Who Really Issued Your MasterCard & Visa?

Although a bank’s name appears on your collectible credit card, that doesn’t mean the bank actually issued it. Because of the rapid growth in the number of bank credit cards and the tightening of profits, many small banks were squeezed out of the market.

On account of their size, they often lacked the money to set up an expensive computer system to start their own credit card service department.

Credit card service bureaus explained

Thus, in the mid ’70s, credit card service bureaus were born. Credit card service bureaus sprung up to help small banks get a piece of the competitive MasterCard and Visa markets. The bureaus, in return, get a share of the banks’ credit card profits. 

The way it works is a small bank signs with a service bureau. The bureau then sets up a credit card program for the bank. Depending upon the bureau, the bank has varying levels of decision-making capabilities. Most banks have a say in the cards’ designs. 

What to charge for annual fees and interest rates becomes tricky. It depends largely on which state the bank is located and the amount of profit desired. The bureau shares a portion of the annual fee and the interest collected with the “issuing bank.” These funds are actually collected by the bureau.

The bureau then pays the bank its share of the money on a monthly or quarterly basis, depending on the agreement.

What do credit card bureaus do?

A credit card service bureau works hard for its share of the money. The bureau handles virtually all of the details, from creating the cards’ designs to soliciting all of the bank’s customers by direct mail. They verify credit and mail out credit cards. 

The bureaus also handle paying the processing charges that come from the credit card clearance centers. They even print and mail out the bank statements. There are several additional services a bureau can offer its customers. Services such as credit card protection (notifying the issuers if your cards are lost), rental car insurance coverage, life insurance, toll-free message service, special travel reservations service, etc. 

The banks usually have little say in the billing and collection procedures. No matter how big of a depositor you are, it’s very difficult for the bank to waive a late charge or reverse a bad billing since these are handled by the bureau.

It’s relatively easy to determine if your bank card is from a service bureau. If the billing statement is generic-looking, with the bank’s name printed by computer along with yours, chances are you have an account from a credit card service bureau.

Copyright 1988 by Dan Sinisi

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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