Information on the origin of credit cards

What is the origin of credit cards? Please, great gods

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 shops and restaurants in the United States adopted a "credit chip", which was similar in shape to a metal badge and later evolved into a card made of plastic as a voucher for customers' shopping consumption. This is the earliest credit card sprout in the world. In the 195s, with the rapid development of capitalist economy, the level of personal consumption has been greatly improved, and the widespread application of computer and communication technology in banks has 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 6 banks in the United States issued credit cards. By the 196s, credit cards were also popular in Britain, Japan, Canada and European countries. Since 197s, some developing countries and regions have also started to issue credit cards, such as Hongkong, Taiwan Province, Singapore and Malaysia. At the end of 197s, China's foreign economic and cultural exchanges were expanding day by day. In this context, many people bring credit card, a popular payment method abroad, to China. In order to meet the needs of reform and opening up, some domestic banks began to set foot in credit card business. In 1978, Bank of China Guangzhou Branch first signed an agreement with Bank of East Asia, and began to act as an agent for overseas banks' credit card business. In 1985, the Pearl River Card was issued by the Bank of China, Pearl River Branch. In 1986, Bank of China issued the Great Wall Credit Card, which filled the blank in China's financial history. When the People's Bank of China reformed the bank settlement system in 1988, it took credit card as a new settlement method and incorporated it into the new bank settlement system, thus laying a foundation for the further development of credit cards in China. The history of credit cards dates back to the early 2th century, the birthplace of credit cards (the United States). However, at that time, the cards were made of metal, with limited distribution targets and limited to certain places. For example, in 1924, General Oil Company of the United States introduced the oil credit card for company employees and specific customers as a VIP card to customers as a means to promote oil products, and later it was issued to the general public, which attracted other oil companies to follow up because of its good effect. Other industries such as telephone, aviation and railway companies followed suit, and the credit card market began to be active. The development of credit cards has 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 Federal Reserve Board of the United States banned the use of credit cards during the war. However, these can't stop the development of credit cards. At that time, the use of credit cards was limited, and it was not until Diners came out in 1951 that the prototype of modern credit cards was roughly available. When the cardholder shows this card for consumption, there is no need to pay cash. Instead, Diners Card Company will deposit money for the cardholder and ask the merchant merchantdiscount, and then charge the cardholder every month. Its business scope has gradually expanded from the original restaurant to hotels, airlines and other tourism-related industries and general retail stores. AmericanExpress started issuing cards in 1958 with its rich travel experience, 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 195s, nearly 1 banks joined the ranks of issuing cards. However, because their business volume was limited, limited to local areas, and they did not charge annual fees to cardholders, they could not make ends meet. Many banks quit one after another, and only small and medium-sized financial institutions were struggling for survival on the edge of profits. And these surviving banks began to seek innovation and change. For example, in 1959, the BankofAmerica in Los Angeles began to promote credit cards to all California. TheFirstNationalBankofSanJose, also located in California, was computerized in the same year. During this period, the bank also provides a revolving credit payment method, which allows cardholders to pay more flexibly and the bank has more interest income. Later, cardholders gradually got used to using revolving credit, and the development of bank credit cards began to flourish.

how did the credit card come from?

the origin of credit cards

credit cards originated in the United States in 1915.

The earliest institutions that issued credit cards were not banks, but some department stores, restaurants, entertainment industries and gasoline companies. In order to attract customers, sell goods and expand turnover, some shops and restaurants in the United States selectively gave customers a kind of credit chip similar to a metal badge in a certain range, which later evolved into a card made of plastic as a proof of customers' purchase consumption, and launched a credit sales service for purchasing goods in this firm or company or a gasoline station with the credit chip. Customers can buy goods on credit at these chip-issuing shops and their semicolons and pay on schedule. This is the prototype of credit card.

It is said that one day, Frank McNamara, an American businessman, entertained guests at a restaurant in new york. After eating, he found that he had forgotten his wallet with him, so he was deeply embarrassed and had to call his wife to bring cash to the restaurant to settle the bill. So McNamara came up with the idea of creating a credit card company. In the spring of 195, McNamara and his good friend Schneider jointly invested 1, US dollars to establish DinersClub in new york, the predecessor of Diners Credit Card Company. Diners' Club provides members with a card that can prove their identity and ability to pay. With this card, members can keep accounts and spend money. This kind of credit card that does not need to be handled by a bank is still a commercial credit card.

in p>1952, Franklin national bank in California, USA, as a financial institution, first issued a bank credit card. In 1959, the American Bank of America issued the American Bank Card in California. Since then, many banks have joined the ranks of card-issuing banks. In the 196s, bank credit cards were widely welcomed by all walks of life and developed rapidly. Credit cards became popular not only in the United States, but also in Britain, Japan, Canada and European countries. Since 197s, Hongkong, Taiwan Province, Singapore, Malaysian and other developing countries and regions have also started to issue credit cards.

how did the credit card come into being?

Credit card, commonly known as "overdraft card", means that users can enjoy the advanced consumption mode of spending first and then repaying with the effective credit limit in the card without saving money first. In this way, those "moonlight families" can continue to consume and enhance their spending power. There is such a joke that two men come out of a bar, and one of them mutters: Without it, there is no way to live; With it, it's hard! Another man felt the same way and echoed, yes, women are like this. The first person laughed: I said credit card. The appearance of credit cards has completely changed people's consumption concept and lifestyle.

Confucius said more than two thousand years ago that "people can't stand without faith" and "don't believe when you make friends". The concept of "credit" has a long history in China. In China's folk commodity transactions, there are often ways such as "credit", and "it's easy to borrow and pay back, but it's not difficult to borrow again" is an example. In ancient times, the form of consumer credit was+++. Because+++can easily lead to social contradictions and conflicts, it is banned by the government in some places. Since the 19th century, western consumer credit has developed rapidly. After 185, manufacturers began to sell expensive high-grade goods by installment.

in the mid-19th century, a man named Morris invented a credit chip similar to a metal badge to flaunt the consumption concept of "enjoy first, pay later", which was the earliest credit card. In the early days, credit cards were issued by retailers, department stores, oil companies and airlines, and were issued to the sales targets of enterprises, including customers with frequent business contacts and customers with business development potential. Credit card can not only prove the identity of customers, but also attract and stabilize customers and increase turnover. The income of this card is far better than expected, and it is gradually applied by more and more industries. However, this kind of card has its obvious limitations. It can only be consumed in one store and cannot be used universally.

As for the rudiment of modern credit cards, it is generally acknowledged that Dinka appeared in 1951. It is said that one day, Fran McNamara, an American businessman, ate in a restaurant in new york and found that he had no cash on him when he checked out. Tongda's boss said, "I know your reputation has always been very good. Come and pay together next time." This embarrassing dining experience gave McNamara the idea of creating a credit card. In the spring of 195, McNamara cooperated with his good friend wesley sneijder and invested $1, to establish Diners·Club in new york. The world's first credit card institution was born.

according to the idea of McNamara and his good friend wesley sneijder, a third party can be created between merchants and customers to provide payment services. They hope to get some fees from merchants to realize the profit of card issuers, instead of charging fees from consumers and increasing the burden on consumers. They asked some restaurant owners if they could support this practice. As a result, only one owner expressed support, and most stores did not recognize this new consumption pattern. Although there were few supporters, McNamara and wesley sneijder persisted in exploring and trying. The two men first targeted the catering industry in Manhattan. After many difficult negotiations with restaurant owners, they finally persuaded a group of restaurants to accept this model.

Everything comes to him who waits. Finally, some merchants are willing to try using their credit cards. The earliest customers were a group of sales managers, who quickly accepted this credit method. Because this can make it easy for them to know the entertainment expenses of their salesmen and control the sales cost. After the catering industry opened up, Dinka quickly spread to other fields such as tourism. By 1951, Dinka membership had exceeded 4,, and many major cities in the United States had merchants who accepted Dinka. Diner's Card Company advances the cardholders first and charges the merchants a handling fee, which has been used to this day.

To sum up, the operation and profit model of Diners Club is as follows: (1) Diners Club signs contracts with different merchants to ensure that the credit cards issued by Diners Club are allowed to be used, and Diners Club charges merchants a certain percentage (7%) of the transaction amount; (2) Diners Club issues credit cards to consumers for their purchase of goods and services, and Diners Club charges cardholders an annual fee ($18); (3) Dalai Club borrows money from commercial banks to pay the contracted merchants for the credit consumption. After the cardholder returns the credit consumption amount, Dalai Club will return this part of the money to the bank. Dinka was launched less than a year ago, and in March 1951 alone, it handled a transaction amount of 3 million dollars and made a profit of 6 thousand dollars. By 1956, Dinka's annual turnover exceeded 29 million US dollars, with a profit of 4 million US dollars.

in p>1958, American express introduced the American express card. Unlike Dinka, American Express is a century-old shop in America. It started from the express delivery business in 185, and became a well-known big company after World War II. At that time, its most profitable business was traveler's checks that passed through the world. At that time, many banks had launched bank cards, and Dinka was also actively expanding its market in the field of tourism that Express Company was good at. In this situation, American Express Company had long planned to develop bank card business, but hesitated for fear that it would affect its traveler's check business.

It is said that when it was heard that Dinka was planning to set up an international travel service network like American Express, and to issue traveler's checks, in order to prevent it from encroaching on his own business, the president of American Express finally made up his mind to start the credit card business. No matter how the initial decision was made, with its good reputation and wide customer base, American Express Company quickly opened up the situation in this business. When the American Express card was issued, more than 17, merchants signed up for the network. Since then, with the addition of 15, cardholders and 4,5 member hotels of the American Hotel Alliance, the American Express card has gradually been accepted by the mainstream American business community.

Also in 1958, even before American Express, Bank of America launched their first credit card. However, Bank of America did not conduct large-scale publicity, but conducted a market test in Fresno, a medium-sized city in California. Bank of America sent a total of 6, Bank of America credit cards to almost all families in Fresno. Unlike in the past, only a few rich people could use credit cards, and ordinary families in Fresno also enjoyed this kind of card, and they had thousands of dollars at their disposal overnight. In the second year of the test, people spent 59 million dollars on shopping with American credit cards, equivalent to 35 million dollars now.

Different from Dinka, the credit card of Bank of America has a credit rolling function. Consumers who hold American credit cards can not only pay their bills like Dinka, but also don't have to pay off all the debts when they receive the bills at the end of the month. In this way, the outstanding balance on the card will automatically roll into the next month. Banks charge interest on this part of the balance, which gives credit cards another way to make a profit. In fact, Bank of America's credit card combines two products: if the arrears are paid off every month, this card is the same as Dinka, but compared with Dinka, the cardholder has one more choice, that is, he can not pay off all the arrears and let the balance roll as credit. The appearance of bank of America credit card not only changed the composition of credit card users, but also the "rolling credit" model pioneered by it has been preserved as the core feature of credit cards to this day.

the origin of credit card

hello, the earliest credit card appeared at the end of 19th century.

in the 198s, the British clothing industry developed the so-called credit card, and the tourism and business sectors also followed this trend. However, at that time, the card could only be used for short-term commercial credit, and the money still had to be paid as needed, and there was no long-term default and no credit line.

In p>1952, Franklin National Bank of California, as a financial institution, first issued a bank credit card, becoming the first bank to issue a credit card.

so much for the introduction of the origin of credit cards.