The modern world runs on credit card processing, making it essential to understand the history of this technology. As technology advances, so does the convenience and security of credit card processing, allowing you to make payments easily and confidently.
Let’s journey through time to explore the evolution of credit card processing:
The Early Days of Credit Cards
In the latter part of the 20th century, credit cards saw a dramatic increase in popularity in the United States (US). This popularity was due to the creation of card copy sliders, allowing businesses to track and charge customers’ purchases quickly and easily.
At the same time, banks provided more access to credit cards with attractive benefits. This combination of technology and financial incentives helped to expand the use of credit cards in the US rapidly.
Economic Growth in the 1970s
From the 1970s onwards, increased credit card usage boosted the US economy in several ways. Credit card purchases encouraged people to spend more on goods and services, providing cash into the economy.
Credit cards also allowed businesses to offer better customer service, as customers no longer had to wait for payment. This helped to attract more customers and further increase sales.
The 1980s: Introduction of Debit Cards
The 1980s saw a surge in electronic payment points, prompting the launch of the UK’s first debit card, Barclays Connect, by Barclays in 1987. Within nine months of its launch, one million of these cards had been issued, and debit cards have been a popular payment method ever since.
Unlike credit cards, debit cards draw money directly from a person’s current account and can be used in-store, and via mobile wallets for mobile payments. Debit cards are usually considered the cheaper alternative to credit cards but can still incur fees such as overdraft fees and ATM fees.
Work With the Credit Card Experts
K and B Solutions has years of experience and vast knowledge of the credit card processing industry and POS systems. Our team works with each customer to develop tailored plans to meet their needs. Contact K and B Solutions today to start taking control of your payment processing system.