Charge-It

Following World War II our country’s economy was booming and confidence in the banking system had been restored with the memory of the Great Depression in the past. In order to facilitate financial transactions a better and safer method had to be developed to allow customers transfer money from their accounts to a merchant. The result in 1946 was the Charge-It card, the world’s first bank card.

The Charge-It card was the brainchild of Brooklyn-based Flatbush National banker John Biggins. The card originally was conceived as an experiment with an easier way to extend credit to their customers. When a purchase was made the bill was forwarded to Biggins’ bank who would pay the merchant and then bill the customer. Sounds familiar right? The card could only be used by Biggins’ customers and usage was confined to the Brooklyn area, a minor irritation for sure. Within five years another New York area bank, the Franklin National Bank, began issuing a credit card to qualified customers to help speed up the loan process. That card also was confined to the New York City area.

The Charge-It card proved to be a huge success but unlike many other great local innovations a national copy-cat was not lurking. American Express considered a bank card for its customers as early as 1946 but decided against it. While a Diner’s Club card was similar (more on that in the future) it was not the same thing and it would not be until the BankAmericard was released by what would become Visa in 1958 that the credit card would go national. Sometimes a great idea just needs to prove itself it seems.