At the macro level, there are 2 sides of the credit card industry: the card issuing side merchant acquiring side. To many people, the process behind credit card processing is a mystery, but it is relatively simple. This process became known as Electronic Draft Capture. This changed the way credit cards were approved before the purchase, and resulted in faster checkouts for the merchant, more secure transactions for the banks, less inconvenience for the customer. When queried, the computer would respond with approved or declined. The computer housed all of the negative records of credit card accounts. In the mid 1980s it became possible to send information over a telephone line to a central computer and receive a response back within seconds through the invention of modems and simple point-of-sale equipment. All this changed as the US ushered in the age of electronics. And in the next decade, BankAmericard separated from Bank of America entirely and became Visa.Ĭredit card transactions in the 70’s and 80’s were recorded on carbon paper sales drafts that were later deposited at the bank. An alliance of banks banded together to form the InterBank Card Association (ICA), which we now know as MasterCard. Many competing banks that began to issue credit cards of their own realized that if the credit card were to be accepted on a much larger scale, they needed to persuade merchants to accept more than one major card. In the early 1960s, the credit card industry felt a seismic shift. With the help of his partner and friend Ralph Schneider, he created the Diners Club card, which is now seen as the first widespread “credit” card.Įventually, the first credit card that could be used for a wider range of purchases-called the BankAmericard-began to be issued state-by-state by Bank of America in California. His wife came to the rescue and paid the bill, but this experience led him to invent a new way of making purchases. Frank McNamara, as the story goes, found himself in a relatable, if embarrassing predicament one night during a business dinner at New York’s Cabin Grill: he had forgotten his wallet. These cards are widely seen as precursors to modern credit cards.įast forward just a few short years later in 1949, which is seen as the birth of the traditional credit card. There were many caveats to these cards as well, including a limit on the location where they could be used, a customer needed to have an account at the bank which the merchant used to utilize the credit, and they were only valid in the stores which issued the cards. The History of Credit CardsĮarly “proto”-credit cards-made of cardboard, paper, or celluloid-were mainly used to build customer loyalty at the specific companies that issued the cards. Supported by a secure, tier 1 data hosting facility, PTC’s authorization network accepts Visa, MasterCard, Discover and American Express – as well as various national and regional debit cards – and delivers a versatile and efficient donation processing solution. DEBIT CREDIT CARD PROCESSING SOFTWAREThis includes a robust credit and debit card processing service that provides a PCI-compliant, single-source solution compatible with a wide range of software and data management systems. Paperless Transaction Corporation’s core service is the authorization, clearing and settlement of financial transactions.
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