For the project 3 in this class, I decided to analyzing credit card history and design them. Credit cards were made of plastic and started to be used in 1959.
Recently, there has been a tendency to use a debit or credit card more than cash. This is because the card is convenient, can be managed relatively safely, and can be quickly resolved in case of loss. Most new card cards are made of plastic, making them light and convenient. I also usually carry a minimum amount of cash and mostly use a credit card.
However, I have made a lot of cards, and out of the many cards, I use only one card. By using so many cards, I have been thinking about whether we can only continue to use plastic, which is wasted plastic and is one of environmental pollution problems. Many people know that plastic is the main cause of environmental pollution, but plastic cards have become so commonplace that parts are difficult to recognize. Plastics affect the environment from the manufacturing process. In general, if you make one plastic card, harmful substances such as three cages are generated, and after that, more than 8 million tons of plastic are thrown into the sea every year. Among them, 260,000 teas are becoming well-known garbage islands or floating around in the sea, causing environmental pollution.
Various companies are introducing various measures to prevent environmental pollution caused by plastic cards. The most popular method is to issue mobile cards. However, there are still many cases where a mobile card is issued after a physical plastic card. To compensate for this, a Korean company started a plastic card zero campaign starting this year, in which mobile cards are issued without a plastic card.
And as another method, there are cases where the physical card is made of an eco-friendly material other than plastic. BC Card, a Korean company, is made of green card eco-friendly wood material, has low carbon emission and harmfulness has added eco-friendly benefits, and can also be converted to a mobile card. Shinhan Card’s Deep Eco Card plate is made of wood that has been certified as eco-friendly so that even if it is disposed of, it has little impact on the environment. Starbucks Korea even launched a card made of recyclable paper instead of plastic. In addition, food product packaging materials were used as biodegradable plastics that biodegrade and bioplastics that emit relatively little carbon dioxide.
The history of credit cards as we know them today began in 1950, when Diners Club launched the first modern credit card. Credit card history also includes a number of important milestones from 1950 to today, including the introduction of magnetic stripe verification in the 1960s and EMV chip technology in 2010.
Unlike early credit cards, which were all “charge cards” that had to be paid in full at the end of the month, most modern credit cards allow people to carry a balance between months. That means the type of credit card in your wallet today has likely been around only for a tiny fraction of all credit card history. Below, you can see an in-depth timeline of the history of credit cards, followed by a discussion of how credit cards developed to their current state. <https://wallethub.com/edu/cc/credit-card-history/25894>
Early History of Credit Cards
The concept of buying things on credit has been around since ancient times, and it became more refined in the 19th century, when companies began to use metal coins with their logo and customers’ account numbers emblazoned on them to keep track of transactions made on credit. Then, in the early 20th century, a handful of U.S. department stores and oil companies began issuing their own credit cards – the forbearers to modern store cards – that were only usable at the particular business that issued them.
Those products paved the way for the first true credit cards – the Diners Club charge card in 1950 and the BankAmericard charge card in 1958. Unlike all previous credit products, these cards could be used at multiple merchants. They still were limited compared to credit cards today, though. They were only usable for travel and entertainment purchases, and cardholders had to pay the bill in full each month.
The History of Credit-Card Modernization
Invention of plastic credit cards: American Express was the first issuer to offer a plastic card, beginning in 1959.
Introduction of revolving balances and general-purpose use: BankAmericard introduced the concept of carrying a balance from month to month in 1958. Then, in 1966, they upped the ante even further by offering the BankAmericard nationally as the first general-purpose credit card.
Development of competing credit card networks: Along with Diners Club in 1951 and BankAmericard in 1958, American Express offered its first credit card in 1958. Mastercard was founded several years later, in 1966, and BankAmericard turned into Visa in 1976 after splitting off from Bank of America. Discover joined the game relatively late in 1985.
Magnetic stripe technology: In the 1960s, IBM developed magnetic stripe technology, which could be used for electronic card verification at merchants. American Express used this technology on certain airline cards as early as 1970, but it wasn’t until 1980 that this technology began rolling out on credit cards from the other major networks.
Credit card rewards: The Discover Card introduced the concept of giving cash back on purchases in 1986, and the practice became more common from the 1990s onward. Other types of credit card rewards have also developed, as many cards offer points or miles.
EMV technology: The EMV chip in your credit card helps keep transactions more secure, as it’s more encrypted than a magnetic stripe and it creates unique transaction codes that can’t be used again. This technology was first used in the U.S. in 2010, but picked up quickly from 2015 onward when merchants were mandated to accept the technology or face liability for fraudulent transactions. Around 1.6% of all U.S. payment volume was on EMV cards in 2015, compared to 99% today.
Contactless payments: Since 2008, some credit cards have offered the ability to make contactless payments, without the need to insert a card into a reader. As of 2020, around 67% of merchants accept contactless payments.
Virtual credit card numbers: A technology introduced in 2009 lets you shop online using your credit card without actually exposing the card’s sensitive information. These virtual credit card numbers are a way to stay safe from identity theft and fraud in an age where there is a growing number of data breaches.
Use of credit explodes: Only 51% of households had a credit card in 1970, but that number has grown to 83% in 2021, which is a testament to how much Americans have embraced credit cards over time. We’ve seen monstrous growth even since the turn of the century, too. In 1999, there were around 365 million credit card accounts open. In 2020, there were over 511 million accounts. That’s around a 40% increase!
Our credit card debt has skyrocketed, too. In 2017, U.S. consumers hit $1 trillion in credit card debt for the first time, and despite some payoffs, we’ve stayed close to that number ever since. We currently owe more than $920 billion to credit card companies, or a bit over $7,800 per household.
The nature of credit cards clearly has evolved a great deal over time – and so has our use of credit.
Ask The Experts: Credit Cards Of The Future
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