| If you were born after 1980 you probably take the | | | | into action and in 1958 launched their purple card for |
| existence of credit cards for granted. You've been | | | | travel and entertainment. In 1959 they introduced the |
| seeing them in use your entire life. But in the larger | | | | first card made of plastic. Again, this was technically a |
| scheme of things, they really are a recent | | | | charge card. |
| development. | | | | The first revolving-credit card - the kind we take for |
| Credit cards were first issued by oil companies and | | | | granted today - was issued by the Bank of America, |
| department stores in the early 1900's - to be used | | | | only in the State of California in 1959. By 1965, the |
| only at their own establishments. Rather than offers | | | | bank saw the potential for more earnings, and began |
| of long-term credit, these cardboard or metal cards | | | | licensing the card to banks across the country. This |
| were a convenience for customers who then paid | | | | was known as the BankAmericard Program. |
| the entire bill at month's end. Thus they were really | | | | Business was booming, so in 1967 four California |
| "charge cards" rather than "credit cards." | | | | banks had formed the Western states Bancard |
| 1946 saw the first bank-issued charge card, | | | | Association and introduced competition to the |
| restricted only to customers of John Biggin's bank in | | | | BankAmericard Program - the MasterCharge. By 1969, |
| Brooklyn, and good only at local business | | | | most independent bank charge cards had joined |
| establishments. In 1951, New York's Franklin National | | | | either the BankAmericard or MasterCharge programs. |
| Bank issued a similar card for account holders only. | | | | Because these growing businesses wanted to expand |
| Diner's Club was introduced in 1950, as a convenience | | | | into the international market, the name "America" |
| for frequent travelers and entertainers. The first | | | | was a problem. So in 1977, BankAmericard became |
| cards were issued to 200 select customers who | | | | Visa. In 1979 MasterCharge also changed its name, |
| could use it at 27 New York restaurants. | | | | becoming MasterCard. |
| By the next year, cardholders numbered 20,000 and | | | | The credit card industry now has 5 major players: |
| the card was more widely accepted. Diner's Club | | | | - Visa International |
| claims the title of the first credit card in widespread | | | | - MasterCard |
| use. This too was technically a charge card rather | | | | - American Express |
| than a credit card, as the bills were due in full each | | | | - Discover |
| month. | | | | - Diner's Club |
| Meanwhile, Federal Express, which specialized in | | | | Visa, the card that started the rush toward revolving |
| money orders and traveler's checks, had been | | | | credit, is still the leader, with over one billion cards in |
| considering offering a similar card. When Diner's Club | | | | use and carrying more than half of all credit card |
| was formed, American Express put their own plans | | | | transactions worldwide. |