50 YEARS OF CREDIT ON CARDS

In 1888, author Edward Bellamy imagined America as a "cashless cooperative."

In his utopian fantasy novel, "Looking Backward from the Year 2000 to 1888." Bellamy wrote that every citizen in 2000 will have "a credit card issued to him/her, which can be used to procure products at public storehouses found in every community."

The America public could have whatever it desired using points from the credit card.

Each year, new points would be added to the card.

People worked in Bellamy's fantasy novel, but everyone was equal.

This is the year 2000. And much of Bellamy's writings from 112 years ago has come true an era of "No cash? No Problem" is here.

Today, the number of people with at least one credit card has grown to 157 million Americans, close to the adult population of some 200 million, and Americans, says CardWeb.com Research, owe about $550 billion on bank and store credit cards.

The term "credit card" existed a century ago, but only in Bellamy's novel.

It wasn't until 62 years later, in 1950, that the credit card as we know it today was born. A young World War II veteran named Frank McNamara created the Diners Club Card.

In 1949, McNamara was entertaining a business acquaintance in a restaurant called Major's Cabin Grill in Manhattan.

When the waiter presented the bill, McNamara reached for his wallet. Oops. He had left the wallet in another suit. McNamara smoothed over the situation, writing sort of an IOU on a card.

This incident may or may not have happened, but what did happen the next year was that McNamara, a man with many ideas, founded the Diners Club, providing the first such "credit card," which could be used a number of restaurants.

The idea of creating a charge card was just one of McNamara's many ideas, and he got it going by persuading about 20 restaurants to accept from customers a small cardboard card instead of cash from customers. In return Diners Club sent out bills and kept 7 percent of the take.

The plan was an instant hit. Within two years, more than 150,000 cardholders were signing Diners Club tabs.

Competition developed in 1958 when American Express offered charge accounts nationwide. A year later, American Express offered a plastic card.

At this time, all cards had to be paid in full monthly.

The kind of credit card that dominates today started was started in California in 1958, when the Bank of America's BankAmericard introduced a plan where cardholders could pay their bill either in full or with interest in installments.

The BankAmericard spread across the country and in 1976 became Visa card, the leading credit card in the world today.

Visa has more than 685 million cardholders, and is accepted at more than 17 million locations throughout the world. Second on the list is MasterCard, with 392 million card holders. MasterCard is excepted at 16 million locations throughout the world.

Actually, credit cards existed as early as the 1920s. A chain of California gasoline stations was giving customers the "General Petroleum Credit Card" in the 1920s, for use at its group of stations. During the 1930s and 1940s, hotels and departments issued cards to their customers.

But it was McNamara with the founding of the Diners Club in 1950 that provided the first card honored at many different establishments. The story of McNamara's "The First Supper" that led to the credit card idea has been revealed as a hoax, and was fabricated to "glamorize" McNamara's endeavor.

McNamara, after two years in the credit card business, sold his Diners Club interest and went into real estate. He died in 1957 of a heart attack at the age of 40.

McNamara has been listed by Life Magazine as one of the "100 Most Influential Men in America."

The credit card industry today is one of ATM cards, check cards, debit cards, smart cards, department store cards, gas cards and gift cards.

Some offer a number of inducements -- frequent-flier miles, discounts on merchandise, etc.

Cardholders increased more than 25 percent in the United States during the 1990s, from 122 million in 1990 to 157 million this year. Many Americans' wallets are full of plastic cards. Some have a number of different credit cards. Toss in driver's license, Social Security cards, passport cards, and Americans have more than 1.5 billions plastic cards.

It may be difficult to think of a world totally without money.

But the earliest human societies did not need money. At one time, goods were bartered or traded. Bartering is primitive, but it still goes on.

But that's another story.

HISTORY OF THE CREDIT CARD

February, 1950: Businessman Frank McNamara dines out, tries settling his bill using a small cardboard card that he signs for. It works. McNamara later founds Diners Club, offering first charge card to 200 people, good in 14 Manhattan restaurants. Balances must be paid in full each month.

March, 1951: Diners Club has 42,000 people carrying the card (still made of paper). It is accepted by 330 businesses and eight car rental agencies. Membership coast $3 a year.

April, 1952: Franklin National Bank of New York introduces the first bank credit card that allows people to buy now and pay later.

1958: American Express charge card is launched. By year's end, the company claims 250,000 card holders, paying $6 a year.

1959: American Express introduced first plastic charge card.

1979: MasterCard is launched.

January, 1986: Discover card launched, owned at the time by retailer Sears Roebuck & Co. . Claims 12 million holders by year's end. Discover now owned by big brokerage firm, Morgan Stanley Dean Witter & Co.

1987: U.S. Airlines offer credit cards to their frequent fliers, who can accumulate bonus miles by using the cards.

February, 2000: The number of people with at least one card has grown to 157 million Americans, close to the adult population of some 200 million.

COUNTING THE CREDIT CARDS

Visa: 688 million people. Cards accepted at 17 million locations worldwide.

MasterCard: 392 million people, good at 16 million locations worldwide.

Discover: 48 million people, good at 4 million locations worldwide.

Diners's Club: 8 million people at 5 million locations worldwide.

American Express: 4 million people, good at 4 million locations worldwide.