History of Charge Cards
Charge cards and credit cards have a long history. The credit card industry as we know it today, has roots as far back as the very early 1900s. At one time, banks and retailers offered customers charge cards as a gesture of gratitude.
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The First Cards
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The first charge cards were created at the beginning of the 20th Century. Western Union used a metal type card to extend deferred payments to its prominent customers.
Retail and Service Use
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Department stores followed the trend by offering payment options and cards to local customers. Communications companies, delivery services and oil companies began extending charge cards to customers before World War II.
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The First Bank Card
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Franklin Bank of New York was the first bank to issue charge cards; thus allowing customers to purchase items at local retailers which were then reimbursed by the bank. This was the beginning of the modern credit industry, in 1951.
Diners Club
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In the 1950s, another charge card was developed for travelers and businessmen who needed access to credit while eating or entertaining away from home. This card became today's Diners Club Card.
Master Card and Visa
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Bank of America issued a card which was licensed to other banks in the 1970s. This was known as the BankAmericard, and was the predecessor to the current Master Card and Visa licensed cards.
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