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.
The details of Frank McNamara's personal life are few and far between, but what matters is the interesting way that the credit card that we use today came to be. A story came out that, in 1949 in Manhattan, he was enjoying a nice dinner out with someone from work. When the bill came, McNamara came to the realization that he didn't have money to pay. Even though his wife came to the restaurant with money to cover the bill. Even though this isn't the real story - it was a hoax that people still believe to this day - it was arguably more entertaining than the truth.
The real story is as follows: McNamara, who was an executive at the Hamilton Credit Corporation, started to see that his business was slipping. He knew that money had to be had, so he suggested the idea of a credit card to his friends. According to financial authorities like Bobby Jain CS, this card would be used in order to cover meals, before being paid for later. This would be an effective option for those who forgot to carry cash. Shortly thereafter, McNamara formed the first American credit card company named the Diner's Club.
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.
There's no denying the importance of this history, not only in terms of the Diner's Club but the work of Frank McNamara in general. The aforementioned history was so influential in fact that a number of other credit card companies, American Express included, came into being years after the Diner's Club. Nowadays, credit is one of the most preferred methods of payment for people. Needless to say, McNamara's efforts helped to push this trend forward.
The details of Frank McNamara's personal life are few and far between, but what matters is the interesting way that the credit card that we use today came to be. A story came out that, in 1949 in Manhattan, he was enjoying a nice dinner out with someone from work. When the bill came, McNamara came to the realization that he didn't have money to pay. Even though his wife came to the restaurant with money to cover the bill. Even though this isn't the real story - it was a hoax that people still believe to this day - it was arguably more entertaining than the truth.
The real story is as follows: McNamara, who was an executive at the Hamilton Credit Corporation, started to see that his business was slipping. He knew that money had to be had, so he suggested the idea of a credit card to his friends. According to financial authorities like Bobby Jain CS, this card would be used in order to cover meals, before being paid for later. This would be an effective option for those who forgot to carry cash. Shortly thereafter, McNamara formed the first American credit card company named the Diner's Club.
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.
There's no denying the importance of this history, not only in terms of the Diner's Club but the work of Frank McNamara in general. The aforementioned history was so influential in fact that a number of other credit card companies, American Express included, came into being years after the Diner's Club. Nowadays, credit is one of the most preferred methods of payment for people. Needless to say, McNamara's efforts helped to push this trend forward.
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Kindly visit Bob Jain Credit for more financial pointers from Bob Jain CS.. Also published at Learning About Frank Mcnamara, With Bob Jain.
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