Credit Cards – History, Technology & Latest trends

First of all what is credit? Credit is the process of selling goods or services even without cash in hand; it means you’ll be paying for your purchases earlier.  Credit cards are now very popular nowadays because it is a way of letting consumer do their purchases first before paying.  It includes its own account number which makes shopping transactions even faster with just a swipe.  All of your transactions will be recorded, including your identity, address, terms of payment and many more.

The history of credit cards started in the United States in the year 1920’s. Individual companies and firms like hotels, oil companies began issuing them to their consumers. There are however other references to this that cards have been made as far back as 1980 in Europe. Credit cards before involved sales between the merchants’ offer (which includes the credit card itself and the credit) plus the customer. In the year 1983, most companies are starting to accept each other’s cards and the latest credit cards today will now allow you to make purchases almost everywhere you go.

·The old credit cards were not actually made up of plastic. Before, these were made up of metal coins, plates, celluloid, fiber, paper. But they are usually made of plastic.

The person who first issued credit cards for banks was John Biggins of Flatbush National Bank in Brooklyn New York. During 1946, he invented the “Charge-it” program for customers and local merchants. Merchants were now allowed to deposit sales slips to banks and the bank would have their transactions on a bill, recorded under the name of whoever used it.

In the late 1950’s, the Diner’s Club issued their credit card in the United States and the credit card was invented by the Diner’s Club founder itself, Frank McNamara. The credit card was intended to pay for restaurant bills and any customer who want to eat in Diner’s club but without cash on hand, were already accepted with the help of the credit cards. The process goes like this, the Diner’s club would pay the restaurant and card holder would then pay the Diner’s club. The card was a technically a charge-card than a credit card before. Because the customer had to pay the entire amount when it was already billed by the club. American express got their first credit in the year 1958 and the Bank of America issued the “BankAmericard” (more know today as Visa).

The credit cards were actually promoted by travelling salesmen to be used for easier purchases along their travels. Credit cards were gaining popularity in the year 1960, and were advertised as a time-saving form of payment rather than a credit card. The companies that earned that biggest success were Mastercard and American Express.

Make sure you always read the terms and conditions that goes along with your credit card and you’re your bills on time to keep your credit healthy.

Jack is a financial blogger who loves to share financial tips to manage personal finances, improve credit score, and monitor credit report free.

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