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Credit Cards
History of The Credit Card!
It is widely accepted that the use of credit cards originated in the United States during the 1920s, when individual companies, such as hotel chains and oil companies, began issuing them to customers for purchases made at those businesses. This use increased significantly after World War II.
The first widely accepted credit card -- one that could be used at a variety of different stores and businesses -- was introduced by Diners Club Inc., in 1950. With this system, the credit-card company charged cardholders an annual fee and billed them on a monthly or yearly basis. Another major universal card -- "Don't leave home without it!" -- was established in 1958 by the American Express company.
Later came the bank credit-card system. Under this plan, the bank credits the account of the merchant as sales slips are received (this means merchants are paid quickly -- something they love!) and assembles charges to be billed to the cardholder at the end of the billing period. The cardholder, in turn, pays the bank either the entire balance or in monthly installments with interest.
The first national bank plan was BankAmericard, which was started on a statewide basis in 1959 by the Bank of America in California. This system was licensed in other states starting in 1966, and was renamed Visa in 1976.
Other major bank cards followed, including MasterCard, formerly Master Charge. In order to offer expanded services, such as meals and lodging, many smaller banks that earlier offered credit cards on a local or regional basis formed relationships with large national or international banks.
Today, there are so many credit cards available it would be almost impossible to count them all. Americans have become so accustom to charging it that they don't think twice about it. Unfortunately this is why it is estimated that over 50,000,000 Americans have over extended themselves and are struggling to pay off the mountain of debt they have accumulated by overuse of their credit cards.
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