Evolution of the Credit Card

January 17, 2017 by Stephen K. Troy in with 0 Comments

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It has been sixty years since Diners Club and American Express issued the first credit cards. It wasn’t until 1958 that Bank of America issued the Bank Americard that credit cards became accepted by the public and merchants alike. The success of the Bank Americard propelled American Express to new heights and forced several California banks in 1966 to collaborate to create their own card called Master Charge. This newest card eventually changed its name to MasterCard. This new competition forced Bank of America to put together their own member banks and rebranded as Visa


Before the introduction of credit cards, business travelers had to have their accounting departments issue travelers checks so employees could pay for hotel, airline and dining bills when on the road. Employees were forced to either carry a great deal of cash or hope that wherever they were traveling merchants would accept checks. Sometimes this required setting up individual accounts with each merchant, airline or hotel. These different forms of payment were a nightmare for road warriors, who had to spend hours filling out detailed expense reports and sorting receipts to get reimbursed for out of pocket expenses; not to mention what an expensive and inefficient headache it was for corporate accounting departments.  


Needless to say, the introduction of credit cards simplified the whole process, making corporate travel more efficient by allowing business travelers the ability to just say "charge it" when on the road or on corporate business. Credit cards also leveled the playing field for smaller competitors, allowing them to go to the same venues as their larger corporate rivals, knowing they had the same access to hotels, restaurants and clubs to entertain and meet with clients. 


The cost savings and benefit to corporations has been astounding. The issuing of credit cards saved businesses a bundle by cutting costs and labor in the accounting and travel departments. Credit cards also provided the much needed accountability, efficiency and safety corporations demanded. 


Not much has changed sixty years after the first mass market credit cards were issued, other than credit cards are in the hands of more consumers and are accepted by more retail merchants. For the past sixty years, commercial vendors, suppliers, manufacturers and service providers have been virtually overlooked… Until now. With new innovations in FinTech and the entrance of a new class of  Card Credit providers like AeroPay Express, businesses now have the ability to get the same convenience, efficiency and cost savings paying their supply chain vendors as they get from their corporate Credit Card. 


With 21st century innovation, it is now as easy to pay for a million dollars of commercial goods with a virtual credit card as it is to charge a $100 business dinner. It is now possible when you order that truckload of raw material to say "charge it" and even get paid for doing so. Buying commercial goods or paying for business services with a virtual credit card can be easier, more efficient and safer than buying a plane ticket. 


What are the advantages of paying for business and supply chain purchases on a virtual credit card?

Efficiencies, accountability and better vendor relations.  


Paying by credit card allows you to pay multiple vendors with one simple statement. Paying with a virtual credit card also gets you cash back on every purchase you make. Rebates can generate tens of thousands of dollars in cash for the company when you are buying millions in products and services. In addition, let’s not forget lowering your accounting costs. Your vendors will appreciate it because they will be getting paid early, cutting down on burdensome collection calls, paperwork and financing costs. Lowering costs for your vendor and improving their cash flow, allows them to better serve you.


The card that can offer you all of these benefits is the AeroPay Express Virtual Credit Card. “Virtual”, since there is no physical card to look for, nor does it have an assigned account number that could be lost or stolen.  Using AeroPay Express is easy.  It all starts with the vendor:


Your vendor simply emails their invoice to you through the AeroPay Express proprietary email server where you will receive it and approve it.  


Then AeroPay Express pays your vendor instantly. 


It's that simple!


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You, the buyer, won’t have to do anything differently. You will get one monthly statement for all your purchases which you can pay with one check or ACH. The statement will have all the necessary and important information from the seller, along with a unique transaction number allowing you to track invoices easily. What's more, if you pay your statement balance on time it costs you nothing and you receive a monthly rebate on all purchases. You also have the option to extend the terms on all or some of your purchases for up to 120 days. How is that for flexibility? So put 21st century buying power and efficiency into your accounts payable department. Take a minute, give AeroPay Express a call.




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