Credit Cards : Not As New As You Think
You might think the credit card is a purely modern invention, given the way we have advanced technologically with leaps and bounds over the last few decades especially. But, once again it does indeed have its roots further back, back to the turn of the century; to 1887 to be exact. Edward Bellamy wrote a book entitled “Looking Backward”, about a society that was Utopian, that lived the perfect life. Contained in that book were a full eleven references to the term “credit card”. This is the first known written use of that term itself.
The modern use, by paying different merchants and vendors with one universal card based operation was first thought up and instituted by the creators of the Diners Club card, in order to break the need for multiple cards to pay for everything at a different time. Soon following that success came Carte Blanche, and the very well known and popular American Express close behind that. 1950 was one of the starts of the modern economic boom of credit card use. Whether good or bad, the individual consumer must decide, but it did provide ease of use and less cards to carry around; even though America is the highest per user owner of the devices.
The initial predecessor of the modern card though was something called a Charga-Plate. It was a metallic device resembling a cross between a dog tag and a clip board. It held all of the purchasers pertinent information, including home address, contact info, name, city, and state. They were typically issued by large companies, huge merchants, and similarly large producers of goods to their customers as a unique store based only method of a payment promise. Due to their size as well, they were most often kept not by the purchaser, but by the issuing company at their home office or location of purchase and used at the time of purchase.
Just a few basic facts essentially, but it does show that credit cards aren’t a new idea. The evolution to a modern universal pay system has been morphing and changing over the years to what it is now. Most likely it shall continue and turn into something unrecognizable with distant roots in the future much like it is now for those long ago users of our plastic predecessors.
Credit and The World Traveller
Traveling domestically can be a problem in and of itself, when stopping along the road especially at many small out of the way stops, restaurants, and other places. Hotels, gas stations, restaurants; all hold a peril of the unknown for the consumer when they ask “Do you take this card?”. Though, the one benefit at least if they don’t, you can either just switch to another card, withdraw from an ATM, or use a check if it is necessary. All of that is the benefit of traveling in your homeland; you know the rules and can go around them and work with them if needed. But, that might not be the case if you’re traveling abroad.
In the last few years there have been many proceedings and court battles and lawsuits over credit companies, and foreign exchange rates. It has caused a confusing atmosphere for a world traveler to head out into. A common practice when purchasing foreign, is the issuing card company will charge a percent or so for each purchase. Much higher than average, but an expense able to be dealt with. Though, the banks then jump on the bandwagon and have been known to add another 1-2 percent for their own reasons on all non domestically issued purchases. This may be a shock, and indeed something not many may have known, but it doesn’t mean stop using a card abroad. Quite to the contrary.
Shop around, continue to look at each cards offers. Each one may have a different agreement with certain countries, purchases of a certain amount, or allow you more expenditures at certain times if you were to use the card. Some countries may be listed a higher risk, and therefore incur a higher percentage rate. Simultaneously decide on which card to use, with the travel agent you are using to take a trip. Though, if you’re unable to card shop and find yourself having to take a quickly planned trip, or a spur of the moment one, just remember a few things. Spend low, only use what you need. Always be aware of the countries risk status, and your Credit cards policies on interest in the area. These simple things will alleviate much stress.