Diners Club International, originally founded as Diners Club, is a credit card created in 1950 by Frank X. McNamara, Ralph Schneider and Matty Simmons. When it appeared, became the first independent credit card in the world.
The first charge the credit card was February 8, 1950 by Frank McNamara, Ralph Schneider and Matty Simmons in the main cabin’s Grill, a restaurant near their offices in the Empire State Building. McNamara was acquired two years later by department store heir Alfred Bloomingdale, who resigned after several years. Schneider died in the 60s. Simmons, resigned in 1967 to form a publishing company that became the National Lampoon. During this period of nearly 20 years, these four men were the only important actors in the operation of Diners Club.
Diners Club created what would later be called the “Travel and (entertainment T & E) card market, which has focused on frequent flyers with a substantial income to pay other charges of high value. Since these customers have to pay for purchases over time, these cards require that the entire balance of the invoice has been paid to the reception. This account type is now known as a credit card. Diners Club monopoly was short-lived, however such as American Express and Carte Blanche (who later, in partnership with Diners Club) began to compete with Diners Club in the T & E card market. now dominates the American Express Card “member” Arena, providing thousands of customers cards that require monthly balance is paid in full.
Diners Club also faced competition from banks who issued revolving credit cards through BankAmericard (later renamed VISA) and Interbank Mastercharge (later renamed MasterCard) in late 1960. Diners Club began very early for the Diners Club franchise name, first in Europe and around the world for many years, eclipsing the BankAmericard or Mastercharge Interbank networks abroad. Amoco gasoline also issued its own co-branded credit card Diners Club for a limited time, American Torch Club, and Sun Oil Company with its version called Sun Diner’s Club.
Diners Club International, the franchisor who owns the rights to the Diners Club brand was acquired in 1981 by Citibank, a division of Citigroup, and many of the biggest franchises in the world, although most of its franchises abroad remain independen Diners Club.