| Credit cards that we use today have been all | | | | Bank Card Associations began and it was the time |
| around for over half a century. The first credit | | | | when Bank of America formed licensing |
| card appeared in the year 1951 when some of | | | | agreements with other banks. This made it |
| the loan customers of the Franklin National Bank | | | | possible for them to issue credit cards on a |
| of New York were screened for credit and those | | | | widespread basis and also to settle transactions |
| who were approved were given a card to make | | | | among the participating banks. |
| credit purchases. The merchants who participated | | | | In 1966, a group of 14 US banks formed interlink |
| copied the customer information from the card to | | | | a new bankcard processing association with the |
| the sales slip and then the bank credited the | | | | ability to exchange information on credit card |
| merchant account for the loan. | | | | transactions. In the year 1967, four California |
| Later, in the year 1958, The American Express | | | | banks formed the western states Bankcard |
| Company began to issue a charge card for travel | | | | Association and also introduced the Master Charge |
| and entertainment charges which was accepted | | | | program to compete with the BankAmericard |
| at the restaurants, hotels and online merchants | | | | which was later renamed as Visa in the year |
| who participated. | | | | 1976. |
| People who had plastic charge cards enjoyed the | | | | Visa and MasterCard are organizations both of |
| convenience as well as the line of credit being | | | | which issue credit cards through member banks |
| offered by the new bank credit cards. Merchants | | | | and also set and maintain the rules for processing. |
| found that credit card customers usually spend | | | | With the passing time, as the bank card industry |
| more than when it came to pay with cash. To | | | | grew, banks were interested in issuing cards also |
| accept bank issued card was much safer for the | | | | became members of the Visa Card Association |
| merchant dealing with cash and also less | | | | or the MasterCard Association. |
| expensive as compared to creating and | | | | Olivia Andrews, writing for Credit Card Debt |
| maintaining merchant-specific credit program. | | | | Consolidation Guide is a freelance journalist and |
| In the year 1959, Bank of America started to | | | | has written many reviews on subjects such as |
| issue the BankAmericard within the state of | | | | finance, education, health, entertainment, music, |
| California and was the first universal credit card | | | | gifts, crafts, travel, apparels and mobile phones. |
| with wide spread merchant acceptance. In 1966, | | | | |