Islamic credit cards - Essay Example

Worthington has defined these cards as “Pay Later Cards“, which facilitates the user to purchase any product or service without paying cash money. Fowler explains the credit cards as any coupon, single credit device, card or plate that can be used to get labor, services, goods or cash on credit. Such a card allows the user to make the required financial transaction without paying any money. The current technological development has given more powers to the buyer for purchasing goods and services on line.

However, this requires an instrument that can facilitate payment to the seller at the time of such purchase. The credit card issued by a bank comes handy for this purpose as the buyer pays seller the required money through this card. Credit cards are secure as they replace cash which most of the people do not find safe to carry. In addition, carrying cash requires deep pockets and may create hassles. There are several reasons for the people to use credit cards. These include purchasing of foods and services, making necessary recharges, getting cash advances and enhancing the self-prestige.

Credit cards have a long history as they have been in use since several decades. Their use started from United States in 1920s. Ritzer has named these cards as “American Icon”. During the early 20th century, credit cards were used for the first time in oil, automobile companies and general stores. Many writers have given credit to John Beggins of Flatbush National Bank in New York for inventing the first bank-issued credit card. The Banking Review’s Paper, FDIG informs that the idea of providing cash through a card goes back to 1800s era.

However, the use of a bank issued credit card at different merchant outlets started only after 1950s. Bank Americard issued first VISA card in mid 1970s, while created the reputed credit card operation, called “VISA”. The scope of credit card use has widened now largely as