Information AboutDiners Club |
| CATEGORIES ABOUT DINERS CLUB | |
| citigroup | |
| credit cards | |
| payment systems | |
| companies established in 1950 | |
Diners Club International, originally founded as '''Diners Club''', is a 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 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 Restaurant s 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 . Diners Club created what would later be dubbed the Travel & Entertainment (T&E) card market, which focused on cardholders who were frequent travelers and had a substantial income to pay for other high-value charges. As these customers had no need to pay for purchases over time, these cards required that the entire balance of the bill was paid upon receipt. This type of account is known today as a Charge Card . Diners Club's monopoly was short-lived, however, as American Express and Carte Blanche began to compete with Diners Club in the T&E card market. Diners Club also faced competition from banks who issued Revolving Credit cards though BankAmericard (later renamed VISA ), and Interbank MasterCharge (later renamed MasterCard ) towards the end of the 1960s. Diners Club began early on to allow franchises of the Diners Club name in first in Europe and later throughout the world, for many years eclipsing the BankAmericard or Interbank MasterCharge networks abroad. Amoco Gasoline also issued its own co-branded Diners Club cards for a time. Diners Club International, the franchisor that holds rights to the Diners Club trademark, was acquired in 1981 by Citibank, a unit of Citigroup , as well as many of the largest franchises worldwide, although a majority of its franchises abroad remain independently owned. logo]] MASTERCARD ALLIANCE In 2004 , Diners Club announced an agreement with MasterCard . Diners Club cards issued in the United States and Canada now feature a MasterCard logo and 16-digit account number on the front, and can be used at the millions of locations that accept MasterCard. Cards from other countries continue to bear a 14-digit account number on the front, with the MasterCard logo on the back. CARTE BLANCHE Carte Blanche originated as a Travel & Entertainment (T&E) card owned by 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. ENROUTE See Also: enRoute (credit card) Diners Club expanded its customer base in Canada by acquiring the enRoute 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. SEE ALSO EXTERNAL LINKS
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