History of Credit Cards

• According to Creditcards.com, the first bank credit card, called "Charg-It," was issued in 1946 by John Biggins, a banker in Brooklyn. The cards could only be used locally by customers of his bank. The customer would use the card with a merchant, and the bill would be sent to Biggins' bank and reimbursed; then a bill would be sent to the customer. Credit cards are known as "open-ended loans."
  
  

Significance of the Statute

• For many years, there were no laws regulating or protecting the credit card industry. The Fair Credit Reporting Act was instituted to protect credit card issuers moreso than consumers. The credit card fraud statute is also structured to protect banks and credit card issuers from fraudulent activities by those who use "access devices" (used to access and use personal and commercial accounts and financial information) and from those who manufacture "counterfeit access devices" (machinery or devices made or used to scan, punch out, or reproduce equipment with which to make phony devices).
  
  

Effects of the Statute

• In a nutshell, the credit card fraud statute covers cards, plates and other access devices; electronic and machinery devices, credit card systems, numbers, transporters, issuers, telecommunications services and more. It also covers cybercrime and other computer intrusion activities. The statute provides for civil justice fines, imprisonment, penalties, and seizure and forfeiture of assets of those in violation of these laws.