Diners Club International

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Diners Club International ( DCI ), established as Diners Club , is a credit card company owned by Discover Financial Services. Formed in 1950 by Frank X. McNamara, Ralph Schneider, Matty Simmons, and Alfred Bloomingdale, it was the first independent credit card company in the world, and established a self-owned enterprise concept that manufactures credit cards for travel and entertainment. Diners Club International and its citizens serve individuals from around the world with operations in 59 countries.

Video Diners Club International

Origins

The idea for the Diners Club was conceived at the Majors Cabin Grill restaurant in New York City in 1949. One of Diners Club's founders, Frank McNamara was dining with clients and realized he had left his wallet with another suit. His wife paid the tab, and McNamara thought of the multipurpose charge card as a way to avoid the same shame in the future. He discussed the idea with the restaurant owner at the table, and the next day with his lawyer Ralph Schneider and Alfred Bloomingdale's friend.

McNamara returned to the same restaurant the following February, in 1950, and paid for his food using cardboard and signing cards. The story became famous, the official history of the Diners Club refers to this food as "The First Supper" although, as stated below, some disputed accounts indicate that it is lunch, and credited. by historians as the beginning of contemporary credit. Different versions of the story about whether it was lunch or dinner where McNamara forgot his wallet, and whether the bill was paid on loan or McNamara waited for his wife to bring his wallet to him. Some journalists later praised Alfred Bloomingdale with the idea for the Diners Club.

McNamara and his lawyer, Ralph Schneider, founded Diners Club International on February 8, 1950, with $ 1.5 million in initial capital. Alfred Bloomingdale briefly joined, then started a competitive venture in California before combining Dine and Sign with the California-based Diners Club. Diners Club International is named as a "visitor club" that will allow customers to settle their bills at the end of each month through their credit account. When the card was first introduced, the Diners Club listed 27 participating restaurants, and 200 of its founding friends and acquaintances used it.

Diners Club had 20,000 members by the end of 1950 and 42,000 by the end of 1951. At that time, the company was filling out the participating companies of seven percent and charging the cardholders $ 5 a year. In 1952, McNamara sold flowers in the Diners Club to his partner for $ 200,000.

The first plastic Diners Club cards were introduced in 1961; in the mid-1960s, the Diners Club had 1.3 million card holders.

Diners Club International was acquired by Citigroup in 1981 and by Discover Financial Services in April 2008.

Maps Diners Club International

History

Monopoly Diners Club did not live long, as American Express and Carte Blanche (who later partnered with Diners Club) began competing with Diners Club in the travel and entertainment card market (T & amp; E). American Express now dominates the "membership card" arena, providing millions of customers with cards that require monthly balances to be paid off.

Toward the end of the 1960s, the Diners Club also faced competition from banks issuing revolving credit cards through Bank of America BankAmericard (later renamed Visa), and Interbank Master Charge (later renamed MasterCard). Diners Club began as early as possible to allow Diners Club franchise names, first in Europe and then around the world, for years over the BankAmericard or Interbank Master Charge network abroad. Beginning in 1968, the American Oil Company, better known publicly as Amoco, also issued, for a time, a Diners Club branded card called the American Torch Club (later renamed Amoco Torch Club), and Sun Oil Company released a version called the Card Sun Diner Club started in 1977.

In 1981, Citibank, a unit of Citigroup, acquired Diners Club International, the franchisor who holds the rights to the Diners Club trademark, and many of the largest franchises worldwide. Most overseas franchises remain independently owned.

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Franchise

International franchise

In a transaction settled July 1, 2008, Discover Financial Services purchased Diners Club International from Citibank for $ 165 million. The agreement was announced in April 2008 and approved by the US government in May 2008. By combining North America's Discover Network with the international Diners Club Network, Discover creates a global payment processing system. Discover Bank has no plans to issue a Diners Club branded card, which continues to be issued by Diners Club International license holders.

In 2011, Discover began putting its logo on the Diners Club card. Some payment processors, such as PayPal, can only process new Diners Club cards, with the Discover logo.

North American franchise

MasterCard alliance

In 2004, the Diners Club announced an agreement with MasterCard. Diners Club cards issued in the United States and Canada then display MasterCard logos and 16-digit account numbers on the front, and can be used wherever MasterCard is accepted. Cards from other countries continue to provide a 14-digit account number on the front, with MasterCard logo on the back. However, since the takeover of Diners Club International by Discover Financial Services, this card already has a Discover logo on the back.

Carte Blanche

Carte Blanche began in 1958 when Hilton Hotels travel & amp; the entertainment card was renamed. Hilton sold Carte Blanche to First National City Bank in 1966. The regulatory challenge forced First National City Bank to sell Carte Blanche to Avco in 1968. In 1978, Citicorp (parent company of First National City Bank renamed Citibank) regained Carte Blanche without the opposite rule. Carte Blanche cards of the 1960s and 1970s were considered more prestigious worldwide than their competition, American Express and Diners Club cards, although the small cardmember base hampered its success. Carte Blanche is the first to implement the "Gold Card" program, as a means of recognizing frequent card holders and paying bills on time. In 1981, Citicorp acquired the Diners Club card, and by the mid-1990s the Carte Blanche card was being removed for the sake of the Diners Club. The parent company Citigroup (also known as "Citi") was formed in 1998 with the joining of Citicorp and Travelers Group. Citi issued a premium Diners Club card in 2000, calling it a Diners Club Carte Blanche card. This is a top-level charge card equivalent to American Express Platinum Card. This card has an annual fee of US $ 300 per April 2015 and offers a variety of additional menus. Diners Club requires payment from the cardholder in full within 30 days; company account can pay in 60 days without penalty. In 2005, the classic Carte Blanche card was removed, and only the remaining Carte Blanche Club cards were left.

enRoute

Diners Club expanded its customer base in Canada by purchasing an enRoute credit card from Air Canada in 1992. It markets cards under the joint name for a specified period of time as "Diners Club/enRoute Card". The enRoute business is worth more than $ 300 million at the time of the acquisition. Diners Club remains a small player in Canada.

Acquisition by BMO

In November 2009, Citibank announced that the North American Diners Club International franchise had been sold to the Bank of Montreal (BMO). The agreement gives BMO the exclusive right to issue Diners cards in the US and Canada. At the time, BMO said the Diners Club fits perfectly with its commercial card business, adding that commercial cards are one of the fastest growing segments in the credit card business.

Russian

In December 2010, the Russian Standard Bank and the Diners Club International signed an agreement for the settlement of transactions in Russia. Under the agreement, Russia Standard Bank will process another bank settlement transaction acting as an acquisition of Diners Club in Russia.

Swiss and German franchise

In a transaction closed on August 6, 2010, Citibank sold Swiss and German franchises to a private investment group led by Anthony J. Helbling.

United Arab Emirates

Diners Club UAE UAE, Egypt, Lebanon and Jordan are owned and operated by a subsidiary of Network International of Emirates Bank.

English and Irish franchises

On August 7th, 2012, Citigroup, Inc. announced the sale of Diners Club franchises in the UK and Ireland to Affiniture Cards Ltd., a private investor group.

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Slovenian scandal

In 2013, Toma? Lov? E, which owns the Slovenian Diners Club, is one of three people investigated in Slovenia about the unpaid debt the franchise is owned by the merchant. In May, the Slovenian Central Bank revoked the Slovenian Diners Club license for payment services, meaning that 80,000 local members could not use their cards. Diners Club International transferred the franchise to a subsidiary of the Erste Bank Group of Austria, the Erste Card Club, and agreed to repay the franchise debt to the merchant. Erste's press release in August 2013 states that the Diners Club service is once again available in Slovenia.

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In popular culture

In 1963, the movie The Man from the Diner's Club was released, and The Ideal Toy Company created a gamed board titled Diners Club Credit Card Game .

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See also

• Diners Club Arena
• Hyundai Card

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References

src: www.dinersclub.com

External links

• Diners Club International
• Diners Club USA
• Diners Club Canada
• Find getting antitrust OK for purchase of Diners Club, Reuters

Source of the article : Wikipedia