Strategy: The U.K. credit card industry in the late 1980's

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Issue:

Business

 

Written by:

Judith G

 

Date added:

December 18, 2013

 

Level:

University

 

Grade:

A

 

No of pages / words:

4 / 1058

 

Was viewed:

6660 times

 

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Essay content:

The main sources of income in the credit card business were the interest paid on debt by the cardholders and the MSC income from the merchants. It also provided a free publicity for the Banks, creating awareness of its presence in different businesses and stores. The advantages for the usage of the credit card are numerous...
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For the cardholders it was a source of flexible credit, and for the full payers it represented a credit of 55 days free of interest. It also made easier purchase through cashless transactions (promoting instantaneous purchase decisions), benefiting the merchants with an increase in their sales. For the merchants it also represented a reduction in the costs associated with the handling of cash...
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