When was the credit card invented?

Nowadays, credit cards are a useful tool that many people use, but they do not always exist.When was the credit card invented? Although it seems that credit cards already exist permanently, they did not exist a century ago. The first credit card-like payment method appeared in 1950 when Ralph Schneider and Frank McNamara founded diners club and issued its first cards. But this is not really a credit card. Instead, it is a charging card that requires the cardholder to pay the entire balance each month.
Over the years, credit cards have grown. Real credit cards with turnaround credit limits have been invented. The range of words was added, followed by emv chips. Here is more information about the history of credit cards.

Credit card time orderHere's a quick timeline of the credit card's history.
1950: Diners Club issued its first charging card1958: U.S. bank issues first multipurpose credit card offering "turnaround credit" feature1958: American Express company issued travel and entertainment payment cards1969: Accepted range standard in the United States1976: Bank of America split from BankAmericard and linked up with other banks to create Visa1979: Mastercard brand was born, formerly interbank card association and Master Charge1986: As a subsidiary of Sears, Dean Witter Financial Services Group launched the Discovery Card2015: EMV chips become the standard that helps protect buyers against card fraud transactionsHistory of credit cardsAfter Diners Club issued its first charging card in 1950, payment cards began to evolve into cards that we know as credit cards today. In 1958, American Express Company jumped into the payment card sector and launched its first charging card.

In 1958, Bank of America launched BankAmericard. This paper card can be considered the first modern credit card. BankAmericard has a $300 limit and is the first credit card to offer turnaround credit, giving people the ability to carry a balance. In 1970, BankAmericard was split into National BankAmericard, Incorporated, an interbank card association that issued and managed credit cards. In 1976, National BankAmericard, Inc. became Visa.

In 1979, Mastercard was formed. Before being called Mastercard, the company was founded as the Interbank Card Association in 1967. It was renamed Master Charge in 1968 before the last change in 1979.

And finally, we have the Discover Card, launched nationwide in 1986 by Dean Witter Financial Services Group, Inc., a subsidiary of Sears.

Credit cards don't always have a range of words or EMV chips. Before the word range is available, the machine will take the credit card stamp to collect the information necessary to process the payment. Copies will be sent to the processing center where sales staff can enter a person's credit card account information into the computer system.

In 1969, IBM helped develop a standard for the range of words that would eventually be applied worldwide. This standard allows credit cards to use the range of words to transmit card information worldwide.

Until recently, word range was the most common way to store and transmit card information. A new technology, called EMV chips, aims to make credit card transactions safer. These chips generate unique, disposable codes to approve transactions and are considered safer than static word range information.

Credit card law

Congress has passed many laws related to credit cards. Each law is intended to protect consumers. Here are some key laws that have affected the credit card industry.
Facts in the Lending Act (1968)Fair Credit Payment Act (1974)Fair Debt Recovery Practice Act (1977)Credit Card Information Release and Accountability Act 2009Learn more about these behaviors by reading the articles linked above.


What's next?

If you've ever been asked when a credit card was invented on the night of the quiz, now you've got the answer.
With this new knowledge of credit card history, you may want to see how you're using your card.

The first payment cards require you to pay your statement balance in full. If you use your current full and timely payment strategy, you can avoid paying interest and falling into credit card debt. After you successfully pay your balance monthly, consider finding rewards or refundable credit cards that can give you the highest value for every dollar you spend.More about this source textSource text required for additional translation information