Credit Card and E-payment System in USA Introduction Credit card and E-payment system in USA is prospering day by day because of the effectiveness of the system. Consumers, buyers and private sector, all the participants of the industry are facilitated with the system on the basis of its being widespread and widely employed for monetary transactions. Credit card companies and e-payment facilitated companies accommodate the customers with easy money on low interest basis. With the credit cards, the consumers have always a ready money in their hands to buy the required goods or luxuries for themselves for which, they can pay afterwards. It is like a billing system, you consume some facility and then you pay for it by the help of bills. E-payment system that is employed in USA includes e-money, mobile payments, micro-payments and virtual wallets/accounts/channeling systems (Bohle, et. al 1999). The credit card and E-payment system is beneficial as a whole. This paper informs about various benefits related to consumers, buyers and private sector authorities of the credit card and E-payment system. This paper will reveal in depth about How The Credit Card And E-Payment System Proves Itself Beneficial For The Consumers, buyers and private sector in USA. It is a reality that more benefits and fewer disadvantages are associated with the employment of credit card and E-payment system. No one can negate the effectiveness and advantageousness of credit card and E-payment system. After the description of benefits associated with credit card and E-payment system, at the end, the topic is concluded also there are some recommendations given to facilitate the readers with the recommended employability of credit card and E-payment system. Thesis The thesis of this paper is as follows: Credit card and E-payment systems in USA are beneficial for consumers, buyers and private sector because of their effectiveness and their being widely used for monetary purposes. Consumers, buyers and private sector, all are facilitated because of credit card and E-payment system in USA. Background The credit card and E-payment in USA can be traced back in nineteenth century. A credit card is a small plastic card that is issued from banks to the users or consumers on the basis of credit for their monetary transactions. Credit card system is a form of payment. With the help of credit card, the consumer is facilitated not to pay at once but after billing. It is a type of loan that can be borrowed from a lending authority such as banks and afterwards, the lending authority is returned the loan with some credit (Mandell 1990). The loan is issued to a consumer on the basis of credit, which the lending authority gets after billing. A credit card contains a credit card number, the logo of lending authority, expiry date, name of card holder, card security code and signature strip, where the credit card holder gives his/her signature (Chakravorti 2003). Credit cards are issued to consumers on the basis of their bank accounts. After attainment of credit card, the credit card holders can buy products, goods or services to various merchandises where the credit cards are accepted. The credit cards are validated by means of electronic machines manufactured for the verification of authenticity of credit cards (Gould 2004). Banks are the lending authorities of credit cards. Buyers are also facilitated as they get financial benefit of some percent for their sold product, service, food or goods by the lending authorities. As far as private sector is concerned, there are many banks in USA that are working privately and are also issuing credit cards. Private sector is facilitated with credit cards and E-payment solutions, as they accommodate the consumers with accessible services and products due to which, they have the chances for business expansion and establishment. Because of competition, the credit rate is usually very low and null but there is a specific span of time that is given to consumer to clear his/her dues with the lending company, otherwise, he/she has to pay full interest on the product or service purchased (Gould 2004). E-payment systems come up with internet technology, as people were facilitated to use E-payment systems for their convenience. Virtual accounts in e-payment systems are similar as bank accounts and are employed for transferring money from one virtual account to other, from virtual account to bank account or to make a credit card transaction (Bohle, et. al 1999). Banking also provides e-banking solutions that can be employed for e-payments. Mobile payment, micro-payments, e-money and virtual wallets/accounts/channeling systems are forms of e-payment that are employed in USA (Schmalensee 2001). E-payment systems are employed by consumers, buyers and private sectors in USA and are proving themselves beneficial for all the sectors. Credit card and E-payment system in USA is working in USA for a long time. E-payment systems in USA accommodate the consumers, buyers and private sector to a large extent. Through credit card and E-payment system, money is always kept in a revolving position. Visa, MasterCard, American Express and Discover Card are the forms of credit cards that are found in USA provided by many banks in USA such as Citibank, MBNA America, Bank of America, HSBC Bank, USAA Federal Savings and many others (Chakravorti 2003). Credit card services and E-payment systems in USA have facilitated the citizens as well the provider of services with enough convenience and ease. It is considered as a beneficial aspect in terms of lending authorities such as banks and is considered fully fruitful by the consumers (Schmalensee 2001). The buyers of this system are accommodated with financial benefit and many others due to which, they also accept the transactions made by credit cards and other E-payment systems. It is informed that nearly all Americans are making use of credit cards and many of them are employing e-payment solutions for making payments for the products and services that they attain from various companies or service providers. There are many reasons of why the systems of credit cards and E-payments solutions are preferred by the consumers, buyers and private sectors. The world has become a global village in which, people are allowed to correspond to each other through easier ways of access (Gould 2004). With the help of credit cards and E-payment solutions, the consumers can buy a product from any part of the world. Buyers are facilitated with business finance and private sector has the opportunity to expand their business and to facilitate their customers on low costs. Benefits for Consumers Credit card and E-payment systems have facilitated consumers with benefits that they never enjoyed before. The payment methods that were employed earlier on were not much accommodating and facilitating for the consumers. However, nowadays, the customers/consumers are facilitated with many benefits because of electronic methods employed by consumers. The greatest benefit that is enjoyed by consumers because of credit card and e-payment system in USA is that they can make the transaction sitting at their homes or any other place that is accommodating for them. They are not required to go anywhere else for paying for the products, services or food items, they purchase by means of online services (Chakravorti 2003). Whenever the consumers of credit card and E-payment system are in need of some purchase for example, a book, machinery, a service, a food item or any other product, they can make use of their credit cards and E-payment solutions for their convenience. The consumers of credit card and E-payment system in USA are provided with global acceptability because the world has become a global village and USA is a major economy and is considered worthwhile everywhere in the world (Mandell 1990). There are IBN numbers, PIN codes, swift codes and other facilitated numbers that are provided to customers, so that they can access a service globally by means of their credit cards and E-payment solutions (Bohle, et. al 1999). The consumers are provided with convenience because of these services and systems. They are not required to pay in cash but they can make use of payments that are kept in their accounts or the ones that they are going to pay in future in form of billing or with credits. Because of much competition between various service providers of credit cards and e-payment solutions, the interest rate is much lower and in some cases, it is null if the consumer pays the due money within due time. A specific time is allocated to the consumer in which, he/she can pay his/her dues with the lending authority. Customers are facilitated with more opportunities to access to various facilities by having less load of payment at once (Gould 2004). Credit card and E-payment system in USA are also beneficial for the consumers, as they provide a secure mode of transfer of money for attained facilities. There are less chances of theft of money, as there is no money in hand. The consumers are not required to carry cash with them due to a substitute in form of credit card and E-payment systems. In case, a consumer losses his/her credit card or debit card, he/she is facilitated to inform the card provider in time to stay away from any financial loss (Chakravorti 2003). Consumers, who are travelling abroad or have an intention to do so, can take their mode of payments with them and can get payment transfer for their usage or can buy products on the basis of their credit cards and E-payment solutions (Schmalensee 2001). Billing can also be done by the help of credit cards and E-payment modes. Because of credit cards and other E-payment solutions, the consumers can be accommodated with their authentic information with the credit card companies and E-payment system companies that can be further used for accessing to loans from banks, housing and car loans, mortgages and even jobs (Bohle, et. al 1999). With the help of credit cards, the consumers can be facilitated with emergency expenditures. In case of emergency or urgent expenditures, the consumers of credit cards can make use of credit cards and can pay afterwards. With the help of E-payment system, also in case of emergency, when people have no cash in hand, they can make use of E-payment solutions for their jobs done (Schmalensee 2001). Another benefit of credit card system and E-payment system is the accessibility to any product or service without the restriction of time. The credit cards and E-payment solutions can be used without any time restriction as they are twenty four hour services and accommodate users with easy access to products and services any time and any place (Mandell 1990). There is also no restriction of place while using credit card and E-payment system in USA. Credit cards and E-payment systems in USA are the fastest mode of payment, as all the transactions related to these methods are highly speed efficient. With online processing of orders and purchases, the system of credit card and E-payment is very fast. It is also secure and simple. It is simple because all the costs that a consumer has to pay are clearly informed to him/her and all he/she has to pay are recorded in form of receipts that can be used further for any approval. Benefits for Buyers The buyers can benefit from credit card and E-payment system, as it is very popular nowadays in USA and is employed by all the consumers. Because of online commerce, the usage of credit card and E-payment system is going to increase manifold in future and there are no chances of its failure or annihilation. For buyers, the first benefit is that the credit card and E-payment systems are secure, as the buyer do not have to keep the money on his/her location, so there are less chances of robbery or theft (Bohle, et. al 1999). The system as a whole is secure and simple as, the buyer gets all the required money from the lending authority of the consumer within as minimum possible time as possible. The premises of buyers will have no cash, due to which, there will be minimized dangers concerning money loss. In addition, a buyer is accommodated with monetary benefit, as he/she gets some commission on the basis of a credit card or e-payment transaction. The buyers can be facilitated with schemes from the lending authorities such as bank for setting small businesses (Gould 2004). With the help of credit card and E-payment acceptance, the buyers are facilitated in terms of business expansion as more and more consumers of credit card and E-payment system can get the products and services provided by the buyer because of the provision of their acceptance to this payment mode. Consumers in USA and others parts of the world are making use of ecommerce and online websites for attaining required products and services because of the conveniences provided by the websites and ecommerce buyers (Bohle, et. al 1999). Benefits for Private Sector Private sector in USA is very influential because of its being well established. Private Banks are required to facilitate their customers with credit card and E-payment solutions because they have to compete with other banks. In business field, competition is considered as a source of improvement in a country’s status. USA has reached to a status of established economy on the basis of the competition between private and public sector and among themselves as well (Gould 2004). The private sector of USA also gains benefits because of the credit card and E-payment system because these modes of payment are the fastest modes of payment and result in much expansion. The consumers because of the facilitation of the credit card and e-payment services are able to buy different products (Chakravorti 2003). These services have improved the price range of people due to which, the private sector has more chances to establish and expand. There are many different new businesses in the market that are making use of online commerce and online services for the advertising and marketing of their products. Consumers of credit card and E-payment system are accommodated with payment through these services, due to which, the private sector gains financial benefit. With e-commerce, online orders and purchasing, not only the consumers are facilitated but also, the private sector is facilitated as they are getting more chances of their expansion and establishment (Bohle, et. al 1999). The websites that are working online and are developed by American companies facilitate consumers to make use of their credit cards and E-payment modes for purchasing and money transferring. These monetary services are wholly beneficent for private sector in USA because of their effectiveness, accessibility by all citizens of USA and fast transaction rate (Schmalensee 2001). Conclusion and Recommendations After an overall analysis of the credit card and E-payment system in USA, it is quite clear that these systems are fully beneficial for consumers, buyers and private sector on the basis of their effectiveness, fast working, no restriction of time, easy access, secure money transfer and convenience. Consumers in USA are making use of credit card and e-payment services to a great extent because they enjoy a lot of benefits of these services which are secure usage, convenience, flexibility, time efficiency, global accessibility, billing, no restriction of place and much more. For buyers, the system as a whole is rewarding because the consumers in USA have to make use of the services provided by credit card and E-payment and prefer those buyers, who accept such transaction modes. Private sector gets more chances for expansion and business establishment because the usage of e-commerce and website usage is increasing day by day. As the technology is improving day by day and consumers are making use of credit card and E-payment system because of its effectiveness and convenience. There should be measures taken for more safe transactions through credit card and E-payment systems. Private as well as governmental sector should make sure that there are no fraudulent monetary transactions, so that the process of credit card and E-payment system is more secure, simple and convenient. Works Cited Bohle, Knud; Rader, Michael and Riehm, Ulrich (Eds.) Electronic Payment Systems in European Countries. Country Synthesis Report. An ESTO Project Report. JRC Institute Prospective Technological Studies Seville, 1999. Also available at: ftp://ftp.jrc.es/pub/EURdoc/eur19062en.pdf Chakravorti, Sujit. Theory of Credit Card Networks: A Survey of the Literature. Review of Network Economics 2(2), (2003): 50-68. Gould, John. Credit Card Customer Acquisition Strategy. The Tower Group, Inc, 2004. Mandell, Lewis. The Credit Card Industry: A History. Twayne Publishers, 1990. Schmalensee, Richard. Payment Systems and Interchange Fees. Working Paper 8256. National Bureau of Economic Research, 2001. Read More
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