A credit card, a card that provides transaction convenience and offers a variety of discounted offers, has a fairly interesting history. Credit cards were not shaped like what we see today, over time the shape has changed according to daily needs. Do you know how the credit card has been developing?
The first time a credit card was born in the idea of a bill or charge card
In 1946, banker Good Finance issued the Charg-it card. The card is used when customers make transactions, bills will be sent to the Good Finance bank. The bank will reimburse the store or place of the transaction when the customer has paid the charge card bill. However, payments apply at the local level and customers must have a bank account at Good Finance Bank.
What’s interesting about the history of credit cards is that the idea of a payment card swipe later appears when a banker Frank McNamara is having dinner and when the bill comes, he doesn’t carry cash. It’s really troublesome if he goes to an ATM first to withdraw money.
All he did was call his wife to bring him money to pay for his meal. After the incident, the thing that came to mind was what if he and his colleague created a paper-based charge card that could be used first to pay for restaurant costs and then when due was due to pay the bill fully to the card issuer. This is the origin of the birth of the Diner’s Club.
What is Diner’s Club
The Diner’s Club forms a network of restaurants that accepts payment methods using the Diner’s Club. Furthermore, the credit card changed form to plastic when a decade of the emergence of the Diner’s Club, the Diner’s Club was still in the form of a Charge Card where bills had to be paid in full when due.
Responding to the rise of Diner’s Card, in 1958 American Express participated in the credit card industry with its own products and introduced plastic-based credit cards. A year later, MasterCard introduced the option of a revolving balance in which cardholders no longer had to pay their bills in full each time which gave them the flexibility to manage financial conditions.
Well, what about the history of credit cards in Indonesia?
Credit cards in Indonesia emerged in the 1980s. A payment instrument that is practical and saves a lot of time is really desired by the people of Indonesia. Did you know the process of making a credit card before was not as easy as now? The process is quite complicated and only a handful of people have it.
The requirements include the amount of savings, type of work to social status. Besides that, the easiest way to apply for a credit card is through your friend’s reference to the member get member program.