Which bank was the first to issue a credit card in the United States in 1958?
Answer
Bank of America
Which bank was the first to issue a credit card in the United States in 1958? Bank of America was the answer.
On September 18, 1958, Bank of America launched BankAmericard in Fresno, California. The program was designed as an all-purpose revolving credit card, allowing customers to make purchases and repay balances over time. Its launch began with a mass mailing of 65,000 unsolicited cards, an unusually bold experiment for the era.
The program faced serious early problems. By late 1959, delinquency was far higher than expected, fraud was widespread, and Bank of America had lost millions of dollars. Nevertheless, the bank tightened controls, made the program profitable by 1961, and began licensing it to other banks in 1966.
A common mix-up is Diners Club, introduced in 1950. Diners Club was an important early charge card, but customers generally had to pay the balance in full each billing cycle. BankAmericard became the foundation of today’s Visa network after being renamed Visa in 1976.