Tag Archives: consumers
History of Accepting Credit Cards (Page 1 of 2)
Charge cards can be dated back to the early 1900s. In 1914, what seems purely as a customer service goodwill gesture, Western Union gave some of their prominent (preferred) customers a metal card to be used in deferring payments-interest free-on services used. One source said this card became known as “Metal Money.”
As time progressed so did the charge card. Before the start of WWII, retailors, travel companies and gas stations offered this service to their special customers. These company based charge cards were limited by their use exclusively through the issuing company. These companies issued the cards, processed the transactions, and collected the debts from the customer.
In WW II, the use of credit and charge cards was prohibited.
After WW II, credit cards became more accessible to the general public After seeing trends indicating increased travel and spending among those who held charge cards, banks became interested in credit cards-after all they were in the business of lending money, and they saw the profit potential behind attaching interest to the cards.
When banks first got into the credit card business, they were only issuing cards to local consumers. In 1951, the Franklin National Bank in New York, issued the “Charge It” card. Which allowed customers to charge purchases at local stores. This charge card system worked much like credit card systems work today. The customer would make a purchase with the card; the merchant performed a credit authorization from the network, then completed the sale. The Banks paid the merchant and collected the funds from their customer later on. Other banks across the nation were impressed with the success of this process that within several years after the “Charge It” card they offered their customers similar services for making purchases at local retail establishments.
In the 1950s the first charge card was developed that allowed consumers to make charges for services and goods from a variety of retail outlets. This innovation was the Diner’s Club charge card, which was established for business men to use for travel and entertainment expenses. The Diner’s Club card gave its members up to 60-days to make payment.
The first “revolving-credit” card was issued in the State of California by the Bank of America. The card, BankAmericard, was marketed all across the state. This card set another milestone in the development of the credit card industry. The BankAmericard was the first card to give cardholders payment options. Payment options like today’s cards, let consumers pay the debt in whole or they could make monthly minimum payments while the banks charged interest on the remaining balances.
By the 1960s, bank card associations begun to emerge. In 1965, Bank of America issued licensing agreements to other banks-both large and small-across the nation. These licensing agreements permitted regional banks to issue BankAmericards and to exchange transactions through issuing banks.
Get a Rewards or Low Interest Credit Card that is Right for You
Obtaining a credit card with the kind of interest rate and rewards scheme you would like is never easy. Being there are many types of low interest credit cards from the likes of Visa, MasterCard, and American Express to select from. It only makes sense to stick with card that you can benefit from. Either being from a set rewards scheme or from a really great low interest rate. For example, say you are a Major League Baseball fan and would like to earn rewards and/or save money while participating in your favorite pastime. In this instance, the Major League Baseball Extra Bases Credit Card might be the best selection for you. With this credit card, The only credit card on the planet that earns you points towards autographed memorabilia by past and current players, VIP access, field-level game tickets, travel rewards and even cash rewards; you might be satisfied.
Remember, there are also a number of low interest and rewards credit cards to serve a number of folks interested in other sports as well. Take a look at the NFL Extra Points Visa® Card for example. With this credit card you can perhaps earn a NFL Shield Short Sleeve Gray T-Shirt, or receive a Autographed Authentic Jersey – signed by a Former Player! The many types of rewards you can get with all the wonderful possibilities out there are seemingly endless. For just about every major sport there is a credit card rewards program out there.
I have often told many people that credit card rewards are living proof that you are already being charged to much interest. This stands to reason just as much as rewards are what you get for paying to much interest. Money saved is truly money earned as well. It makes perfect sense for one to reflect of the value of potential savings made from the reaping of rewards from credit cards. Many people however seem to forget that the credit card they select should bear them some sort of reward in the end. For example, if you applied for and received a Subaru® Platinum MasterCard® from Chase, but did not follow through with your planned Subaru Outback purchase, it is a safe bet to say you selected the wrong credit card as you will likely not come across any meaningful reward scheme. Not that the card of your selection was bad at the time. Now for a person about to actually own or lease a Subaru this card is a very good card to have. It is just a simple fact that the cards we carry must fit a real world scheme in order to be useful, rewarding, and save us money.
It is also wise to be aware of the disclosures for the low interest rate credit cards you select. Back in 1988, new requirements were implemented for credit card disclosures that were intended to help consumers better compare pricing information on low interest credit cards (and all other types of credit cards for that matter). These new requirements mandated that credit card issuers use a tabular format to provide information to consumers about interest rates and fees on solicitations and applications mailed to consumers. It is very easy to find these tables rather quickly on just about any credit card offer you can come across on the internet. This format, which is known as the Schumer box is claimed by issuers, consumer groups, and others; to helped increase consumer awareness of credit card costs. With this information in hand, it is much easier to make informed decisions concerning finding the best low interest rate credit cards before completing the credit card application.