Credit cards were invented because of this one mistake.
Credit cards were invented because a businessman forgot his wallet.
The modern credit card may not exist if it weren’t for a businessman who forgot his wallet more than 75 years ago. In 1949, Frank McNamara was dining with clients at Major’s Cabin Grill in New York City, when he realized he didn’t have any cash on him and couldn’t pay. Accounts differ about whether McNamara’s wife came to his rescue or he simply promised to pay the restaurant back later. In either case, he was reportedly determined never to allow this embarrassing situation to occur again and began brainstorming new ways for people to pay if they also found themselves cashless.
With the help of lawyer Ralph Schneider, McNamara conceived of a company called the Diners Club, which issued pocket-sized cardboard credit cards featuring details such as a person’s name, address, and membership number. The idea was for members to use the cards at participating restaurants, each of which kept track of a running personal monthly tab connected to each card. While the concept of a running tab wasn’t new, this was the first card that could be used at an array of businesses instead of one establishment. At the end of each month, each eatery would tell the Diners Club how much debt was owed, and the company would collect money from its members and send the necessary amount to each restaurant, minus a processing fee.
The service made its debut on February 8, 1950, when McNamara returned to Major’s Cabin Grill for a dinner that Diners Club International now refers to as the “First Supper.” At the end of the meal, McNamara provided his charge card and signed his name, serving as proof of purchase. The Diners Club became an immediate sensation, amassing more than 330 participating businesses and 42,000 card holders within a year.
Credit cards were invented because a businessman forgot his wallet.
The modern credit card may not exist if it weren’t for a businessman who forgot his wallet more than 75 years ago. In 1949, Frank McNamara was dining with clients at Major’s Cabin Grill in New York City, when he realized he didn’t have any cash on him and couldn’t pay. Accounts differ about whether McNamara’s wife came to his rescue or he simply promised to pay the restaurant back later. In either case, he was reportedly determined never to allow this embarrassing situation to occur again and began brainstorming new ways for people to pay if they also found themselves cashless.
With the help of lawyer Ralph Schneider, McNamara conceived of a company called the Diners Club, which issued pocket-sized cardboard credit cards featuring details such as a person’s name, address, and membership number. The idea was for members to use the cards at participating restaurants, each of which kept track of a running personal monthly tab connected to each card. While the concept of a running tab wasn’t new, this was the first card that could be used at an array of businesses instead of one establishment. At the end of each month, each eatery would tell the Diners Club how much debt was owed, and the company would collect money from its members and send the necessary amount to each restaurant, minus a processing fee.
The service made its debut on February 8, 1950, when McNamara returned to Major’s Cabin Grill for a dinner that Diners Club International now refers to as the “First Supper.” At the end of the meal, McNamara provided his charge card and signed his name, serving as proof of purchase. The Diners Club became an immediate sensation, amassing more than 330 participating businesses and 42,000 card holders within a year.
Credit cards were invented because of this one mistake.
Credit cards were invented because a businessman forgot his wallet.
The modern credit card may not exist if it weren’t for a businessman who forgot his wallet more than 75 years ago. In 1949, Frank McNamara was dining with clients at Major’s Cabin Grill in New York City, when he realized he didn’t have any cash on him and couldn’t pay. Accounts differ about whether McNamara’s wife came to his rescue or he simply promised to pay the restaurant back later. In either case, he was reportedly determined never to allow this embarrassing situation to occur again and began brainstorming new ways for people to pay if they also found themselves cashless.
With the help of lawyer Ralph Schneider, McNamara conceived of a company called the Diners Club, which issued pocket-sized cardboard credit cards featuring details such as a person’s name, address, and membership number. The idea was for members to use the cards at participating restaurants, each of which kept track of a running personal monthly tab connected to each card. While the concept of a running tab wasn’t new, this was the first card that could be used at an array of businesses instead of one establishment. At the end of each month, each eatery would tell the Diners Club how much debt was owed, and the company would collect money from its members and send the necessary amount to each restaurant, minus a processing fee.
The service made its debut on February 8, 1950, when McNamara returned to Major’s Cabin Grill for a dinner that Diners Club International now refers to as the “First Supper.” At the end of the meal, McNamara provided his charge card and signed his name, serving as proof of purchase. The Diners Club became an immediate sensation, amassing more than 330 participating businesses and 42,000 card holders within a year.
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