Life without credit cards is unimaginable. It is a payment program that has revolutionized the way the consumers along with the service providers like the hospitality and also the retail industry communicate. As the name suggests, this plastic card delivers with funds on credit for stuff that you just could need to obtain.
Way back in 1887, an American author and socialist, Edward Bellamy spoke about purchasing commodities with a card in his novel, 'Looking Backward'.
In 1914, US-based 'metal card' for select buyers with an 'interest-free period'. General Petroleum Corporation followed in 1924. This technique of payment became so well-liked that throughout the 1920s and 1930s, it spread to other firms for example railroad, hotel chains, airline, oil providers and department stores.
The 1930s saw the launch on the 'Bell System' bank card by the American Telephone and Telegraph (AT&T) Company.
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One card that changed the face of credit card and gave it the 'global avatar' was the Diner's card. The credit card, launched in 1950 could be used for avail of basic services, unlike its predecessors.
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This Diners Club Inc card could be used in restaurants, for basic travel as well as entertainment. Most merchants began to accept it because it meant more expenditure on the part of your buyers.
In 1951, New-York primarily based Franklin National Bank introduced Charge-It cards. The applicants had to submit a loan application and the approved clients were given the card.
Year 1958, the American Express Company entered the bank card business with their version on the universal bank card, having the marketing tagline as "Don't leave home with out it".
1959, the Bank of America in California launched the BankAmericard, which was a significant event because it brought in the concept of 'revolving credit'.
By 1967, the Master Charge or as it is known today, the MasterCard International (renamed in 1979) came into existence. This company was a group of four California banks that had come together to form this new entity.
Visa (earlier known as BankAmericard) came in 1977. These new bankcard processing associations expanded their services and increased income potential, and formed mutual relationships with large national or international banks.
In 1966, Barclaycard in the UK introduced the first bank card outside in the US.
This is not to mean that credit cards were preferred worldwide. Even though credit cards gained popularity in countries such as the US, Canada plus the UK, there were countries where transactions were much more cash-oriented. Or, alternative forms of cashless payments evolved. Carte bleue or the EC-card was introduced in countries for example Germany, France, Switzerland, among many others.
In these places, the take-up of credit cards was initially much slower. It took until the 1990s to reach anything like the percentage market-penetration levels achieved in the US, Canada or UK. In many countries acceptance still remains poor because the use of a bank card program depends on the banking system being perceived as reliable.
