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CHAPTER – 1
a) INTRODUCTION B) TYPES OF CARDS C) SALIENT FEATURES CHAPTER – 2
a) EXECUTIVE SUMMARY OF CREDIT CARD INDUSTRY B) INDIAN CREDIT CARD SCENARIO C) DECIDING ON THE RIGHT CREDIT CARD CHAPTER – 3 )
a)OBJECTIVES & SCOPE OF THE STUDY B) RESEARCH METHODOLOGY CHAPTER -4 DATA a) ANALYSIS b) COMPARISON OF CREDIT CARDS
a) SUGGESTIONS OF THE STUDY b) LIMITATIONS OF THE STUDY c) CONCLUSION d) BIBLIOGRAPHY e) QUESTIONNAIRE
ORIGIN The credit card had its beginning in an embarrassing incident that took place in the early 1950’s in America. The story goes that Mr. McNamara; a New York businessman took his friends out to dinner. At the end of meal he discovered that he had forgotten his wallet at home, the proprietor was kind enough to allow him a later settlement of bill. As McNamara stepped out of the restaurant he had the brainwave for the introduction of credit cards system of availing instant credit upon confirming the identity of cardholder. Thus was born the Diners Club Cards, the pioneer of today’s multibilliondollar plastic money business. Diners Club adopted a promising approach by recruiting various hotels and restaurants to act as member establishments for accepting the cards. Not only did these establishments pay a commission on member’s purchases but the members also paid an annual subscription fee. Diners Club vetted its members for credit worthiness and guaranteed payment to participating establishment. Thus was born the first ‘Travel and Entertainment Card’. It
was followed by American Express, which is now a dominant force in the Travel and Entertainment cards industry, and by 1959 by Carte Blanche, after many vicissitudes is now a part of Citi Bank Empire Together With Diners Club. In the present time American Express leads the travel and entertainment (T&E) card industry. The next great leap-forward came from Bank of America, which in other banks. Such cardholders could use their card 1966 offered to license its successful blue, white and gold Bank America card to at any accepting merchant establishments around the globe. Later in 1977 all the national and international Bank America licenses were pulled together under the single name of Visa. Not to be outdone, a rival group of American Banks came together in 1966 under the name of Interbank, later renamed Master Charge and later still Master Card. Ever since Master Card and Visa and their affiliates have carved the world credit card market.
In the 1980s credit card concept was launched in India through the Diners Club card. What is a Credit Card? “Credit Cards . remember that. (Remember the SALE at your favorite ready-mades store?). which it most certainly bestows on you. it says that you have taken the onus of being responsible . you run short of it. risky and sometimes. It is a convenient and safe alternative for cash. because your bank does! . Besides. Most people associate a credit card with a prestige. when you get yourself a card. it says things about you. A Credit card is the smart solution to these problems. within a couple of months both Visa and Master card entered into the Indian market. and soon. just when you most need it.It's credit to you!” A Credit Card is referred to as 'plastic money'. but more importantly.to be extended credit! So. Carrying a lot of cash on you can be cumbersome.
Banks. Credit Card – A credit card is a financial instrument. which can be used more than once to borrow money or buy products and services on credit. retail stores and other businesses generally issue these.An agreement to lend a specific amount to a borrower and to allow that amount to be borrowed again once it has been repaid. Personal Identification Number (PIN) . Most credit cards offer revolving credit.As a security measure. Credit limit – The maximum amount of charges a cardholder may apply to the account. which ranges depending upon the type of card one possesses.Before i go any further. Annual fee – A bank charge for use of a credit card levied each year. why not become familiar with the various terms and jargons used by the credit card industry. The cardholder can usually change the number. . some cards require a number to be punched into a keypad before a transaction can be completed. Revolving Line Of Credit . Banks usually take an initial fixed amount in the first year and then a lower amount as yearly renewal fees.
It generally results in a higher credit limit.Often called the introductory rate. but makes both parties responsible for repaying the debt. Joint Credit . .Issued to a couple based on both of their assets. it is the below-market interest rate offered to entice customers to switch credit cards.Teaser Rate . incomes and credit reports.
23.2 million locations. the other a non-financial group. VISA Card – VISA cards are financial institutions around the world distribute a product of VISA USA and along with MasterCard. Cardholders borrow money against a line of credit and pay it back with interest if the balance is carried over from month to month. In 1998. popular singers and airlines are among those featured on . Affinity Cards . whose users spent $650 billion in more than 16. Schools.000 financial institutions in 220 countries and territories issue its products. it had almost 700 million cards in circulation. Nearly 600 million cards carry one of the VISA brands and more than 14 million locations accept VISA cards.A card offered by two organizations. pro wrestlers. A VISA cardholder borrows money against a credit line and repays the money with interest if the balance is carried over from month to month in a revolving line of credit. non-profit groups.TYPES OF CARDS MasterCard – MasterCard is a product of MasterCard International and along with VISA are distributed by financial institutions around the world. one a lending institution.
Gold Card/Executive Card – A credit card that offers a higher line of credit than a standard card. Income eligibility is also higher. It is used by people new to credit. Standard Card – It is the most basic card (sans all frills) offered by issuers. Titanium Card – A card with an even higher limit than a platinum card. Usually. .affinity cards. Classic Card – Brand name for the standard card issued by VISA. Platinum Card – A credit card with a higher limit and additional perks than a gold card. issuers provide extra perks or incentives to cardholders. use of the card entitles holders to special discounts or deals from the non-financial group. or people trying to rebuild their poor credit ratings. In addition. Secured Card – A credit card that a cardholder secures with a savings deposit to ensure payment of the outstanding balance if the cardholder defaults on payments.
Smart Card – Smart cards. American Express and Diners are providers. Where a typical credit card's magnetic stripe can hold only a few dozen characters. merchandise or services based on card usage. No outstanding are allowed. Charge Card – fall between a debit and credit card. no revolving credit facility either. smart cards are now available with 16K of memory. the cards can perform a number of functions or access data stored in the chip. Rebate Card – This is a card that allows the customer to accumulate cash. When read by a special terminal. Specific facilities are made to members through these tie-ups. So. These cards can be used as cash cards or as credit cards with a preset credit limit. in other words. Works like the latter and you don't have to be an accountholder. sometimes called chip cards. Just pay up in full when the bill arrives with the mail. contain a computer chip embedded in the plastic. Co-Branded Card – This is a marriage of convenience between two service providers who want a trade-off with the other's strengths. Times Bank and Sbi have a co-branded card that allows concessional . or used as ID cards with stored-in passwords.
contain a set amount of value.rates for add-on cards or telephone banking. and payments for purchases are deducted from your bank account. Participating retailers will use the reader to debit the card in iAGRAements until the value is gone. Sbi Dollar Card. Cash Card – Cash cards. Travel Card – these works mostly as debit cards for the limited purpose of travel. SBI-GE Capital has a co-branded card for retail loans. Stan chart and Hindustan Lever Limited have a co-branded card to sell Aviance beauty products. which can be read by a special cash card reader. American Express.they have no built-in security. they can be used by anyone. Open an account with a bank that offers a debit card. similar to pre-paid phone cards. The cards are like cash -. you enter the personal identification . The retailer swipes the card over an electronic terminal at his outlet. Bob card Global and Hong bank Thomas Cook International Card are among the players in this section. Debit Card – It is the accountholder's mobile ATM. so if lost or stolen.
. Sbi and a few domestic banks like Times Bank offer this.number on a PIN pad and the money is immediately debited at the bank.
When the time comes for renewal of your card. you can expect to be billed the annual fee every March until you cancel your card. The start of the year. if you got yourself a card in March. every month. . the rest is carried forward. So. interest varies between 2. of course.5% and 3% per month. you can even use the reward points you have accumulated from using the credit card over the year to settle your annual fee.SALIENT FEATURES Annual Fee: All credit card issuers charge an annual fee which is payable at the start of the year. this fee is sometimes waived the first time. and not the calendar year. But there's a price to pay for this extended credit .interest! Normally. You can opt to pay 5% of the total amount on or before the due date. is your membership year. As a privilege. Forwarding Balance (or Revolving): The most attractive feature of a credit card is that you need not pay off your dues in whole.
Billing cycles are structured in such a way that you . it turns out to be as high as 43%. This rate is charged to the cardholder on the amounts carried forward beyond the due date for the payment of balances. Use discretion when withdrawing cash on your credit card because the charges for this facility are high. around 2. APR or Annual percentage Rate: The interest rate that reflects the yearly cost of the interest the outstanding on your card is called the annual percentage rate. Cash Advance: An important feature . you get an interest-free period of 45 days.lets you withdraw cash from designated ATMs using your credit card.5% to 3% per transaction! BENEFITS: Credit: When you use a Credit card to pay for anything. Most card issuers will tell you their monthly rate of interest. but when you look at the interest rate over the year. It might sound low at 3%.
. there's a fee to it. every month. You can spend now . which is especially beneficial to salaried people. you don't need to run the risk of carrying a lot of cash.definitely get at least 30 days out of these as clean credit time. Cash Advance: Another advantage of a Credit card is that you can use it as an ATM card too! But remember. pay later. Convenience: With a credit card on you. It typically starts with a flat fee going up to a percentage-based fee on the amount of the withdrawal. you can opt to pay your bill in full when you receive it or you can carry forward your payments by paying as little as 5% of the total amount on or before the due date. Better still.
If your card is lost or stolen. . Remember. it is an extremely expensive way to borrow money! View it as a convenient and safe way to carry cash.DRAWBACKS: Greed! Just because you have credit being extended to you doesn't mean that you should go on a rampage! Use your card with discretion and caution. In fact.you'll find them easily. or you suspect it is being used fraudulently. keep your receipts filed or in one place . report it immediately to your bank. Hold on to receipts from your transactions. a timely help in an emergency or taking advantage of an opportunity that you would have otherwise lost out on. like an investment! Do's & Dont's Do not leave your Credit Card lying around the house or on your desk at work. should the need arise.
And when you want to throw them away. and it is to your bank or someone you trust. don't just thrash into the bin. shred or tear them before you do. unless you've made the call. and you really. Never give your Credit Card number over the phone. really need to! .
. with the number of cardholders touching over 38 lakh. but the usage pattern of credit cards remains a point of conc0ern. your business will prosper. These figures point towards the fact that the credit card industry in India is growing at a brisk annual rate of 30 per cent and is expected to grow at a similar rate in the coming years. You want customers to be happy with the products and services you provide. the challenge for the banks lies in being able to manage their portfolios by keeping the delinquency levels at the lowest and customer satisfaction levels at the highest. There has been a seven-fold iAGRAease. and where you need improvement. Customer satisfaction is the key to success. those in the industry say. Getting your customers to tell you what’s good about your business. While issuing the cards may seem to be easy. If they feel they have received good value for their money.EXECUTIVE SUMMARY OF CREDIT CARD INDUSTRY The credit card industry in India has registered an encouraging growth in recent times. helps you to be sure that your business measures up to their expectations.
Organization has to ascertain whether its existing customers are satisfied with its current service offerings. . The level of services provided by these organizations is iAGRAeasing day by day.Apart from attracting potential card users. ----. These respondents each hold credit cards. which may be of different kinds. people have started using cards on a more regular basis. In order to ensure that the existing customers stay loyal. With the influx of new financial institutions in the card market. customer retention is also one of the most important factors influencing a card issuer’s success. This research has tried to study the satisfaction levels of a sample of 100 credit card holders.
those in the industry say. but the usage pattern of credit cards remains a point of concern. But it is the usability that raises doubts. There has been a seven-fold iAGRAease. These figures point towards the fact that the credit card industry in India is growing at a brisk annual rate of 30 per cent and is expected to grow at a similar rate in the coming years. This fortifies the view that conservative purchasing ideas are giving way to the big in-thing. According to a survey by the Credit Card & Management Consultancy (CCMC). 71 per cent of first time credit card applicants in the country have expressed the need for advice on appropriate card selection despite the plethora of cards available in the market. India had a base of around five lakh credit cards. . The whole idea behind the introduction of the credit cards was to iAGRAease the purchasing capacity of the cardholder. Seven years back. with the number of cardholders touching over 38 lakh. Through this survey it has come to realize a long felt need of potential and existing cardholders for advice on suitable selection of a credit cards.INDIAN CREDIT CARD SCENARIO The credit card industry in India has registered an encouraging growth in recent times.
Going by estimates. the foreign banks launched a credit card blitzkrieg on the Indian customer. The innovations have already begun to show their effect.300 and 3. Those in the credit card . The credit card players will have to think about simplifying the foreign exchange transactions. It is upon him to find out the facts of regulatory life. India has a long way to be anywhere near the matured markets.With this in mind. According to estimates. It has seen the fresh issuance of global card iAGRAease by more than one lakh. and the bank now has a base of more than half a billion. The markets like the United States and England have an average annual card spend of 1. When one uses the card. it is entirely his responsibility to make sure that exchange controls have been complied with. The real point of worry is the spending on the credit cards. The banks that issue the cards have made it abundantly clear that one has to look out for him. the average card spending in India is even less than that in Indonesia. But the real challenge for the banks is to make the holder spend more on the card. The Standard Chartered Bank has seen its credit card base shoot up after the launch of its Global Rupee Card in March last year.600 dollars respectively.
500).business say that per capita credit card spending in India is about five hundred dollars (Rs 21. Suggestions include credit card usage at petrol pumps and railway bookings. At present there are over a dozen players in the credit card market in India. with many loopholes remaining to be plugged. and the fact is the foreign banks are clearly the leaders. in India it is only 11 times. but the present scenario does not paint a positive picture. but even today the insurance premium cannot be paid by card. Some of the key factors impacting the cards business in India are limited credit.154). But the alarm has been raised for the banks by the figures that show that while the average usage in Malaysia is 27 times annually. but its turning into reality may take time. The other players feel that the card acceptance base in India has to be widened. Though LIC is talking about the introduction of this facility to customers. The leaders will surely be identified by the innovations for the card users. They also point out that though the cards business has been in the country for long. limited telecommunication infrastructure and emerging regulatory controls. whereas in Indonesia. it is about 678 dollars (Rs 29. wide geographical spread. There is talk of widening the card business with new features. .
the cards business is still in its initial stages. The iAGRAease is being attributed to new ideas such as round-theclock functioning of card issuing banks and pulling out all stops even at a loss. Not to be left behind in this race. Less than two per cent of private consumption spending in India is done on cards. the challenge for the banks lies in being able to manage their portfolios by keeping the delinquency levels at the lowest. However. to grab a sizeable share of the expanding pie. despite the fact that it has more than one million credit card holders. considering the fact that. Even the largest player in the Indian market does not still have the economies to make the card business really profitable in India. a necessity. While issuing the cards may seem to be easy. Huge investments in systems and infrastructure are. therefore. the State Bank of India in association with GE Capital entered the card business. more than ten per cent of them are cardholders. Those in the industry point out that this figure is not bad. the players feel that the business has not reached an optimum level to say that they are making money.Of the twenty million taxpayers in India. . even the big brother.
Service 24 hours a day/7 . the Hong Kong & Shanghai Banking Corporation (HSBC). SBI Cards & Payments Services attributed this success to SBI’s enormous brand equity. coupled with availability of the SBI Card in 25 cities in just 16 months. was in the credit cards business since seven years. but from 50.The spurt in the card business has gathered momentum during the past couple of years. and unparalleled retail branch network coupled with GE Capital’s payment card process and technology expertise.SBI Cards 2.5 lakh credit cards…25 cities…16 months. Simplicity Simple application process with minimum documentation. it has about three lakh card holders now.5 lakh credit cards across 25 cities (the largest distribution network in the payment card industry) within 16 months. For instance. The joint venture between India’s largest bank – State Bank of India and one of the world’s leading financial services companies – GE Capital. Speed Unique and exclusive 14-day average turnaround time. Simplicity and Service as the key drivers of growth for the SBI Card. He also highlighted Speed. Thereby achieving the target in the fastest period seen in India’s payment card industry. India’s fastest growing credit card company . SBI Cards & Payment Services (SBI Cards) has issued 2.000 card holders in 1997.
. As a result of the focus on the Speed. accessibility to airport lounges. Simplicity and Service growth platform. credit card companies are opting for Direct Sales Agents. INTERMEDIARIES: In their attempt to iAGRAease their market share. a card with a higher annual fee enjoys more benefits like higher credit limit. The DSA team comprises aggressive salesmen who visit different organizations and professionals. SBI Cards today offers the largest distribution and widest cash advance network for India’s middle class customers. DECIDING ON THE RIGHT CREDIT CARD How much is the joining fee and the annual fee? Generally. After cards are issued they also deliver the same to the individuals.days a week local call access to the SBI Card Help line across 25 cities. These DSAs are paid a flat rate against the approved applications. They collect filled forms and produce them to the bank for approval. SBI Cardholders can access cash for emergency purposes from over 158 SBI branches across 68 locations in India. higher accident insurance cover.
Grab these offers. OF at least the used to be the case. Most credit card companies charge anywhere between 2% to 3 % per month. With cutthroat competition between the card issuing banks. ask for the add-on card fee. or likes to live it up and live off credit.travel discounts etc. . Remember that you will be settling the bills on the add-on card that you so touchingly gift to someone dear to you the statement will come to you. Remember. players are ready to waive joining fees and also one-year membership fees for anyone. spouse or friend. (Read a whopping 35% to 43% per year). or negotiate this for yourself. and the responsibility for payment is yours (as far as the credit card company is concerned) What is the interest rate? This is actually a question that you should be asking fairly soon in the discussion. How much is the Add-on card fee? If you are interested in buying add-on cards for your children. the interest rate would be of paramount importance. while the up front one off fees are bread and butter for the credit card Company. this is the jam! If you are the sort who forgets to pay on time.
I guess for things that cards just cant buy. and are helpfully scattered all over the city/country/world). and most credit card companies provide Visa or Master cards. and that's where you pay! It is always advisable to pay off the entire amount on due date. look for card companies that provide the transfer balance facility.they're all more or less the same. though it may certainly be a goal to work towards after buying the card. Having more ATM outlets in Thailand wouldn’t be of any relevance to a person who rarely travels abroad. Please also remember that .That's where they make their gravy. 4. and doesn’t need much head scratching . But again this is a temporary solution to a chronic problem. What is the reach? Not an important question . So its fairly simple.most outlets in India accept both the Master card and the Visa card. One thing you could do is to check out for the Automated Teller Machines nearest to your house or work place (ATMs almost all credit card companies now provide you the facility of withdrawing cash from machines . or. if you have a large bank balance. The balance transfer rate is lower for a certain period (say six months) and then the normal rates apply. These machines are called ATMs.
It is better to have a global card. 5. E. . Sbi WWF cards.g. a Global card is being issued at the same cost as for a similar domestic one.Is it a Global card? Now this could be useful to you if you are an overseas traveler.Amex credit cards are not part of the Visa/ Master chain.How useful are branded or affinity cards? A partnership between a card issuer and the non-profit. A Global card can be used for paying expenses in foreign currency just like you use a credit card to pay in rupees. 6. Sbi Women’s card. especially if there is no premium attached. This is for providing financial rewards to the group or association. social or lifestyle association is what results in an affinity card. Nowadays. and have a separate chain of outlets where it’s accepted. Sbi WWF Visa card donates a percentage of the transaction value made through the card to the WWF fund for its environmental conservation activities. A subscription to such cards helps ease the conscience though it provides no monetary value.
So if you were loyal to a particular brand. 8. Sbi and IOC. the ceiling should logically be your credit limit. that is actually AFTER it is reported to the Bank. Are there any freebies? . e. discounts on co-branded products. it would make sense going for those co-branded cards. 7. What’s the lost card liability? Most Card issuers mention in the brochures that lost card liability is Rs 1000. Be careful. This entitles the cardholder to lots of freebies. he will want to purchase the other. Bank of India and Taj group of hotels etc. and the outlets accepting your stolen card should actually check that you (or the person who stole your card) haven’t exceeded your credit limit). The liability is actually unlimited before reporting (in cases like this.A partnership between a bank card issuer and a commercial partner result in a co-branded card. Avoid banks that make you liable for card misuse for a single minute after reporting it. prizes. Logic: If a customer is loyal to one brand.g. you would actually thank the credit limit because though the liability is unlimited.
Sbi gives a Pond’s gift hamper free on subscription to its Sbi Women card. Road or Otherwise is packaged along with the subscription. Is immediate cash withdrawal possible? Check out if the Bank has any ATMs near your house or workplace. you could end . better watch out for this cost. If you are going to withdraw cash frequently. and Interest rate for the period for which you have used the money . 9. 10.until settlement date. if you buy just after the statement date. Personal accident insurance for Air. How long is the free credit period? The days of credit one gets depends on the statement date and the date of transaction. Also Baggage cover. If you feel one these parameters are important. you could assume you'd get around 20 days of free credit. On an average. This surely helps in times of emergency. and then settle for the one that gives a higher cover. The cost component for a cash withdrawal could be classified as follows: Service fee (transaction fee) each time you pull out money. However. Purchase Protection cover and credit shield is bundled free of cost along with the card.
Look for cards that give you the highest free credit period! 11. and stay careful . it gets to be a serious consideration as one goes along). like everything else in life. the card you want is really up to you what matters the most to you . Is a Helpline available? A 24-hour Helpline service from the Card Company helps the cardholders during the non-banking hours. Go to our shortlist card section. Or look for cards offering the lowest interest rate. Of the lowest charges on cash withdrawal (believe me. Reporting of theft. Use our card category on the left bar to simply list out the names of the cards. and search for cards based on any criteria that you want.credit. . reach. In the end. or choose by bank name and see the cards they offer. Happy hunting.up getting unto 50 days of credit.you may like to use our section on how to use the card carefully to minimize the chance of its misuse by someone else. checking of available credit limit and other enquiries can be made by the cardholder round-the-clock. the freebees. international reach or a combination of parameters.
Following are the objectives of the study: • • • • • To find the scope of the credit cards industry in India. To understand the market potential of credit card in . To analysis the benefits of credit cards. To know how it is beneficial to manage the cash risk. . We have considered geographical Unit of Agra. To know the customer awareness regarding credit cards.iAGRAease the volume of profit of this industry. It in we analysis the comparison of different credit cards and their detail reports their branches and values. SCOPE OF THE STUDY The study on Credit card.OBJECTIVES OF THE STUDY Study is the one of the important parts of any study.
It's customary to distinguish data between primary and secondary. Following are some of the facts that were revealed through the survey. Sources and Method of Data Collection The data on the present study will be collected by the investigator himself. using the probability sampling technique where every individual fulfilling the above criteria had an equal chance of being selected for the survey. Collection of Secondary Data: • News papers. we chose a sample of 100 people .50 cardholders and 50 non-card users.RESEARCH METHODOLOGY Confining our study to the geographical limits of Agra. A personal survey and surprise check are prompt to be carried out to ascertain the fact on the basis of survey of credit card at personal interest. Collection of Primary Data: The collection of primary data done with the help of personal meet with the Managing Director and Supervisory and Official Staff after Securitization of records maintained. .
• • • Press Media Magazines Telecommunication Research Tools: • • • Research design Sampling Unit Sampling Size : : : Exploratory Area of Agra 100 people.50 Cash holder. 50 non.cash user • Sampling technique : Probability Sampling .
ANALYSIS It was found that for the frequent travelers acceptability was the most important criteria and was given the highest weightage Following attributes have been analyzed as per the consumer survey conducted The attributes are as follows: ACCEPTIBILITY CREDIT LIMIT CREDIT PERIOD MEDICAL AND HOSPITAL SERVICES OTHERS PROMOTION STRATEGIES The changing trends in the payment systems are global and even in India revolve around the change in customer needs and the evolution of financial .
Onida. 0Philips ) to sell their products. . Traditionally Indians like to pay in cash or at the most avail the services of a bank. The companies have tried to address this issue through promotional campaigns: Placing of take away firms of credit card at more than a thousand merchant establishments. As a result credit card companies had to educate the consumers and spread awareness of the uses of its products. Mailing of forms along with contests to professionals and middle management executives etc. Providing ATM facility to their card holders Travel assistance via tele-banking.markets. Introduction of photo cards. Tapping the get member route Reducing their minimum eligibility criteria and changing income documentation structure. Appointing of DSAs Using business magazines and newspapers for advertisement.g. Tying up with durable consumer goods manufacturer ( e.
COMPARISON OF CREDIT CARDS Card Issuers Sbi NA Sbi NA Sbi NA Sbi NA Sbi NA Sbi NA Sbi NA ICICI ICICI ICICI SBI Brand Gold/Preferred Gold/Preferred Indian Oil Silver/Classic Silver/Classic Women WWF Solid Gold Sterling Silver True Blue Classic Card Type Master Visa Master Master Visa Visa Visa Visa Visa Visa Visa Master Acceptance International International Domestic International International Domestic Domestic International Domestic Domestic Domestic International Standard Chartered Classic .
. others are luring customers by their reward schemes.Standard Chartered Gold Visa International With the credit card truly becoming an international citizen. While some of them are offering attractive interest rates. issuers have begun highlighting the value-added features offered along with the basic product. With a plethora of choices on offer it is not easy to come to a decision on any particular card.
call your credit card issuer and ask for a cut on your interest rate. The cost of cash advances is particularly onerous. debit cards and traveler's checks. Cut credit card costs Make payments on time. so issuers don't want to lose creditworthy individuals. avoid cash advances and don't exceed your credit limit. cash. . carry a mix of plastic. Want a better rate? Just ask for Acquiring new credit card customers is expensive and timeconsuming. When traveling abroad. If you've had a year of on-time payments.TIP’S FROM SBI TO SAVE CHARGES Fee-heavy foreign transactions Many major credit card issuers charge a fee for card transactions in foreign countries. Cash advances are more costly as there's no grace period. so you pay interest from the day you take the money.
explosive emotions. smoking. If your credit card is misused on the Internet.Identity theft The No. . Shop online without the worry Credit card companies are switching to zero liability. Save stress with less debt The stress of credit card debt has been directly linked to physical problems like heart attacks. New card accounts are opened or existing accounts are taken over. you won't be liable for online transactions charged by an unauthorized user. insomnia. The Federal Trade Commission offers a hotline and Web site for advice and tips. But zero liability doesn't mean zero responsibility -you'll have to meet certain requirements. 1 identity theft is credit card fraud. overeating and lack of concentration.
and aren't ready for plastic. Nonprofit organizations caution that teens lack personal finance teaching. . Read the fine print carefully. Be careful when you do the card hop Changing credit cards for a better deal may net attractive teaser rates. but many cards now deter balance transfers with tough terms and high costs. Teens get the credit card and the bill." You can't sign up for a new credit card and go shopping with it three minutes later. Teen consumers Credit card companies are targeting the iAGRAeasingly powerful teen consumer. The downside is that you give up the convenience of "instant credit. but parents are legally responsible.Fraud alert Placing a fraud alert on your credit files prevents an imposter opening credit in your name.
They are convenient. and reapply for new accounts. The Telephone Consumer Protection Act requires telemarketers to record your 'do-not-call' request and refrain from dialing you for 10 years. filling in account and personal information at cyber stores. even if you were only an authorized user. or e-wallets. secure solution to shopping online. are extensions of a consumer's credit cards. A first step is to cancel credit card accounts. you need to make a clean financial break to keep your credit report accurate. Digital wallets Digital wallets.Silencing phone solicitors: You can pull the plug on telemarketers calling your home. Basic e-wallets store cardholder information. . Credit score During and after a divorce.
Don't fill up on gasoline credit cards Gas company cards offering rebates on purchases can be worthwhile when gas prices are high. The prime . though they tend to have fewer choices than bankcards. But the annual percentage rate and the annual fee charged are higher than normal cards. Variable-rate cards The cost of using credit cards has increased. Generally. Student credit card choices Students and their families looking for the best student credit card need to focus primarily on annual fees and interest rates. People who carry a revolving balance will find these cards much less rewarding. Credit union cards Credit unions usually have lower interest rates and fees than banks. Variable-rate cards. students with a work and credit history will find a regular credit card is the best deal. tend to rise in step with the prime rate. the most common type in the nation.
. Even the average credit card interest rate can turn your vacation into a financial strain if you spend above your means and take up to a year to pay it off. Financing vacations Most people finance vacations with their credit cards.rate has gone in the Fed's efforts to cool the red-hot economy. grace periods. Emerging credit Tweeners – people with emerging credit or recovering credit -. and fees. but spending hasn't been significantly reduced.can find good credit card deals. credit limits. To get the best deal they need to compare annual percentage rates. and avoid credit cards with hefty application and processing fees.
Affinity cards carry high interest rates and annual fees. but can cost more than your actual donation. First. a home-equity loan offers a better interest rate than a credit card. Consider planning ahead. concentrate on paying down credit card debt. and then tackle your student loan debt. and it needs to be attacked aggressively. .000. Student loan debt Graduating college students face an average loan debt of more than $35.Affinity credit cards Affinity credit cards (aka "charity" cards) may give you a sense of purpose to your spending. Paying for vacations You can enjoy that vacation even after it's over by limiting your credit card use. They have more value if you don't carry a card balance. If you're still short-funded. setting a budget and saving for your vacation.
To illustrate our point again. We hope that you find the following tips beneficial. Taking Advantage of Promo Rates .00! Also. avoid cash advances if at all possible.500 and a 19.Sbi ‘s credit cards debt elimination strategies In addition to encouraging credit card competition through promoting the most attractive cards in the country. Interest Rate Awareness: We cannot stress enough the importance of being aware of interest rates when using your card(s). Cash advance rates are typically much higher than purchase rates and usually there is no grace period for cash advances (not to mention cash advance fees). Therefore.00%.00 in interest if the rate were lowered to 8. a difference of $600. be aware of cash advance rates. Please utilize the lists above!!! High rate cards can be put a BIG dent in your pocketbook. Sbi help consumers cope with credit card debt by teaching various debt reduction strategies.00 in interest alone in just two years! The same cardholder would pay only $400. a cardholder with an average balance of $2.99% purchase rate will pay $1000.
rate period ends (for transfers). You must be aggressive when dealing with credit card companies! You can also negotiate to have your regular interest rate lowered. even if it is . savvy consumers can benefit a great deal from promotional rates.. Some cards even offer very attractive long term promotional rates on balance transfers.While introductory or "teaser rates" are generally short lived and are intended strictly to entice consumers. Transfer rates (a ploy known as "card dumping"). Consumers with a good payment history often get extensions.. Look for cards that offer longer term introductory rates and longer term promotional rates on balance transfers (6-12 months).rates that are good until the dollar amount transferred is entirely paid off! Consumers that have more than one card with available credit can transfer balances between cards in order to take advantage of promo. Avoiding the Minimum Payment Pitfall: One of the greatest card pitfalls is making only the minimum payment each month. it is a good idea to call the card company and request an extension of the rate. Finally. when the promo. Threatening to pay off a given card often puts consumers in a bargaining position when dealing with credit card cos. Make every effort to pay over the minimum each month.
Keep your eyes peeled! . but there are still some out there. According to Consumer Credit Counseling Services. Only a few cards still use this method of interest computing. The long-term impact of making "just the minimum payment" is devastating. rather than billing. however.only a few dollars over.780 in interest! By paying only $50 more a month. the debt would be paid off in three years and result in a savings of $1.000 credit card balance would take eight years to pay off and would translate into $2. paying the $60 minimum payment on a $3.800 in interest charges! Graceless Grace Period: Avoid cards that begin computing their grace period at the time of purchases.
where credit cards payment system is not as popular as. still reports keep coming regarding credit card frauds here and there. At least in Singapore. a mega shop had experienced a fraud of huge magnitude and decided to suspend immediately their online business. misappropriation. Even in. etc are being introduced to avoid such things In spite of all these measures. there is no 100% foolproof to make credit card payment a safe mode of payment. Secure socket layers. online shopping through credit cards resulted in great failures. Therefore in there was no problem in making people to switch over to online purchases as this mode of payment is already in vogue. etc of credit cards once the card number is given online to a merchant. much discussion is going on as to how to avoid frauds. Even before online purchases have become popular.CONCLUSION Whenever Internet transactions are discussed. . Similar stories are not uncommon in other countries too. yption technologies. This is because in the payments by credit a card is quite common. In other words. normally purchases are made through credit cards only. immediately the thought of credit card comes to everybody’s mind. In other countries.
2. . only IT payers will be eligible to buy goods online. In other words if credit card is made the payment mechanism.Still many leading credit card companies are yet to install their infrastructure to process the online payments.Then there is the question of sales tax laws Each State has its own rate of tax structure for each and every commodity.Use of credit cards is popular to only a few thousands of executives. etc from big cities. 3. They get the payment only after a certain period of time once the goods are sold. 4.That any person using credit card is liable to declare IT made many people surrendering their cards.Many establishments do not like to offer credit card facility due to the service charges to be paid to cr card companies. 5. Both of them make the profit margin less.In India the situation is far from satisfactory to use the credit cards as a means of making payments for online purchases for the following reasons. 1. businessmen. How to charge tax when a transaction takes place online and at what rate will pose problems of billing.
I believe once the cyber laws are passed by GOI. the goods can be dispatched by VPP and other modes of dispatch. Use of credit cards cannot be expected to boost the sales of online sales. However. this facility can be extended only to existing customers. the a/c holder can transfer the required amount to the merchant A/C . in India. this is possible. which will ensure collection of payment against delivery. Each merchant/shopper can allot a secret code number to the existing clients (customers). Once a purchase is made.As mentioned earlier. Banks should be asked to immediately create necessary facilities for any of the a/c holders to operate the a/c through online. On receipt of this code number. particularly business to customer Then what is the way out? There are other methods of payments for Indian online business. which are given below: Payments by electronic cash/ cheque may be made legally valid including electronic signature . In view of all these factors. the fraud element is applicable to India also.
Large organizations can issue authorization letters to each of their employee who wants to avail the online purchasing facility and device a mechanism through which the company itself pays the merchant his dues. These are all some of the ideas to making the online purchases easier and smoother without affecting the payment due to the shoppers. This would require installation of transaction servers in the companies or can be integrated with their online business activity. Similarly all government establishments can device a mechanism to enable their employees make online purchases. . banking practices prevalent in our country. The MERCHANT BANK CAN INTIMATE the shopper about the transaction. In conclusion. We need to device different mechanisms taking into account Indian laws. they can be easily achieved. They may look difficult to achieve but with proper programming techniques and the use of appropriate servers. All these activities can be carried out instantly though proper programming. shopper’s requirements. payment through credit cards will not result in iAGRAeasing the online shopping as generally believed. Activity can be made part of the ordering activity.online.
it must be done in writing. and must be done within 60 days from the date you received the statement on which the disputed charge appeared. Monitor your credit card statements. If there is an unauthorized charge. call Micro Forecasts again. deny the charge immediately with your credit card company. If the refund is not there. 1. report it to Micro Forecasts immediately and demand a charge reversal. Make payment by cheque instead. 4. Most importantly. This time frame is as per federal law. 2. Do not wait for your next statement to see if the credit appears. 3. I believe you are . Never give your credit card to the company. There may be other options available as well.RECOMMENDATIONS HOW TO PROTECT The following are my recommendations. For this to be effective. Wait several days and then check with your credit card company to see if you received the credit.
5. 6. including myself. Report the problem to authorities as per the next section is? Very likely Somewhat likely Not sure Somewhat unlikely Very unlikely To what extent does credit card service exceed your expectations? Very great extent Great extent Some extent .much more likely to get your money back if the credit card company is involved. You will get a new card within a couple of week. Many people have done this. Report your credit card as lost/stolen so that no further charges can occur.
according to you most representative of your credit card service provider? They are Helpful and Friendly.Little extent Very little extent Which of the following statements. They are polite. cheerful and are knowledgeable operators In tune with the needs of its clients Prompt in dealing with customer complaints Unwilling to go the extra mile for its customers Poor customer phone support You are often put on hold for a long time How satisfied are you with the efficiency of call handling when placing calls to credit card service provider? Very satisfied Somewhat satisfied .
Strongly agree Agree Neutral/Not sure Disagree Strongly disagree. What are the added benefits you wish to acquire from the card? Acceptability Longer credit period Higher credit limit .Neutral Somewhat dissatisfied Very dissatisfied Credit card service provider understands my service needs.
Sbi HSBC Bank of Baroda Bank Of India Standard Chartered ANZ Grindlays Times card ICICI SBI Personal details: .Lesser charges Better offers Please rank the services of the following card issuers in order of your preference.
000 Above 60.000 25.000-40.000-60.000 40.Age: Profession Income: 15.000-25.000 Thank you for taking the time to complete this survey .
House library JAMIA MILLIA ISLIMIA library Google search Yahoo search AltaVista search .K.Khanna & Jagjit Singh Annual report SBI Annual report ICICI Annual report Sbi Annual report FICCI PhD.BIBLIOGRAPHY Marketing management: Philip Kotler Financial Management: Khan & jain Business Statistics: K.
com Sbi.com Indiatimes.com A&m.com Icici. MSN search India infoline.com Business today Business week Times of India Business world Business India .com MAMA search Sbi.
Morthi .K.R.Ghosh Brand management: Y. Outlook India today A&m magazine Strategic marketing magazine Economic times Financial times Times of India Hindustan times Indian express The Hindu Home trade search Strategic management: P.
backed by much more comprehensive merchant establishment network. Considering the huge potential of the Indian market.SUGGESTIONS OF THE STUDY The banks battle today is more with cash than with other banks. The issuers must focus on service and pricing and must recognize the importance of the billing and payment process to retain credit card holders. The banks must also iAGRAease the number of cardholders by reducing the initial-one time subscription fee. The credit cards schemes would be successful only if they meet the customer’s requirement of wider acceptability rather than fringe benefits like non-crisis credit or prestige proposition. The campaigns must also be convincing enough to clear the myth that credit cards iAGRAease spending. it is in the interest of the issuers to educate the consumers about the benefits of holding credit card. . Emphasis should be on offering a wider basket of services through credit cards enabling purchases for a wide variety of products along with ATM usage. Focus should be on changing non-card related spending to card related spending.
With more and more people willing to adopt to credit cards. but provide holders with exclusive add-ons. direct mail. to cater to high net worth customers and those with niche needs.The banks should step up advertising that will help to build a brand image and create a higher brand recall like that of Sbi. banks should provide more of premium plastic and CO-cards that piggyback on the existing infrastructure. banks should undertake innovative strategies to iAGRAease card spends. promotional advertising through media. direct sales. Future promotions could include: Telemarketing. schemes like card carnival and sales executives contests and a plethora of augmented services should be introduced to induce greater number of people to adopt to plastic money. common ATM services between banks (to reduce cost of operations). Simultaneously. .
. However. to counter this the data has been verified from a number of different sources to give it a measure of authenticity. • Study was constrained by limited availability of data. • Most of the information is subjective data collected through personal interaction with people transacting in the plastic money market.LIMITATIONS OF THE STUDY • The study is confined to AGRA only. Not all banks could reveal their confidential marketing strategies and statistical information. As a result the personal biases of individuals could affect the study.
TYPES OF CARDS .
SALIENT FEATURES .
OBJECTIVES & SCOPE OF THE STUDY .
RESEARCH METHODOLOGY .
EXECUTIVE SUMMARY OF CREDIT CARD INDUSTRY .
INDIAN CREDIT CARD SCENARIO
DECIDING ON THE RIGHT CREDIT CARD
COMPARISON OF CREDIT CARDS
LIMITATIONS OF THE STUDY .
SUGGESTIONS OF THE STUDY .
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