Diners Club in Armenia

It was a routine day in 1945 when Frank McNamara, director of Hamilton Credit Corporation, after dining in a restaurant in New York found out that he had forgotten his wallet in the pocket of another jacket at home. The businessman had to call his wife to bring money. This became a reason for creating a universal payment tool for service centers.

McNamara and his two friends, Alfred Bloomingdale and Ralph Schneider, created a club and issued credit cards that would be accepted by more than one merchandiser.

The first plastic card that was named “Diners Club” served as a universal payment tool. The name comes from the initial purpose the card was issued for as it was accepted by 14 restaurants in the vicinity of the Empire State Building in New York. The cards were printed on rectangular cartons of high density. The reverse side of the card contained the names of the restaurants that accepted the card at that time.

It was very easy to use the card. The card holder used to show the card to the restaurant, and the restaurant would send the bill to the Diners Club. The Club would send a bill to card holders once a month. The card holders were paying to the Diners Club, and the club – to restaurants.

This was the beginning of the Diners Club’s bright future. By creating a club, not a financial institution, the Diners Club united people and made their group even bigger. In 1950 the Diners Club had 20,000 card holders. Nowadays the Diners Club is a renowned brand and is represented in over 185 countries. It has over 20 million merchandising and service points, as well as 1 million ATM and cash points. This card serves paying needs and provides access to about 500 airports, hotels and restaurants. Diners Club International is a subsidiary of Discover Financial Services, which offers direct banking and payment services, and is one of the most famous brands in the US financial sector. Since establishment in 1986, this company has become one of the largest companies that issues cards in the United States.

The way of Diners Club to Armenia

Diners Club is now available in Armenia through AraratBank. Armenians had the opportunity to learn about this club about four dozens of years ago as Diners Club was the first payment tool that entered the Soviet Union. In 1969 this company signed a contract with Intourist, which started to service the cards of Diners Club in Beryozka currency shops, as well as restaurants and hotels in Moscow and Leningrad. The Soviet Union did not issue such cards and it accepted only cards issued outside of its borders. Diners Club Russia was founded in 1995, and the next year the company issued the first card in Russia.

AraratBank and Diners Club International have officially announced the availability of new DCI cards in Armenia. The first agreement to bring this card to Armenia was reached in 2012, when the bank and Diners Club International signed a franchising agreement for the purpose of providing service of Diners Club card and brand in Armenia. All local and international Diners Club cards will be served at AraratBank ATM’s.

Since the signing of the franchise agreement a lot of work has been done, which is the first phase of the Diners Club project in Armenia. During the presentation event the president of AraratBank Board of Directors Ashot Osipyan said that the first phase created an environment for adopting this new infrastructure in Armenia, due to which this card can be accessed in more than 1000 locations. They developed the design of the card. “We are offering Diners Club Premium Card, Super Premium, Diners Club Light Card and Young Professional cards, which will offer privileges and discounts for cardholders in Armenia and around the world,” said A. Osipyan. He also said that the Diners Club is flexible and would be open to recommendations of cardholders. This is not a simple card but a card that makes the cardholders members of the club and enables them enjoy the benefits of the club. Diners Club is based on three pillars such as food (cuisine), which is the priority of the company, travel and daily expenses. In Armenia the Diners Club’s activity will be based on these priorities too, however, it will be adjusted to the Armenian customers’ requirements.

Eduardo Tobon, President of Diner Club International, was in Armenia to participate in the presentation of Diners Club in Armenia. He said that the presentation of Diners Club in Armenia was an important occasion. “We have a reliable partner such as AraratBank in Armenia, and together we can do a lot of projects in Armenia,” said Tobon and added that by combining their marketing and sales experience with the stability and innovative policy of AraratBank, they would offer excellent conditions to Armenian cardholders for travel destinations and services in Armenia and worldwide.

Vice-President of the Armenian Central Bank Nerses Yeritsyan congratulated Diners Club for enlarging their market in Armenia. The CB Vice-President said that the service of Diners Club would require dedicated hard work and congratulated AraratBank by wishing fruitful cooperation with Diners Club in the Armenian market.

By Sargis Ghazaryan