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There are even talks that credit cards could be done away with completely and replaced with a small chip inside cell phones for paying for goods and services.

Banks, phone providers, Google and Apple, are reportedly working on mobile payment systems that rely on short-range wireless technology that allows devices to transmit encrypted data.

The iron's heat was just enough to bond the tape to the card.

Rachel Springall, of financial information website Moneyfacts, said: 'The changes from Capital One could be the starting point for a change to reward schemes because of the new ruling on interchange fees.'Instead of adding on card fees, providers will be looking at other ways to re-coup their costs and one of the ways to do this is to withdraw reward schemes or interest-free offers.

Some 40 years after the humble magnetic strip changed banking forever, a new high-tech credit card is heralding another revolution in personal finance.

A few years ago, Europe moved to chip-enabled cards allowing the user to input a pin number to pay for goods. The first magnetic strip, or stripe, was invented by IBM in 1960 for the U. The story goes, he went home one night with several plastic cards and several magnetic strips.

When he walked in, his wife asked why he looked so glum.

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