Scribd Logo
Upload

Welcome to Scribd!

  • File D Pages 1 Page05

    Uploaded by

    Veljko Madzarac
    2 views1 page
    An early bank loan officer devised a scheme where the bank would pre-approve loans for customers. These approved loans took the form of special currency that merchants agreed to accept as payment. With this new system, the bank approved loans for customers, customers used the special currency to make purchases from merchants, and merchants deposited the currency with the bank, who credited their accounts. Customers then repaid the loans to the bank in installments with interest.

    Original Description:

    Original Title

    file____D__pages_1_page05

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    An early bank loan officer devised a scheme where the bank would pre-approve loans for customers. These approved loans took the form of special currency that merchants agreed to accept as payment. With this new system, the bank approved loans for customers, customers used the special currency to make purchases from merchants, and merchants deposited the currency with the bank, who credited their accounts. Customers then repaid the loans to the bank in installments with interest.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    2 views1 page

    File D Pages 1 Page05

    Uploaded by

    Veljko Madzarac
    An early bank loan officer devised a scheme where the bank would pre-approve loans for customers. These approved loans took the form of special currency that merchants agreed to accept as payment. With this new system, the bank approved loans for customers, customers used the special currency to make purchases from merchants, and merchants deposited the currency with the bank, who credited their accounts. Customers then repaid the loans to the bank in installments with interest.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    file:///D|/pages/1/page05.

    htm

    A brief history of the bank card business (ii)


    An enterprising loan officer in a bank in New York came up with a scheme for overcoming these
    problems by approving loans for customers in advance of their making purchases.

    Approved loans took the form of a special currency, which merchants agreed to take for purchase of
    items in their stores. So the process is now:

    Bank approves loan to consumer, and puts special currency in their account

    Consumer spends this special currency with merchant

    Merchant deposits this currency with bank and is credited with the amount in the
    normal way

    Consumer pays off loan to the bank in instalments, with interest as agreed

    file:///D|/pages/1/page05.htm7/5/2008 6:52:02 AM

    You might also like