Sunday, January 11, 2009

History of Credit Cards

The use of credit cards originated in the united states during the 1920s, when individual companies began issuing them to customers. This use increased significantly after World War 2, when veterans returned and looked forward to travel for business and pleasure. The first general purpose of credit card that could be used at a variety of stores and businesses was introduced by Diners Club, Inc., in 1950. In this system, the credit company charged cardholders an annual fee and billed them for their expenditures on a monthly or yearly basis. Another major card was established in 1958 by the American Express Company.

Later, the bank credit card system was introduced. The first national bank card plan was Bank Amricard, which was implemented in 1959 by the bank of America in California. The system was licensed in other sates starting in 1966 and was renamed Visa in 1976.

Now a day, it is generally used for purchasing items to pay for services, bills, fees, taxes etc. No doubt, the benefits of credit cards are so many that their importance and progressive role in this age of mischief cannot be denied.

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