Regarding a history of  “plastic money”, first form of it were charge cards. Charge cards laid the groundwork for debit and credit cards. These cards were  issued by companies starting from 1900’s and with main goal to keep customers loyal.

First bank card “Charg-it” was issued in 1946 and it was invented by John Biggins, banker in Brooklyn. Charg-it cards were supposed to be use only for local purchases.

Four years later there was the launch of the Diners Club card, the first independent card accepted by multiple merchants, and the credit boom was born.

First internationally available credit card was Green Charge Card issued by American Express in 1958.

Today there are different forms of cards: credit card, debit card, charge card, smart card etc.

Plastic money brought a lot of advantages over cash, such as:

  • Easy to carry: there is no need to carry huge cash
  • Easy to operate
  • Safer to carry
  • More secure
  • Durable
  • Can be used for both offline and online payments

One of the most convenient aspects of plastic money is conected with introduction of ATMs Automated Teller Machine. It was invented in the 1960’s and it gave one new advatage to plastic money, and that is availability. Today ATM machines are open 24/ 7, so whenever you need cash, you can get it.

There are also some disadvantages so be aware of them in order to prevent risks for yourself.

  • Interest Payments:  The most obvious problem with credit cards is that if you carry a balance, you have to pay interest
  • Different kinds of fee (this depends on the bank): annual fee, monthly fee, foreign transaction fee etc
  • Overspending – some researces showed that people in general  spend more than in case they use cash.