HIST 289R Lecture Notes - Lecture 24: Magnetic Stripe Card, Equal Credit Opportunity Act, Credit Card Interest
23 Apr 2018
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Charge-plates- retailers issued them to regular customers. The metal discs included the customers info and signature and an id number. These were the precursor to the modern credit card. But they could only be used in the store issuing the charge-plate. Only in department stores and wanted consumers to purchase more and were willing to extend more credit. Revolving credit- allowed consumers to pay back debt over many periods (rather than a fixed installment plan_ Could be used to pay for a multitude of small purchases. Bank cards- merchants would pay the banks a cut of everything they sold and customers would pay the bank interest. Impact - increased access to credit cards fro consumers and increased profits for credit card companies. Banks from a state without limits on interest, like delaware, can issue credit cards to people living in states which cap credit card interest at 18%
