History of Credit Cards

1966 On 29 June 1966 Barclays issues the UK’s first credit card – Barclaycard - based on the BankAmericard that had been issued a few years earlier in the USA.

1967 The world’s first cash machine opens in a Barclays Bank branch, Enfield in Middlesex. Early cash dispensers were designed to receive hole-punched vouchers of £10.00 each purchased by the customer from the bank and used in the dispenser when needed.

1967 The first direct debit is made.

1968 The Inter-Bank Computer Bureau is established to process electronic payments. In 1971 this was renamed to become BACS (Bankers Automated Clearing Services).

1969 The UK’s Domestic Cheque Guarantee Card Scheme is established, guaranteeing cheques up to a value of £30 (subsequently increased to £50 with additional levels of £100 and £250).

1971 On 15 February 1971 the UK currency goes decimal and we stop using pounds, shillings and pence.

1972 The Access brand for credit cards (to be known through advertising for ever after as our flexible friend) is launched by Midland Bank, National Westminster Bank and Lloyds Bank.

1977 On 1 July 1977 the Consumer Credit Act 1974 comes into force. Among its many clauses, Section 75 provides protection to consumers buying goods costing between £30 and £10,000 (increased to £100 and £30,000 subsequently) on their credit card.

1984 CHAPS is established to process highvalue same-day electronic payments.


1987 The first debit card is launched in the UK; Barclays is the first to issue a Visa Delta card under the Connect brand. Midland, National Westminster Bank and Royal Bank of Scotland follow closely in 1988 issuing debit cards under the Switch brand (which itself became Maestro in 2004).

1990 Cashback emerges as a means of acquiring cash with 7 million transactions in that year.

1994 Half of all UK adults hold a debit card, only seven years after their launch.

1995 Town clearing (for high-value cheques within the City of London) closes.

1997 Banks offer online banking services to personal customers.

1998 The UK’s first cash machine not owned by a financial institution is installed.

1999 Half of all UK adults hold a credit card. The average value of a credit card purchase exceeds £50 for the first time.

1999 Internet card issuers (Egg, Smile, Marbles) join the marketplace.

1999 Annual fees disappear, extras such as travel insurance and loyalty schemes begin to be offered to attract customers, who are beginning to hold more than one card each.

1999 The euro comes into being, allowing electronic euro-denominated transactions for the first time.

2001 More than half of UK retail spending is on plastic. More than 100 million card payments are made online.

2001 Debit card expenditure exceeds credit card expenditure for the first time.

2002 Euro notes and coin appear as the national currency in 12 European countries.

2002 More than half of all cash we acquire is through cash machines. Mobile-phone top ups become available at cash machines for the first time.

2003 Chip and PIN cards start hitting the doormats throughout the UK – the biggest change to consumer payments since decimalisation.

2004 UK card expenditure exceeds cash expenditure for the first time (£273 billion compared to £272 billion). The average debit card user spends over £100 per week.

2005 More than half of all adults now use remote banking services – either online or over the phone.

2006 Debit card expenditure on the high street overtakes cash expenditure for the first time.

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