By Suzanne Norquist
“Cash is
king.” That’s what people used to say. However, no one carries cash anymore.
Cashless transactions have historically served several purposes. First, no one wants to bring a wheelbarrow full of money for large expenditures. It’s easier to simply track their value. Secondly, it’s easier to consolidate several small purchases into one bill and settle up in a lump sum. Finally, a credit card lets someone borrow money and pay off the debt over time.
None of these
is a new phenomenon. Ancient Mesopotamians tracked transactions on clay tablets instead
of managing large sums of money. Some consider these tablets to be the
precursor to modern credit cards. (We
track spending on tablets today, but it’s a whole different kind of tablet.)
Alternatively, the tally stick in medieval Europe could be considered the first credit card (or credit stick). Tally marks were carved into a stick to represent the amount owed. The creditor would carefully split the stick down the middle. This created two identical records, one for the creditor and one for the debtor. The two could be matched up later when the debt was paid. This provided a tamper-proof accounting system. It also worked well for an illiterate population.
It wasn’t unusual for individual merchants to offer credit to good customers. By the mid-1800s, businesses offered charge coins to customers to make shopping easier. The coin might contain the store’s name and the customer account number. Some had a hole in the metal to make it easy to carry on a key ring. Purchases made using these coins typically needed to be paid off monthly.
By 1928,
companies could issue Charga-Plates, about the size of a military dog tag
(about 2 ½ by 1 ½ inches). A raised imprint could be pressed onto the receipt
to transfer information.
Occasionally, stores would team up, with several accepting a single Charga-Plate. Or an enterprising banker would make an agreement with several merchants to accept a single token for purchases. In 1946, John Biggins, a Brooklyn banker, came up with the Charg-It card for local bank customers to use.
Diner’s Club
is recognized as offering the first widely accepted credit card in 1950. The
card was made of cardboard. Legend has it that New York businessman Frank
McNamara forgot his wallet one evening when he took clients to dinner. That
sparked the idea. One card could be used at numerous restaurants and paid off
monthly. The card grew from there.
In 1958,
BankAmericard issued the first credit card we would recognize today. That same
year, American Express issued its first charge card, which was purple
cardboard.
American Express started as a shipping company in 1850. Over time, it branched into business services and travelers’ checks. The charge card was a logical step as the company transformed into a financial services business.
Over time,
other banking companies offered credit cards, and the industry grew into what
we know today. Swipe. Tap. Pay by phone.
One fun legend involves the magnetic strip. In the 1960’s, Forrest Parry, an IBM engineer, was trying to figure out a way to attach a magnetic strip. His wife, who was ironing at the time, suggested ironing the tape to the card. He took her advice, and now, we can swipe.
Today, I
don’t need to carry cash at all. I can Charrrge It, as Wilma Flintstone and
Betty Rubble would suggest.
***
Love In Bloom 4-in-one collection
“A Song for Rose” by Suzanne Norquist
Can a disillusioned tenor convince an aspiring soprano that there
is more to music than fame?
“Holly & Ivy” by Mary Davis
At Christmastime, a young woman accompanies her impetuous younger
sister on her trip across the country to be a mail-order bride and loses her
heart to a gallant stranger.
“Periwinkle in the Park” by Kathleen E. Kovach
A female hiking guide, who is helping to commission a national
park, runs into conflict with a mountain man determined to keep the government
off his land.
“A Beauty in a Tansy”
Two adjacent store owners are drawn to each other, but their older
relatives provide obstacles to their ever becoming close.
Republished from Bouquet of Brides
Buy
links: https://books2read.com/u/bOOx8K
https://www.amazon.com/Love-Bloom-Mary-Davis/dp/B0FPLFYCXR/
Multi-published author, Suzanne Norquist, has worked as a chemist, professor, financial analyst, and even earned a doctorate in economics. Everything fascinates her. Research feeds her curiosity, and she shares the adventure with her readers. She lives in New Mexico with her mining-engineer husband and takes road trips to visit her children and grandchildren. When not writing, she hangs out with her two active Siberian Huskies, takes piano lessons, and studies the Bible with the church ladies.