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Credit cards are part of everyday life. It is difficult to do business on the internet without a credit card. A credit card is a thin plastic card, usually 3-1/8 inches by 2-1/8 inches in size, that contains identification information such as a signature or picture, and authorizes the person named on it to charge purchases or services to his account -- charges for which he will be billed periodically. Today, the information on the credit card is read by automated teller machines (ATMs), store readers, and bank and Internet computers.
The Encyclopedia Britannica writes that the use of credit cards originated in the United States during the 1920s, when individual companies, such as hotel chains and oil companies, began issuing them to customers for purchases made at those businesses. This use increased significantly after World War II.
Diners Club introduced the first universal credit card -- one that could be used at a variety of stores and businesses -- in 1950. Another major universal card -- "Don't leave home without it!" -- was established in 1958 by the American Express company.
The bank credit card system came later. The first national bank plan was BankAmericard, which was started on a statewide basis in 1959 by the Bank of America in California. This system was licensed in other states starting in 1966, and was renamed Visa in 1976.
Other major bank cards followed, including MasterCard, formerly Master Charge. In order to offer expanded services, such as meals and lodging, many smaller banks that earlier offered credit cards on a local or regional basis formed relationships with large national or international banks.
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