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It's hard to imagine that credit cards haven't always been made of plastic. But in fact they are of different origin. The story of invention of credit cards is rather curious. Learn more about it!

We are used to the idea that credit cards are entirely banks' attributes. But this is not exactly true. First credit cards were introduced in the beginning of the XX century at some merchants and restaurants. The target group was reach customers, who used these cards as a business certificate and a license for so called "loyalty programs". Those cards were made of cardboard.

Not only stores and restaurants were issuing cards at that time but also gas stations. The card issuers made a decision to change the material for card manufacturing to increase durability. So the next age cards were made of metal by Farrington Manufacturing Co in Boston. Customers' identification information was embossed on the metal surface, and the manufacturing process was automated.

This information was imprinted on special commercial tape when registering the purchases. This method still exists together with the most innovative technologies. The name of the issuing company was printed according to international credit card standards - ISO 7811-3. They called the script they used for embossing "Farrington 7B".

The rapid development of credit card industry started in 1950s, after Sir Bloomingdale had organized a program in Los Angeles, which was called "Put a signature after dinner". The similar program was started in New York by McNamara. They all used embossed metal cards, but this method wasn't accustomed for some reason. So the first Diners Club Cards appeared in cardboard.

In 1957 a lot of gasoline credit cards were offered by various companies. Each company tried to win customers doing everything in their power. Later on, numerous "big brothers" were entering the market. They merged together forming payment associations, which will be later known as Visa, MasterCard, etc. This is when someone started making various cards, including rewards, low APR and others of types of credit cards.

The main stumbling block was the material itself. It had to be safe and resistant, and at the same time enough flexible to imprint the info on it. Besides it had to be printable. The card issuers explored plastic cards by experimenting with polyether and polyvinylchloride.

But a credit card is definitely not just a slice of good plastic. It is a combination of modern technologies keeping the domestic or international information.

For the period of issuing credit cards Diners Club returned around $61,000 with a turn-over of $6,200. In 1958 the competitors began to enter the market. Non-banking spheres, such as Hilton with their hotel credit cards and American Express became the first to enter. Then Bank of America joined them. Here the development and prosperity of the industry of credit cards took a start.