Credit Card Origins

Most of us use credit cards on a daily basis, but have you ever stopped to think about where they came from? In this blog post, we’ll take a walk through history to explore the origins of the credit card. We’ll also discuss how credit cards have changed and evolved over time. So, grab your wallet and let’s get started!

In the early days of credit cards, merchants would extend lines of credit to their best customers. These “Courtesy Cards” allowed consumers to charge purchases and then repay their debt over time. However, this system was rife with fraud and abuse, so banks began issuing cards that could be used at multiple merchants. These “Charga-Plate” cards were made of metal and had the customer’s name and account number embossed on them. Charga-Plates were first used in 1936 and quickly became the industry standard. 

By the 1950s, credit cards were becoming more widely available and accepted. In 1951, Diners Club issued the first “general purpose” charge card which could be used at a variety of establishments. This was followed by American Express in 1958 and Bank Americard (now Visa) in 1959. At this point, most credit cards were still made of metal. It wasn’t until 1966 that plastic cards began to replace metal ones. 

Today, there are dozens of different credit card issuers and millions of consumers using credit cards worldwide. Credit card use has become so commonplace that it’s hard to imagine a world without them! Thanks for taking a stroll down memory lane with us as we explored the history of the credit card. Until next time!  

The modern-day credit card has come a long way since its early beginnings. What started out as a way for merchants to extend lines of credit to their best customers has morphed into a global financial system that millions of people rely on every day. As we continue to move forward into the future, it will be interesting to see how credit cards continue to evolve. Thanks for joining us on this journey through history!