The modern credit card system is really an ingenious invention, isn't it?

Question

I go to STORE A to buy a product. I use a credit card thus STORE A gets the money for the product from BANK B (credit card issuer).

Within a month BANK B wants the money so I go to BANK C (write a check/internet check) to pay BANK B.

I ----> A ----> B ----> I ----> C ----> B

Okay so I go to "A", "A" goes to "B" then I go to "C", "C" goes back to "B"

Now, wouldn't it be better if I just paid "A" some how and be done with it! Okay I am bored.

Will someone invent a better system (other than cash) where you don't have involve B and C ?

I got nothing against Credit/Debit cards, I use them all the time, use them wisely and you are going to enjoy life, otherwise ones life will be miserable.

The point, is banks makes tons of money in the process!

Answer 1

Its called a debit card.

Answer 2

Ideally, for the credit card holder, you never spend more than you can afford to repay that month so you never incur finance charges and never drive up the price of the thing for which you could have paid cash. You buy something on August 20, the statement closes on the September 8, bill is due on September 23 and you get paid on September 16. You got something on August 20 that you didn't have money for until September 16. Pretty good deal, if you stick to the first sentence.

Ideally, for the credit card company, a card holder runs their card up near the limit, 6 or 8 times a year they go overlimit which tacks on another $20-$40 fee for each occurrence, and 2 or 3 times a year they are late which tacks on another $20-40 fee for each occurrence. Interest rate is 29 to 35 percent because of Universal Default. Talk about Fat City, USA.

Yes, credit cards are truly an amazing invention. Credit card companies make loansharks look legit.

Answer 3

By using the credit card, B floated the money for you. If you paid cash, the money would have been gone a month earlier.

Besides, credit cards give those nice statements to track all those business expenses.

Answer 4

Funny how the economy works....