The Global Credit Card War

U.S. credit card market saturation

The United States consumer is drowning in a sea of credit cards. The U.S. credit card market is so saturated that the average cardholder carries four pieces of plastic.

Everyone who wants or qualifies for a bank card already has several. The only market left, in the U.S., for the bank and travel and entertainment (T&E) companies is to move cardholders up to the prestigious Gold and Platinum Cards.

When the cost of finding a new customer to accept a bank card moved to $40, U.S. companies decided it was time to concentrate in a more profitable area, the issuing of foreign credit cards. Credit card issuers are fighting to conquer their fair share of foreign markets.

The foreign markets

Foreign markets are the last frontier available for American Express, Visa, MasterCard and Diners Club (Carte Blanche was never mentioned in all my research sources). The battle is now on to determine which card issuer will ultimately control the world credit card market.

There are slightly more than 2.8 billion (2021 figure) credit cards in circulation around the world. About 1.1 billion (2022 figure) are in the US, 638 million in the E.U. (2021 figure), and 295 million in Japan (2021 figure). 

That means just under half of all the credit cards issued in the world are issued in the U.S.

The early battle for the Japanese market

The greatest struggle for market share took place in Japan. Japan was considered the biggest and most lucrative market. The Japanese were first introduced to U.S. cards in the late 1970s. Until that time, credit cards were looked upon as something that only people who were too poor to pay cash used. The attitude of the Japanese changed in just a few years so that now credit cards are a status symbol.

Credit cards are one of the few items the United States manufactures that is able to penetrate the Japanese market. MasterCard did the best job by issuing 28 million cards. MasterCard dominates Visa by running a 50% larger market share. American Express and Diners Club cards issued are about equal. When American Express first started marketing in Japan they had an identity problem. The Japanese thought they were a transportation company.

American Express first issued its Gold Card in Japan in 1980. Now it’s shifting its marketing to the Green Card, which was first issued in 1983. American Express considers Japan its biggest foreign growth market, with membership doubling every 18 months.

Japanese bank cards

There are now millions of Japanese bank cards in circulation issued with an annual fee.

The total number of credit cards in circulation in Japan was 24 million in 1979. By 1985 the number had grown to 85 million. There are expected to be 150 million in use by 1990 – and today (2021) there are 295 million. It’s growth like this that is causing U.S. card issuers to seek out new foreign markets.

The European market

Another important area the U.S. companies were competing for was the European market. Europeans used to pay for fewer than 5% of their purchases with credit cards, while Americans used plastic 25% of the time. Currently, Visa is the leading foreign bank card in Europe.

MasterCard: first in China

In Asia, China is in an interesting situation. The first credit card issued in China is MasterCard. It was first issued in September of 1985 and currently has only a few thousand cardholders in a land of one billion people. 

Find out more about collecting credit cards.

Copyright 1987 by Greg Tunks

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Frequently asked questions

You can find out the value of old credit cards by checking how much similar cards sell for. There are several ways to do this.

The simplest way to determine the value of old credit cards is to ask an experienced collector. If you submit an inquiry via our contact form, we can connect you with an expert who can assist you and point out if there is anything rare or unusual in your collection.

Alternatively, you can become a member of the American Credit Card Collectors Society. Membership in our credit card collecting club provides access to resources and knowledgeable members who can help. Benefits of membership include access to a gallery containing thousands of cards with historical pricing information, and access to our entire collection of newsletters, from 1994 through the present day.

You can look at recent sales on auction sites, however, there are some considerations to keep in mind when doing this. Firstly, it’s important to look at selling prices, rather than asking prices. Selling prices are the prices people actually paid, while asking prices can be very different. Secondly, historical sales on some sites are only saved for 3 months, so you may not find something that exactly matches what you have. Thirdly, it is sometimes possible to see rare or unusual cards sell for lower prices than they should have because people do not understand their worth, the ads don't do justice to the card, they're listed in the wrong category, or any combination thereof.

There are always people in our club who are actively buying cards. Collectors tend to focus on a niche, like gas cards or retail cards, or they might focus on a slightly broader area, like bank cards or travel and entertainment cards. Many of the rarest or most unusual cards will exchange hands in private sales. Please contact us if you are thinking of selling your collection.

You can also sell your old credit cards on online marketplaces. You will get the highest price if you sell each of your cards individually, although this approach requires the most effort. At the opposite end of the effort scale would be selling all cards as a job lot, an approach which typically results in the lowest price on a per-card basis. Halfway between these two approaches would be to group cards into different categories and to sell these individual groups, e.g., BankAmericard, Master Charge, oil and gas, retail, and so on.

To join the club, visit the membership section and complete the registration form. You can pay by check or PayPal. We offer annual or lifetime memberships. If you have any questions please contact us via the form on our website.

Credit cards are more worthwhile collecting if they are rare, in good condition, have historical significance, or are associated with famous personalities or events. Valuable modern cards might include those that are difficult to obtain, such as American Express Centurion (a.k.a. ‘black’) cards, while older credit cards might include early independent bank cards, American Express, Diners Club, or BankAmericard (Visa) cards from the 50s/early 60s, or Master Charge (MasterCard) cards from the late 60s. Rare or unusual cards can also be sought after, such as those issued in small numbers, like small independent department stores or gas stations, or cards with appealing aesthetics.

Consulting with other collectors or experts in the club can provide valuable insights. Contact us for more information via the form on our website.

We do not offer an appraisal service in a traditional sense (such services are normally a paid service) but we can connect you with an expert who should be able to assist for free and point out anything rare or unusual in your collection. The simplest way to do this is to submit an inquiry via our contact form.

The American Credit Card Collectors Society accepts donations and is most grateful for any we receive. When donations happen, we strive to find good homes for cards where they will be looked after, matching cards with collectors who will appreciate them. The club may charge members a nominal fee for donated cards, and the proceeds are offset against the running costs of our club. We are a non-profit organization. Running costs include expenses like our convention and website hosting. Donations are most popular for people getting out of the hobby, or when someone has inherited a collection and doesn’t know what to do with it.

If you wish to donate your collection, please contact us via the contact form above.

American Credit Card Collectors Society