Which U.S. bank issued the first general-purpose credit card in 1958?

The U.S. bank that issued the first general-purpose credit card in 1958 was Bank of America. Its BankAmericard launched in California and became the foundation of today’s Visa network.

The program’s landmark test was the “Fresno drop,” when Bank of America mailed roughly 60,000 unsolicited cards to residents of Fresno. Unlike store-specific charge accounts, BankAmericard could be used at many participating merchants and offered revolving credit, allowing customers to carry balances rather than paying the entire bill immediately.

The launch was innovative but troubled. Fraud, duplicate cards, unpaid balances and public criticism created serious early losses. Bank of America nevertheless expanded the program, and other banks eventually joined a licensing network. BankAmericard changed its name to Visa in 1976.

Diners Club had introduced an earlier widely used charge card in 1950, but it was designed mainly for travel and entertainment and generally required full payment. That distinction is why Bank of America receives the credit for the first modern general-purpose credit card.