subject: The History Of The Credit Card [print this page] Credit cards are used for variety of general purposes like buying groceries, fuel and gas, apparel and accessories, electronics etc. Today many individuals carry multiple credit cards that are used for various purposes. Credit card issuing companies design credit cards to meet requirements of various people. You can find many kinds of credit cards in the market which include business credit cards, balance transfer credit cards, student credit cards, reward points credit cards and many others. Did you ever think how credit cards came into existence? Did you anytime grow curious to know history of credit card? If yes then here are some exciting things, you will love to read about past of credit cards.
Concept of credit was in use from late1800s, where merchants and consumers used to exchange goods using coins for credit and charge plates. Credit cards were sole introduced in the mid of twentieth century. In early 1900s reputed gas companies and grocery stores used to issue, a kind of proprietary cards to customers in value of money which was only accepted in the infrequent business stores that are owned by the issuing companies.
First credit card was launched somewhere in late 1940s by a banker in Brooklyn called Charg-it. It was issued to only those customers who have account in their Bank. Their principal focus was to help their customers more intelligent and proffer excellent of their services. Card issued by the bank was used to originate purchases with several merchants. Merchant in-turn was reimbursed by the Bank and the amount was later charged to the customer and recovered. Diners club was the next to initiate their credit card in 1950, followed by Visa (Bank America) and Master Card in 1958 and 1966 respectively. Credit cards were actually tiny cardboard pieces which were used mostly for enjoyment and travelling purposes till plastic cards were introduced. Plastic cards were introduced by American Express a reputed postal and parcel service in 1959, which has entered into credit card industry in 1958.
Though American Express entered the industry with travel charge cards in 1958, they were developing ideas for launching credit cards from 1946 which has not seen light, due to tough contention given by Diners Club. They have evenly launched credit cards in other countries also in their local currencies that can be used at in 85000 establishments. The Company has shown tremendous evolution in leading five years which contributed a lot to increase their travel charge cards into all-purpose cards. Later in 1959 revolving balance privilege was introduced to provide customers resilience in payments. In this privilege the customer was no longer forced to pay whole amount availed on the credit, but can set up imperfect payment and carry forward the balance to the next billing duration.
In 1966 normal intent credit cards were introduced and later in the year national credit card system was formed by a assembly of credit card issuing associations to originate Inter Bank Card Association. As the Industry grew, banks engrossed in issuing bank cards joined either MasterCard or Visa .Cost of bank card issuing program were shared among the members which helped even little financial institutions to also issue cards. More and more banks joining MasterCard and Visa as members has complex the task of processed which gave system to hire outsourced services for processing.
Plastic cards have been sample for making purchases, in recent years these are dominated by other modes of payment like online payments, pay pal accounts, money bookers and not many others. However, they stay behind to capture topmost placement in the chart when comes to purchases.
