This Day In Market History: Diners Club Issues First Credit Card

Each day, Benzinga takes a look back at a notable market-related moment that occurred on this date.

What Happened? On this day in 1950, Diners Club issued its first credit cards.

Where The Market Was: The Dow finished the day at 217.61. The S&P 500 traded at 18.18.

What Else Was Going On In The World? In 1950, North Korea’s invasion of South Korea marked the beginning of the Korean War. The first “Peanuts” comic strip was published by featuring classic character Charlie Brown. The average price of a new house was $8,450.

The Launch Of Travel And Entertainment Credit Cards: The Diners Club credit card launch was relatively modest. The company began by offering cards to just 200 people, most of which were friends and family of employees. The first card was accepted in just 14 restaurants around New York.

The idea behind the card came during a night when founder Frank McNamara left his wallet in another suit when dining with clients and his wife was forced to pick up the tab.

Diners Club has 20,000 members by the end of 1950 and 42,000 members by the end of 1951.

Competitors like American Express Company AXP soon caught on to the power of the travel and entertainment credit card concept and launched their own cards. McNamara sold his stake in the company for $200,000 in 1952.

Discover Financial Services DFS acquired Diners Club International for $165 million in 2008.

Photo credit: Hitomi, Wikimedia