Why would independent financial institutions want to cooperate in offering one brand of credit card rather than competing and offering their own individual brands?

Almost from the very beginning of business, there were systems of credit to help sell products when the purchaser did not have ready cash. Neighborhood businesses allowed regular customers to maintain

“accounts” where their purchases were recorded. Payments were made later when the buyer had adequate funds. Credit cards expanded the use of credit by allowing businesses to offer credit to customers they did not know. If the customer presented a credit card, the seller knew payment would be guaranteed by the credit card company and that money could be collected from the sale quickly.

The use of credit cards began on a small scale with Diners Club in 1950. Frank McGuire developed an agreement with several restaurants in New York to accept his card in lieu of cash. As he expanded the number of customers who carried the card and the businesses who would accept it, the concept caught on. It was viewed as a convenience for customers and an excellent marketing resource for businesses.