As I took out my “card” to pay for groceries, I thought back to when I actually used paper money more than plastic. In fact as I thought about it, it really wasn’t that long ago. I decided to research the evolution of the credit card and here’s what I found out – credit cards are nothing new.

Here are some fun facts and figures about credit cards - - -

Earliest History –

Some form of credit has been in existence since Babylonian time. In early archeological digs, geologist found documents outlining a “bill of exchange.” A bill of exchange is like a promissory note or banknote.

The payment plan arose sometime in the 1700’s when a merchant offered larger items such as furniture to be purchased on weekly payments.

Have you heard of “tallymen?” They sold food, clothing etc. by using a large stick with notches to tally purchases. There was another stick that showed payments. Customers could then make payments and the tallymen would adjust their tally sticks accordingly.

More Recent History –

In the 1800’s local town shops began issuing something known as the credit token. It was developed to save time for sales clerks. Instead of writing all the customer information on the sales slip, they only had to record the number that was on the back of that customers credit token. Another clerk would transfer the purchase information into that customer's account book.

Going one step further, local merchants began offering credit through their own issued cards. They could be used only at their shop. It was basically to attract and keep loyal customers.

Use of credit cards originated in the United States sometime in the 1920’s.

Most Recent History –

1950 The idea of paying multiple businesses using one single card seems to be traced back to Frank McNamara. He used a single cardboard card with his signature on it to pay for his meals at several Manhattan New York restaurants. He went on to form Diners Club.

1952 Franklin National Bank of New York introduced the first bank issued credit card. So was born - buy now, pay later.

1955 Over 100 banks started offering credit cards.

1958 The American Express Card is launched. And in 1959 they introduce the first plastic charge card.

1958 Bank of America introduces BankAmericacard

1966 Bank of America begins to license BankAmericard across the United States.

1966 Competitors of the new BankAmericard credit card begin designing an agreement that will allow banks across the United States to accept each other’s local credit cards. MasterCharge is launched and 36.5 million cards are issued.

1977 BankAmericard changes its name to Visa.

1979 MasterCharge becomes MasterCard. The first “gold” card is launched in 1981.

1986 Discover Card is unveiled.

2005 There are 929.6 million General Purpose (credit and debit) cards issued by Visa, MasterCard, American Express and Discover in the United States.

FYI -

There is a difference between a charge card and a credit card.

A charge card means that the balance has to be paid in full each month.
A credit card means you can pay off the balance over time.

When Frank McNamara of Diners Club died in 1957 he was named by Life Magazine as one of the most influential Americans of the 20th Century.

What do you think, are credit cards here to stay? Today it is estimated that 157+ million Americans have at least one credit card.

Information Sources: Each credit card company has a history and/or timeline you can read. Also there is some information on Wikipedia.com.


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