Professional Documents
Culture Documents
SCB Project Paper
SCB Project Paper
1.0 Introduction
1.1 Origin of the Report
This project is a requirement of BBA Program and includes
experiences during preparing this project. This report is about the
Credit Card Services of Standard Chartered Bank in Bangladesh.
Here the project contains different system, program, process, features
and benefits of Credit Card.
Standard Chartered Bank is a multinational bank and started its
business in Bangladesh in 1948 with a branch in Chittagong. Today it
has 18 branches and 25 ATMs in different important places of this
country. Standard Chartered Bank is the pioneer issuer of Credit Card
in Bangladesh and it is also pioneer acquirer of Credit Card in
Bangladesh. It acquires credit card since 1988 and started issuing
credit cards from the year 1997. Today it has in total approximately
100,000 credit cards in the market with approximately 4000
merchants.
1.2 Objectives
ii)
iii)
iv)
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1.3 Methodology
Primary Sources
Few employee of Standard Chartered Bank who work in Credit Card
Division, helped to get information about Standard Chartered Credit
Card Service.
Secondary Sources
Data was also collected from various manuals.
1.4 Scope
A 24 hour customer service in the banking sector is very new in
Bangladesh. As for Standard Chartered Credit Card, it has complete
many years of its official launch. As credit card business is very
susceptible to fraudulent activities critical information as well as
financial information is very restrictive. Other than that information
all other information was available.
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1.5
Limitations
Lack of comprehension of the respondents was the major
problem that created many confusions regarding verification of
conceptual question.
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Which card is popular in Bangladesh, its interest rate and the social
impact of Credit Card. Fifth part is conclusion and recommendation.
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PART-II
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baking,
institutional
banking
consumer
finance
and
custodial services. The act of the bank is to provide the most efficient,
consistent and timely services and to be the bank of choice in its
principal territories.
SCB is a multinational bank and financial services group that is
incorporated in the U.K. with a unique international network. It now
spans in the developed and emerging economies of the world, after
been built over 150 years.
The group operates through more than 600 offices in over 48
countries and has over 25,000 people managing assets of over 47
billion pounds. In asset size the group was ranked 94 th in the world in
1997. The group has its long past history showing its huge growth
worldwide.
2.1 Standard Chartered in Bangladesh
The Chartered Bank opened its operation in Chittagong in 1947 that
was, at that time the eastern region of the newly created Pakistan.
The branch opened mainly to facilitate the post war re-establishment
and expansion in South East Asia. The bank opened its first branch in
Dhaka in 1966 and shifted its headquarter from Chittagong to Dhaka
after the birth of the Republic of Bangladesh in 1971 the bank
increasingly invested in people, technology and premises as its
business grew in relation to the countrys thriving economy. Extensive
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PART-III
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In today's economy, the payment system has come a long way since
the days of barter. The concept of cards or plastic money was first
introduced by Western Union in the United States in 1914. The system
was very well appreciated by everyone and began to spread out in
other contexts also. In 1924, General Petroleum Corporation of
California introduced their own fuel card to be used at their oil
stations all over the country. This gave their customers the privilege of
buying gas from all the general petroleum outlets with this card
instead of using cash money.
The popularity of card encouraged the banks to introduce this product
to their customers. Bank credit card was first introduced in the USA
in 1952 by the Franklin National Bank. But the rising curve of the
credit card popularity started in the later half of the 60's. 1950's
witnessed introduction of travel & entertainment cards such as Diners
club, American Express and Carte Blanche. The incident that
triggered the constitution of the Diners' Club is quite fascinating. The
founder
of
'Diner
Club'
Robert
Mcnmara
once
experienced
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Visa and MasterCard are two scheme operators who operate all over
the world through established banks like HSBC, Standard Chartered
Bank, Citibank etc. A world wide known brand like VISA or Master
Card is a very good example of strategic branding of services. Use of a
single brand all over the world helps the users or cardholders by
allowing them to derive maximum utility from their cards.
As a scheme operator VISA/ MasterCard works as a linkage between the
card issuing bank and the card servicing bank here the card servicing bank
is a member of the scheme operator's curtail and it provides different
establishments in its locality.
3.3.3 Charge cards
Charge card is a card which allows the card holder to purchase goods
or services in a style similar to credit cards but without the provision
of deferred payments. The outstanding balance owing at the end of
each billing cycle must be cleared in full by payment within due date
which is usually is days from statement date. Charge cards do not
have spending or credit limits but the issuer normally establishes a
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ACQUIRER BANK
Authorize
SCHEME
INTERCHANGE
Acquirer
transmits
Settlement claim
Authorize
ISSUER BANK
Issuer receives
Settlement claim
Merchant presents
vouchers
Credit
Cardholder
pays issuing
Bank
Issuer
Provides
Statement
MERCHANT
CREDIT CARD
HOLDER
Cardholder uses
card
international or the card issuer bank to fund out in his account or not.
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technically
advanced
countries,
this
authorization
is
done
After this transaction between the cardholder and the merchant has
taken place, the merchant obtains compensation from the acquirer
bank amount less a certain service charge and claims compensation
from the card issuer bank through the scheme operator.
The issuing of a credit card involves the creation of a credit
relationship between the issuer and the cardholder. The issuer will
perform a series of investigations to establish the reliability of the
customer before providing a credit limit and a card. The cardholder
will receive a statement of
transactions from the issuer on a regular basis, which may include
cash advances, sales and
interest charges and request a minimum payment of the balance
outstanding.
A similar process is followed when an acquirer bank selects an
establishment for becoming a merchant. The establishments past
business records, financial performance, and banks recommendation
along, with many more details are scrutinized before choosing it as a
merchant and providing it with the necessary logistic and backup
support to accept cards.
Wide Acceptance
Standard Chartered Bank issues both VISA and MasterCard Credit
Cards, the two widely accepted cards. So, the customers can buy
anything from clothes to meals in exclusive restaurants to airline
tickets to hospital bills. Any outlet that accepts Visa or MasterCard
will entertain our cardholders.
They have (SCB) at present, agreements with 3500 merchants all over
Bangladesh. But their cards are accepted in almost 4500 outlets. The
number is growing everyday.
Substitute of Cash
it is the primary benefit of credit card. Through cards one can buy
almost any thing on credit within the credit-limit. Therefore people
can go for their desired products and service and not bother whether
they are carrying enough cash with them or have enough cash in their
bank account. It enhances the purchasing power of the customer and
gives them opportunity to shop any time as they like.
Safety
Customers do not need to carry cash to purchase goods and services.
Through credit card customer can settle his/her dues to obtain credit in
shops, hotels, restaurants, petrol stations, etc.
Supplementary Card
Standard Chartered credit card holder can enjoy the convenience of
supplementary card for cardholders spouse, children over 18 years of
age or any family members or friends. Cardholder can set the
spending limit of cardholder choice, which will be the maximum
amount that the supplementary cardholder can spend in one billing
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cycle. A supplementary cardholder can enjoy all the benefits that only
cardholder can.
Emergency Need
In cases of emergency, cardholders can get instant cash advances up
50% of card limit from any of their 23 ATMs 24 hours in a day. Since
non-account holder also can be a credit card holder, so non-account
holder also can use their ATM through credit card.
Convenience
Cardholders can pay their utility bills through the Auto Bills Pay
Scheme. Customers no longer have to stand in long queues of the
bank pay utility bills.
Insurance Coverage
Cardholders enjoy free any accidental death insurance coverage.
Moreover under the Safety Net insurance scheme, in case of death or
total permanent disability, the bank waives the total outstanding on
the card.
Installment Loan facility
Customers can convert specific purchases into installment loans
through the InstaBuy scheme. Cardholders can buy merchandise and
pay them at a lower interest rate than most unsecured loans in the
market. Moreover in certain special campaign, customers are offered
ZERO interest rates loan facility for certain products.
Gifts and Rewards
Cards have an ongoing rewards campaign where customers get
different gifts based on the Treasure Points that they get on their
purchases of different goods. Besides that Cards always have some
sort of campaign or other going on.
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Discounts
Standard Chartered Credit Card has made arrangements with many
shops, restaurants, gas station in Dhaka, Chittagong, Khulna, Sylhet,
etc., to offer host of exclusive discounts on credit card purchases.
3.6
SCB
Credit
Cards-ELIGIBILITY
DOCUMENTATION:
3.6.1Target Market
Salaried
Self-employed
SCB RFCD & ERQ A/C holders (Intl Card)
3.6.2 Age
Primary 21-60
Supplementary 18-60
3.6.3Minimum Income
Card Type
Amount
BDT 10,000
BDT 55,000
N/A (secured)
Table # 1
Primary
Supplementary
Table # 2
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Amount
and
3.6.5Credit Limit
Card Type
Master / Visa Card
(Local)
Gold Master Card (Local)
Platinum Master Card
(Local)
Visa Silver
Visa Gold
Amount
BDT 10,000 ~ BDT 90,000
BDT 100,000 ~ BDT 400,000
BDT 400,000~ 800,000
US$ 500 ~ US$ 4,500
US$ 5,000 ~ US$ 20,000
Table # 3
3.6.9
Minimum
Repayment
(15
days
after
statement date)
Local Higher of 5% / BDT 500
International Higher of 5% / US$ 10.
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the
Gold
Silver Card
Minimum monthly
Card
BDT 55,000
BDT 10,000
income
Minimum Credit Limit
Maximum Credit Limit
Annual Fees (Primary
BDT 100,000
BDT 500,000
BDT 3500
BDT 10,000
BDT 90,000
BDT 1750
Card)
Annual Fees
BDT 1,000
BDT 500
(Supplementary
Card)
Card Replacement Fee,
PIN
Replacement Fee, Overlimit
Charge & Late Payment
Fee
(Per cycle)
Table # 4
Can
be
used
Local Cards
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other currencies.
Purchases only in
BDT
Security
Issued
against
the
Issued fully
Charge
Currency
If
Usage
used
locally
then
currency
rate.
settled
Operator
As
cards
conversion
bills
against
currency Accounts.
VISA only
are
foreign
VISA and MasterCard
both
Table # 5
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MasterCard Silver
Master Card Gold
Master Card Platinum
Visa Silver
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Grameen
Phone,
ISP
Cable TV:
Utility Company
Citycell, Blink
Accesstel, Agni, BOL
Prisms Digital
Desa, Desco
Aktel,
Table # 6
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Activation
Disputes
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3.11 E-STATEMENT
e-statement,
Credit
Card
statement
can
be
received
anywhere in the world. This program has been launched from 1 st June,
2003.
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Months
6
12
18
24
30
36
Payment Factor
Monthly Installment
1.0848
1.1695
1.2543
1.3390
1.4238
1.5085
BDT
BDT
BDT
BDT
BDT
BDT
1,446
780
557
446
380
335
Table # 7
First two months, Safety Net can be enjoyed absolutely free of charge.
Statement will show Safety Net Insurance charge.
During trial period, there will be another reserve transaction.
Automatic and hassle free enrollment
No forms have to be filled.
If no call received within the first two months, card holders will
continue to benefit from Safety Net.
If protection is not preferred, card holders will call them and request
for de-enrollment.
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to
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PULL! Service:
Through pull service, the customer will be able to access Credit
Card/Accounts previous days outstanding by typing a pre-defined
Keyword (CARD for Credit Card and ACC for Accounts.) with a 4 digit
PIN as a message in the mobile phone and then send the message to
2727.
Simple and Convenient:
With SMS banking, customer does not have to wait for the statements
to arrive through mail or call up at Cards Call Centers. SMS banking
will provide 24- hour access to the key financial information of Credit
Card/Account.
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points accumulation. So, customers get points for every Taka that
they purchase on their SCB Credit Card.
Each months statement includes the points accumulated by the
customer till date. So customers can track their points accumulation.
Customers can redeem their Treasury Points for prizes, by either
filling in a rewards cheque or by calling in at a given number. Within a
week the Reward release Voucher will be sent to the customers.
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PART IV
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country
has
become
more
developed
than
before.
New
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PART V
5.1 Conclusion:
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regular
motivations.
The
customers
should
also
be
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6.1 Recommendation:
The customer should be encouraged by offering new
benefits to retain the Credit Card holders.
Providing an authorization for a card is to sanction an
unsecured loan. There are fraud issues related to it.
Sometimes the agent has to take approval from the
merchant
division
to
provide
authorization.
Since
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7.0 BIBLIOGRAPHY
www.standardchartered.com
www.google.com
Financial Report 03,04,05 of SCB
Md. Imran Ali
Product Service Officer,
Customer Service Assurance Dept.
Hadi Mension Branch, SCB.
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