Credit Card Machines
The History of the Credit Card Processing Industry

Credit cards were first introduced in 1914 by Western Union. The first cards were called “metal cards”.

In 1924, Ten years after their introduction, the first “metal money cards” were given to the employees of a gasoline company before being offered to the public. Several years’ later companies such as airlines, railroads and phone companies came on board, offering similar types of cards.

The use of credit cards began to grow substantially after the mid-forties when many people began purchasing modern conveniences for the home by credit card. People were attracted by the ability to buy things on credit that they could not afford to purchase before, now with the added convenience of paying the debt off at some time in the future.

In the late-forties to the mid-fifties, banks began to issue credit cards to consumers for use at retail stores. The consumers would pay the bank and the bank, in turn, would pay the retailers. These transactions were first completed over the telephone. Now, transactions are completed through credit card machines as well as over the internet.

By the late-fifties, banks started to offer revolving credit cards. These accounts were established to allow customers to stretch out their payments over an extended period of time rather then require the account to be paid in full.

The Bankcard Association was created in the late-sixties to help regulate practices, reduce costs, minimize fraud, and arbitrate disputes. In the late-seventies the names Visa and Master Card were established. Visa and Master Card are non-profit organizations that regulate rules for credit card processing and are overseen by bank member executives.

Expand and grow your business. Money Tree Merchant Services helps new retail clients get started by providing a free credit card machine, the Nurit 8000. See details here.

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