When was the credit card invented

How long was the credit card invented?

One card travels the world

The invention and use of the credit card in 1950 In 1950, McNamara, a 35-year-old Manhattan credit expert, invented the credit card. The first 200 Supper Club members can dine on credit at 27 New York restaurants. Credit cards can not only save people the trouble and danger of traveling around the world with a lot of money but also concentrate idle consumption funds of the people in banks, increasing the source of bank credit funds.

One day more than 50 years ago, McNamara, a 35-year-old Manhattan credit expert, had to call his wife to send the money because he was running out of money after having a meal at a restaurant. This made him feel embarrassed. But he believes the situation is entirely avoidable. So he organized a “dinners club” according to his own ideas, and the participants could carry a dining debit card to book consumption in restaurants without having to pay cash. This is the first credit card.

What are the benefits of credit cards to people? A friend told me this: In the past, he had to carry a lot of cash when he traveled all over the country to do business, which was not only troublesome but also dangerous. With a credit card, he no longer had to go out with a lot of money. In addition, since the credit card can be “good faith overdraft”, that is, the cardholder overdraws within the limit specified by the issuing bank, and repays the principal and interest within the specified time, which means that you can borrow some money from the bank at any time.

What does a credit card mean to a bank? For the bank, it dislikes two kinds of people. One is the one who never borrows money because the bank can’t possibly get interested in him. Be aware that the interest on a credit card over the repayment period is higher than the interest rate on any kind of loan. The other is people who have not paid the money, which will directly affect the bank’s income. But in fact, for credit card users, the latter is almost no problem, because banks have undergone meticulous investigations before establishing credit cards for cardholders, and their fixed assets can withstand “trust”.For cardholders, a “foul” will be entered into the “separate book” of credit consumption, which directly affects their business reputation and the credit limit they enjoy in the future. Banks try their best to promote credit cards, not only because credit cards can concentrate idle consumption funds in the bank, increase the source of bank credit funds, and expand transfer and settlement business, but more importantly, people will inevitably overdraft when they have a credit card, and overdraft often makes Banks earn high interest.

Let’s take Citibank in the United States as an example. In 1990, Citibank made a net profit of 900 million US dollars, of which 80% was credit card income, and 75% of credit card income came from overdraft interest income. In order to keep this kind of income, Citibank assures its cardholders: Citibank will take full responsibility for the goods purchased with Citibank credit cards if something goes wrong.

Since the general credit card is an ordinary plastic magnetic stripe card, it is relatively easy to use counterfeiting or impersonation. To this end, people have invented many security cards, such as smart cards, smart cards, and so on. The smart card is equipped with a microprocessor made of integrated circuits, which has the function of control and storage. Cardholders can program and enter passwords by themselves, which cannot be used by others and cannot be imitated. The Bell Institute of Communications has also created a credit card that responds to voice, with a computer chip on the card that digitally records the user’s password. When using, say the password once, and the cards can be compared automatically, and the cards can only be used if they match. Its ability to recognize sounds is very high, with an accuracy rate of 98%, and it is not afraid of being copied and imitated.

In March 1985, my country’s first credit card, the Bank of China Card, was issued by the Bank of China Zhuhai Branch in Zhuhai, Guangdong. In 1993, my country implemented the “Golden Card Project” aiming at the development of the network of bank credit cards, which promoted the popularization of credit cards. The number of bank credit cards issued nationwide increased by 76% every year, and the number of special merchants increased by 51% every year. In 1999, the total number of credit cards in my country It is estimated that there are more than 170 million copies. In countries where credit cards are popular, a person has several cards, and ATMs can handle various transactions 24 hours a day.

  1. Who is the inventor of the credit card and when did the credit card be invented?

Credit cards originated in the United States in 1915.

The first institutions to issue credit cards were not banks, but some department stores, restaurants, entertainment, and gasoline companies. In order to attract customers, promote products and expand sales, some stores and restaurants in the United States selectively issued customers a credit chip similar to a metal badge within a certain range, which later evolved into a card made of plastic as a customer purchase. It has carried out the credit sales service business of purchasing goods at the company or company or gasoline station with credit chips. Customers can purchase goods on credit in these shops that issue chips and their branches, and make payment on an agreed date.

This is the prototype of the credit card. It is said that one day, American businessman Frank McNamara was entertaining guests at a restaurant in New York. After eating, he found that he forgot to take his wallet with him, so he was deeply embarrassed and had to call his wife to bring cash to the restaurant to check out.

So McNamara came up with the idea of ​​​​creating a credit card company. In the spring of 1950, McNamara and his friend Schneider invested $10,000 to create the “Diners Club” in New York, the predecessor of the Diners Club.

Diners Club provides members with a card that can prove their identity and payment ability, and members can use the card to record consumption. The nature of such a bank-free credit card is still a commercial credit card.

In 1952, the Franklin National Bank in California, USA, was the first to issue bank credit cards as a financial institution. In 1959, the Bank of America in the United States issued the Bank of America card in California.

Since then, many banks have joined the ranks of card-issuing banks. In the 1960s, bank credit cards were quickly welcomed by all walks of life and developed rapidly. Credit cards became popular not only in the United States but also in the United States Kingdom, Japan, Canada, and European countries.

Since the 1970s, developing countries and regions such as Hong Kong, Taiwan, Singapore, and Malaysia have also begun to issue credit cards. The word “credit card” is originally intended to refer to the financial product introduced in this post. However, since there were no credit cards in China before, and even savings cards without any credit card function were popular, the real credit card can only be called “credit card”. Card” is a nondescript term.

A real credit card has the following characteristics: a cash advance is not encouraged, repayment after consumption, enjoys an interest-free payment period, can repay in installments (with a minimum repayment amount), and joins international credit card organizations such as VISA and MASTER for global use.

Who invented the credit card?

The origin and development of credit cards:

Credit cards originated in the United States at the beginning of the twentieth century. They are made of metal, and the objects of issuance and places of use are quite limited. After the Diners Club came out in 1951, it established the prototype of the modern credit card. At that time, the cardholder only needed to present the card when making purchases, and the Diners Club would advance the payment on behalf of the cardholder, and then collect the payment from the cardholder. Due to its convenience, the credit card business has gradually expanded to various industries such as restaurants and airlines, and the card issuer has also expanded from Diners Club and American Express to various banks.

In 1965, Bank of America, which had a relatively large-scale credit card business, began to expand its credit card business and authorized trademarks to other banks in the following year. What was released at the time was a Bank Americard with a blue, white, and gold pattern. After that, Bank of America further expanded its credit card business outside the United States. However, because Bank Americard’s American color was too strong and was not popular with foreigners, Bank Americard officially changed its name to VISA (Visa ) in 1977, which is also the first. an official credit card.

It has only been nearly ten years since credit cards became popular in Taiwan. Various international credit card organizations, VISA (Visa), MasterCard (MasterCard), JCB (Ji Shimei Card), Dinners Card (Dinners Card), American Express ( American Express ), etc. are all deliberately trying to capture this vast market.

 

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