When Was The First Credit Card Issued?

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Doug2
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When Was The First Credit Card Issued?

Postby Doug2 » Mon Aug 19, 2013 3:48 pm

The United States was the first country to issue a modern credit card with magnetic strip. What year was the first one issued?

Through research I have come across this article which says that Diners Club was the first credit card company in the world, established in 1950. Were they also the first to use the magnetic strip?

(By the way this is for a research paper I am writing. I appreciate any help this forum can offer me.)


MemberSince99
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Postby MemberSince99 » Mon Aug 19, 2013 4:01 pm

By using Google I was able to find to no one's surprise that it was Amex who used the first magnetic stripe in 1970. I would have guessed Amex as I'm sure many of us would, since like the good garden dwellers we are, we know that Amex is the best and the "premiere" lender :)

Doug2
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Postby Doug2 » Mon Aug 19, 2013 4:11 pm

Very interesting! Now which American Express card was that. Back then did their cards still go by the Green, Gold and Platinum levels or were there different significations?

I find the whole evolution of the credit card quite fascinating. I predict that within 30, perhaps 40 years max, the entire world will process most transactions using credit cards or equivalent. It will be remembered as the century where paper currency died or at least used very seldom.

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Postby AMEXPlatino86 » Mon Aug 19, 2013 5:34 pm

It was the Green that was first credit card issued against the Diner's Club card. The Gold didn't come out till the 1960's and the Platinum till the 1980's.
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im_mr_awesome
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Postby im_mr_awesome » Mon Aug 19, 2013 9:59 pm

Each card came out as AMEX tried to provide more premium products for more elite and status-conscious members. Originally, it was the Green card, which was just the American Express card. The Green is good for the average consumer who doesn't like to carry revolving debt but still wants okay-ish perks. Then Gold (and premier rewards Gold), which come with a higher fee and *now* has dining and some travel perks for semi-affluent non-globe trotters. Then Platinum, with a higher fee still, and more features for the affluent and business travelers. Then there's the Centurion card, which is pretty much the same as the Platinum, except with far better customer service, concierge, and is intended for the super affluent - FastSRT8 has one, and considers paying for a car on the Centurion.

This provides a very good example of what the different cards are used for. Started just as a convenience, then it became a status symbol, so higher tiers kept being introduced to keep up with the growing numbers of members.
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djrez4
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Postby djrez4 » Mon Aug 19, 2013 10:01 pm

Not to poop on the party, but if this is for a research paper, researching is one of the skills you're supposed to be learning. The forum is doing you a disservice by spoon feeding you information.

For the sake of your education, go do some research on your own.
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Doug2
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Postby Doug2 » Tue Aug 20, 2013 1:24 am

Thank you for all the information everyone! I may even quote a couple of you in my paper.
djrez4 you are 100% correct! Though I came across conflicting information and figured this forum would be an excellent source to tap. I came across it through the well researched article which outlined the history of DIners Club.

Now here's a curve ball for all of you: When was the first credit card issued in the UK? That is an answer that's much harder to find!

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Postby MemberSince99 » Tue Aug 20, 2013 6:27 am

I have to admit, that one I honestly don't care about, and since it's not my research paper, I'll leave it to someone else to do the legwork for you. I have to agree with djrez - Google is out there, why should we do the research when it's your paper?



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