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Long before there were check or debit cards, ATM cards, or even credit cards, there was somethingcalled the charge account. People would go to a store where they were known, one at which theyregularly shopped, ate, or did business, and have the bill put "on the tab."

This type of credit still exists, and at times it can be both cheaper as well as more convenientthan "plastic."

The first thing to remember, however, is that not everyone offers the old-fashioned chargeaccounts. You have to find a small store, or small chain of stores. The big supermarket down the roadprobably won't let you run a tab, but a small grocery store might. You might also have some luck witha local restaurant or bar, corner store, an independently owned gas station or car repair shop, abookstore, or any other small shop.

Kerry O'Day manages a Floyd's store in Delano, California. Floyd's is a chain of six SouthernCalifornia "general stores" that sells everything from clothing to hardware and fishing equipment toplants.

Even though they take Visa and MasterCard, O'Day says that the old-fashioned charge account stillaccounts for a large portion of the business they doÑapproximately 25 percent.

There are a number of reasons why it makes good sense for both Floyd's and its customers.

"You can use it only at Floyd's, so it brings people back. Our charge account customers tend tospend more with us," O'Day explains, "because they can do all their shopping here during a month.Then they have to write only one check at the end of the month."

One of the advantages to the store is the fact that MasterCard and Visa charge a "processing" feefor every charge, usually a percentage of the entire bill. That percentage can range from three toseven percent. Of course, the store gets it's money more quickly "and we don't have to worry aboutcollecting it," O'Day says.

However, those same MasterCards and Visas can be used at any store in town, and there is nothingstopping that person from using them elsewhere.

Having a charge account "personalizes the service that the customers get. They feel more connectedto the store, and the store's staff feel more connected to them because they get to know them bydealing with them on a regular basis."

A good customer can also get a break on the interest rates as well. Some small stores and shopscharge no interest at all if the account is paid promptly. Floyd's charges no interest if the bill ispaid on time, standard interest if it's late, and it will actually give a discount if the account ispaid early. The amount of the discount varies with the customer and what they negotiated when theyset up the account, the volume they do, and the types of things they buy. It can range from one ortwo percent up to 10, in some cases.

O'Day says that while the majority of accounts are for businesses small and largeÑeven someCalifornia state agencies have accounts at Floyd'sÑthere are individual and family accounts as well.

Floyd's runs a standard credit check on people or companies applying for a charge account, butonce it has been approved, it is good at all six stores.

The person or company setting up the account can also set guidelines for its use. Certain peoplehave "signing authority," and that authority can be limited to a dollar amount or to certain types ofmerchandise. Since it is all in the computer, it is easy for anyone in any of the stores to process asale and make sure it conforms to the guidelines.

Some small "mom and pop" stores will grant "charging rights" once they get to know you, withouteven bothering to run a credit check.

Imagine setting up a charge account for yourself at the corner store so you could send the kids topick up what you need for dinner, and not have to worry about their carrying cash or, even scarier, ablank check. You could also set up the "account" so that your kids can stop by and pick up a candybar or soft drink after school, but not an entire box or case. You could also specify that someitemsÑsuch as beer or cigarettesÑcould not be put on the charge.

Of course if you do set up a tab, make sure you and the store know exactly when it is to be paid,and what interest or penalty charges might be involved if it is late.

Since there is no credit card to lose, there is no way that anyone else can get access to theaccount. Over time, everyone in the store gets to know everyone who is authorized to charge things onthe account.

Most of us like shopping at stores where we are known and recognized, where we have establishedrelationships with the staff. It's human nature to go back to the places where they treat you well.Being trusted enough to be able to "charge it" is pretty good treatment by anybody's standards.

There is nothing stopping a person with a charge account from one store from going to another. Butthe natural inclination will be to go back to the store that likes you and your business so much thatthey let you "put it on the tab."