Dee Hock, Credit Card Visionary, Is Dead at 93
Dee Hock, a banker with a junior faculty diploma who formed the Visa bank card into a world monetary behemoth, died on July 16 at his residence in Olympia, Wash. He was 93.
His son David confirmed the demise.
The bank card enterprise was in an early, rocky stage of growth in 1966 when Mr. Hock was named to run the bank card division of National Bank of Commerce in Seattle, which was licensed by Bank of America to problem its BankAmericard.
At the time, the enterprise was beset by dangerous money owed and fraud, and the playing cards themselves had been primitive: (*93*) lacked the magnetic stripes that might later encode buyer data; transactions that required financial institution authorizations took a very long time; and the embossed data on them — buyer identify, card quantity, expiration date — was awkwardly copied onto receipts with a heavy imprinter.
“By 1968, I used to be extraordinarily involved that the trade might go beneath and our financial institution’s funding with it,” Mr. Hock instructed Plazm, an arts and politics journal primarily based in Portland, Ore., in 2013. “I used to be attending a gathering of all the licensees of BofA, which quickly grew to become a shambles of argument and accusations.”
He grew to become the chief of a committee of bankers whose establishments licensed the BankAmericard, which was first issued in 1958. The panel’s mission: to find out the cardboard’s future. (The American Express card made its debut that very same yr; eight years earlier, Diners Club had issued what’s extensively thought-about the primary bank card.)
The committee’s resolution was to create a brand new firm, National BankAmericard, to be separated from Bank of America and to be managed by the banks that issued the cardboard. Mr. Hock was named president and chief government. In 1976, after an in-house contest, the corporate was renamed Visa.
As chief government, he oversaw the event of the primary digital authorization system and the primary interbank digital clearing and settlement system. Banks would problem the playing cards, not Visa, and so they had been mandated so as to add the magnetic stripe to their playing cards.
“Dee Hock realized one thing within the late Nineteen Sixties that few others actually understood: Computers and telecommunications would quickly make it doable to construct a world ‘digital worth trade’ system that might quickly allow prospects to pay for items and companies ‘wherever you need to be. ,’” David Stearns, the creator of “Electronic Value Exchange: Origins of the VISA Electronic Payment System” (2011), wrote in an electronic mail. (The firm renders its identify in all capital letters.)
In a tribute, Alfred Kelly Jr., the chief government of Visa, wrote that Mr. Hock had a imaginative and prescient of “a world of frictionless commerce the place anybody, wherever might trade worth 24 hours a day, seven days per week, with absolute reliability.”
That imaginative and prescient, lengthy since realized, has made Visa the world’s main bank card community, with 3.9 billion playing cards issued and a complete buy quantity of $13 trillion.
“What he did was simple: He made bank cards work,” Joe Nocera, a former New York Times columnist who wrote about Mr. Hock in his e-book “A Piece of the Action: How the Middle Class Joined the Money Class” (1994), mentioned in a telephone interview. “He took a system getting ready to collapse and mentioned, ‘Follow me, I’ll take you to the promised land.'”
Dee Ward Hock was born on March 21, 1929, in North Ogden, Utah. His father, Alma, was a utility lineman. His mom, Cecil (Dawson) Hock, was a homemaker.
As a boy, Dee grew to become enamored of the biology and ecology round him in rural Utah, however he adopted a banker’s profession observe after graduating in 1949 from the two-year Weber State College (now University) in Ogden.
Over the following 17 years, Mr. Hock was the supervisor of two branches of the financial institution Pacific Finance; an assistant supervisor of public relations and promoting for Pacific; basic supervisor of the Columbia Investment Company; and a supervisor at CIT Financial (now Group). He was employed by National Bank of Commerce in 1966. But earlier than becoming a member of it, he had “primarily retired on the job,” his son mentioned in an interview.
“When folks left him alone, he was often essentially the most profitable a part of the group,” David Hock added. “But when they wished to repair it, they often messed it up.”
Energized by his work at Visa, Mr. Hock moved the corporate into providing fdebit playing cards, which gave cardholders entry to checking accounts, in addition to a premium card and a money-market fund.
“Mr. Hock is an impressive strategist, perhaps even sensible,” Helene Duffy, a guide within the area of digital funds switch, instructed The Times in 1981. “He has all the time been decided to have Visa be the premier cost system, and has not deviated from that primary purpose.”
In addition to his son David, Mr. Hock is survived by a daughter, Lynette Elze; seven grandchildren; and 7 great-grandchildren. His spouse, Ferol (Cragun) Hock, died in 2018. Another son, Steven, died in 2012.
At Visa, Mr. Hock inspired innovation and experimentation — amongst its staff and among the many banks that licensed the bank card. Rather than operating the corporate beneath a conventional hierarchical administration system, he sought enter from the underside up.
It was an apt method of managing a enterprise whose member banks compete in opposition to one another for patrons however at the identical time should cooperate to make Visa work successfully. But, he conceded to Fast Company journal in 1996, Visa carried out solely about 25 % of what he referred to as his “chaordic” idea of administration — a stability of chaos and order.
That idea, as he defined it, applies to organizations and companies the place energy is extensively distributed. He wrote two books about it, “Birth of the Chaordic Age” (1999) and “One From Many: VISA and the Rise of Chaordic Organization” (1999).
Mr. Hock resigned from Visa in 1984 to grow to be a rancher, however eight years later he started consulting organizations about his chaotic concepts.
In “One From Many,” he recalled talking to teams and asking them what they thought was a very powerful accountability of a supervisor.
All the solutions, he wrote, had been “downward trying — having to do with train of authority, with choosing staff, motivating them, coaching them, appraising them, organizing them, directing them and controlling them.”
He added: “That notion is totally mistaken. In chaordic organizations, it have to be stood on its head, because it ought to in all organizations.”