The History of Credit Card

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The History of Credit Card. Imagine how life would be without credit cards! Have you ever thought of how buying and selling were taking place centuries ago when the world didn't know anything like Mastercard, Visa card, and verve? You should be interested in the history of credit cards we take for granted today. It'll likely increase your appreciation for that card in your wallet which American Express keyed into as a stakeholder in the 1950s.
I don’t think I need to remind you of what credit cards are. Credit cards are cards issued by banks to their customers, known as cardholders. The purpose is to enable them to pay merchants for goods and services based on the cardholders' accrued debt.
Now to the history of credit cards.
The idea of credit cards was first muted in 1887 in the utopia novel Looking Backward by Edward Bellamy. The term “credit card” was used 11 times in the novel to refer to a card used in spending the dividend a citizen receives from a government. Later in the century and up until the 1930s, charge coins, medals, and similar items were used for similar purposes. These materials made, majorly from celluloid, aluminum, copper, and steel came in various sizes and shapes.
The 'credit cards' came with a little hole through which they could be tied to a keyring. Customers holding accounts in stores, hotels, and other places were usually given such cards bearing their charge account numbers and the merchant's particulars.
But there was a challenge: the customer's name was not inscribed on the charge coin as we have on modern credit cards. Almost anyone could lay claim to any card’s ownership and use it. The resulting mistaken identity, either fraudulently or accidentally, reduced the card’s acceptability. Anyone could act in the name of the charge card owners or outrightly perpetrate fraud maliciously.
The situation changed for the better around the 1930s. Merchants started turning to a newer Charga-Plate that was developed in 1928. This was an early predecessor of the US-based credit card of the 1930s onward. In 1950, the idea of a customer being able to pay different merchants using a single card was explored by Diners Club founders Ralph Schneider and Frank McNamara. American Express also joined in as a stakeholder keying to this card.
Around 1958, Carte Blanche followed suit, just like American Express did that same year, creating a worldwide credit card network. They started initially with charge cards which later acquired credit card features.
It was after 1958 that a revolving credit financial system was established to enable a third-party bank to issue a card generally accepted by many merchants. Then, Bank of America launched the BankAmericard in Fresno, California. This was the first modern convincingly successful credit card.
Other banks around the US, and later around the world were licensed. In 1976, all the BankAmericard licensees came together to form the Visa brand. That was the origin of the visa card being used the world over.
Meanwhile, BankAmericard’s rival was born in 1966 when a group of banks came together to establish Master Charge. It was this card that eventually metamorphosed into MasterCard that now facilitates all sorts of payment and transactions.
That was the history of credit cards you conveniently use today.

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