Credit cards are among the various luxuries that we take for granted. As a matter of fact, it's hard to believe that there was a time when purchases and transactions couldn't be charged. For those who would like to know when these cards came into being, you'd have to go all the way back to the mid-1900s. Specifically, you would have to learn about a man named Frank McNamara, which is a history lesson that the likes of Bob Jain can assist.
There was once a story about Frank McNamara that has since been debunked. Nonetheless, it's still an entertaining tale that deserves to be covered. Back in 1949, McNamara was enjoying a nice dinner in Manhattan with a business associate. When the check came, McNamara realized that he didn't have the money to cover the bill. While his wife soon arrived with the appropriate amount, it sparked an idea in his mind. This particular tale goes to show that, in many cases, fiction is indeed stranger than reality.
As an executive at the Hamilton Credit Corporation, McNamara was starting to see trouble for the business. In order to make money and keep his business afloat, McNamara suggested the idea of credit cards to two of his friends. The idea behind these cards, according to authorities on finance like Bobby Jain CS, was that it would help people pay for restaurant bills even if they didn't have physical cash on them. This led to the creation of the Diner's Club, the first credit card company in America.
When the Diner's Club was first erected, 27 participating restaurants worked with it. If you were a member of this organization, not only would you be given a credit card but you'd be able to use it at the restaurants in question. The company made money by issuing fees on the cards, which are quite common with many credit options used today. This was a revolutionary concept and one that would start an undeniable trend, as the likes of Bobby Jain Credit will be able to tell you.
The Diner's Club is not only an interesting piece of history, but the start that other companies needed in order to form. Years after the formation of the aforementioned credit card company, American Express would throw its hat into the ring; it's still a prominent credit issuer to this day. Nowadays, it's almost impossible to meet an adult that doesn't have a credit card in their possession. This might not have happened without the work of Frank McNamara.
There was once a story about Frank McNamara that has since been debunked. Nonetheless, it's still an entertaining tale that deserves to be covered. Back in 1949, McNamara was enjoying a nice dinner in Manhattan with a business associate. When the check came, McNamara realized that he didn't have the money to cover the bill. While his wife soon arrived with the appropriate amount, it sparked an idea in his mind. This particular tale goes to show that, in many cases, fiction is indeed stranger than reality.
As an executive at the Hamilton Credit Corporation, McNamara was starting to see trouble for the business. In order to make money and keep his business afloat, McNamara suggested the idea of credit cards to two of his friends. The idea behind these cards, according to authorities on finance like Bobby Jain CS, was that it would help people pay for restaurant bills even if they didn't have physical cash on them. This led to the creation of the Diner's Club, the first credit card company in America.
When the Diner's Club was first erected, 27 participating restaurants worked with it. If you were a member of this organization, not only would you be given a credit card but you'd be able to use it at the restaurants in question. The company made money by issuing fees on the cards, which are quite common with many credit options used today. This was a revolutionary concept and one that would start an undeniable trend, as the likes of Bobby Jain Credit will be able to tell you.
The Diner's Club is not only an interesting piece of history, but the start that other companies needed in order to form. Years after the formation of the aforementioned credit card company, American Express would throw its hat into the ring; it's still a prominent credit issuer to this day. Nowadays, it's almost impossible to meet an adult that doesn't have a credit card in their possession. This might not have happened without the work of Frank McNamara.
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