Professional Documents
Culture Documents
A credit card is a type of retail transaction settlement and credit system, named after
small plastic card issued to users of the system. A credit card is different from a debit
card in that the credit card issuer loans the consumers money rather than having the
money removed from an account. Most credit cards are the same shape and size, as
specified by the ISO 7810 standard.
A credit card is a thin plastic card, usually 3-1/8 inches by 2-1/8 inches in size that
contains identification information such as signature or picture, and authorizes the
person named on it to charge purchases or services to his account – charges for which
he will be billed periodically. Today the information on the card is read by automated
teller machines (ATM’s), store readers, bank and Internet computers.
Credit cards are gaining around in India too. More and more banks are encouraging
their people to go in for credit cards. Besides the various freebies and rewards doled
out, customers feel it very convenient to carry a plastic card rather than bundles of
currency.
The expected growth rate of credit card business in India is 25-30%. With the advent
of globalization and privatization, the concept of credit cards is gaining popularity.
Customers no longer have to carry huge amount in their wallet. Most of the bill
payments including utility payments can he taken care by credit cards. Further in India
at least people perceive the card as a status symbol.
A credit card, as the name suggests, gives you credit – obviously for a charge. The
days of credit one gets could range from 20- 50, days depending on the date when one
made the purchase. You can choose to pay your entire dues at one go, or stagger them
after paying the minimum amount due every month. Besides this, it entitles the
member to plethora of benefits like travel discounts, discount on retail loans.
Credit was first used in Assyria, Babylon and Egypt 3000 years ago. The bill of
exchange the forerunner of banknotes – was established in the 14th century.
Christopher Thornton, who offered furniture that could be paid off weekly,
placed the first advertisement for credit in 1730.
From the 18th century until the early part of 20th, tallymen sold clothes in return
for small weekly payments. They were called “tallymen” because they kept a
record or tally of what people had bought on a wooden stick. One side of the
stick was marked with notches to represent the amount of debt and the other
side was a record of payments.
Dinners club, Inc, introduced the first universal credit card one that could be
used at a variety of stores and businesses in 1950. With this system, the credit
card company charged cardholders an annual fee and billed fee and billed them
on a monthly or yearly basis. In 1951, Dinners club issued the first credit card to
200 customers who could use it at 27 restaurants in New York. But it was only
until the establishment of standards for the magnetic strip in 1970 that the credit
card became part of the information age. The American Express
Company established another major universal card “Don’t leave home without
it” in 1958.
Later came the bank credit card system. Under this plan, the bank credits the
account of the merchants as sales slips are received (this means merchants are
paid quickly something they love) and assembles charges to be billed the
cardholder at the end of the billing period. The card holder, in turn, pays the
bank either the entire balances or in monthly installments with interest
(sometimes called carrying charges).
The first national bank plan was bank of America, which was started on a
statewide basis in 1959 by the Bank of America in California. This system was
licensed in other states starting in 1966, and was renamed Visa in 1976.
Other major bankcards followed, including master card formerly master charge.
In order to offer expanded services, such as meals and lodging, many smaller
banks that earlier offered credit cards on a local or regional basis formed
relationships with large national or international banks.
1. Size: A credit card is a thin plastic card, usually 3-1/8 inches by 2-1/8 inches in
size.
2. Front Side: Front side contains following information:
(a) Printed
(i) Name and Logo of the Issuing Bank
Name and Logo of Co-branding Merchant Establishment, if
any.
(ii) Name and Logo of member affiliate (e.g. Visa, Master, etc.)
(iii) Photo of the cardholder / his family (optional feature)
(iv) Picture (Any deity or scene of holder’s choice) (Optional Feature)
(b)Embossed:
(i) Period of Validity as Valid from Date and Valid Through Date.
(ii) Name of the Card Holder.
(iii) Card Number
The numbers found on credit cards have a particular structure, and share
a common numbering scheme.
The card number’s prefix, called the Bank Identification Number, is the
sequence of digits at the beginning of the number that determine the bank to
which a credit card number belongs. This is the first six digits for MasterCard
and Visa cards. Worldwide there is a uniform numbering arrangements for bank
and VISA /Master Identification. The last ten digits are the individual account
number.
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membership fee to their issuing authority. This is towards maintenance of the card
account by the bank or ‘service charges’. These are waived off to some customers
who transact significant value through their credit card. Banker’s earning is by
interest income on credit cards. More the usage of card more the income to the bank.
Hence bank encourages more use of car & when is achieved, bank waves off annual
fees. This is a reward for using the card.
2. MINIMUM PAYMENT: All the issuers insist upon minimum payment by the
card holder for every billing cycle. This is usually 5 % of merchant transaction bill.
Full amount is to be paid for EMI’s of the loan. It is payable within 20 days of
billing. This is free credit period i.e. no interest is payable. Amount unpaid and
rolled over to the next billing cycle attracts interest rate as decided by the bank.
the amount rolled over to the next billing cycle is usually high. In India it is around
2.5% to 3% per month. Hence, it’s very costly to rollover such amount. For the
cardholder, it is much cheaper to on time.
for high value (for e.g. TV set, laptop etc.) then it is not possible to pay full amount
within one billing cycle. Carrying forward is expensive as interest rate is prohibitive.
Banks offer to convert such purchases / outstanding to Equated Monthly Installments
(EMIs). Rate of interest to these schemes is relatively lower (around 16% per
annum) but still high in absolute terms.
outstanding dues to other issuer’s card to their bank card. This transfer is again at a
concession rate of interest.
may be noted that EMI or balance transfer or personal loan are all in the form of loan
only. A cheque favoring the cardholder or nominated beneficiary is issued by the
bank in all these cases. EMI payable is charged to the card in monthly billing
statements.
concessional rate and assign insurance proceeds towards outstanding bills on the
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card. In case of eventuality, insurance proceeds meet bankers outstanding dues &
remainder amount is paid to the heirs of the card holder
8. ATM: Card holder users can withdraw cash from ATM’s with pre-specified
limits
A credit card is a form of borrowing that often involves charges. Credit terms
and conditions affect your overall cost. So it’s wise to compare terms and fees before
customers agree to open a credit or charge card account. The following are some
important terms to consider that generally must be disclosed in credit cards
applications or in solicitations that require no application.
1. Credit Card–
Credit cards provide convenience of purchasing goods and paying for them later.
The outstanding balance of the credit card account can be paid either full after
receiving a monthly statement, or by making payments over time. A credit card
account is a form of a loan, and therefore the credit card holder must eventually pay
all charges made on the credit card.
Credit card issuer in an organization that is issuing credit cards and provides credit
lines to individuals or organizations. In most cases these issuers are financial
institutions such as banks or credit unions. Department stores, gasoline companies
and other organizations also issue credit cards.
3. Credit Limit –
Credit limit is the largest amount of outstanding balance that the credit card issuer
authorizes customers, to carry on credit card. For e.g. if credit limit is 50,000 you
are allowed to use the 50,000 as a revolving line of credit by using credit purchases
and withdrawals, the maximum amount of money customer could borrow on credit
card would be, in this case, 50,000.
The APR is a measure of the cost of credit, expressed as a yearly rate. It also must
be disclosed before customer become obligated on the account statements.
5. Annual Fees –
Most issuers charge annual membership 0participation fees. They often vary from
organization to organization and credit cards to credit card. Generally a card with
higher annual fee enjoys more benefits like higher credit card limit, higher accident
insurance cover, accessibility to airport lounges, travel discounts etc.
Transaction fee and other fees are fees that are charged by credit card issuers for
cash advances from Automated Teller Machines (ATM) or a bank, cash advance
cheques, and returned cash advances cheques, late payments, overdrawing on credit
limit or in some cases monthly fees charged by some issuers.
7. Additional Card–
Additional card is a card that can be issued to a person other than the primary credit
card holder. Additional cards may be issued for spouse, children or anybody else
customers want to use existing line of credit. An additional cardholder is not
responsible for any charges made on the credit card even though his or her name
appears on the credit card. This responsibility remains with the primary cardholders
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and a consigner, if any. However in case of a joint account all card holders are
responsible for all charges.
8. Available Balance -
Available credit is the unused amount of your total authorized credit line. For e.g., if
your total authorized credit line is 3000 and your current balance is 400, your
available credit is 2600.
9. Balance Transfer –
Balance transfer is a transfer of balance from one credit card or a loan to another
credit card. Many credit card issuers offer introductory interest rates that are much
lower than the standard interest rates.
Cash can be withdrawn from available credit card account. Typically using credit card
at an automated teller machine or a bank does this.
11. Consigner –
A credit card issuer should receive payment on or before the due date that is stated on
monthly statement. The due date is the date which the credit card issuer should receive
the payment, not the date by which should pay credit card bill.
In order to avoid any late charges, make sure that at least the minimum due amount, as
started on monthly statement, reaches the credit issuer by the due date. Too many late
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payments recorded on credit report could make it harder for customers to qualify for
any kind of loan or credit card in the future.
17. Add-On-Card
The supplementary card/add- on card fee is the payable per additional card that a
member may request for his close family member like father, brother, sister or spouse.
1. Magnetic strip
2. Signature strip
3. Card security code
A user issued credit card after an account has been approved by credit
provider (often a general bank, but sometimes a captive bank created to
issue a particular brand of credit card, such as wells Fargo or American
Express or Centurion Bank), with which the user will be able to make
purchases from merchants accepting that credit card up to a pre-
established credit limit.
When a purchase is made, the credit card user agrees to pay the card
issuer. The cardholder indicates their consent to pay, by signing a
receipt with a record of the card details and indicating the amount to be
paid or by entering a PIN. Also, many merchants now accept the verbal
authorization via telephone and electronic authorization using the
internet, kwon as a customer not present transaction.
Each month, the credit card user is sent a statement indicating the
purchases undertaken with the card, any outstanding fees and the total
amount owed. After receiving the statement, the cardholder may dispute
any charges that he or she thinks are incorrect otherwise, the cardholder
must pay a defined minimum proportion of bill by due date or may
choose to pay higher amount up to the entire amount owed. The credit
provider charges on the amount owed (typically at much higher rate
than most other forms of debt). Some financial institution can arrange
for automatic payments to be deducted from the user’s accounts.
Credit card issuers usually waive interest charges if the balance is paid
in full interest on the entire outstanding balance from the date of each
purchase if the total balance is not paid.
For merchants, a credit card transaction is often more secure than other
forms of payments, such as cheques, because the issuing bank commits
to pay the merchant the moment the transaction is verified. The bank
charges a commission (discount fee), to the merchant for this service
and there may be a certain delay before the agreed payment is received
by the merchants. In addition, a merchant may be penalized or have
their ability to receive payment using the credit card restricted if there
are too many cancellations or reversals of charges.
SETTLES BY CARD
DELIVERS GOODS
To Cardholders:
1. Convenience: It is very convenient to carry a card compared to cash. Its
acceptance is better than cheques. Risk of theft is less and if stolen, stoppage and
recovery is better than cash and cheques.It is even more convenient for unplanned
purchases and needs as one may not carry enough cash every time.
2. Spot credit: As and when needed, credit is available. It’s pre-negotiated credit
limit which can be availed of whenever desired. Credit is free of interest till first
time immediate billing cycle. This improves purchasing power.
3. Easy Payments: Minimum balance payment for each bill is a must. Over and
above this it is Cardholder’s ability and willingness to pay for each card bill.
4. ATM cash: Cash can be withdrawn from ATMs as and when required. This is
very important feature in countries like India where cash usage is more as
compared to other modes of payments. Thus cards improve liquidity and credibility
of the cardholder.
5. Rewards point and Discounts: There are additional benefits provided by
issuer for usage of card. Reward points can be converted to discounts and gifts as
per catalogue of issuer.
6. Privileges: Access to VIP lounges at the airport and star hotels is an additional
privilege for the cardholder.
7. Other Loans: Bankers provide personal loans, car loans, etc. with some
priority and ease if cardholder’s payment history is good.
To Issuers:
1. Profit: Annual Percentage Rate (APR) is high on credit cards as these are high
risk unsecured loans. If cards are issued with proper diligence then defaults is less
and bankers’ profits in card business are high.
2. New Customers: New customers get hooked to bankers as cardholders. It is
easy to sell them other products such as housing loans, auto loans and
bancassurance products later on.
3. Brand Image: Card issuing bank create better brand image in minds of its
customer as compared to other banks.
4. ATM sharing Fees: Bankers who establish their own ATMs get sharing fees
from other banks if other banks’ customer uses their ATM.This is additional
income from them.
To issuers:
1. Risk: Cards are unsecured loans. Recovery mechanism does not have any
recourse on assets. Legal backup thus is limited. Establishing a recovery system
within these limitations is a high cost affair.
2. Servicing cost: cards are technology oriented. Cards are costly .issuance process,
billing and payment processing is a laborious and costly affair.
3. Utilization Dependency: Bank earns well on cards if cards are used frequently by
the holders. Indian psyche is not very tuned to careless use. Cards which are not used
much are in fact cost burden on the banks.
4. Payment Habits: APR Interest earnings are significant provided part of billed
amount is rolled over to the next billing. If many customers pay full bill every time,
there is no APR earning for banks.
To payment networks:
Payment networks do share some responsibility and risks. Even if member bank
defaults or delays, these networks have to own up timely payments to merchant
establishments so as to maintain their brand image.
A debit card operates like cash or a cheque. When customer makes a purchase with a
debit card, the money is immediately withdrawn from customer bank account. With a
debit card, customers are only allowed to spend the money that is in customer bank
account. Customer do not incur interest, but customer may have to pay customer bank”
transaction fees or pay interest if customer have to use the overdraft protection.
A credit card allows purchasing now and paying later. You have a certain amount of time
from when you make the purchase to when you receive the bill. With a credit card, you
are allowed to spend up to the limit pre-determined by the bank. Interest rates and fees
vary, but the majority of card issuers do not charge interest when you pay the full balance
each month.
CIBIL's equity was held by State Bank of India, Housing Development Finance
Corporation Limited, Dun & Bradstreet Information Services India Private Limited
and Trans Union International Inc. The shareholding pattern was in the proportion of
40:40:10:10 respectively.
CIBIL is a composite Credit Bureau, which caters to both commercial and consumer
segments. The Consumer Credit Bureau covers credit availed by individuals while the
Commercial Credit Bureau covers credit availed by non-individuals such as
partnership firms, proprietary concerns, private and public limited companies, etc.
Members of CIBIL
Banks, Financial Institutions, State Financial Corporations, Non-Banking Financial
Companies, Housing Finance Companies and Credit Card Companies are Members of
CIBIL.
Functioning of CIBIL
For credit grantors to gain a complete picture of the payment history of a credit
applicant, they must be able to gain access to the applicant's complete credit record
that may be spread over different institutions. CIBIL collects commercial and
consumer credit-related data and collates such data to create and distribute credit
reports to Members.
CIBIL primarily gets information from its Members only and at a subsequent stage
will supplement it with public domain information in order to create a truly
comprehensive snapshot of an entity’s financial track record.
The CIR only provides available factual credit information and does not provide any
opinion, indication or comment pertaining to whether credit should or should not be
granted. The credit grantors who have received an application for credit will make the
credit decision. CIBIL does not grant or deny credit
Reserve Bank of India has issued guidelines to banks and non-banking finance
companies (NBFCs) on credit card operations, which touch upon issues such as credit
limit, interest rate, wrong billing, sharing of credit information and fair practices, and
code of conduct for the issuers.
The guidelines state that each bank and NBFC must have a Fair Practices Code for
credit card operations, which should be widely displayed on their Web sites before
November 30.
As per the guidelines, framed by the RBI Working Group on Regulatory Mechanism
for Cards, banks and NBFCs issuing credit cards will now have to ensure that
customers get at least 15 days to make payment before charging interest for delayed
payment.
In the case of a wrong bill, the card issuer will have to explain and provide the
customer with documentary evidence within 60 days.
The issuers will have to give at least one-month notice before hiking any charge. Also,
if a customer wishes to surrender his credit card on account of change in charges, the
bank will not charge him extra for such closure.
Banks should also maintain a Do Not Call Registry (DNCR) containing phone
numbers of customers as well as non-customers who have informed the bank they do
not wish to receive unsolicited marketing calls for credit card products. The DNCR
should be set up within two months, the guidelines said.
In case a bank issues an unsolicited card without the consent of the recipient, the bank
should reverse the charge and also pay a penalty amounting to twice the value of the
charges reversed.
The monthly statement sent to customers must carry information such as the
annualized percentage rates, annual fee and late payment charges and the method of
calculation of rates.
RBI has also asked banks or NBFCs who outsource credit operations to ensure
confidentiality of customers' records. Banks can also formulate their own code of
conduct for direct sales agents or use the code formulated by the Indian Banks'
Association and display these on their Web site.
In case the credit card is issued to persons without independent financial means such
as students, the liability will be that of the principal cardholder.
With regard to multiple credit cards, the issuer should assess the limit on the basis of
self-declaration or credit information, the guidelines said.
Banks must also publicize their grievance redressal machinery and mention the name
and contact number of the officer concerned.
RBI said it has the right to impose any penalty on a bank or NBFC for violation of any
of these guidelines.
The proliferation of cards in the market would simply clutter the process of
choosing.
The following are the important features, which should be kept in mind before
selecting the credit card.
• Generally, a card with a higher annual fee enjoys more benefits like higher
credit limit, higher accident insurance cover, accessibility to airport lounges, travel
discounts etc.
• If customers are interested in buying add-on cards for customer’s children,
spouse or friend, ask for the add-on card fee.
• If customers were the sorts who forgets to pay on time, or likes to celebrate and
live off credit, interest rate would be permanent importance. Most credit cards
companies charge anywhere between 2% to 3% per month.
• A global card can be used for paying expenses in foreign currency just like
customer uses a credit card to pay in rupees if the customer is an overseas traveler.
• A partnership between a card issuer and the non-profit, social or lifestyle
association is what results in an affinity card. This is for providing financial rewards to
the group or association. E.g., Citibank women’s card donates a percentage of
transaction value made through the card to the WWF fund for its environmental
conservation activities.
• If a customer is loyal to one brand, he will go for co-branded cards. For
e.g.Bank of India and Taj group of hotels etc.
• Check out if the bank has any ATMs near house or work place. This surely
helps in times of emergency. If customers are going to withdraw cash frequently,
better watch out for this cost.
• A 24-hour help line service from the card company helps the cardholders during
the non-banking hours. Reporting the theft, checking of available credit limit and other
enquiries can be made by the cardholder round the clock.
Following are the some important tips for protecting credit card.
There is no way to know if customers qualify for a credit card without doing
some research. Some of the basic things that lenders look for include.
Good payment record:-
If customer pay bills on time, customer will score major points with lenders.
If customers have lot of late payments, this can hurt customers chances of
getting a card, and if the lender decides to issue a card, it’s probably going to
have a higher interest rate.
consider a poor credit risk. So, in order to beat this system, don’t allow every
credit card issuer speak with to pull report.
Once customers qualify for a card, or several cards, there’s always the
chance that customers will end up spending more than you’ve got.
ICICI BANK
ICICI Bank is India's second-largest bank with total assets of Rs. 3,446.58
billion (US$ 79 billion) at March 31, 2007 and profit after tax of Rs. 31.10
billion for fiscal 2007. ICICI Bank is the most valuable bank in India in terms of
market capitalization and is ranked third amongst all the companies listed on the
Indian stock exchanges in terms of free float market capitalization*. The Bank
has a network of about 950 branches and 3,300 ATMs in India and presence in
17 countries. ICICI Bank offers a wide range of banking products and financial
services to corporate and retail customers through a variety of delivery channels
and through its specialized subsidiaries and affiliates in the areas of investment
banking, life and non-life insurance, venture capital and asset management. The
Bank currently has subsidiaries in the United Kingdom, Russia and Canada,
branches in Singapore, Bahrain, Hong Kong, Sri Lanka.
ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and
the National Stock Exchange of India Limited and its American Depositary
Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).
Premium Cards
Benefits
Benefits
Earn 5 I-miles for every Rs. 100 spent on the card, which you can
makemytrip.com.
Enjoy an exciting selection of year round privileges and savings in
travel, leisure, dining and shopping in key destinations around the
world with American Express.
Access over 2,200 American Express Travel Services Office
Exclusive Benefits
10% cash back (discount) on any airline ticket booked through related
Website.
24x7 Personal Travel Desk for assistances in booking flights, hotels,
holiday packages.
Up to 50% discount on holiday packages booked through related
website.
Up to 20% discount at over 500 fine restaurants in India.
Benefits:
10% discount on premium Golf equipment brands & also get 0% EMI
offer at select outlets.
Special discount available on Golf line Magazine & Golf Digest.
CO-BRANDED CARDS
Benefits:
Benefits:
Benefits:
T.Y.B.COM (BANKING & INSURANCE) Page 33
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Benefits:
Enrollment bonus.
Double reward points.
Zero Lost Card liability.
Benefits:
Benefits:
Classic Cards:
Benefits:
Benefits
Affinity Cards
Benefits:
Benefits:
Corporate Identity
Management MIS
Cost Saving
Reduced Administration Burden
Choice of Individual corporate Liability.
Benefits to Employees
Convenience
Security\insurance cover
World class service
Membership Rewards
Free Teleoptima Calling Card for use overseas with discounts on airtime and
a cost saving tariff plan
Overseas Insurance Cover
SPECIAL OFFERS
Anything customer can buy on ICICI Card could be free. When customer
will use American Express Card can win whatever customer purchase. From
gas and groceries to meals, air tickets or holiday bills. Every ten days 25
lucky card members will have a winning transaction credited back to their
Card account.
For Medical Emergencies like surgeries, accidents and sudden illnesses,
ICICI brings family PLUS, a complete insurance plan that is flexible enough
to cover every member of family.
The freedom and convenience of anywhere, anytime banking with “ICICI
Bank Internet Banking” services.
Service Charge, Eligibility and Age Criteria for ICICI Credit Card
Age Criteria
Amway Card
ICICI Bank- Nil Rs 500\- on First Add on Card
Big Bazar Card renewal Rs 750\- Free, on renewal
Rs 150\-
ICICI Bank-
Trinethra Card
Nil Rs 750\- Rs 375\-
HDFC BANK
INTRODUCTION
HDFC was incorporated in 1977 with the primary objective of meeting a social
need that of promoting home ownership by providing long-term finance to
households for their using needs. HDFC was promoted with an initial share
capital of Rs 100 million.
The first chairman and founder of HDFC Bank was Hasmukhbhai Parekh.
Today’s Chairman of HDFC Bank is Mr. Jagdish Capoor. HDFC Bank's
Awards
To keep with the changing times, HDFC Bank offers you the finest Payment
solution, from Debit Cards all internationally valid.
The HDFC Bank Silver Credit Card can be used for all your
requirements, be it shopping, eating out, holidaying, and fuelling up your
vehicle, railway ticket reservations - just about any financial requirement,
planned or on impulse.
With us, money spent is money earned. For every Rs. 100 you spend, you
earn 2 reward points. You can redeem these accumulated points for
exciting gifts and offers from our exclusive rewards program.
W.e.f 1 June, 2007 you will accumulate 1 reward point per Rs 150 spent
with your HDFC Bank Silver Credit Card.
Add on cards
In case your credit card gets lost, report it immediately to our24 hour call
center. After you do this, you carry zero liability on any fraudulent
transactions on your card
Widely accepted
As HDFC Bank International Silver Credit Card holder gets loans from
the bank at special rates. The rate discount offered is as follows.
Use your Value plus Credit Card anywhere anytime during the year and
avail up to 5% cash back on all retail spends.
Worldwide acceptance
The HDFC Bank International Value plus Credit Card is accepted at over
23 million Merchant Establishments around the world, including 110,000
Merchant Establishments in India. so now one don’t carry large amount
of cash while you shop, travel or entertain, making that purchase on
impulse or planned one so much more convenient.
One can also use to ATMs to:
• Withdraw Cash
• Check the available Credit limit
• Apply for a PIN change
• Pay your credit card bills
Accidental Death
In case of death in an air accident your nominated next of kin will receive
compensation of Rs 2, 00,000 and in case of death in rail or road
accident, your nominated next of kin will receive a compensation of Rs 1,
00,000.
24-hour customer Call Center
If you have a query or need any assistance, just call the 24-hour Customer
Call Center.
Cash Advance
Just step into any one of our ATMs or VISA Member ATMs and
withdraw cash up to 30% of your credit limit at a very nominal charge.
If you have any other credit card and wish to transfer their balances to
your HDFC Bank International Value plus Card, those balances will
attract a nominal charge for a period of six months from the transfer
Date. The outstanding amount transferred can be up to 50% of your
HDFC Bank International Value plus Card Credit Limit.
A Credit Card that takes care of your financial health as well as your family's
health and fitness. This is not just a card but a guarantee of a healthy and
secure future.
Cashless Mediclaim
This credit card comes with a free cashless mediclaim cover of Rs.50,
000 plus a critical illness cover of Rs.1.5 lakhs. The critical illness
cover includes open heart surgery, cancer, kidney failure and vascular
stroke. You can avail cashless mediclaim facility at any of more than
You have the option of extending the Rs.50,000 mediclaim plus the
critical illness cover of Rs.1.5 lakhs cover to the add-on cardholders,
The HDFC Bank Health plus International Credit Card offers you a
comprehensive insurance package at no additional cost. In case of
death in an air accident, the nominated kin will receive a
compensation of Rs.10 lakhs. In the case of a rail or road accident the
nominated kin will receive a compensation of Rs.2 lakhs.
Cash Advance
Just step into any one of our ATMs or any ATM displaying
MasterCard logo or Maestro Cirrus logo and withdraw cash up to 30%
of your credit limit at a very nominal charge.
Eligibility
You are eligible for the Health plus International Credit Card if you are:
Minimum 21 21
Age
Maximum 60 65
Age
Annual Rs 2,00,000 p.a. Rs 1,50,000 p.a
Income(Rs)
1. Corporate card
HDFC Bank Corporate card is the first among few to provide you with truly world beating features on
your credit card. It comes with a unique 24x7 Expense management solution called SMART DATA
ONLINE, powered by MasterCard International.
Corporate benefits
24x7 online MIS availability.
60 MIS reports for better informed business decisions.
Substantial savings for the business through better negotiations with
airlines, hotel chains and other service providers.
Streamlines accounting procedures by consolidating transaction data
from around the world.
Helps in integrating with the existing accounting systems.
compliance tasks.
Smart Data online Reports
Card-Holder Benefits
My rewards
Earn up to 1 reward points for every Rs.150 spent on the card. Points
earned can be redeemed for exciting gifts and Air miles.
Features of card
accumulating these, you can redeem them into air miles, gift cards
and host of exciting gifts and offers.
Business Insurance
The card offers inbuilt insurance to cover your business office
premises towards fire and burglary for up to 2 lacs.
Worldwide acceptance
Articles
SOURCE: The Economic Times, 16 July, 2007.
PLASTIC MONEY
There are about 22 million credit cards in India (as on January 2007). And the
total value of such transactions almost doubled between 2003-04 and 2005-06,
to around Rs 33,900 crore. The latest available data, which covers the first 10
months of 2006-07, indicate continues robust growth, in the number of credit
cards increasing at 28% year-on-year. Over the same period, the value of credit
card transaction grew by 20%. But the number of credit cards in India-22-
million-is tiny for a country with a population exceeding 1.1 billion. Since many
people have multiple cards, the number of card holder is much smaller than the
number of cards in circulation. Credit card issuers in India have plenty of room
to expand their customer bases aggressively over the next few years.
NEW DELHI: The country's largest private sector lender ICICI Bank is
planning to expand its credit card business to another 50 cities and expects 20-
25 per cent increase in business during the current fiscal.
"We already have presence in 125 cities and plans to spread our footprint to
another 50 cities this year," ICICI Bank Head (credit cards product group)
Sachin Khandelwal told media.
The wide presence will not only grow the card business but will act as a loyalty
tool for retaining customers too, he said.
By far, ICICI is the market leader in the credit card business with 85 lakh credit
card floating in the market against the total market size of 2.3 crore.
With almost 35 per cent market share, the bank expects 20-25 per cent growth
in the card business during the year, he said.
During early this month, the bank unveiled 'Visa Signature card' for high
Talking about the features of the card, Khandelwal said, this would be available
only to a select few and would be priced, unlike most other cards on offer today.
The shift comes amid credit card companies seeking to tap the growing
population of affluent people who, according to industry estimates, spend about
Rs 3,60,000 a year, 10 times more than the average consumer in the country.
There are about 15 lakh people under this category in the country and the
segment is increasing rapidly at a rate of 25 per cent a year.
Till a few months back banks like Citigroup, Deutsche Bank and American
Express were offering high-end credit cards under the "platinum" and
"signature" series, but today nearly all major players are offering such
instruments that come with larger credit limits as compared to the lower-end
silver and gold cards.
Typically, silver and gold cards offer credit limits of Rs 20,000-60,000, whereas
the cap on platinum and signature cards goes into lakhs. American Express
India Vice President (Engagement Brand and Lending) Amit Dutta said the
bank was targeting high-value customers for its platinum cards.
Generally, such cardholders are international travellers in the age group of 35-
45 years and include high salaried executives, Dutta said. Emerging affluent
consumers earn between Rs 20-25 lakh or upwards in a year, he added.
Deutsche Bank, which which forayed into the premium card segment last year,
has already issued 10,000 platinum cards.
Realising the potential of the segment, SBI Card, a joint venture between PSU
giant State Bank of India and GE Money, also forayed into the platinum card
segment last week.
Country's biggest credit card issuer ICICI Bank, last month, unveiled 'Visa
Signature card' for high networth individual with a joining fee of Rs 25,000 and
subscription fee thereafter of Rs 2,500.
The card would be made available only to a select few, said ICICI Bank Head
(Cedit Cards Product Group) Sachin Khandelwal. Besides, it is loaded with
exclusive bouquet offer valued in excess of Rs 50,000, including a Tag Heuer
watch or travel vouchers for destination of choice and a Rs 3-crore air travel
insurance cover.
CONCLUSION
Surely credit cards are all set to make a define impact on the lifestyle of the people. A
boom in credit cards business is quite expected. Merchants establishments should be
enrolled in large number to offer variety to card users in the choice of shop to shop.
About 40,000 establishments in India accept credit cards of one firm or other. True
some merchants establishments do not align with credit card business. They hopefully
feel enough is enough. Even some feel that credit card sales are nuisance. Credit card
benefit only customer and not to us.
Incremental sales definitely results and that merchant establishment stand to gain.
Accepting credit cards is a competitive tool. Merchant firms should be forward
looking and some forward to accept cards. Regarding the credit card holding
population in India their size should be about 11million present.
BIBLOGRAPHY
The project has been done with the help of the following materials.
NEWSPAPER:
• ECONOMIC TIMES
WEBSITES:
• www.yahoo.com
• www.google.com
• www.hdfcbank.com
• www.icicibank.com
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