When credit cards were first introduced, they were issued by merchants and had a pretty standard set of features. These days, the range of credit card deals you can get is staggering. With all the different interest rates, reward programs, and fees available to you, its important to understand the difference and know what kind of card will suit your financial situation and your lifestyle.
As far back as the late 1800s, merchants extended lines of credit to their customers using cards or special credit coins as currency. These credit cards were a private arrangement between the business and the customer, and were only accepted at the business that issued the card. The credit was a way of developing customer loyalty and giving better customer service. It wasn't until about the mid fifties that banks began issuing their own charge cards and plastic became a method of payment for most American consumers.
In 1958, Bank of America began its own credit card program called the BankAmericard. This program was the precursor to what came to be known as Visa. BankAmericard was originally conceived as a program that would only be used statewide in California, as a way to efficiently process small bills that were originally being paid by check. But in 1965, Bank of America began to license the system to other banks and by 1976 it was a global program that was offered by banks all over the world.
In 1970, Bank of America relinquished direct control of BankAmericard to the various financial institutions that were part of the collective, creating a joint economic that was a separate entity. National BankAmericard, or NBI, controlled domestic operations while international licensing was handled by a separate branch called IBANCO.
In 1976, IBANCO decided that the various licensed offerings of BankAmericard including Barclaycard (in the UK), Carte Bleue (in France) and Chargex (in Canada) should be branded under a single name. Since many foreign countries resisted the Bank of America name, they chose Visa as a universally accepted brand which would be easily understood across Europe. The new name and logo with a blue, white, and gold flag are still on the card today.
