Visa

1814 snips

Nov 27, 2023

Discover the intriguing origins of Visa, from its inception as the Bank AmeriCard to a global payment powerhouse. Uncover the complexities of its business model and the role of interchange fees, impacting both merchants and consumers. Explore how credit cards revolutionized banking and societal perceptions over decades. Learn about Visa's technological evolution and its strategic responses to challenges, including competition from tech giants like Apple. Dive into the fascinating interplay of collaboration among rival banks that shaped Visa's journey.

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ANECDOTE

The Fresno Drop

In 1958, Bank of America mailed 65,000 unsolicited credit cards to Fresno residents.
This "Fresno Drop" caused chaos, fraud, and high default rates, but ultimately became a pivotal moment in credit card history.

INSIGHT

Bundling Convenience and Credit

Bank of America's early credit card bundled convenience and credit, transforming lending practices.
This innovation streamlined lending, allowing in-house capital retention and reducing operational costs.

ANECDOTE

Diners Club's (False) Origin

Diners Club's origin story involves a businessman, Frank McNamara, forgetting his wallet at a dinner.
This led to the idea of a charge card network, though the story is fabricated; McNamara saw a business opportunity.

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