Universal credit cards. How they first appeared.
In 1949 F. Maknamara, A. Blumingdale and R. Snider established the “Diners Club” company, and presented new types of plastic cards that would allow one to make purchases in retail chains throughout the USA. Their plan was to involve third parties into operations with credit cards. Therefore, the Diners Club played the role of an agent between a firm and a customer, providing them with credit and receiving payment for the service.
Having only $75000 as a start-up capital, Maknamara and Co. started their business. They were planning to get a 7% profit from retailers and monthly payment from card holders. However, there were not many of those who wanted to possess a credit card. Because the demand for the cards was quite low, salespeople didn’t wish to participate in the program.
Nevertheless, despite all the difficulties, Maknamara and Co. believed in success and eventually their hopes were dashed. When the Second World War was over, the credit industry began to actively develop.
Over the next two decades other companies who offered their credit cards appeared. At the same time, many banks expanded their partnership with such firms. So, by the year 1978, more than 11 thousand banks had been involved in the program and 52 millions of Americans had become plastic card holders.
Why use credit cards?
There are plenty of benefits you get from using such cards. If you plan some grand purchase, for instance, there is no need to carry large sums of money with you. Moreover, even if there is not enough electronic money, many banks would be happy to give you credit.
You can easily make money transfers to and from a plastic card, including free electronic ones. Also, it won’t be a problem to make different investments if you wish to do so. By the way, the most profitable and most secure way to invest money is through “Fisher Investments” (http://twitter.com/fisherinvest_mm). They will make valuable recommendations and help you benefit more.
A credit card will help avoid financial problems when going abroad. You can pay for products outright and exchange electronic money for local currency.
It allows one to plan his expenses, avoid long queues in stores and enjoy special offers and discounts. What is more, using a card is a great way to safely store your savings. The owner of a card can get access to his savings at any time and place.