An article in the Financial Post discusses the introduction of virtual credit cards. Visa is one of the world’s biggest credit card company and they plan on launching “digital wallet” which is expected to be accepted throughout the world. There is no specific date for the launch of this new product but it is expected to be introduced near fall of 2011. A basic run down of how “digital wallet” works is by having the customer enter his/her e-mail address and password which brings up their credit card information. This process is beneficial for the consumer because online purchases become quick and easy.
Our economics textbook’s topics ranges through out money and banks which can be further specified into one topic which is transactions. Transactions have many meaning to it because it is based on the amount of money and the level of income that the owner possesses. Regularly the owner would only spend on the amount of their income but they wouldn’t necessarily overspend. However the textbook also talks about bank credit cards and this enables the owner to overspend and go into debt without them noticing it and this reflects upon me because this has happened to a few of my cousins.
Authorization is a definite necessity when it comes to credit cards or else fraud would be easily initiated. The textbook mentions authorization thoroughly by talking about the person’s credit line easily going into debt. With the new introduction of “digital wallet” I believe that Visa is going to have to think about the ease of people going into debt as well as the banks. Banks will be constantly dealing with debts and minimum payments that eventually lead to our economy’s strength. Spending is great for our economy but when it comes to debt it really stresses out our economy.
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