THE HISTORY OF CREDIT CARDS

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The concept of credit cards began just before World War I, in 1914, when Western Union provided a deferred-payment service to its most sound customers. It wasn't until 1950 that Diners Club issued the first real "card". This card could be used in a number of different locations.

Quickly the idea caught on and within about a year, banks began providing cards to their customers, and merchants began accepting them for payment. These early cards required payment in full within a short period of time, usually less than 90 days. The income possibilities soon became apparent to the bankers. The financial institutions could simply extend the repayment time, attach an interest rate and overnight, a new profit center for New York's Franklin National Bank, in 1951, had introduced the first modern credit card to its customers.

Before 1970, the concept was being quickly accepted. Consumers and the issuing banks were feeling that one bank; one card was not enough. Bank of America solved this by entering into licensing agreements with banks outside California allowing them to issue BankAmericard and interchange transactions among the licensees. In order to increase usage, a bank card association was started which would change the name to one which was not linked with any one bank. In 1977, the Visa name was adopted, a membership corporation was formed, and Visa, USA was started. At the same time, three different groups of banks that were not franchisees of Bank of America began activities that would later merge to become today's MasterCard International.

Both organizations originally set out signing up member banks to issue cards, enroll merchants, or both. Competition was fierce. Banks that offered one card could not handle the other, thus losing money. More importantly, the merchants themselves were being forced to turn down sales from customers who did not carry the same card the merchant accepted.

In 1978 the MasterCard and Visa organizations agreed to a concept of duality, in other words, banks could honor and issue both credit cards.

Card-Pro Merchants Services History:
Card-Pro Merchants Service has been helping merchants on the Internet and beyond for years. We understand this business like few others, and have the contacts that will prove beneficial to you and your company now and in the future.

Card-Pro Merchant Services Evolution:
We began as a merchant services company when the Internet was only a dream, and watched it grow, noticing the dire need for a solution to the mail order, telephone order industries need for merchant services. We've been in the forefront of this boom in credit card purchases due to the growing tendency towards electronic commerce. Use our expertise to your advantage. Call us. 1-210-595-8927.