Which charge card, developed in 1950, was the first to be widely approved and used nationally in the United States as a general purpose payment card?

Introduction / Context:

Modern credit and charge cards are part of daily life, but they began with a few pioneering products. This question asks you to identify the first widely accepted national charge card introduced in the United States in 1950. Such questions commonly appear in business awareness and general knowledge sections because they connect consumer history with financial innovation.

Given Data / Assumptions:

• The year to pay attention to is 1950.
• The product is a charge card, not necessarily a revolving credit card.
• The card achieved national level approval and usage in the United States.
• The options list different well known card brands, some of which became popular later.

Concept / Approach:

The Diners Club card, launched around 1950, is widely recognised as one of the first successful general purpose charge cards. It started by allowing customers to pay at multiple restaurants and then expanded to other types of merchants. Unlike later credit cards, it required the balance to be paid in full each month, which is typical of a charge card. Other brands like Visa, MasterCharge and Discover appeared in later decades, so they do not match the time period given in the question.

Step-by-Step Solution:

Verification / Alternative check:

Business history sources and financial industry articles consistently refer to the Diners Club card as the first widely used charge card. They describe how it started with a small group of restaurants and quickly expanded to other establishments, laying the groundwork for later bank issued credit cards. Timelines show Visa and MasterCharge emerging after Diners Club, reinforcing the conclusion that Diners Club was first.

Why Other Options Are Wrong:

Discover card was introduced decades later and is known for cash back features, not for being the first national charge card of 1950.

MasterCharge, which evolved into MasterCard, came after the success of earlier cards and cannot claim the 1950 milestone.

Visa card also appeared later as part of bank backed credit card networks and is not the earliest national card.

American Express did issue travel related cards, but its general purpose plastic cards that we recognise today were introduced later than the original Diners Club card.

Common Pitfalls:

Candidates sometimes pick a familiar brand like Visa or MasterCard simply because they use it today, ignoring the year given in the question. Another mistake is to think that Discover, with its strong branding, might be the earliest. To avoid such errors, pay close attention to dates and remember that Diners Club is historically associated with the very early days of charge cards.

Final Answer:

The first nationally approved charge card developed in 1950 in the United States was the Diners Club card.