Several other regulations came about throughout this decade that intended to benefit consumers who used credit cards.īankAmericard was rebranded as VISA in '66-'67. The Fair Credit Reporting Act was created to protect the use of collection and credit reporting data in 1970.The 1968 Truth in Lending Act (part of the Consumer Credit Protection Act) was passed to standardize methods of calculating annual percentage rates (APRs).In response to consumer complaints about the fast-growing credit card industry, a number of regulations were created in the late ‘60s and throughout the ‘70s. In 1966, the Bank of America’s BankAmericard expanded its reach to serve customers outside of California and Interbank Card Association (ITC), known today as MasterCard, debuted as a competitor. The same year, Bank of America released the first modern credit card in California, allowing consumers to carry their monthly balance forward from month to month for a small finance fee. The American Express Company created its own credit card in 1958, which became the first of its kind used outside the United States. The idea was a success and by 1951, the Diners Club had 20,000 cardholders. The concept became the Diners Club Card – a charge card which required users to pay the bill in full at the end of each month. He came up with the idea after forgetting his wallet while attending a business dinner. The idea, envisioned by businessman Frank McNamara, was a cardboard card that could be accepted by restaurants throughout New York. The first widely accepted and used credit card was created in 1950. The cards were issued to customers for purchases at their company outlets, like many store issued credit cards today. by many businesses like oil companies and hotel chains. The first credit card was called a “courtesy card" and was used in the U.S. How did the use of credit cards begin and how has it evolved? Read on to discover the history of credit card processing, and how it became one of today’s most popular ways to make payments.
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