History of the Credit Card
Author: Ira
SENIOR MEMBER (Member for 2 yrs.+)
Joined: 19 May 2003
Posts: 831
Location: NJ
Posted: Sat Feb 19, 2005 11:14 am
Post subject: A brief history of Credit Cards
I just came across this short history which I thought might be of interest:
Quote:
The idea of buying on credit is as old as recorded history (the Sumerians did it 4,000 years ago), but the plastic in your wallet is a relatively new invention. Here are a few highlights from the history of the modern credit card.
1914: Western Union issues charge plates - retangular pieces of embossed metal (sort of like dog tags) - to its prefered customers. They allow the deferment of payment on their telegraph services (with no interest of added charges)....and the concept of a pocket "credit card" is born.
1924: General Petroleum of California issues the world's first gas card. It's originally only for employees, but is later issued to the general public. Other gasoline companies soon follow suit.
1930: AT&T offers the "Bell System Credit Card" which allows monthly payments on telephone services.
1946: Flatbush National Bank in New York develops the "Charge-It" card, allowing customers to charge purchases at select local businesses. The bank collects payments from the customer and reimburses the merchants. It's the first bank-issued credit card.
1950: The Diner's Club Card is established at 27 restaurants. By 1952 it can be used at thousands of stores (not just restaurants) in the United States, Canada, France, and Cuba (We were friends back then!). Customers pay a yearly fee for the cardboard card and can make monthly payments.
1951: Post-war prosperity is making the concept of credit more acceptable - and banks begin to see new possibilities. The Franklin Bank of New York extends the normal 90-day pay-in-full period and begins charging interest. The modern credit card is born.
Late 1950's: Revolving credit begins: credit which remains available as long as regular payments are being made on the debt. From this point on, interest charges on credit cards will be a major source of profit for banks.
1958: The American Express card is introduced. By the end of this year over 250,000 people have agreed to pay a $6.00 per year fee to have one. The following year "plastic money" is born when they become the first company to issue plastic credit cards.
1959: Bank of America introduces BankAmericard. In 1977 this card will change its name to VISA and go on to become the world's largest credit card company.
1969: 15% of American households regularly use credit cards.
1972: BankAmericard introduces the world's first electronic card authorization system, BASE I, and credit cards with magnetic strips that hold simple account information. Authorization is now available 24 hours a day. Other cards will soon follow.
1977: Fifty banks now control more than 80% of the credit card market. This will soon change.
1990: The Consumer Federation of America estimates that 122 million Americans have at least one charge card.
2001: Amount of Americans that use credit cards:157 million. Average household credit card debt: $8,23.00. Revenue to credit card companies from late fees: $7,300,000.00 (Priceless?)
2004:There are more than one billion credit cards in use - in the United States alone! The average American family pays between $1,000.00 and $1,500.00 in interest every year. Ten banks now control more than 80% of the credit card market.
THE FUTURE: Data storage devices get smaller and smaller. Examples: keychain credit cards, credit cards with display screens built into them to view transactions, balances, or currency exchange rates, and cell phones that are also credit cards. Wave your phone over a wireless sensor and pay for your movie, gas, meal, etc...(Futuristic? Not everywhere. They're already common in Korea and Japan.)
Do not let what you cannot do interfere with what you can do.
Ira
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Author: Board Monitor
Board Monitor/ Administrator
Joined: 05 May 2003
Posts: 550
Posted: Sun Feb 20, 2005 9:58 am
Interesting! Where did you get this?
Best Regards,
Curtis Arnold
Board Monitor
U.S. Citizens for Fair Credit Card Terms, Inc.
http://www.cardratings.com
501-663-0314 PH
501-301-8474 FX
View our latest credit card ratings!
Author: NightStar
Board Monitor
Joined: 07 Nov 2003
Posts: 2580
Location: Illinois
Posted: Sun Feb 20, 2005 11:01 am
That was interesting, I wonder when Sears came into the Picture - they are a pretty old company themselves. I remember my grandmother had a 30 year old Sears card, was so old that when she went in the cashier didn't know what to do cause her card didn't have a magnetic strip for scanning, lol
Best Regards,
Pammila Phillis
Board Monitor
U.S. Citizens for Fair Credit Card Terms, Inc.
http://www.cardratings.com
501-663-0314 PH
501-663-0033 FX
View our latest credit card ratings!
Author: Ira
SENIOR MEMBER (Member for 2 yrs.+)
Joined: 19 May 2003
Posts: 831
Location: NJ
Posted: Sun Feb 20, 2005 2:30 pm
Curtis,
This came from a most unlikely source:
"Uncle John's Slightly Irregular Bathroom Reader" published by the Bathroom Reader's Institute.
Do not let what you cannot do interfere with what you can do.
Ira
View our latest credit card ratings!
Author: Board Monitor
Board Monitor/ Administrator
Joined: 05 May 2003
Posts: 550
Posted: Mon Feb 21, 2005 6:17 pm
LOL!
Best Regards,
Curtis Arnold
Board Monitor
U.S. Citizens for Fair Credit Card Terms, Inc.
http://www.cardratings.com
501-663-0314 PH
501-301-8474 FX
View our latest credit card ratings!
SENIOR MEMBER (Member for 2 yrs.+)
Joined: 19 May 2003
Posts: 831
Location: NJ
Posted: Sat Feb 19, 2005 11:14 am
Post subject: A brief history of Credit Cards
I just came across this short history which I thought might be of interest:
Quote:
The idea of buying on credit is as old as recorded history (the Sumerians did it 4,000 years ago), but the plastic in your wallet is a relatively new invention. Here are a few highlights from the history of the modern credit card.
1914: Western Union issues charge plates - retangular pieces of embossed metal (sort of like dog tags) - to its prefered customers. They allow the deferment of payment on their telegraph services (with no interest of added charges)....and the concept of a pocket "credit card" is born.
1924: General Petroleum of California issues the world's first gas card. It's originally only for employees, but is later issued to the general public. Other gasoline companies soon follow suit.
1930: AT&T offers the "Bell System Credit Card" which allows monthly payments on telephone services.
1946: Flatbush National Bank in New York develops the "Charge-It" card, allowing customers to charge purchases at select local businesses. The bank collects payments from the customer and reimburses the merchants. It's the first bank-issued credit card.
1950: The Diner's Club Card is established at 27 restaurants. By 1952 it can be used at thousands of stores (not just restaurants) in the United States, Canada, France, and Cuba (We were friends back then!). Customers pay a yearly fee for the cardboard card and can make monthly payments.
1951: Post-war prosperity is making the concept of credit more acceptable - and banks begin to see new possibilities. The Franklin Bank of New York extends the normal 90-day pay-in-full period and begins charging interest. The modern credit card is born.
Late 1950's: Revolving credit begins: credit which remains available as long as regular payments are being made on the debt. From this point on, interest charges on credit cards will be a major source of profit for banks.
1958: The American Express card is introduced. By the end of this year over 250,000 people have agreed to pay a $6.00 per year fee to have one. The following year "plastic money" is born when they become the first company to issue plastic credit cards.
1959: Bank of America introduces BankAmericard. In 1977 this card will change its name to VISA and go on to become the world's largest credit card company.
1969: 15% of American households regularly use credit cards.
1972: BankAmericard introduces the world's first electronic card authorization system, BASE I, and credit cards with magnetic strips that hold simple account information. Authorization is now available 24 hours a day. Other cards will soon follow.
1977: Fifty banks now control more than 80% of the credit card market. This will soon change.
1990: The Consumer Federation of America estimates that 122 million Americans have at least one charge card.
2001: Amount of Americans that use credit cards:157 million. Average household credit card debt: $8,23.00. Revenue to credit card companies from late fees: $7,300,000.00 (Priceless?)
2004:There are more than one billion credit cards in use - in the United States alone! The average American family pays between $1,000.00 and $1,500.00 in interest every year. Ten banks now control more than 80% of the credit card market.
THE FUTURE: Data storage devices get smaller and smaller. Examples: keychain credit cards, credit cards with display screens built into them to view transactions, balances, or currency exchange rates, and cell phones that are also credit cards. Wave your phone over a wireless sensor and pay for your movie, gas, meal, etc...(Futuristic? Not everywhere. They're already common in Korea and Japan.)
Do not let what you cannot do interfere with what you can do.
Ira
View our latest credit card ratings!
Author: Board Monitor
Board Monitor/ Administrator
Joined: 05 May 2003
Posts: 550
Posted: Sun Feb 20, 2005 9:58 am
Interesting! Where did you get this?
Best Regards,
Curtis Arnold
Board Monitor
U.S. Citizens for Fair Credit Card Terms, Inc.
http://www.cardratings.com
501-663-0314 PH
501-301-8474 FX
View our latest credit card ratings!
Author: NightStar
Board Monitor
Joined: 07 Nov 2003
Posts: 2580
Location: Illinois
Posted: Sun Feb 20, 2005 11:01 am
That was interesting, I wonder when Sears came into the Picture - they are a pretty old company themselves. I remember my grandmother had a 30 year old Sears card, was so old that when she went in the cashier didn't know what to do cause her card didn't have a magnetic strip for scanning, lol
Best Regards,
Pammila Phillis
Board Monitor
U.S. Citizens for Fair Credit Card Terms, Inc.
http://www.cardratings.com
501-663-0314 PH
501-663-0033 FX
View our latest credit card ratings!
Author: Ira
SENIOR MEMBER (Member for 2 yrs.+)
Joined: 19 May 2003
Posts: 831
Location: NJ
Posted: Sun Feb 20, 2005 2:30 pm
Curtis,
This came from a most unlikely source:
"Uncle John's Slightly Irregular Bathroom Reader" published by the Bathroom Reader's Institute.
Do not let what you cannot do interfere with what you can do.
Ira
View our latest credit card ratings!
Author: Board Monitor
Board Monitor/ Administrator
Joined: 05 May 2003
Posts: 550
Posted: Mon Feb 21, 2005 6:17 pm
LOL!
Best Regards,
Curtis Arnold
Board Monitor
U.S. Citizens for Fair Credit Card Terms, Inc.
http://www.cardratings.com
501-663-0314 PH
501-301-8474 FX
View our latest credit card ratings!
posted by CardRatings.com at 12:53 PM
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