Who first invented the credit card? What is the history of the major inventions?

Credit cards were first discovered by Frank McNamara, an ordinary businessman in the United States. Let us take a look at the history of the invention of credit cards.

Every credit card owner thinks that it should be related to the financial industry, but this is not the case. When credit cards first appeared, they had nothing to do with the financial or even economic industries, and the institution that first issued them did not. It’s not a bank. Although credit cards are now essential in our daily lives, most people don’t understand the development history of credit cards.

Credit cards originated in the United States, and became popular in some of the more traditional local industries, such as stores. In the early 20th century, the economic development of the United States was very prosperous, so the circulation of various commodities in the market also greatly increased. At that time, many people could not buy very luxurious commodities. Therefore, some more thoughtful businessmen came up with the idea of ??paying in many installments instead of paying it off all at once. The payment method at that time was exactly the same as the current credit card installment method.

For example, if you want to buy something very expensive, you can pay in 12 or 24 installments without having to hand over all the money at once. This payment method was not available at the time. It is not thought of as a credit card, but as a form of loan. However, there are also many problems with this form. Since this installment payment method was thought up by some thoughtful merchants, they must collect all the money from consumers within the specified time, and must also bear the possible consequences of consumers. There was a risk of not paying, so the business at that time was quite complicated.

Later, it was not until 1950 that businessman Frank McNamara created a club. He and his good friends figured out a way to get a membership card by entering the club. This membership card can be used to Many stores just swipe their cards to make purchases and then pay back the money owed on the card. At that time, credit cards were not made of plastic like they are now, but made of iron.

The above story only represents my personal opinion. Please forgive me if there are any errors.

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.

My Guangfa Card 2W only provides business cards, work permits, and ID cards. I am not a civil servant, but I am the 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 pay back 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 principle corresponding to its name is the same, but different organizations have different names.

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

The emergence of credit cards in the United States is no accident. It is closely linked to the evolution of the U.S. monetary system, the rise of consumer credit, and the development of the U.S. economy at that time. In the middle of the 19th century, the degree of industrialization and urbanization in the United States greatly accelerated, the scale of enterprises expanded rapidly, and commercial trade became quite developed. Spontaneous installment sales and consumer credit behaviors have 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 a credit card, and what is the difference between it and ordinary bank cards?

Credit cards have long been part of our daily economic life. So what is a credit card used for and what is the difference between it and ordinary bank cards?

1. What is a credit card?

Credit card is a non-cash payment method and a credit service provided by the banking industry. It is issued to the cardholder by the bank or credit card company based on the user's creditworthiness and financial resources. The cardholder does not need to pay cash when using the credit card and will repay the bill on the bill date. Except for some credit cards combined with debit cards, general credit cards are different from debit cards and ATM cards in that credit cards will not directly deduct funds from the user's account.

2. What is the difference between a credit card and a general bank card?

1. Credit cards can be used for overdraft consumption, while savings cards can only be used after a certain amount of money has been deposited.

2. You can choose password-free payment when swiping a credit card, but you must enter a password for a debit card.

3. There is no current interest on the money saved in the credit card, but there is current interest on the money in the savings card.

4. There is a handling fee for cash withdrawal with a credit card, but there is no cash withdrawal handling fee for a debit card.

5. The annual fee for credit cards is relatively high. For debit cards, some banks have annual fees, but most banks waive them.

6. It is more difficult to apply for a credit card than a debit card. To apply for a credit card, you need proof of income, etc., but for a debit card you can apply as long as you have the capacity for civil conduct.

3. The history of the development of credit cards

The earliest credit payment appeared in the United Kingdom at the end of the 19th century. It was aimed at wealthy people buying expensive luxury goods but not carrying so much money with them. British clothing The industry has developed a credit system, using record cards, to bring popular products back early when shopping. In the 1950s, the first credit card for the general public appeared. McNamara, a credit expert in Manhattan, organized a "diners club". After being approved as a member, you can bring a dining charge card to 27 designated restaurants to make accounts. Consumption, this is the earliest credit card.

Since then, as more and more cooperation partners have been signed, the scope of temporary overdraft services has also become wider and wider. People have also become accustomed to this convenient transaction method without having to carry cash, which has promoted the popularity of bank credit cards. In the United States, Franklin National Bank was the first bank to issue credit cards. Subsequently, the development of credit cards continued to become standardized and eventually became a part of our daily lives.

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