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History of Credit Cards: Credit Donkey

HISTORY of CREDIT CARDS From the time that the phrase "credit card" was used in an 1887, our relationship with credit cards has changed as our society has changed. Though shoppers in the 1880's were able to purchase automobiles, clothes and other big ticket items with regular monthly payments, it was not until 1949 that the first true credit card, the Diners Club, was created. Since that first card was used for dining and entertaining in New York, revolving credit, magnetic strips, the Internet and the ebbs and flows of legislation have all combined to form the credit card industry that the vast majority of us today regularly uses to make purchases. Sit back and relax as this visual story takes you on a journey through time as it shares with you the history of credit and the credit card. Christopher Thornton places the first known advertisement for credit to sell furniture PRE-1900 Paper money began circulating. with weekly payments. The bill of exchange, banknotes' ancestors, was established. 1730 з000 ВС 1600S 1300S Continuing with the idea of selling items for weekly payments, tallymen sold clothes. They kept a tally of what they sold on wooden sticks with one side of the stick being notched to indicate debt amounts and the other to record payments. Credit was first used in Assyria, Babylon and Egypt. Merchants and financial service providers provided credit with cards for agricultural and durable goods. 1700S Socialist writer Edward Bellamy used the phrase "credit card" along with its concept in his Utopian novel, Looking Backward. to early 1900S 1800S 1875 Early 1900s 1887 Large hotels and department stores issue paper cards to their important Checks began to be used. WESTERN UNION EARLY 1900S Service stations, department stores and hotel chains offered debit cards to their customers customers. Western Union came up with the first charge card for its customers to use. To their more prominent customers, wu gave metal cards to make interest free payments for services rendered. 1914 The Ford Motor Company collaborated with finance companies so Americans could buy Model Ts with monthly payments. Early 1900s 1920S BANK GAS General Petroleum Corporation issued the first metal card specifically for gasoline and automotive services to their employees, then to select customers, finally to the public. CHARGE CARD 1920'S 1930S Cross acceptance of store cards began. 1920S Store-specific cards grew In popularity. Gas stations began to give customers credit cards to purchase gas. 1924 Late 1930S AT&T launched the "Bell System Credit Card." The rail and airline industries soon began to issue cards soon after. Many companies began to accept credit cards of other companies giving birth to how credit cards are used today. Flatbush National Bank's 1950s John Biggins created the first bank issued debit card, the "Charge-It," in Brooklyn. 1946 1949 The credit score company, FICO was founded as Fair, Isaac and Company by engineer Bill Fair and mathematician Earl Isaac in San Rafael, CA. Diners Club created the first general merchandise charge card for travel and entertainment purposes. It charged merchants a hefty 7% fee per transaction. 1956 SALIFORNIA THE FIRST CREDIT CARD 1958 The first true credit card with revolving credit, BankAmericard, is introduced by Bank of America. Federal banking regulations limited this card to California. 1958 TO TODAY American Express was launched. Though it did not have revolving credit, it was the first card accepted worldwide. Magnetic strips on cards were first used by the London Transit Authority. Early 1960S Master Charge was created by four banks in California to compete with Visa. When this card merged with Citibank's Everything Card it was renamed Mas MasterCard 1966 Card. 1967 BOA issued the first true general purpose credit card with multi-state acceptance. This card became VISA in the 1970s. BankAmericard and Master VISA 1969 Charge absorb the majority of the independent cards. 1970 1970 The magnetic strip was perfected bringing credit cards into the information age. In response to a lawsuit, VISA began allowing member banks to also become Mastercharge members. Mastercharge soon followed suit with its own "duality" policy. 1970S Paper-based payment systems were by eleclaced systems. 1986 1980S Sears, Roebuck, and Co. launched the Discover Card. 1990S All types of consumers began to use credit cards. Credit cards offering rewards and business services grew in popularity. NOW AND INTO THE FUTURE 1998 specialty credit cards such as green credit cards, charity reward cards and gas rebate cards spread. 2000S PayPal PayPal is founded in Palo Alto, CA allowing members to make and receive payments and money transfers through the Internet. Mobile payment technologies such as Square plug into smart phones to convert them into credit card processing devices. ANECDOTES Netswipe, AisleBuyer, and Card.i.o. are new technologies that allow anyone with a webcam 5031 6895 8712 SD0I A card that cannot carry a balance over from month to month. CHARGE CARD to accept credit cards. Mobile phone apps such as Google Wallet, Visa Mobile Payment, Isis, and Square will use near field communication allowing shoppers to check out without swiping. A card that allows the revolving of credit from month to month. CREDIT CARD 45 How many days advance notice you must be given before your interest rate can be increased under the 2009 credit card law. days The word credit comes from the Latin word meaning "trust". The first Diners Club cards were made of cardboard. Nearly half of all credit card disputes are about internet Credit cards have been metal coins, metal plates, celluloid, metal cards, fiber, paper, and plastic cards. Before 1973, merchants had their own store-level, floor credit limits. For transactions more than the floor limit, merchants had to telephone the credit card companies. transactions. VISA 90% VISA has issued more than one Diners Club was first only issued to 200 customers to use in 27 New York restaurants. Credit cards still account for over 90% of all e-commerce transactions. 50% of all credit card transactions in the world or done with VISA credit cards. billion cards. Bank of America is responsible for the first mass mailing of preapproved cards from when it mailed its first 60,000 BankAmericards to residents of Fresno, CA in 1958. AVERAGE CREDIT CARD INTEREST RATES $1 billion was the amount of outstanding revolving consumer credit in 1968. Today, that figure is $800 billion+ What Credit Cards do have? 26.01 VISA 104 VISA 22.99 MASTER CARD 83 Marn 21.67 STORE STORE 99 14.99 15.44 o/o OIL OIL 56 COMPANY DISCOVER DISC VER 42 AMERICAN 13.77 36 EXPRESS CARD THE REST 5.77 SUBPRIME RATE 3.33 PRIME RATE 2.66 JULY 2009 JANUARY 2009 JANUARY 201O PROMOTIONAL RATE SOURCES:,,, New York University Files,,, Time Magazine,,, FICO, Gigaom CreditDonkey CARDHOLDERS (MIL.) 2011 (EST)

History of Credit Cards: Credit Donkey

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From the time that the phrase "credit card" was used in 1887, the relationship with credit card has changed as the society has changed. Though shoppers in the 1880's were able to purchase automobiles,...


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