Plastic Money In Iraq ...

[smee2]

So, the nation of Iraq is "gifting" its people with the scourge of plastic. hahahahaha I know, you see plastic as a benefit, and in this day and age it is, since it is not just your father's credit card any more. With the use of plastic for payment of everyday shopping through the debit option, and access to many accounts and different forms of credit, what we thought of as a credit trap all those years ago has become a virtual necessity in today's world.

I just read Adam Montanna's drive by info on the introduction of these cards in Iraq and felt I wanted to reply, but on a separate topic where more people, hopefully, would see it. Here goes ...

Three things ...

First of all, the assumption that VISA in this case means debit, not credit. That is a difficult one for someone (older) from the west to understand as it was always plastic equals credit card. I suppose the young people coming up now will understand easier but it has me scratching my head at times.

Second, the changeover from cash to cashless here in the western world, and I was part of it, happened in less than two years. I remember about six months after the first VISA cards were issued in Canada here, that there was a storm of protest that they could be used at one of the major grocery store chains. The whole idea of "credit" cards being used for something you bought over and over every week was a big hurdle for us. VISA meant credit and credit meant bank loan and you got that for about three things in those days ... to purchase, build or move to a home, to purchase a new or used or additional vehicle, to take a vacation. We used to have store credit, called revolving credit, where you owed to the store, and one of the greatest proponents of this was building centers who advertised "why wait for spring, do it now" and got a lot more business throughout the "off" building season (My father owned one of those building stores and lived through this). The revolving credit became store cards, which are all the rage now and useable anywhere, not just the store they were issued by. I remember those days well as I was, at the time, the credit manager of one of the major department store chains in downtown Toronto, Ontario. I lived through these "changes" not only from the point of view of the consumer, but from the point of view of the credit/plastic provider.

Third, the matter of a change in perception by the Iraqi people. In the western world this change took months. It took less than two years to become so entrenched that there were times when a credit card with signature was used as identification, and instances when only a credit card would get you certain services, like access to bank machines in more than just your own bank chain or branch. The similar change that will have to take place in the middle eastern attitude is huge, monstrous. It is not something that I think will follow as quickly as the foreign acceptance of western music and blue jeans, both of which took over the rest of the world when the iron curtain went down ... oops ... a term I am sure many of you are far too young to know ... google if you dare ...

Well, those are my three points. I know this will happen, as it was inevitable even without the war and the debasement of currency and the RV and the lack of paper money. It would have happened anyway. So, I can only support it and hope it happens soon, and smoothly, and without damage to the people or their "systems" and that it promotes the earliest possible RV.

*sigh*

smee2

[haymon]

Let's hope they "get it" right away, and get it done right away.

[Roadrunner]

I am sure it is debit only. The idea of a percentage of the oil revenues going to the people is not really a new thing. They used to get a check every month. I am not sure when this stopped. I think early 90s. starting it back up is a good sign of economic recovery. I think the cards are a great idea and certainly cheaper than printing that many checks.

[Markinsa]

The important thing for them then is, "Electricity". No electricity, no swiping of cards.

[zapped777]

The important thing for them then is, "Electricity". No electricity, no swiping of cards.

[Off-the-grid]

Thanks for the insight Smee. I was the Customer Service Manager at a Montgomery Ward store around '88 and often dealt with customer issues with their store credit card. I agree that this will be tough for the average Iraqi to get a grip on, including the shop keepers who are used to "No cash, no carry!" Just getting everyone to understand their monthly statements should be interesting.

I do, however, see the move to debit cards and electronic transactions in general as a necessary one. Iraq can't be an economic powerhouse without joining the 21st century.

Peace and Prosperity