Information about the origin of credit cards

What is the origin of credit cards? Pray for the great gods.

Credit cards originated in American business and catering industry. 19 15 years, 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 proof of customers' shopping consumption. This is the earliest credit card sprout in the world. In 1950s, with the rapid development of capitalist economy, the level of personal consumption was greatly improved, and the wide application of computer and communication technology in banks provided a good environment and conditions for banks to develop credit card business. 1952, Franklin National Bank of California issued its first bank credit card. By 1959, more than 60 banks in the United States had issued credit cards. By the 1960s, credit cards were also popular in Britain, Japan, Canada and European countries. Since 1970s, some developing countries and regions have also started to issue credit cards, such as Hongkong, Taiwan Province, Singapore and Malaysia. At the end of 1970s, China's foreign economic and cultural exchanges were expanding day by day. In this context, many people brought the 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. During the period of 1978, Bank of China Guangzhou Branch took the lead in signing an agreement with Bank of East Asia and began to act as an agent for overseas banks' credit card business. Through agency and experience, Zhujiang Card was issued by Zhujiang Branch of Bank of China on 1985. 1986, Bank of China issued the Great Wall Credit Card, which filled the blank in the financial history of China. When the People's Bank of China carried out the reform of bank settlement system on 1988, credit cards were brought into the new bank settlement system as a new settlement method, which laid the foundation for the further development of credit cards in China. The history of credit cards can be traced back to the early 20th century, the birthplace of credit cards (America). But at that time, the cards were all made of metal, and the distribution targets were limited, limited to some places. For example, 1924, General Petroleum Company of the United States launched petroleum credit cards for employees and specific customers, which were presented to customers as VIP cards as a means to promote petroleum products. Later, it was also issued to the general public, which attracted other oil companies to follow up because of its good effect. Telephone, aviation, railway companies and other industries have followed suit, and the credit card market has become 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 banned the use of credit cards during the war. However, none of these can stop the development of credit cards. At that time, the use of credit cards was limited, and the rudiment of modern credit cards was basically available until 195 1 came out. When the cardholder shows this card for consumption, there is no need to pay cash. Instead, Dinka will save money for the cardholder and ask merchantdiscount, and then charge the cardholder a monthly fee. Its business scope has gradually expanded from the initial restaurants to hotels, airlines and other tourism-related industries and general retail stores. With its rich travel experience, AmericanExpress began issuing cards on 1958 and expanded its business scope to areas outside the United States. At this time, sensitive bankers also feel the convenience of credit cards. /kloc-in the 1950s, nearly 100 banks joined the ranks of issuing cards. However, due to the limited business volume, they were confined to the local area and did not charge annual fees to cardholders, making ends meet. A number of banks have withdrawn one after another, and only small and medium-sized financial institutions survive on the edge of profits. These surviving banks began to seek innovation and change. For example, BankofAmerica in Los Angeles, 1959 began to promote credit cards throughout California; The First National Bank of San Francisco, also located in California, was computerized in the same year. During this period, the bank also provides a revolving credit payment method, which makes cardholders 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 card

Credit cards originated in America 19 15.

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 give customers a 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 and consumption, and used the credit chip to buy goods in our firm or company or gas station and launch credit sales services. Customers can buy goods on credit in these chip shops and their semicolons, and pay on time. This is the prototype of credit card.

It is said that one day, Frank McNamara, an American businessman, entertained guests in a restaurant in new york. After eating, he found that he forgot to bring his wallet. He was deeply embarrassed and had to ask 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. 1 In the spring of 950, McNamara and his friend Schneider jointly invested110,000 US dollars to establish DinersClub in new york, which is 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.

From 65438 to 0952, Franklin National Bank of California, as a financial institution, issued the first bank credit card. 1959, Bank of America issued American bank cards in California. Since then, many banks have joined the ranks of card-issuing banks. In 1960s, bank credit cards were widely welcomed by all walks of life and developed rapidly. Credit cards are popular not only in America, but also in Britain, Japan, Canada and European countries. Since 1970s, 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", refers to the advanced consumption mode that users can enjoy spending first and then paying back with the effective credit line 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 people come out of a bar, and one of them mutters: without it, you can't live; With it, it will be difficult! Another man felt the same way and echoed, yes, women are like this. The first person smiled: I said credit card. The appearance of credit card has completely changed people's consumption concept and lifestyle.

More than 2,000 years ago, Confucius once said, "If you don't believe, you will stand" and "If you don't believe, you will 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 is easy to borrow, but it is 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. Since19th century, western consumer credit has developed rapidly. After 1850, manufacturers began to sell expensive high-end goods in stages.

/kloc-In the middle of the 9th 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 is the earliest credit card. In the early days, credit cards were issued by retailers, department stores, oil companies and airlines, and the distribution targets were 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 card has its obvious limitations. Can only be consumed in one store, not universal.

As for the rudiment of modern credit cards, it is generally believed that Dinka appears in 195 1. 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 good." Come together next time. " This embarrassing dining experience gave McNamara the idea of creating a credit card. 1950 In the spring, McNamara cooperated with his friend wesley sneijder and invested 10000 USD to set up 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 to provide payment services between merchants and customers. They hope to get some fees from merchants to realize the profit of card issuers, instead of charging consumers and increasing their burden. They asked some restaurant owners if they could support this practice. As a result, only one shopkeeper expressed support, and most shopkeepers did not recognize this new consumption pattern. Although there are not many supporters, McNamara and wesley sneijder insist on exploring and trying. The two men first targeted the restaurant industry in Manhattan. After many difficult negotiations with restaurant owners, a group of restaurants were finally persuaded to accept this model.

Hard work pays off, and finally some businesses are willing to try to use their own 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 opening of the catering industry, Dinka people quickly spread to other fields such as tourism. At 195 1, Diner has more than 40,000 card members, and many big cities in the United States have merchants who accept Diner cards. Diner's card company pays the cardholder in advance and charges the merchant a handling fee, which has been used to this day.

To sum up, the operation and profit model of Dalai Club is: (1) Dalai Club signs contracts with different merchants to ensure that the credit cards issued by Dalai Club are allowed to be used, and Dalai Club charges merchants a certain proportion (7%) of the transaction amount; (2) Diners' Club issues credit cards for consumers to purchase goods and services, and Diners' Club charges cardholders an annual fee (18 USD); (3) The Dalai Club borrowed money from commercial banks to pay the credit consumption of the contracted merchants. After the cardholder returns the credit consumption amount, the Dalai Club will return the money to the bank. Dinka has been online for less than a year, and only in March of 195 1, it handled a transaction amount of 3 million US dollars and made a profit of 60,000 US dollars. By 1956, Dinka's annual turnover exceeded $290 million and its profit was $40 million.

1958, American Express Company introduced American Express Card. Unlike Dinka, American Express is a century-old shop in America. Starting from the express delivery business of 1850, it became a well-known big company after World War II. At that time, its most profitable business was traveler's checks that passed around the world. At that time, many banks had launched bank cards, and Dinka also actively expanded its market in the tourism field where express delivery companies were good at. In this situation, American Express has long planned to develop its bank card business, but it is hesitant for fear of affecting its traveler's check business.

It is said that when it was heard that Dinka planned to establish an international travel service network like American Express and issue traveler's checks, in order to prevent it from encroaching on its own business, the president of American Express finally made up his mind to start the credit card business. Regardless of the initial decision, American Express quickly opened up the situation in this business with its good reputation and broad customer base. When American Express Card was issued, more than 65,438+0 _ 70,000 merchants signed up for the network. Since then, with the addition of 6.5438+0.5 million cardholders and 4,500 member hotels of American Hotel Alliance, American Express Card has been gradually accepted by mainstream American business circles.

Also on 1958, even before American Express, Bank of America issued 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. In all, Bank of America sent 60,000 Bank of America credit cards to almost all families in Fresno. Unlike in the past when only a few rich people could use credit cards, ordinary families in Fresno also enjoyed this kind of card, and thousands of dollars were available overnight. In the second year of the test, people spent $59 million on shopping with American credit cards, equivalent to $350 million now.

Unlike Dinka, the credit card of Bank of America has added the credit rolling function. Consumers with American credit cards can not only pay their bills like Dinka people, but also don't have to pay off all their 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 balance, which gives credit cards another way to make profits. 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 American bank credit card not only changed the composition of credit card users, but also the "rolling credit" model pioneered by it as the core feature of credit card has been preserved to this day.

The origin of credit card

Hello, the earliest credit card appeared at the end of 19.

From 65438 to 1980s, the so-called credit card was developed in British clothing industry, followed by tourism and business departments. However, at that time, the card could only be used for short-term commercial credit, and the money had to be paid back as needed. There was no long-term default and no credit line.

From 65438 to 0952, Franklin National Bank of California, as a financial institution, issued bank credit cards for the first time, becoming the first bank to issue credit cards.

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