Credit cards, as we know them today, were invented in the mid-20th century. The first modern credit card was the Diners Club card, invented in February 1950 by Frank McNamara. The idea came after McNamara forgot his wallet during a business dinner in late 1949 and wanted a cashless payment solution. The Diners Club card was initially a charge card requiring full payment at the end of each month and could be used at 27 New York City restaurants. Before modern credit cards, there were earlier versions like charge coins and metal charge plates issued by merchants in the late 19th and early 20th centuries, which allowed customers to charge purchases and pay later, similar to running a tab. These were the precursors to the credit cards we use today. The concept of bank-issued credit cards with revolving credit began later, with Bank of America launching the BankAmericard in 1958, which introduced the idea of borrowing money for purchases and repaying later with interest. Key milestones in credit card history also include the introduction of the magnetic strip in 1969 for fraud protection, the plastic card introduced by American Express in 1959, and later developments toward contactless and digital payments. In summary:
- Early forms of credit usage go back centuries with credit coins and charge plates in the late 1800s.
- The first modern credit card (Diners Club) was invented in 1950.
- The first revolving credit card by a bank (BankAmericard) was launched in 1958.
- Innovations continued with plastic cards, magnetic strips, and digital payments through the late 20th century.
