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THE HISTORY OF CREDIT CARDS 225 634 579 825 758 398 The use of credit cards originated in the United States during the 1920s, when individual firms, like oil companies and hotel chains, began issuing them to customers. References to credit cards date back to 1890 in Europe. Early credit cards involved sales directly between the merchant offering the credit and credit card, and that merchant's customer. customer merchant The inventor of the first bank issued credit card was John Biggins of the Flatbush National Bank of Brooklyn in New York. Credit cards were first promoted to traveling salesmen as a time-saving device rather than a form of credit. Unfortunately, people needed to bring dozens of these cards with them if they were to do a day of shopping. Frank X McNamara, head of the Hamilton Credit Corporation had the idea of needing only one credit card. In 1950 McNamara started The Diners’ Club. Instead of individual companies offering credit to their own customers whom they would bill later. In an effort to capture customer loyalty, department stores and gas stations began to offer charge accounts for their customers which could be accessed by a card. The merchant deposits a sales slip... ...gives the sales slip to the bank... BANK ..then the bank bills the customer In 1946, Biggins invented the "Charge-It" program where... Early credit cards... The Diners’ Club... ...offers credit to individuals for many companies then bills the customers and pays the companies. credit The Diners’ Club $100,000's Total U.S. consumer credit $160 per person $2,000 per person $4,000 per person $8,800 per person $.5 Trillion Total U.S. consumer credit $1 Trillion Total U.S. consumer credit $2.5+ Trillion Total U.S. consumer credit 1952 1984 1996 2012 Credit Debt How many credit cards do people sign up for every year? 2009 2011 2007 2005 6 Billion 1.3 Billion 5.2 Billion 4 Billion $74.1 Million $88.4 Million $91.3 Million $94.1 Million $304.5 Million $381.6 Million Average credit card debt per household with credit card debt is $15,956 $15,956 That’s $1.9 trillion total value in transactions. Credit cards are used more than 20 billion times in a year. There were 4.9 billion credit cards sent in 2012. In 2009 the U.S. had about A person uses a credit card 119 times each year An average of $88 is spent on each transaction, totalling $10,472 a year $88 $156 Million credit card holders With about 1.4 billion cards in circulation, each credit card holder has eight credit cards. SOURCES inventors.about.com/od/cstartinventions/a/credit_cards.htm indexcreditcards.com/finance/creditcardstatistics/2011-report-on-credit-card-usage-facts-statistics.html blog.unibulmerchantservices.com/americans-get-4b-new-credit-card-offers-in-2011-but-are-we-interested/ money-zine.com/Financial-Planning/Debt-Consolidation/Consumer-Debt-Statistics/ creditcards.com/credit-card-news/credit-card-industry-facts-personal-debt-statistics-1276.php money-zine.com/Financial-Planning/Debt-Consolidation/Consumer-Debt-Statistics/ blog.unibulmerchantservices.com/americans-get-4b-new-credit-card-offers-in-2011-but-are-we-interested/ creditcards.com/credit-card-news/credit-card-industry-facts-personal-debt-statistics-1276.php This infographic was created by Lexingtonlaw.com, a law firm that helps consumers confront their credit report issues. THE HISTORY OF CREDIT CARDS

The History of Credit Cards | Infographic

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A timeline on the history of credit cards – from their start, back in 1890 Europe, until now – when credit cards are used more than 20 billion times in a year (That’s $1.9 trillion total value in transactions!).

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Page 1: The History of Credit Cards | Infographic

THE HISTORY OFCREDIT CARDS

225

634

579

825

758

398

The use of credit cards originated in the United States during the 1920s, when individual firms, like oil companies and hotel chains, began issuing them to customers.

References to credit cards date back to 1890 in Europe.

Early credit cards involved sales directly between the merchant offering the credit and

credit card, and that merchant's customer.

customer merchant

The inventor of the first bank issued credit card was John Biggins of the Flatbush National Bank of Brooklyn in New York.

Credit cards were first promoted to traveling salesmen as a time-saving device rather than a form of credit.

Unfortunately, people needed to bring dozens of these cards with them if they were to do a day of shopping.

Frank X McNamara, head of the Hamilton Credit Corporation had the idea of needing only

one credit card.

In 1950 McNamara started The Diners’ Club.

Instead of individual companies offering credit to their own customers whom they would bill later.

In an effort to capture customer loyalty, department stores and gas stations began to offer charge accounts for their customers which could be accessed by a card.

The merchant deposits a sales slip...

...gives the sales slip to the bank...

BANK

..then the bank bills the customer

In 1946, Biggins invented the "Charge-It" program where...

Early credit cards...

The Diners’ Club...

...offers credit to individuals for many companies then bills the customers and pays the companies.

credit

The Diners’ Club

$100,000'sTotal U.S. consumer

credit

$160 per person

$2,000per person

$4,000per person

$8,800per person

$.5 TrillionTotal U.S. consumer

credit

$1 TrillionTotal U.S. consumer

credit

$2.5+ TrillionTotal U.S. consumer

credit

1952 1984 1996 2012

Credit Debt

How many credit cards do people sign up for every year?

2009 201120072005

6 Billion

1.3 Billion

5.2 Billion 4

Billion

$74.1 Million

$88.4 Million

$91.3 Million

$94.1 Million

$304.5 Million

$381.6 Million

Average credit card debt per household with credit

card debt is $15,956

$15,956

That’s $1.9 trillion total value in transactions.

Credit cards are used more than 20 billion times in a year.

There were 4.9 billion credit cards

sent in 2012.

In 2009 the U.S. had about

A person uses a credit card 119 times each year

An average of $88 is spent on each transaction, totalling $10,472 a year

$88

$156 Millioncredit card holders

With about 1.4 billion cards in circulation, each credit card

holder has eight credit cards.

SOURCESinventors.about.com/od/cstartinventions/a/credit_cards.htmindexcreditcards.com/finance/creditcardstatistics/2011-report-on-credit-card-usage-facts-statistics.htmlblog.unibulmerchantservices.com/americans-get-4b-new-credit-card-offers-in-2011-but-are-we-interested/money-zine.com/Financial-Planning/Debt-Consolidation/Consumer-Debt-Statistics/creditcards.com/credit-card-news/credit-card-industry-facts-personal-debt-statistics-1276.phpmoney-zine.com/Financial-Planning/Debt-Consolidation/Consumer-Debt-Statistics/blog.unibulmerchantservices.com/americans-get-4b-new-credit-card-offers-in-2011-but-are-we-interested/creditcards.com/credit-card-news/credit-card-industry-facts-personal-debt-statistics-1276.php

This infographic was created by Lexingtonlaw.com, a law firm that

helps consumers confront their credit report issues.

THE HISTORY OFCREDIT CARDS