| BankAmericard changed to Visa in 1975. While the | | | | particularly the fact that the cardholder agreement held |
| name was changed, the card itself had been around | | | | customers liable for any and all charges, even those |
| since the 1960s, created by Bank of America in 1958, | | | | made in error or by fraud. The bank "officially" only lost |
| when they sent out 60,000 unsolicited credit cards. | | | | $8.8 million on the BankAmericard launch, but after all |
| It turns out that sending out all those unsolicited credit | | | | the damage control, advertising, and overhead was |
| cards was not a good move. Things went well at first, | | | | incorporated, the loss was really more like $20 million, |
| but later Bank of America became quite antsy when | | | | and that was in 1959, when $20 million was quite a |
| they found out that another bank was going to mail | | | | more significant sum than it is now. |
| out cards in San Francisco. So they dropped many | | | | In 1970, the issuing banks of the BankAmericard took |
| more cards: 2,000,000 altogether by October 1959. | | | | over the program from Bank of America and created |
| BankAmericard was accepted by some 20,000 | | | | National BankAmericard Inc. to take charge of |
| merchants, but there were many hitches. The bank | | | | developing the Bank Americard system within the |
| basically placed too much trust in the plastic carrying | | | | United States. In 1974 IBANCO, a multinational concern, |
| consumers to actually pay their bills. By the end of | | | | was created to manage the international |
| 1959, 22% of BankAmericard accounts were | | | | BankAmericard program. In 1975, BankAmericard, |
| delinquent, versus an expected default rate of 4%. | | | | Chargex, Barclaycard, Carte Bleue, and any other |
| Police departments were the bewildered enforcers of | | | | licensees of Bank America united under the brand |
| a brand new crime called credit card fraud. | | | | Visa. National BankAmericard Inc. became Visa USA, |
| Politicians, journalists, and consumers created quite a | | | | and IBANCO became Visa International. |
| disturbance about Bank of America's new credit card, | | | | |