Choosing Student Credit Card

The bankcard process is essentially one of communication, moving the transaction charge from the merchant to the merchant's bank to the issuing bank to the cardholder, as rapidly, accurately and efficiently as possible. Two separate organisations presently provide this communication: VISA International and MasterCard International.

Build History with Student Credit Card

As the costs of processing traditional paper cheques continued to rise, banks searched for a means to replace the cheques with the more economical Electronic Funds Transfer (EFT) system. The financial institutions viewed this as an opportunity to introduce the debit card. This card is similar to a credit card, but "debits" or “deducts” the amount of the transaction immediately from the cardholder's bank account much like a paper cheque. Although, debit cards have met with customer resistance in the past substantial growth in the use of debit cards in the near future is anticipated, and as of early 2001 there are over 351 million Visa debit cards in circulation.

Bankcards, credit and debit, will play a large role in the move toward a “cashless society". Expanded services and uses can be expected as new markets and opportunities become available in expanding economies.

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History of cards

The bankcard industry originally developed in the United States and traces its roots back to 1914 when Western Union issued the first consumer charge card. But it wasn't until 1950, when the Diners Club Card was introduced, that a single card would be accepted by a variety of merchants In 1951 Franklin National Bank, Long Island , New York , issued a card that was accepted by local merchants, and soon nearly 100 other banks had also begun issuing cards.

But, because these early bankcard systems applied only to a bank's local a rea, few generated sufficient volume to provide a profit for the banks. So as quickly as they appeared, many disappeared.

BankAmericard

Bank of America, San Francisco , California , however, had the entire state of California as a potential market, and the BankAmericard, first issued in 1958, met with immediate success.

By 1965 Bank of America had formed licensing agreements with a number of banks outside of California , allowing them to issue BankAmericard. At the same time, a number of other banks in the United States had joined together to form MasterCharge.

Credit Bureaus Information

With the growing success of these two large bank card associations, most regional banks soon dropped their independent programs and converted to one of the two. By 1970 more than 1,400 banks offered either BankAmericard or MasterCharge cards.

In 1970 Bank of America relinquished control of the BankAmericard program. The banks that issued BankAmericard took control of the program, forming National BankAmericard Inc. (NBI).

Outside the U.S. , Bank of America continued to license banks to issue BankAmericard, and by 1972 there were licensees in 15 countries. In 1974 International Bankcard Company (IBANCO) was formed. In many countries outside the U.S. , however, there was resistance to issuing a card associated with the Bank of America, even if the association was in name only. So in 1977 BankAmericard became the Visa card, retaining its distinctive blue, white and gold bands, NBI was renamed Visa U.S.A. and IBANCO became Visa International.

Visa

Visa, contrary to popular belief, is not a credit card company but rather an electronic payment system that, however, did evolve from a credit card company. Visa is a trans-national corporation controlled by no single interest, an association owned jointly by more than 21,000 financial institutions around the world. Visa itself does not directly serve consumers or merchants. Through its members, Visa provides a global network for value exchange. It provides worldwide telecommunications, sets operating standards, and develops new products, enabling its member financial institutions to provide their customers, both cardholders and merchants, with a convenient, low-cost means of consummating a high volume of transactions throughout the world.

Developing Measures to Control Credit Card Fraud

Today Visa is a full-service consumer payment system, the largest in the world. Through a variety of products individuals can conduct sales transactions anywhere in the world with confidence in the system. Any of the 1 Billion cards currently in circulation can be used to pay for goods and services at more than 20 million locations around the world or to obtain cash at more than 647,000 cash dispensers (ATMs) displaying the blue, white and gold Visa logo.

Visa is divided into six geographical regions:

Asia-Pacific

Canada

Central Europe , Middle East and Africa (CEMEA)

European Union (EU)

Latin America

United States

CEMEA

Visa CEMEA serves 220 members in 92 countries on three continents covering 14 time zones. The region contains a quarter of the world's population. Visa CEMEA's headquarters are in London and it has area offices in South Africa , the United Arab Emirates , Russia and Poland . The region's cultural and geographical diversity is reflected in the different stages of development found in its markets. Some have well-established payment card businesses while others still lack an effective payments and telecommunications infrastructure. Each faces special opportunities and challenges on which Visa CEMEA focuses.

Fraudulent Transactions