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), AmericanExpress (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. Against this background, 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. Wait, all names refer to the same verification code.

The first four digits are in italics at the end of the signature, and the last three digits are the commercial bank card password. Safe practice 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 bank card transactions. The presence is usually found in the last three digits of the signature strip on the back of the bank card. The UnionPay standard card is called CVN2, the MasterCard card is called CVC2, and the VISA card is called CVV2. The 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 online credit card?

Online credit card is an online credit card product jointly issued by China CITIC Bank, Alipay and Zhongan Insurance. The interface diagram and detailed sample diagram are from March 2014. Exposed on the 13th.

The Alipay online credit card enjoys the benefits of lifetime annual fee exemption and double CITIC points. It can be used for all online purchases and can also be used in offline stores that support Alipay wallet payment. It was originally scheduled to appear in Alipay wallet after March 16, 2014.

On March 14, 2014, the central bank announced the suspension of online virtual credit cards and QR code payments, and it was rumored to tighten the limits of mobile payments.

Background

As early as the second half of 2012, Ma Weihua, then president of China Merchants Bank, proposed a strategy to “eliminate credit cards” in the next few years. In November 2012, Ma Mingzhe, chairman and CEO of Ping An, also said that it is expected that "within ten years, 50%-60% of credit cards and cash will disappear. The emergence of online credit cards just confirms this statement.

In October 2013, Alibaba’s foreign trade service company Yida launched the “Alibaba Virtual Credit Card” business to provide credit lines to overseas buyers. With the launch of Alibaba credit loans, there are still some in the market. There are rumors that Alibaba is planning to apply for a banking license. Although it has huge customer data, Alibaba's financial business is still only a supplement to the banking industry and it is difficult to break through. Since it cannot attract deposits, Alibaba Finance will have very high requirements for controlling the bad debt rate. , which in turn affects its lending scale. The transaction fees for UnionPay retail merchants are generally more than 1%, and most of them are taken away by banks. Alibaba has launched preferential rates at this time, aiming to attract more users.

The Internet war between Tencent and Alibaba in 2014 accelerated the birth of this new thing. In the end, Alibaba Group took the lead in exposing this network product and put it into use after March 16, 2014.

Application

Users follow the official account of CITIC Bank Credit Card in their Alipay wallet, and can apply online and obtain this online credit card instantly through the "Quick Card Application" entrance of the official account. After being approved, the system will send the user a corresponding credit card. After the user binds this to his Alipay account and activates quick payment, he can make online purchases, mobile payments and other purchases. Apply for the corresponding physical credit card.

CITIC Bank will decide whether to approve the physical card application based on the user's personal credit information. If the user meets the conditions for applying for the physical card, CITIC will deliver the physical credit card to the bank by express delivery. In the hands of the user, this physical credit card can be used for purchases in offline stores like other physical credit cards. The interest-free period of the Alipay online credit card starts at 200 yuan. In the CITIC Bank credit card official account in the Alipay wallet. You can also check the consumption limit and points of online credit cards at any time, and make online repayments.

Payment limit

Alipay’s first credit card issuance scale is 1 million. The credit limit for online credit cards starts at 200 yuan, and the upper limit is determined by personal online credit, usually up to 5,000. If the consumption record and credit record are particularly good, the limit can be gradually increased. Alipay said that the specific limit approval is based on online consumption records. For example, the more frequently you use Alipay to pay off credit cards, the more credit data you have, and the easier it is to obtain a credit limit.

User coverage

The credit payment function will cover 80 million Alipay users. To attract sellers to participate, the operation teams of Taobao and Alipay divided these 80 million people into more than 1,000 groups based on user attributes. In the future, the group data will be open to merchants

Social evaluation.

An Alipay source also told reporters that Alipay will gradually benefit more banks through such opening actions. In addition to the temptation of the huge credit consumption market, Internet channels can also save banks' own card issuance costs significantly. Under the traditional model, the cost of a single credit card issued by a bank is about 80 to 100 yuan. However, by using Alipay to issue 1 million online credit cards, the cost alone can save nearly 100 million yuan.

In order to make the risk management of online credit cards meet regulatory requirements, Alipay has also joined hands with China CITIC Bank to build a risk management system based on the huge real-name user group and credit data controlled by Alipay and in conjunction with CITIC Bank’s original Advanced credit card risk management technology and credit data can not only be used as a basis for granting credit to consumers, but also become a key link in risk management.

Alibaba will rebuild a financial credit system. In this financial system, there is no need for mortgage, only credit; no relationship, only credit. All consumer technical data on Taobao and Alipay, as well as everyone’s transaction information and personal information on Taobao and Alipay, are clearly recorded. This is the most coveted meat for offline banks.

Financial institutions such as Alibaba Small Loan and Alibaba Guarantee are making preparations one after another. Alibaba Finance’s move has been defined by private financiers as increasing transaction volume through credit lines. It is expected that the market space will be large. Alibaba's Internet financial innovation has impacted the loan business of small loan companies and the traditional deposit and loan business of the traditional banking industry.

When an enterprise develops to a certain extent, it will definitely generate financial needs, so it is natural for Alibaba to provide financial services to enterprises on the platform. Alibaba and Tencent have gathered huge customer resources with their powerful online membership platforms. , once in-depth customer development is carried out, the prospects are quite worth looking forward to.

Both Alipay and WeChat credit cards use the Internet to change the cumbersome process of submitting materials and waiting for approval for traditional credit cards. Alipay enables instant application and instant approval. WeChat credit card can complete credit card approval in 1 minute and is available immediately. Partners also include Zhongan Insurance, which is the first time that a credit card has introduced an insurance model to reduce customer credit risks and bank asset risks.

The Central Bank Halted

On the morning of March 14, 2014, the Central Bank issued an emergency document to halt the online virtual credit card products of Alipay and Tencent, as well as barcodes (two QR code) payment and other face-to-face payment services. Alipay responded that it had not received the relevant notification and was verifying it; WeChat said that it had not received the notification.

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 in some cases. 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 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.

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.

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 limit, 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 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.

That’s it for the introduction to the background of credit cards.