The annual membership fee or membership fee is a payment card companies levy amount for the right to use or carry a card. This fee is payable if you really do not use the card during the year or not. Annual fees range from an average decline of $ 25 to $ 100 or more.
The annual fees were first popularized by credit cards like American Express and Diner's Club Prestige. These annual costs were mentioned membership fees. Card companies for payment is justified because to pay these expenses holders were required to divest assets in full each month and the company does not earn interest on balances due.
The fees will jump from club cards for ordinary bank cards in 1980 after the U.S. government imposed a temporary moratorium on soliciting new customers for credit card companies. It was actually an attempt to reduce inflation. The card issuers have seen this as an opportunity to spend more money from existing customers, who suddenly found themselves without options, thanks to the government's initiative to make haste.
After the moratorium was lifted, left the card user fee of up to a justification that the annual fee remains low for the interest, because it allowed banks to offset losses due to fraud and asked increasing the number of personal bankruptcies. There was little protest from the public and business continued as usual.
The first sign of trouble on the horizon came in 1990 when long-distance giants AT & T (American Telephone and Telegraph), the credit card industry came with the hope of offsetting their income decline distance. To increase the visibility of their new cards in a market already crowded, AT & T a splash with their huge advertising "no annual fee credit card!
The consumer response has been overwhelming and panic quickly competing banks, credit card customers will see their long-standing failure to reach AT & T. The fact that we have been disseminated to an event, the banker still call "The Big Scare," marks the beginning of the end of the fee for most people.
Today, American Express or its participation fee, although some of their products are free of interest. Most credit cards banks issue to charge their customers high credit ratings and save the service fee for the lower grades of customers and clients with scores so low that they qualify for secured cards.
Relying on credit cards in order to serve the citizens in the purchase of airline tickets and get a visa access to many countries, mainly America . Also used credit cards for reservations in the hotels famous.
In many places use credit cards prior to pay but there is no protection for these cards, which serve the public interest .
That the stolen credit card thief is punishable by law long prison sentences
The hacker is always looking for loopholes to steal these cards.
Credit card is a card that authorizes you to any bank in the world
All there is you open a bank account and get a checkbook and your credit card
There are some banks that allows you to get an account without an annual fee is one of the most important credit card offers and the best
There is also the advantage of pre-payment cards are not as good