Fascinating Facts About Credit Cards You Didn’t Know

Frank McNamara, the creator of the first credit card thought that credit cards were just a fad. Hence, he sold his share in Diners Club. But by the mid-1960s, Diners Club had 1.3 million cardholders and was freely accepted across the globe.

Other Credit Card Facts

The first credit card can only be used in New York dining establishments. The creation of credit card was conceptualized when McNamara had changed suits before going to a restaurant and left his wallet in his other suit. This scenario made him think about how useful it is to have a card people can use instead of cash. Hence, the Diners Club card was born. However, it could only be used at 28 restaurants and 2 hotels in New York.

A credit card can be validated by adding its numbers. The Luhn algorithm, which is a simple checksum, can be used to check the validity of a credit card. Starting from the right, you must double each other digit on your credit card. Add the doubled digits to the ones you did not double. Take note that when you have a double digit number like 15, use the sum of its digits. For example, 15 is 1+5=6. It is a valid number when the total sum is divisible by 10.

You can identify the type of industry that issued the card by the first 2 digits on your credit card identification number. For CC number starting with a 1 or 2, it was issued by an airline. Number 3 is for companies in the entertainment and travel industry. Numbers 4 and 5 are for banking institutions. Number 6 is for banking and merchandising. Number 7 is for gas cards. Number 8 is for telecommunication companies while Number 9 is for national assignments.

Trivia Info Resource: www.business.hsbc.ae