As remote payment terminals and online shopping have got more than usual nowadays, we often think that credit card processing has always been something easy. Remembering the time when merchants used to take card imprints through machine is not easy. Though that time has gone now, it makes sense to discover from where the industry emerged, as it will help to know everything merchant services can offer.
Using non-cash when it comes to purchase is in practice since years. The very first instance happened in the year 1914, as it was then when Western Union gave a metal card to employees in place of a paycheck. Though it was meant only to purchase the goods at selected stores, it was the first way to use plastic or metal.
Credit Card Processing For Everyone
In 1946, things expanded further towards an even open system. Until before, it was referred to as “Charg-It”. It made customers able to buy items at the local retail stores. Retailers used to deposit the charges at a bank, after which the institution used to reimburse the merchant. But the actual credit card was nowhere in the scene until the 1950s. This was the time when Diners Club launched the world’s very first Travel and Entertainment card. By the year 1951, the card boasted 20,000 Diners Club holders. After this, American Express, in 1959, stepped in with the first card which was made of plastic. This was the real time when things turned serious.
The way in which cards were processed expanded and bank conglomerations were created to honor the same card. However, during this time, credit card processing was paper-based. This changed in the 1970s.
Beginning Of Electronic Payment Systems
Paper-based systems are expensive. Emerging players started investing in an electronic authorization process. During the time of early 1970s, this happened through a phone inquiry to a call center to confirm the available funds. But the major breakthrough happened in 1975, as it was during this year, National BankAmericard, Inc. (NBI) not only introduced but updated the electronic authorization system.
Visa introduced electronic data capturing POS system in 1979. The same year, major credit cards introduced magnetic information stripe. There were a number of streamlined POS advancements but in 1994, Lipman Electronics Engineering, Ltd. built modern credit card processing. This year, the company uncovered the first wireless terminal, which then changed the face of payments and processing for once & all.
From initial charge cards to manual imprint machines and wireless credit card processing, there have been continuous changes and growth. If you also dream success through sales & customers, credit card processing for small business and large business is the way to go.