Invention of Credit Card

To buy something without money was too hard. If the owner knew you, it could be possible. However, if they had never seen you before? I do not have idea what will happen with you. For example, if you had eaten in a restaurant and you did not have enough money to pay. I guess that you could get out of there just after to wash all of dishes. It should be the minimum punishment.

The credit card is one biggest invention in modern life. It is an advanced technology in payments for all customers. In these modern times, when people are more and more consumerist, it is a main tool for payment since of the money invention. The majority of the people believe that credit cards is a modern way to pay for something, but the concept of using credit instead services dates back to the 1900s. The idea is older. The use of credit cards originated in the United States during the 1920s, when individual firms, like oil companies and hotel chains offer lines of credit to their customers. The first credit cards involved sales directly between the merchant offering the credit and credit card, and his customer.

The “Metal Money” was a credit system that was used by Western Union to give to their good customers a metal card that was used to defer payments. The General Petroleum Corporation saw the success in this system and he made his own metal money for gasoline and other automotive services. Then the credit system spread to other companies and it became popular and grew significantly.

In New York in 1950, the business man Frank MacNamara and his guests were meeting in a restaurant for a dinner. After he meal, he realized that he had forgotten his money. Nevertheless, the owner got his payment the next day, after he puts his name in his account. Later, MacNamara had a great idea. He created the Diners Club Card. At first, it was a paper card used just for few people, with owner’s name in front and behind establishment’s name that accept the card.

Credit cards are definitely useful to those who do not like carrying a lot of cash. It is not safe walk away with much money. Also, for people that want to more purchasing power. It is simply easy to purchase something that you desire, depending of your credit limit, even if you have not enough money in this moment. It is the better way to get something immediately.

Jeremias Serafim