Credit Card And Credit Cards

1488 WordsJul 24, 20156 Pages
Credit cards are more pervasive in everyday life. There many kind credit cards with different terms and interest rates. The issuer of credit card are Banks and Credit Unions. In striving to create good credit history every person wants to hold credit card. The demand of credit cards suggest wide offering. The credit cards companies and banks offers different benefits like cash back and rewards points from usage of credit cards. And these benefits with raising a popularity of credit cards is precondition to more often usage of credit cards. But there is another problem that raised in the last years. The often usage of credit cards creates more debts for people. Before applying for credit cards how many persons read and understand the terms of issuing credit cards? The usage of credit cards overall has negative impact of the retail prices. The final prices in the stores increase as a result of usage of credit cards. In the article “Who Gains and Who Loses from Credit Cards Payments? Theory and Calibration”, authors describes the impact of usage of credit cards. The payments with credit cards “involves merchants’ fees”, that the bank of each merchant must to pay to the credit card companies. This fees are calculated in the final price of each product. In this way all consumers pay higher prices for each product (Scott, Shy, Stavis 5). And why is that? Because the credit cards companies promote different types of credit cards and strive to increase usage of their product and
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