A totally different tack is the verification approach. The person making the payment carries with him a card which confirms that he is creditworthy and will honour his obligations. This entity is financially viable and strong enough to be fully trusted by the recipient of the payment. But in both cases, the guarantee is there and is the most predominant feature of the system. Between 2 and 10 percent of the payment made go to the pockets of the card issuers.
Cards get stolen, forged, lost, abused by their owners, expire.
But with the advent of new technologies all these problems should be solved. Then, the billing proceeds automatically. Such devices will virtually eliminate fraud. The credit card companies will guarantee the payments which will be subject to residual crime. Another fast developing solution is the smart card.