Credit Cards History

History of Credit Cards

The word credit comes from Latin, meaning "trust".

Millions of American families use their credit cards
to make ends meet. Credit cards have been a lifeline
for families in financial trouble.

Some consumers use plastic purely for convenience
and pay off their balance in full every month. This
is what the industry calls a "deadbeat."

The industry's favorite and most profitable customers
are the "revolvers". These are the consumers that
carry monthly credit card debt and are therefore the
ones being sought after by the banks.

The industry’s growing share of revenues come from
default terms spelled out in the fine print of
cardholder agreements. The terms and conditions
of the agreements can be changed at any time for
any reason with 15 days' notice.

In defense of their terms the industry says it is
because the business is basically unsecured lending
and the risks associated with the business must be offset.

The first credit card was issued in 1951.

American Express and Diners Club began their charge
cards in the USA in 1950. Diners Club issued the first
credit card to 200 customers who could use it at 27
restaurants in New York in 1951. But it was in 1970
that the credit card became what it is today. It was
the establishment of standards for the magnetic strip.
Since that time cards are now “smart”.

A smart card resembles a credit card in size and shape
but the inside of a smart card usually contains an
embedded microprocessor. The microprocessor on the
smart card is there for security. The host computer
and card reader actually talk to the microprocessor.

Would you like to learn a whole lot more about the
credit card industry? Do you need a credit card?
Would you like to make the money from credit cards
that the banks do? I invite you to
send me an email.