1. The advantage of commercial function is convenience and timeliness.
2. The limitations of commercial credit are mainly reflected in:
1) The limitations of commercial credit scale. Affected by the quantity and size of individual enterprise's products.
2) Limitations in the direction of commercial credit. It is generally provided by the seller to the buyer, subject to restrictions on the flow direction of the goods.
3) Limitations of commercial credit period. Limited by the production and commodity circulation cycle, it is generally only short-term credit.
4) Limitations of commercial credit credit objects. Generally limited to enterprises.
5) In addition, it also has shortcomings such as dispersion and instability.
1. The earliest credit card appeared at the end of the 19th century. In the 1880s, the British clothing industry developed so-called credit cards, and the tourism and business sectors followed suit. However, the cards at that time could only be used for short-term commercial credit, and the money still had to be paid as and when used. Long-term arrears were not allowed, and there was no credit line. Credit cards are generally special carrier plastic cards with a length of 85.60 mm, a width of 53.98 mm, and a thickness of 1 mm. The name of the card issuer, validity period, number, cardholder name, etc. are printed on the front, and there are chips, magnetic strips, and signature strips on the back. Cardholders can use their credit cards to shop and spend money with special entities and deposit and withdraw cash from banks.
2. It is said that one day in the 1950s, American businessman Frank McNamara was entertaining guests at a New York hotel. After the meal, he found that he had forgotten his wallet and had to call his wife. Embarrassed by the thought of bringing cash to restaurants, McNamara came up with the idea for a credit card company. In the spring of 1950, McNamara and his friend Schneider invested US$10,000 to establish the "Diners Club" in New York, the predecessor of Diners Club. Diners Club provides members with a card that can prove their identity and payment ability. Members can use the card to record their purchases at 27 designated restaurants without having to pay cash. This is the earliest credit card. This kind of credit card that does not require bank processing is a commercial credit card. In 1952, Franklin National Bank in California, USA, was the first financial institution to issue a bank credit card, becoming the first bank to issue a credit card. In 1959, Bank of America issued the Bank of America card in California.
3. Since then, many banks have joined the ranks of card-issuing banks. By the 1960s, bank credit cards were quickly welcomed by all walks of life and developed rapidly. Credit cards became popular not only in the United States, but also in the United Kingdom, Japan, Canada and European countries. Since the 1970s, Hong Kong, Taiwan, Singapore, Malaysia and other regions have also begun to handle credit card services.