History of Credit Cards (2) Diners Club Credit Card in Past and Present Life

The emergence of credit cards in the United States is no accident. This is related to the evolution of the U.S. monetary system, the rise of consumer credit, and the The development of the U.S. economy is closely related. In the middle of the 19th century, the degree of industrialization and urbanization in the United States was greatly accelerated, the scale of enterprises expanded rapidly, commercial trade was quite developed, and spontaneous installment sales and consumer credit behaviors appeared among the private sector. By the 1920s, some large retailers had begun to provide monthly installment accounts to some high-quality customers, which greatly increased consumers' credit consumption activities. It is against this background that many credit vouchers, similar to credit cards, that can be used to purchase goods on credit have emerged, giving consumers an advanced enjoyment.

Embarrassing experiences gave birth to credit cards

In daily life, credit purchases are the oldest prototype of credit cards, but when it was expressed in a small card, it was finally created It's brilliant. Some media once listed credit cards as one of the greatest inventions of human society in the 20th century, on par with airplanes, computers, etc. This praise is really not exaggerated at all.

Under normal circumstances, it is a very embarrassing thing to invite friends to dinner without bringing money. For ordinary people, they would like to dig into the cracks in the ground to get in.

However, the same embarrassment led to an extraordinary person to create a miracle in the financial industry - he was Frank McNamara, the president of a credit company in New York.

Although the "foodie uncle" in the illustration does not look good, he cannot be underestimated. Without this uncle, we might not be able to use credit cards today. He is McNamara, the founder of Diners Club. From the interpretation of many materials, it is written as this story: One day in 1949, Frank McNamara, the president of a credit company in New York, hosted Alfred Bloomingdale and Smith at a restaurant in New York. Ned eats. After drinking and eating, Frank McNamara realized that he had not taken out his wallet at all, which caused great embarrassment to both the host and the guest. After McNamara's wife made a special trip to pay the bill, Frank, who was extremely embarrassed, discovered the problem with currency payments, so he came up with the idea of ??creating a credit card company.

In fact, according to relevant records, the idea of ??Diners Club credit card gradually developed from many conversations between Schneider and McNamara. At that time, Schneider was also an important member of the Diners Club. He was a lawyer, and McNamara was his customer and friend. Both of them were active figures in the New York business community. The two people realized that the previous personal credit business needed to be improved, and finally set their goal to issue an emerging credit instrument such as a "CreditCard". Therefore, the Diners Club credit card that was born later undoubtedly provided business travelers with a convenient means of payment and recording for meals, accommodation and other reimbursement items to the company.

In the spring of 1950, McNamara and his partner Schneider invested 10,000 yuan to register the first credit card company in New York - "Diners Club International". It was later reorganized into Diners Club. Diners Club implements a membership system and provides members with a card that can prove their identity and payment ability. Initially, they signed acceptance agreements with 14 restaurants in New York City and issued "diners club cards" to a specific group of people. With the card, members can make accounted purchases in restaurants, and Diners Club will act as the payment intermediary to conduct account settlement between the two parties in a delayed manner. This was how the prototype of the credit card was born.

On the first anniversary of the issuance of the card, the number of Diners Club cardholders has reached 42,000, and each cardholder has to pay $18 to DinersClub as an annual fee. At this time, there are 330 restaurants, hotels, and nightclubs in Japan that accept Diners Club cards. These accepted merchants need to pay approximately 7% of the cardholder's spending amount to DinersClub. In March 1951 alone, Diners Club processed a transaction amount of US$3 million and received a bonus of US$60,000 in pre-tax profits. By 1956, Diners Club's annual transaction volume exceeded US$290 million, with 9,000 special merchants, including travel and entertainment merchants.

In 1958, the annual transaction volume exceeded US$465 million, with a profit of US$40 million from merchant discount rates and cardholder annual fees. Diners Club established its position as the leader in the industry in one fell swoop.

In 1958, Schneider (seated left) and Alfred Blooming (center), one of the founders of Diners Club, were signing a cooperation agreement with Sheraton Hotels.

Diners Club is struggling to move forward

Not long after Diners Club issued its cards, it faced fierce market competition. National Credit Card, Inc. began operating the credit card business in 1951, but declared bankruptcy in 1954; in 1955, Trip-Charge and many other credit card companies began operations, driving the development of Diners Club. There is strong resistance to market competition. Especially in 1951, Franklin National Bank issued a credit card, pioneering the issuance of credit cards by banks. About 100 banks also issued credit cards. Of course, such credit cards at that time were only used to pay purchases in full every month. Although there are a lot of debit cards, it can no longer stop the historical trend of banks starting to issue credit cards.

Ten years after the issuance of Diners Club, only Diners Club survived as a franchise company, and it also acquired some other credit card companies that were failing at the time. In 1958, a new competitor emerged, which had a huge impact on the future credit card market. This was American Express. This year became a critical year in the history of the development of the credit card industry.

Although Diners Club has experienced operational dangers and fierce competition from the market, Diners Club has continued to maintain its monopoly position in the travel and entertainment (TE) industry for nearly In ten years, it reached the peak of development in the early 1960s.

The ill-fated ending of Diners Club

In the 1970s, Diners Club began to turn around and go downhill. Firstly, the shrinkage of the overall industry caused a large number of cardholders to give up using Diners Club cards. Secondly, Huge problems have arisen for its own operations. The fierce competition in the industry and the involvement of a large number of banks in the credit card field have made Diners Club's business situation fall into a low ebb. Although Diners Club never gave up its efforts to save itself in the late 1970s, it ultimately failed due to various reasons. In December 1980, Diners Club was acquired by Citibank, completing its thirty years of independent development.

Historical evaluation of Diners Club

Although Diners Club is still in operation, its glory days are gone. However, no matter what the current situation of Diners Club is today, it is undeniable that Diners Club’s historical position as the pioneer of the modern credit card industry, Frank McNamara, Alfred Blooming and Ralph Snyder He has made an indelible historical contribution to the birth, formation and development of the credit card industry.

It was the credit card era created by Diners Club that laid a solid foundation for the subsequent development of the credit card industry, and even the birth and development of giants in the credit card industry such as VISA, MasterCard, AE, MBNA, CapitalOne, DiscoverCard, etc. the basis of.

A photo of Diners Club founder Alfred Blooming with his wife and a photo of his tombstone were discovered on Amazon. Let us remember Frank McNamara, Alfred Blooming, and Ralph Snyder, the three great men who ushered in an era of payments.

To be continued: The History of Credit Cards (3) The Emergence of the American Express Card

What is the background of the invention of credit cards?

The earliest institutions to issue credit cards were not banks, but department stores, restaurants, entertainment industries and gasoline companies. Customers can purchase goods on credit at these stores that issue chips and pay on time.

It is said that one day, American businessman Frank McNamara was entertaining guests for a meal in a New York hotel. After the meal, he found that he had forgotten his wallet and had to call his wife to bring cash to the hotel to settle the bill. So McNamara came up with the idea of ??starting a credit card company.

In the spring of 1950, McNamara and his friend Schneider founded the "Diners Club". The club provided members with a card that could prove their identity and ability to pay. Members could use the card to record their purchases. This kind of credit card that does not require bank processing is still a commercial credit card.

In 1952, Franklin National Bank in California, USA, was the first financial institution to issue a bank credit card.

What is the origin of credit cards?

What is the origin of credit cards?

Credit cards originated in the United States in the early 20th century. They were made of metal and issued The objects and usage places are quite limited. After the advent of Diners Club in 1951, the prototype of modern credit cards was laid. At that time, cardholders only had to present their cards when making purchases, and Diners Club would advance the account on their behalf and then collect payment from the cardholders. Due to its convenience, the credit card business has gradually expanded to various industries such as hotels and airlines, and card issuers have also expanded from Diners Club and American Express to banks.

In 1965, Bank of America, which had developed a relatively large scale credit card business, began to expand its credit card business and licensed its trademark to other banks the following year. What was issued at that time was a BankAmericard with blue, white and gold patterns. After that, Bank of America further expanded its credit card business outside the United States. However, because BankAmericard's American color was too strong, it was not popular with foreigners. BankAmericard was officially renamed Visa in 1977, which was also the first official card. credit card.

It is only in the past ten years that credit cards have really become popular in Taiwan. The international credit card organizations visa, MasterCard, jcb, DinnersCard Card), American Express (American Express Card), etc. are all deliberately trying to capture this vast market.

Credit cards were first produced in the commercial and catering industries in the United States. In 1915, in order to expand sales, attract business and facilitate customers, some stores and restaurants in the United States adopted a "credit chip", which was shaped like a metal badge. It later evolved into a card made of plastic as a voucher for customers' shopping consumption. This was the beginning of the world's earliest credit card. In the 1950s, with the rapid development of the capitalist economy, personal consumption levels improved significantly, and computers and communication technologies began to be widely used in banks, which provided a good environment and conditions for banks to develop credit card business. In 1952, Franklin National Bank of California first issued a bank credit card. By 1959, more than 60 banks in the United States issued credit cards. By the 1960s, credit cards also became popular in the United Kingdom, Japan, Canada and European countries. Since the 1970s, some developing countries and regions have also begun to issue credit card services, such as Hong Kong, Taiwan, Singapore, Malaysia, etc. In the late 1970s, my country's foreign economic and cultural exchanges were expanding day by day. In this context, many people have brought credit cards, a popular credit payment method abroad, to China. In order to adapt to the needs of reform and opening up, some domestic banks began to get involved in the credit card business. In 1978, Bank of China Guangzhou Branch first signed an agreement with Hong Kong Bank of East Asia and began to act as an agent for credit card business of overseas banks. After a lot of experience and experience, Bank of China Zhujiang Branch issued the Pearl River Card in 1985. In 1986, Bank of China issued the Great Wall Credit Card, filling a gap in China's financial history. When the People's Bank of China carried out the reform of the bank settlement system in 1988, credit cards were included as a new settlement method into the new bank settlement system, thus laying the foundation for the further development of credit cards in our country. The history of credit cards dates back to the early 20th century, the birthplace of credit cards (the United States). However, cards at that time were made of metal, had limited issuance items, and were limited to certain places. For example, the American General Petroleum Company launched an oil credit card in 1924 for company employees and specific customers. It was treated as a VIP card and given to customers as a means of promoting oil products. Later, it was also issued to the general public. Due to its good effect, it attracted other oil products. The company follows up. Other industries such as telephone, airline, and railway companies also followed suit, and the credit card market became active.

The development of credit cards suffered two setbacks. First, during the Great American Economic Panic, many companies suffered losses due to bad debts and credit card fraud. Second, during World War II, the U.S. Federal Reserve Board banned the use of credit cards during the war. However, these cannot stop the development of credit cards. At that time, the places where credit cards could be used were limited. It was not until the advent of the Diners Club card in 1951 that the prototype of a modern credit card was roughly formed. The cardholder does not need to pay cash when he or she presents this card. Instead, Diners Club advances money for the cardholder and asks for a merchant discount fee from the merchant, and then charges the cardholder every month. Its business scope has gradually expanded from the original restaurant to include hotels, airlines and other tourism-related industries and general retail stores. American Express (American Express) relied on its rich travel experience to start issuing cards in 1958 and expanded its business scope to areas outside the United States. At this time, sensitive bankers also felt the convenience of credit cards. In the 1950s, nearly a hundred banks joined the ranks of card issuers. However, because the business volume was limited, limited to local areas, and no annual fees were charged to cardholders, many banks were unable to make ends meet. They have withdrawn one after another, leaving only small and medium-sized financial institutions to survive on the edge of profit. And these surviving banks began to seek innovation and change. For example, Bank of America in Los Angeles began to promote credit cards throughout California in 1959; The First National Bank of San Jose, also in California, was computerized in the same year. During this period, banks also provided revolving credit payment methods, which gave cardholders more flexibility in payment and increased interest income for banks. Since then, cardholders have gradually become accustomed to using recycling credit, and the development of bank credit cards has begun to flourish.

For those who understand credit cards, here is what the uncredited credit card installment amount means.

That is, the total installment payment you want is deducted from the part that has been repaid, and the remaining amount remains to be repaid. To put it simply, how much money you still have left to pay is the unaccounted amount of this installment.

What is the "black gold credit card" of credit cards?

Citibank's black credit card called "Ultima" and American Express launched a black credit card called "Centurion" in 1999. It is called the "King of Cards" by people in the industry. Some people say that only by having this kind of black card can the card owner's "prestigious status" be fully demonstrated.

< p>My Guangfa Card 2W only provides business cards, work permits, and ID cards. I am not a civil servant, just a design director of an ordinary company.

I understand about credit cards.

Hello. If you withdraw the last thousand, you will be overdrawn and interest will be charged. If you cannot repay on time, you will not be able to apply for a credit card.

I suggest you go to the counter to increase the limit to five thousand. There is no problem with the limit. If you want to increase your financial limit, I wish you a happy life~~~~~ ~~~~~~~~~~~~~~~~~20 minutes

No problem, if there is no branch, you can download the application form online, fill it out truthfully and mail it to the credit card center. This is how you do it. In this case, applying for a limit of 10,000 is not necessarily 100%, but 5,000 is definitely no problem.

What is the CVV of a credit card?

The security code of a credit card is also called the CVV code and CVV2 code. It refers to the seven-digit number on the back of the credit card, and the last three digits are the security code of this credit card.

What is the CVC of the credit card?

Introduction to the credit card verification code CVC. :

CVC (CardVerificationCode) is the additional code printed on the back of the credit card. It is also called CVV (CardVerificationValue), which is the credit card verification value. It is also called CID, which is the credit card security code or personal security code. Etc., all names refer to the same verification code.

The display position is on the back of the credit card. The first four digits are ++ in italics at the end of the signature, and the last three digits are the commercial bank guarantee. Card password security verification codes. CVV2, CVC2, CVN2, and CSC2 are verification codes, which are used by bank cards for indirect card consumption, such as online payments.

CVV2, CVC2, CVN2, and CSC2 can identify the presence of bank card transactions. It can usually be found in the last three digits of the signature strip on the back of the bank card. The UnionPay standard card organized by UnionPay is called CVN2, the MasterCard card is called CVC2, the VISA card is called CVV2, and the AE Express card is called CSC2. The verification code generation principles corresponding to their names are the same, but different organizations have different names.

What is the background of the emergence of credit cards? How did it develop?

01. The origin and initial formation of credit cards

When there were no credit cards, it was sometimes inconvenient to buy things. When you needed it urgently, you didn’t have to bring money, even if you did. It is not easy to get money, so in line with the principle of customer first, some department stores, restaurants, entertainment industries and gasoline companies have begun to sell their own service cards. This kind of service card can be purchased on credit within the company and can be used as long as it is paid off on time, which greatly facilitates people's consumption. Later, an American businessman, McNamara, discovered that he had forgotten his wallet when he was entertaining guests for dinner. In desperation, he had to call his wife and ask her to send cash. Imagine such a scene. Not to mention the trouble, you can't pay just by forgetting your wallet. Money was embarrassing enough, so McNamara came up with the idea of ??starting a credit card company.

02. The development of credit cards

Not long after, McNamara and his friends actually founded a credit card company called "Dalers Club". With the development of credit cards, Two years later, Franklin National Bank in California first issued a bank credit card, which was the prototype of the credit card we use today. Because credit card consumption conforms to the consumption habits of most people, the frequency of using credit cards for consumption reached its peak in the 1950s.

03. Reasons for the development of credit cards

Credit cards were originally a tool used by the service industry to expand sales, but sometimes our needs need to be discovered. The advent of credit cards is exactly Helping people discover this convenient consumption demand, using credit cards to pay is not only much easier when going out without having to carry a lot of cash, but also avoids the embarrassment of borrowing money from relatives and friends at certain times. Sometimes credit cards also come with many preferential treatments. , so the transaction volume of credit cards has continued to increase since the launch of credit cards.

Although more and more people use mobile phones to pay now, this consumption method that is convenient for you, me and others will be more popular with everyone in the future.

The industry background and market demand of credit cards

The emergence of credit cards marks the arrival of an era of early consumption and painless consumption

A report in the United States The man Walter Kavanagh holds 1,497 credit cards with a credit limit of about 100 million yuan. However, due to good management, all the cards have never been overdue. He used this huge sum of money to buy himself 21 properties with a total value of more than 3.5 billion yuan. (Amazing, he is a god)

Yang Huiru used her credit card to earn eight times the dividend in two months.

I can’t help but sigh, they are all gods and idols to worship!

Credit card originated in the United States in 1915. At that time, it was a credit card. The purpose of its issuance was mainly to expand sales, and the economic relationship it reflected was a commercial credit relationship. By the early 1950s, this form of credit card, which existed as business credit, reached its peak.

As of the fourth quarter of 2017, my country's credit cards:

The number of cards issued has exceeded 588 million, with an average of 0.39 cards per capita and a total credit of 12.48 trillion. The average credit limit of the cards is 21,200 yuan, the credit balance payable is 5.56 trillion, and the total outstanding credit that is overdue for six months is 65.069 billion, accounting for 1.47% of the credit balance payable. The national credit utilization rate is 45%, the credit card transaction volume exceeds 25 trillion, and each card has an average of more than 5 purchases per month

Whether it is in terms of card issuance volume, transaction volume, credit limit, overdraft amount or usage rate, It is not difficult to see that rigid market demand has given rise to a huge number of users. As the number of credit card issuances and transactions continues to increase, the credit limit and overdraft limit of credit cards continue to increase, and the utilization rate and overdue rate of credit cards continue to increase. At the same time, anxiety among credit card users also appears.

What are the anxiety disorders of credit card users?

1. Chaotic management: There are too many cards, and the billing date, repayment date, and repayment amount of each credit card are different, resulting in chaotic management.

2. Excessive consumption: frequent blind consumption, random consumption, ineffective consumption, excessive consumption leads to overconsumption

3. Assets and liabilities: no good awareness of card usage and standard card usage behavior , resulting in assets and liabilities.

4. Overdue credit reporting: Overdue credit reporting often occurs due to underpayment, wrong payment, missed payment, forgetting to pay back, and lack of money to pay back.

Since there are so many pain points, why are so many people using it?

1. It can stimulate domestic demand and advocate consumer finance. Secondly, reduce cash and promote mobile payments.

2. Master high-quality customer resources for banks, interest income, merchant rebates, late fees, high fees, annual fee income, cash withdrawal fees

3. For yourself In other words, you save the trouble of carrying cash, participate in various preferential and discounted activities, deduct points for consumption, improve personal bank credibility, make online consumption convenient and fast, financial investment, additional preferential treatment, no less than sexual use restrictions, reduce A debt of gratitude, with an overdraft credit line, can solve urgent needs.

From policies to banks to personal benefits, the result is an altruistic act. The pain point is just the lack of in-depth understanding of financial products and the correct use of them; so credit cards are a double-edged sword. If you use it well, you will make money from debt; if you use it poorly, you will be saddled with credit card debt and become a credit card slave!

The total number of credit cards issued in China has grown at an annual rate of 11% since 2011, and it is predicted that by 2020, the number of credit cards issued will reach 851 million.

Internet tycoons are making cross-border robberies, with virtual credit cards emerging through Ant Huabei, JD Baitiao, and Tencent credit scores

In the United States, the average number of credit cards per person is 3/ people; in China, the per capita number of credit card holders is 0.39 per person. The number of credit card holders in the United States is 10 times that of China, and China’s population is five times that of the United States. If China’s credit card market is to achieve the saturation level of the United States, , there is still room for at least 50 times, so in China, the future credit card market is huge.

This is the end of the introduction about credit card background and credit card ppt background picture. Have you found the information you need?