Credit Card History

Credit Card History

Credit cards had a similar concept as early as the mid-18th century.

But it was not until the early 20th century that physical cards appeared.

In the early 20th century, American Auther Morris invented the credit card, which was made of metal.

Although it is issued to a limited number of people and places where it can be used, the promise of "enjoy now, pay later" really attracted large companies to start launching credit cards. In 1924, General Petroleum Company of the United States issued the "Oil Credit Card". "Premium Credit Card" was initially used as a VIP card given to company employees and specific customers. Due to the good response, it was later extended to the general public as a means of promoting oil products.

Other oil companies have also launched various credit card solutions in response to fierce competition.

Since then, the credit card market has begun to flourish, and other industries, such as telephone, airline, and railway companies, have also launched credit cards to attract customers.

But later, due to the great economic panic in the United States, many card issuing companies suffered losses due to bad debt problems and credit card fraud, which hindered the credit card business. During World War II, the U.S. Federal Reserve Board ordered a war The use of credit cards is prohibited during this period.

The prototype of modern credit cards was not formed until the advent of Diners Card in 1951.

Diners Club first advances the money for the cardholder and asks the merchant for a handling fee.

This model is still used today.

The scope of stores has gradually extended from the catering industry to general retail and tourism-related industries.

American Express began issuing cards in 1959. With its rich travel experience, it successfully expanded its business scope to areas outside the United States.

With the development of credit cards in the 1950s, in addition to establishing a model in which the cardholder made purchases without paying cash, the issuing bank (IssuerBank) charged a handling fee (MerchantDiscount) to the authorized store (Merchant). It also provides revolving credit payment methods, which allows cardholders to pay more flexibly and banks increase interest income.

Since then, cardholders have gradually become accustomed to using revolving credit, and the development of bank credit cards has begun to flourish.

In 1976, Citibank was the first to charge an annual fee for a credit card, breaking the longstanding practice of not charging cardholders an annual fee. It did cause an uproar at the time, but it also saved the bank from the dilemma of being unable to make ends meet.

Later, when credit card charging for annual fees became almost an industry norm, ATT Corporation waived annual fees as its biggest selling point, hoping to enter the credit card market.

Therefore, many bank credit cards now have systems that charge annual fees and waive annual fees.

VISACard development history

In 1959, Bank of America in Los Angeles began to promote credit cards throughout California.

In 1965, American Commercial Bank began to expand its nationwide business. The following year, it issued a BankAmericard with blue, white, and gold patterns, and authorized its trademark to be used by other banks.

In order to expand its business, American Commercial Bank established National Bank America Incorporated (NBI) and converted banks using authorized trademarks into non-shareholding members of NBI.

However, BankAmericard, which has a strong American flavor, was not favored by foreign banks. In 1977, BankAmericard was officially renamed Visa.

MasterCard Development History

In 1967, the "Western States Bankcard Association (WSBA)" was established, an association composed of four California banks. , plans to launch MasterCharge credit card.

Later, as the association joined the Interbank Card Association, MasterCharge was granted to the association. In 1970, the Interbank Card Association officially obtained the patent rights of MasterCharge.

In order to expand the international market, MasterCharge was renamed MasterCard in 1978.

MasterCard took Visa as its main competitor when it was first established. After years of competition, these two credit card organizations have developed into international organizations with more than 14 million special stores around the world. MasterCard and Visa The international market share of major credit cards exceeds 80%.

The various services it provides have become indispensable payment tools for today's consumers.

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. In 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, it included credit cards 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, the cards at that time were made of metal, were issued in limited 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, 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 quota of 10,000 may not be 100% guaranteed, but applying for a quota of 5,000 is definitely no problem.

What is the CVV of a credit card?

The security code of a credit card is also called a CVV code or a CVV2 code. It means that there are seven digits in the signature column 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 a credit card?

Introduction to Credit Card Verification Code CVC:

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

It appears on the back of the credit card, at the top of the signature area in italics. The first four digits are, and the last three digits are the verification code used by commercial banks to ensure the security of bank card passwords. CVV2, CVC2, CVN2, and CSC2 are verification codes, which are used by bank cards for indirect transactions 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.

The development history of credit cards

The development history of credit cards:

The earliest credit cards appeared at the end of the 19th century. In the 1880s, the British clothing industry developed so-called credit cards, and the tourism and business sectors followed suit.

However, the cards at that time could only be used for short-term commercial credit, and the money still had to be paid as you go. It could not be in arrears for a long time, and there was no credit line.

It is said that one day in the 1950s, American businessman Frank McNamara was entertaining guests for a meal in a New York hotel. After the meal, he discovered that he had forgotten his wallet.

Embarrassed by having to call his wife to bring cash to the restaurant to pay the bill, McNamara came up with the idea of ??starting a credit card company.

In the spring of 1950, McNamara and his friend Schneider invested US$10,000 to establish Diners Club in New York, the predecessor of Diners Club Credit Card Company.

Diners Club provides members with a card that can prove their identity and payment ability. Members can use the card to record their purchases at 27 designated restaurants without having to pay cash. This is the earliest credit card.

This kind of credit card that does not require bank processing is a commercial credit card. In 1952, Franklin National Bank in California, USA, was the first financial institution to issue a bank credit card, becoming the first bank to issue a credit card.

Extended information:

Advantages of credit cards:

1. You can make overdraft purchases without depositing money, and you can enjoy an interest-free period of 20-56 days on time. No interest will be charged on repayment.

2. Swiping your card when shopping is not only safe and convenient, but also provides points for gifts.

3. You can enjoy discounts when using the card at the bank's designated merchants.

4. Accumulate personal credit and add integrity records to your credit file, which will benefit you throughout your life.

5. It is accessible nationwide and you can withdraw money or make purchases by credit card at ATMs and POS machines with the UnionPay logo.