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Modern credit cards represent intricate and highly refined history, much of it aimed at protecting consumers against fraud. It is now used by millions of merchants worldwide.Įach of these networks had one goal: to fulfill the consumer’s need to access funds immediately without having to rely on cash. The card grew rapidly in a short period of time. Sears first released the Discover Card in 1985 as a way to expand into the financial market. The smallest of the four major card networks is Discover Card. American Express is currently the third-largest card network on the globe. Fun fact: These primitive cards were made from paper. In 1958, American Express issued its first consumer charge card. By the 1950s, it had grown drastically and expanded into the financial sector. Today this is the second-largest card network in the world.Īmerican Express’s origin story began in 1850 as a small freight forwarding company. In 1979, the card changed its name and became known as Mastercard. Mastercard, known at the time as “Interbank,” appeared in 1966. By 1974 BankAmericard had expanded into international markets and in 1976 it became known as “Visa Inc.” Small banks responded to Bank of America’s trial balloon, embracing the concept. But by the mid-60s it had turned around, amassing major profits. The first and largest network was originally called the “BankAmericard.” Established in 1958 by Bank of America in an effort to offer a credit product geared toward consumers rather than toward businesses, initially the card flopped. You know them: Visa, Mastercard, American Express and Discover.

Four major credit card networks dominate global markets. A credit card is a powerful tool issued by a financial institution such as a bank or credit union allowing you to borrow funds.įinancial institutions use a third-party company called a credit card network to facilitate communication between the terminal of payment and the issuing bank. Yes, even the shape and the substance of the card itself. The Four Major Credit Card Networks: A Brief HistoryĪ credit card is more than a rectangular slip of plastic and metal.