As far back as the late 1800s, consumers and merchants exchanged goods through the concept of credit, using credit coins and charge plates as currency. It wasn’t until about half a century ago that plastic payments as we know them today became a way of life. .
CREDIT CARD SHAPE AND TYPES
There are four major types of credit cards:
1. Credit tokens or coins
2. Metal charge plates
3. Paper cards
4. Plastic cards
Credit cards were not always been made of plastic. There have been credit tokens made from metal coins, metal plates, and celluloid, metal, fiber, paper, and now mostly plastic cards.
FIRST BANK OFFERED CREDIT CARD
The inventor of the first bank issued credit card was John Biggins of the Flatbush National Bank of Brooklyn in New York. The year, 1946. Mr Biggins developed the “Charge-It” program in which local merchants who accepted the card would deposit sales slips into the bank and the bank billed the customer.In 1950, the Diners Club issued their credit card in the United States. The Diners Club credit card was invented by Diners’ Club founder Frank McNamara and it was intended to pay restaurant bills.
Many other banks followed the example set by Franklin National Bank and Flatbush National Bank by issuing credit cards for use at local merchants. But credit card customers wanted to use their cards outside of their local area. The organizations that are now called Visa and MasterCard sprang up to create interchange, a nationwide system designed to settle credit card transactions between banks, merchants and customers. Today, with help from Visa and MasterCard, financial institutions are marketing credit cards to people all over the world.
HOW IT EVOLVE
As credit card processing became more complicated, outside service companies began to sell processing services to Visa and MasterCard association members.Visa and MasterCard developed rules and standardized procedures for handling the bank card paper flow in order to reduce fraud and misuse of cards.
THE FUTURE
The development from online services such as PayPal to credit card to chips that someday can be implanted into cell phones or other electronic devices. And the concept of a universal credit card had taken root and quickly spread across the world.
Tags: credit card history