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HTML <html> <head> <title>The First Credit Cards</title> </head> <body> <h1>The First Credit Cards</h1> <div class="info">Author: <a href="author_1_102286.html">Aazdak Alisimo</a></div><div class="body">Credit cards are either a convenient tool or debt accumulator in modern society. Ah, but when were the first credit cards issued?<br /> <br /> In 1889, author Edward Bellamy wrote a rather utopian book that was called, “Looking Backwards.” This book used the term “credit card” in several different places to denote a new and revolutionary method of paying debt without the use of actual currency. The story of the credit card might be said to have begun with Bellamy’s vision, but it would be the rapidly expanding gasoline and automobile industry that would make the first practical use of this then radical concept.<br /> <br /> In the 1920’s, as the automobile slowly made its way into the mainstream of American life, the infant gasoline companies devised the first charge cards. These cards would allow customers to fill their automobiles with gasoline and pay the bill at a deferred date. The idea was more competition based than anything else. The idea was to make it easier to select one brand of gasoline over the other without engaging in profit sapping price wars to lure customers. In 1938, the major gasoline companies began the policy of accepting each others charge cards which destroyed the competitive edge of the system.<br /> <br /> It was not until after World War II that the next development would take place. The idea of a “charge card” modeled after the gasoline cards was introduced in 1950 by Diners Club. This first charge card differed from the credit cards in that the entire balance was due when the monthly statement was received. There was no actual “credit” involved. Like Bellamy’s original concept, this was merely a way to avoid carrying large amounts of cash.<br /> <br /> In 1958, the Bank of America introduced the BankAmericard which eventually evolved into the Visa system. This was the beginning of the actual credit card industry. The major difference was that the charges made against the card were considered interest bearing loans and the entire balance did not have to be repaid. In fact, it was to the Bank’s interest that only minimum payments were made as that maximized the profits from the interest charges. In 1966, the MasterCard system began and became Visa’s primary rival.<br /> <br /> The credit card system caught on very quickly in the United States, but was a bit slower to catch hold around the World. In 1966, the Barclay Card became the first credit card issued outside the United States. Today, the use of credit cards internationally is rapidly approaching United States levels as the industry expands. The wide spread use of debit cards and the continued use of charge cards modeled on the original gasoline cards plus the true credit cards have made the new century “the Age of Plastic.”<br /> <br /> Aazdak Alisimo writes about issues you need to know before you <a href="http://www.getacreditcardinminutes.com" >get a credit card in minutes</a> for GetaCreditCardinMinutes.com.<br /> </div> <div class="source">Article Source: <a href="http://www.articlealley.com/article_461139_19.html">http://www.articlealley.com/article_461139_19.html</a></div> <div class="author"> <div class="authorBio"></div> </author> </body> </html>
Text The First Credit Cards Author: Aazdak Alisimo Credit cards are either a convenient tool or debt accumulator in modern society. Ah, but when were the first credit cards issued? In 1889, author Edward Bellamy wrote a rather utopian book that was called, “Looking Backwards.” This book used the term “credit card” in several different places to denote a new and revolutionary method of paying debt without the use of actual currency. The story of the credit card might be said to have begun with Bellamy’s vision, but it would be the rapidly expanding gasoline and automobile industry that would make the first practical use of this then radical concept. In the 1920’s, as the automobile slowly made its way into the mainstream of American life, the infant gasoline companies devised the first charge cards. These cards would allow customers to fill their automobiles with gasoline and pay the bill at a deferred date. The idea was more competition based than anything else. The idea was to make it easier to select one brand of gasoline over the other without engaging in profit sapping price wars to lure customers. In 1938, the major gasoline companies began the policy of accepting each others charge cards which destroyed the competitive edge of the system. It was not until after World War II that the next development would take place. The idea of a “charge card” modeled after the gasoline cards was introduced in 1950 by Diners Club. This first charge card differed from the credit cards in that the entire balance was due when the monthly statement was received. There was no actual “credit” involved. Like Bellamy’s original concept, this was merely a way to avoid carrying large amounts of cash. In 1958, the Bank of America introduced the BankAmericard which eventually evolved into the Visa system. This was the beginning of the actual credit card industry. The major difference was that the charges made against the card were considered interest bearing loans and the entire balance did not have to be repaid. In fact, it was to the Bank’s interest that only minimum payments were made as that maximized the profits from the interest charges. In 1966, the MasterCard system began and became Visa’s primary rival. The credit card system caught on very quickly in the United States, but was a bit slower to catch hold around the World. In 1966, the Barclay Card became the first credit card issued outside the United States. Today, the use of credit cards internationally is rapidly approaching United States levels as the industry expands. The wide spread use of debit cards and the continued use of charge cards modeled on the original gasoline cards plus the true credit cards have made the new century “the Age of Plastic.” Aazdak Alisimo writes about issues you need to know before you get a credit card in minutes for GetaCreditCardinMinutes.com. Article Source: http://www.articlealley.com/article_461139_19.html About the Author:
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