The history and present situation of credit card industry in the United States

In the United States is the birthplace of the credit card industry in the United States, credit card is a total market spontaneous.In 1915, the United States, some of the retailing industry, catering, entertainment company to attract customers, merchants and petrol expanded turnover, within a certain range to issue a metal badge as credit chip, customers with chips in the stores and semicolons goods, solely on credit.In 1950, the United States, Diners Club issued a formal charge CARDS, is the world's first plastic money.In 1951, the United States, franklin national bank of New York issued the first in the modern sense of credit CARDS, allowing the cardholder specified in the specified limit internal consumption.After more than 50 years of development, America has the world's largest credit card industry

1) size
By 2002, a total population of 260 million in the United States, the cardholder, a total of 124 million families have at least one credit card, a total of 84 million households.523 million credit CARDS, receivables totaling $660.9 billion;Bank card in the non-cash payment share rose from 2% in 1995 to 11.6%;ATM, a total of 200000 units, more than 30% of the world.

(2) high concentration
One is the card issuers concentration is high.2 it is to accept single high concentration.The previous 10 single institutions of the market share rose to 83%.3 it is to receive a single network concentration is high.In 2001, Star, VISA by Concord
Interlink, FDC Nyce ATM and debit card processing network concentration above 90%, and by the VISA,
MasterCard credit card processing network consisting of more than 95% concentration.

 (3) improve debit card status
The us has been to credit card products.2002 all payments, credit card transactions amounted to 1.8 billion yuan, accounting for 18% of the total amount of 9.8 billion yuan trading (35%, including check cash 35%, other 5%).But since the 1990 s, the rapid growth of debit CARDS, growth has more than credit CARDS.4 quarter of 2002, the United States credit card retail sales were $44.7 billion, up 2%;Debit card sales of $29 billion, an increase of 28%.By the end of 2002, the national debit card hairpin quantity accounted for 34% of the total hairpin quantity, accounting for 35% of the card retail sales, accounting for 40% of the total volume of credit card.The status of debit card scale expands unceasingly, in pay is increasing day by day.

 (4) to receive a single network diversity
The United States established a credit card, debit card processing of single network respectively.One is established mainly deal with the global coverage of credit card of four single network and taking single brand, including VISA, MasterCard debit card business has a large number of processing.2 it is to set up a specialist handling passwords ATM/debit CARDS and ATM business EFT single network, three EFT network manage business Concord in 2002 Star, VISA Interlink, FDC Nyce occupy market share of 58%, 11% and 58% respectively.FDC, after acquisition of Concord in 2003, the company has become one of America's largest debit card processors.Three is the clearing house network automatically.Some merchants bypass and EFT network credit card network, through the low cost of ACH check processing network issue zero sales debit card.In the first half of 2002 the United States mainly collect the basic information of the single brand are shown in table 2 1200 years the United States EFT debit card dealers rankings are shown in table 2.

 (5) the profit ability
The United States by credit card products, industry profit is higher.In 2002, the cycle of interest income accounts for the proportion of total income is 63.31%, borrow cash income accounted for 16.37%, information exchange fee income accounted for 11.73%.Credit card of bank of America in 2002 revenue totaled $10.5 billion, accounting for 10% of all bank income, falling by 2.6% over the previous year.VISA, MasterCard in 2001 and 2001, the after-tax return on assets of 2.18% and 1.99%, slightly lower, but still higher than the return on assets of the bank.Citibank credit card net, a total of $2001 in 2.46 billion, 31.5% of citigroup all profits.In 2001, the world's 10 biggest issuers in the U.S. the profitability of card issuers are shown in table 2 years 3200 U.S. credit card company revenue expenditure structure shown in table 4.