Modern people have come to accept the fact that credit cards have become a way of life. The concept of “buy now, pay later” has proven to be an attractive trend in buying and selling of objects. The history of credit cards began officially in early 1900. However, credit usage can be traced back to about 3,000 years ago. In ancient Egypt and Babylonia, merchants and buyers had an agreement that buyers could buy goods and pay for them later.
Primitive bank credit cards
The first appearance of the cards was noted during the early 1900s. A number of shops and oil firms provided cards to their consumers. These cards may only be used at the store. The two main reasons why there were such cards were to strengthen customer service and to encourage customer loyalty.
The original bank credit card was issued by John Biggins. It was called “Charg-It.” When it was first introduced in 1946, the Bank Biggins were sent invoices customers. In 1951, was invented another card and loan customers of the Franklin National Bank in New York. Only account holders of the Bank were allowed to use the card.
The first tab with extensive use
The Diners Club card history began when Frank McNamara has forgotten his wallet during a business dinner in 1949. As an alternative to cash, gave a small cardboard card to great grilled cab as payment for his meal. In 1950 he returned and paid the money he owed. Soon enough, the paper became the first in widespread use as a card for purchases of travel and entertainment.
The emergence of plastic
A year later, there were already 20,000 cardholders Diner’s Club. After 10 years, plastics have been introduced to replace the cardboard or paper to celluloid. Every purchase made at Club of Diner owner claims it. However, it was more of a credit card since all invoices must be paid in full each month.
American Express enters the picture
In fact, American Express was born in 1850, but this was a delivery company that rivaled the US Postal Service. When exploded the credit card industry, the transitional society with his/her card in 1958. It was a purple card that was also for travel and entertainment. AMEX was actually the first to introduce the plastic cards in 1959. Subsequently provided local currency cards for other countries. In just five years, more than 80,000 companies using plastic cards of AMEX.
Evolution and bank cards
Seen before was known as a brand by BankAmerica Corporation Service BankAmericard. In 1966 he was the first general purpose paper. In the same year, he formed the Interbank Card Association (ICA) and since then has competed directly with Visa. This is now called the MasterCard. Bank cards developed and multiplied, financial organizations that want to issue cards become members of Visa or MasterCard.
Other issuers emerged including discover, which was mainly a member of the Sears Corporation. The future is unclear. Recent developments will continue to provide alternative payment styles including integrated chip on cell phones and other electronic devices, and online payment gateways.