New credit card payment system could lead to more debt

A new payment system from Visa has sparked fears that more credit card debt could be easily accumulated by consumers.

The new innovation is called 'wave and pay' and involves simply passing a credit card through an electronic reading device - however, the system is only aimed at transactions of less than £10.

Despite this, concerns have been raised that the ease of payment may lead to higher monthly credit card bills, and as a result - greater amounts of debt.

The device will be tested during 2007 in the London area, as many residents are familiar with the device, as it is already used in pre-pay Oyster cards.