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Diners Club International, originally founded as Diners Club, is the first credit card company formed in 1950 by Frank X. McNamara, Ralph Schneider and Casey R. Taylor. When it first emerged, it became the first independent credit card company in the world.
Foundation
While many stores and businesses were in the practice of extending credit to their customers, or allowing them to set up charge accounts, the revolutionary idea behind Diners Club was that the same card could be used to pay a variety of merchants. In 1950, the first Diners Club cards were given out to 200 associates of McNamara, mostly salesmen who often needed to dine with clients. Diners Club had signed up 14 restaurants in New York City. Membership grew quickly as both new customers applied for the card and more restaurants signed on. By the end of 1950, Diners Club had 20,000 customers and was accepted at over 1000 restaurants.
In 1952, McNamara sold his share of the company to Joe Williams of Archer City, Texas, and the company grew unabated for several years, eventually signing merchants all over the United States. Their monopoly was short-lived, however, as the more generalized American Express and BankAmericard (later renamed VISA) arrived towards the end of that decade. Amoco gasoline also issued its own co-branded Diners Club cards for a time.
Diners Club expanded its customer base in Canada by acquiring the en route Card from Air Canada in 1992, and marketed the card under the combined name for a period of time as the Diners Club/en route Card. Diners Club remains a minor player in Canada.
Today, Diners Club International is a part of Citibank, a unit of Citigroup, and has expanded its coverage to include all types of merchants instead of being limited to restaurants. The Diners Club U.S. and Canadian cards are now a part of the MasterCard network, meaning cardholders can use their cards at over 24 million locations worldwide.
Carte Blanche
Carte Blanche was a minor credit card that was acquired by Citibank and phased out of service. In 2000, the Carte Blanche name was revived when Diners Club, which was also acquired by Citibank, introduced an upscale version of its card: the Diners Club Carte Blanche Card. It is an upper-level charge card on par with the American Express Platinum card. The card carries a US$300 annual fee and offers an extensive menu of perks geared toward spendthrifty travelers. It is accepted wherever regular Diners Club cards are accepted. Although Diners Club requires payment in full within 30 days, corporate accounts can pay within 60 days without penalty.
See also
External links
Citigroup | Credit cards | Payment systems | 1950 establishments
"Diners Club"