It's easy to take credit cards for granted, seeing as how we've had them handy for so long. As a matter of fact, you may not know that credit cards date back as far as the mid-1900s, which is where a bit of history can come into play. As a matter of fact, the man who was responsible for creating the credit card in the first place went by the name of Frank McNamara. Here are just a few of the important details about him, courtesy of Bob Jain.
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.
The Diner's Club was so revolutionary for its time that the premise started with 27 participating restaurants. If you were a member of the Diner's Club, you would be able to sign for bills at restaurants, with the promise that they would be paid back in the future. Not only was this useful for those who forgot their money, as was the case with the false story covered earlier, but others that worked on tight budgets in general. The Diner's Club charges issued fees to help the company make a profit, which aren't much different from modern credit card fees that Bobby Jain Credit can observe.
While the Diner's Club and Frank McNamara's involvement are both great pieces of history, it also paved a path for other companies to follow. As a matter of fact, years after the Diner's Club formed, the likes of American Express threw their hats into the proverbial ring. These companies clearly saw the appeal of credit as a payment option, and wanted to offer their own services. Perhaps they wouldn't have risen to the surface without McNamara starting things off.
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.
The Diner's Club was so revolutionary for its time that the premise started with 27 participating restaurants. If you were a member of the Diner's Club, you would be able to sign for bills at restaurants, with the promise that they would be paid back in the future. Not only was this useful for those who forgot their money, as was the case with the false story covered earlier, but others that worked on tight budgets in general. The Diner's Club charges issued fees to help the company make a profit, which aren't much different from modern credit card fees that Bobby Jain Credit can observe.
While the Diner's Club and Frank McNamara's involvement are both great pieces of history, it also paved a path for other companies to follow. As a matter of fact, years after the Diner's Club formed, the likes of American Express threw their hats into the proverbial ring. These companies clearly saw the appeal of credit as a payment option, and wanted to offer their own services. Perhaps they wouldn't have risen to the surface without McNamara starting things off.
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