Joseph P. Williams
Encyclopedia
Joseph P. Williams was the creator of the BankAmericard, the first nationwide bank credit card, which later evolved into the VISA brand.
Williams was born in Newark, New Jersey
. He attended the University of Pennsylvania
and served as an infantry officer in the United States Army
during World War II
.
As an admirer of A.P. Giannini
's aggressive banking approach at the Bank of America
, he drove to San Francisco after completing his military service and approached Giannini for a job at the bank.
Diners Club
, the first major travel and entertainment charge card
, had been introduced in 1950, and American Express
and Carte Blanche followed in 1958, but all of these offerings had to have bills repaid in 30 days and were accepted by a limited number of vendors. By the mid-1950s, Williams was the senior vice president in charge of a group that had the unofficial task of creating the nation's first all-purpose credit card. Studying previous failures and analyzing the successes by Sears, Roebuck and Company
and Mobil
in offering credit to their customers, the team led by Williams conceived of a set of features — an 18% interest rate applied after a 25-day grace period
, credit limit
s and floor limit
s — that became the standards for the credit card industry since.
In 1958, the bank sent 60,000 BankAmericard offers to residents of Fresno, California
, followed by Bakersfield, California
with two million more offers sent statewide in the subsequent 15 months, marking what was called by The New York Times
as "the official dawn of the bank credit card". The cards had preapproved credit lines ranging from $300 to $500 and floor limits of $25 to $100.
Resentment from merchants and customer delinquencies started almost immediately, and Williams left Bank of America two months before the bank's statewide rollout was complete. The bank lost almost $9 million in just over a year after the cards were introduced.
During the 1962 New York City newspaper strike
Williams published The New York Standard, one of several alternative newspapers that were published during the 114-day strike that hit the city's major newspapers.
He formed the Uni-Serve Corporation in 1962 and bought the credit card operations from Chase Manhattan Bank
for $9 million, the value of the unit's unpaid billings. Uni-Serve was sold to American Express in 1965, with Williams remaining as president of the unit until 1966 and as the unit's chairman until 1968.
Williams died at age 88 on November 8, 2003 at his home in Atlantis, Florida
.
Williams was born in Newark, New Jersey
Newark, New Jersey
Newark is the largest city in the American state of New Jersey, and the seat of Essex County. As of the 2010 United States Census, Newark had a population of 277,140, maintaining its status as the largest municipality in New Jersey. It is the 68th largest city in the U.S...
. He attended the University of Pennsylvania
University of Pennsylvania
The University of Pennsylvania is a private, Ivy League university located in Philadelphia, Pennsylvania, United States. Penn is the fourth-oldest institution of higher education in the United States,Penn is the fourth-oldest using the founding dates claimed by each institution...
and served as an infantry officer in the United States Army
United States Army
The United States Army is the main branch of the United States Armed Forces responsible for land-based military operations. It is the largest and oldest established branch of the U.S. military, and is one of seven U.S. uniformed services...
during World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
.
As an admirer of A.P. Giannini
Amadeo Giannini
Amadeo Pietro Giannini, also known as Amadeo Peter Giannini or A.P. Giannini , born in San Jose, California, was the American founder of Bank of America.-Biography:...
's aggressive banking approach at the Bank of America
Bank of America
Bank of America Corporation, an American multinational banking and financial services corporation, is the second largest bank holding company in the United States by assets, and the fourth largest bank in the U.S. by market capitalization. The bank is headquartered in Charlotte, North Carolina...
, he drove to San Francisco after completing his military service and approached Giannini for a job at the bank.
Diners Club
Diners Club
Diners Club International, founded as Diners Club, is a charge card company formed in 1950 by Frank X. McNamara, Ralph Schneider and Matty Simmons...
, the first major travel and entertainment charge card
Charge card
A charge card is a card that provides an alternative payment to cash when making purchases in which the issuer and the cardholder enter into an agreement that the debt incurred on the charge account will be paid in full and by due date or be subject to severe late fees and restrictions on card...
, had been introduced in 1950, and American Express
American Express
American Express Company or AmEx, is an American multinational financial services corporation headquartered in Three World Financial Center, Manhattan, New York City, New York, United States. Founded in 1850, it is one of the 30 components of the Dow Jones Industrial Average. The company is best...
and Carte Blanche followed in 1958, but all of these offerings had to have bills repaid in 30 days and were accepted by a limited number of vendors. By the mid-1950s, Williams was the senior vice president in charge of a group that had the unofficial task of creating the nation's first all-purpose credit card. Studying previous failures and analyzing the successes by Sears, Roebuck and Company
Sears, Roebuck and Company
Sears, officially named Sears, Roebuck and Co., is an American chain of department stores which was founded by Richard Warren Sears and Alvah Curtis Roebuck in the late 19th century...
and Mobil
Mobil
Mobil, previously known as the Socony-Vacuum Oil Company, was a major American oil company which merged with Exxon in 1999 to form ExxonMobil. Today Mobil continues as a major brand name within the combined company, as well as still being a gas station sometimes paired with their own store or On...
in offering credit to their customers, the team led by Williams conceived of a set of features — an 18% interest rate applied after a 25-day grace period
Grace period
A grace period is a time past the deadline for an obligation during which a late penalty that would have been imposed is waived. Grace periods, which can range from a number of minutes to a number of days or longer, depending on the context, can apply in various situations, including arrival at a...
, credit limit
Credit limit
A credit limit is the maximum amount of credit that a financial institution or other lender will extend to a debtor for a particular line of credit...
s and floor limit
Floor limit
A floor limit is the amount of money above which Visa transactions must be authorised. The limit can vary from store to store.Floor limits do not apply to certain types of debit card , as these cards require authorisation for every transaction to prevent the cardholder becoming overdrawn.The term...
s — that became the standards for the credit card industry since.
In 1958, the bank sent 60,000 BankAmericard offers to residents of Fresno, California
Fresno, California
Fresno is a city in central California, United States, the county seat of Fresno County. As of the 2010 census, the city's population was 510,365, making it the fifth largest city in California, the largest inland city in California, and the 34th largest in the nation...
, followed by Bakersfield, California
Bakersfield, California
Bakersfield is a city near the southern end of the San Joaquin Valley in Kern County, California. It is roughly equidistant between Fresno and Los Angeles, to the north and south respectively....
with two million more offers sent statewide in the subsequent 15 months, marking what was called by The New York Times
The New York Times
The New York Times is an American daily newspaper founded and continuously published in New York City since 1851. The New York Times has won 106 Pulitzer Prizes, the most of any news organization...
as "the official dawn of the bank credit card". The cards had preapproved credit lines ranging from $300 to $500 and floor limits of $25 to $100.
Resentment from merchants and customer delinquencies started almost immediately, and Williams left Bank of America two months before the bank's statewide rollout was complete. The bank lost almost $9 million in just over a year after the cards were introduced.
During the 1962 New York City newspaper strike
1962 New York City newspaper strike
The 1962-63 New York City Newspaper Strike ran from December 8, 1962 until March 31, 1963, lasting for a total of 114 days.-Preliminary actions:...
Williams published The New York Standard, one of several alternative newspapers that were published during the 114-day strike that hit the city's major newspapers.
He formed the Uni-Serve Corporation in 1962 and bought the credit card operations from Chase Manhattan Bank
Chase Manhattan Bank
JPMorgan Chase Bank, N.A., doing business as Chase, is a national bank that constitutes the consumer and commercial banking subsidiary of financial services firm JPMorgan Chase. The bank was known as Chase Manhattan Bank until it merged with J.P. Morgan & Co. in 2000...
for $9 million, the value of the unit's unpaid billings. Uni-Serve was sold to American Express in 1965, with Williams remaining as president of the unit until 1966 and as the unit's chairman until 1968.
Williams died at age 88 on November 8, 2003 at his home in Atlantis, Florida
Atlantis, Florida
Atlantis is a city in Palm Beach County, Florida, United States. The population was 2,005 at the 2000 census. According to the U.S Census estimates of 2005, the city had a population of 2,142.-Geography:Atlantis is located at ....
.