Credit Card Facts you Probably Do Not Know

Here are a few credit card facts you most likely didn't know:

•             In 1950, Diners Club became the first company to provide a credit card that could be used at multiple locations. Initially the credit card was accepted at just 14 restaurants in New York. Nevertheless, inside a year, greater than 20,000 people were using it.

•             Diners Club founder Frank X. McNamara came up with the concept one evening after eating at a restaurant -- and noticing he had forgotten his wallet.

•             By 1952, Diners Club had been accepted by 400 restaurants, 30 hotels, 200 car rental agencies and four florists. Even so, McNamara, thinking credit cards were only a fad, sold his share of the business that year for $200,000 -- equal to roughly $1.6 million today.

•             Unfortunately for McNamara and his heirs, credit cards weren't a fad. Around the world, there are now 10,000 credit card transactions made every second.

•             Today, Americans have an astounding 609.8 million credit cards in their wallets. If all those cards were stacked up, they would produce a tower 288 miles high.

•             In 1958, Bank of America launched the initial general-purpose credit card by mailing 60,000 real BankAmericard credit cards to the good people in Fresno, Calif. That unsolicited credit card "drop" was the brainchild of bank employee Joseph P. Williams.

•             By October 1959, 2 million unrequested Bank Americards had been "dropped" throughout California. Unfortunately, the loose lending standards imposed by Williams' innovative marketing strategy led to more than one of every five accounts being delinquent. Credit card fraud caused even more difficulties for the bank. As a result, Bank of America initially lost $8.8 million on the start of its new credit card -- and Williams lost his employment.

•             In case you're wondering, the first BankAmericards were made of paper and had a credit limit of $300. The conditions and terms also held the cardholder liable for all charges -- including those resulting from fraud.

•             Today, federal law states that your maximum liability for unauthorized credit card use is $50 per card -- and $0 for any charges that accrue after you report a card lost or stolen.

•             Speaking of fraud, MasterCard introduced the first credit card hologram in 1983 to help thwart counterfeit credit card operations.

•             In 1976, BankAmericard changed its name to Visa. It wasn't the only credit card to rebrand itself: Until 1979, MasterCard was known as MasterCharge.

•             American Express introduced the first credit card made of plastic in 1958. Additionally, it introduced the initial credit card made of anodized titanium: the highly exclusive Centurion card (informally referred to as Black Card).

•             Before you get any bright ideas, keep in mind that on top of the annual $2,500 fee, American Express' Centurion card also has a one-time initiation fee of $5,000.

•             As far back as the mid-19th century, and up until the modern times credit cards first appeared, high-end merchants issued "charge coins" to their best customers. These coins, usually made of metal, were only available in many different shapes and sizes, and several also had holes that allowed them to be placed on a key chain. The charge coins also had a exclusive client identification number stamped onto them.

•             While charge coin identification numbers were usually no bigger than five or six digits, most credit cards today have 16. The first digit in the string is an identifier that denotes the type of industry that issued the card:

o             1 and 2 are for air carriers.

o             3 is for travel and entertainment.

o             4 and 5 indicate a banking or financial institution.

o             6 is for merchandizing and banking.

o             7 is petroleum, or the gas card.

o             8 is for telecommunications.

o             9 is for other assignments.

•             Although the first six digits of your credit card number are known as the issuer identification number, you don't need all six digits to necessarily tell what type of card you have. For instance, cards that begin with 34 or 37 are American Express. Visa cards begin with a 4, and MasterCards start with numbers between 51 and 55. Regarding Discover cards, they start with 6011.

•             Digits 7 through 15 make up your own personal credit card account number.

•             Here's another math trick: Should you have a credit card balance of $2,500 with an interest rate of 18%, and only make minimum payments equivalent to the interest for the month plus 1% of the balance, it will take you 17 years to repay it at a total cost of $5,673.22. Obviously, that's only true if you also cut up the card and never use it again. I bet the credit card companies wish you didn't know that.