Executive summery

Plastic Money business is definitely going big time here in Pakistan. In a country
where two years back housewives have hardly heard the word plastic money or
credit card, more than 7000 merchants are accepting above 140,000 cards.
It has been estimated that there are likely to be around half million potential card
users in the near future. This forecasting derives credibility from the fact that more
and more local and international financial institutions are exhibiting enthusiasm in
this direction. This in turn reflects prospects in Pakistan market in accommodating
numerous credit card competitors operating on the circuit, ensuring healthy and
competitive card business deals So we have also made our project on this topic our
project includes
History of money

General Types of Plastic money

Global players in credit cards
Scenario of plastic money in pakistan
Analysis of banking products
Bank Alfalah limited
Standered chartered bank
Survey
SWOT analysis

BARTER:
The first housewives didn't buy goods from other housewives with money. They used barter. Barter
is the exchange of personal possessions of value for other goods that you want. This kind of
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exchange started at the beginning of humankind and is still used today. From 9,000-6,000 B.C.,
livestock was often used as a unit of exchange. Later, as agriculture developed, housewives used
crops for barter. For example, I could ask another farmer to trade a pound of apples for a pound of
bananas.

SHELLS:
At about 1200 B.C. in China, cowry shells became the first medium of
exchange, or money. The cowry has served as money throughout
history even to the middle of this century.

FIRST METAL MONEY:

China, in 1,000 B.C., produced mock cowry shells at the end of the Stone
Age. They can be thought of as the original development of metal currency.
In addition, tools made of metal, like knives and spades, were also used in
China as money. From these models, we developed today's round coins that
we use daily. The Chinese coins were usually made out of base metals which
had holes in them so that you could put the coins together to make a chain.

SILVER:
At about 500 B.C., pieces of silver were the earliest coins. Eventually in time they took the
appearance of today and were imprinted with numerous gods and emperors to mark their value.
These coins were first shown in Lydia, or Turkey, during this time, but the methods were used over
and over again, and further improved upon by the Greek, Persian, Macedonian, and Roman
empires. Not like Chinese coins, which relied on base metals, these new coins were composed
from scarce metals such as bronze, gold, and silver, which had a lot of intrinsic value.

LEATHER CURRENCY:
In 118 B.C., banknotes in the form of leather money were used in China. One-foot square pieces of
white deerskin edged in vivid colors were exchanged for goods. This is believed to be the
beginning of a kind of paper money.

NOSES:
During the ninth century A.D., the Danes in Ireland had an expression "To pay through the nose."
It comes from the practice of cutting the noses of those who were careless in paying the Danish
poll tax.

PAPER CURRENCY:
From the ninth century to the fifteenth century A.D., in China, the first actual paper currency was
used as money. Through this period the amount of currency skyrocketed causing severe inflation.
Unfortunately, in 1455 the use of the currency vanished from China. European civilization still
would not have paper currency for many years.

POTLACH:
In 1500, North American Indians engaged in potlach, a term that describes the exchange of gifts at
banquets, dances, and various rituals. Since the trading of gifts was so important in figuring the
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leaders community status, potlach went out of control as the gifts became more extravagant in an
effort to surpass others' gifts.

WAMPUM:
In 1535, though likely well before this earliest recorded date, strings of beads made from clam
shells, called wampum, are used by North American Indians as money. Wampum means white, the
color of the clam shells and the beads.

GOLD STANDARD:
In 1816, England made gold a benchmark of value. This meant that the value of currency was
pegged to a certain number of ounces of gold. This would help to prevent inflation of currency.
The U.S. went on the gold standard in 1900.

DEPRESSION:
Because of the depression of the 1930's, the U.S. began a world wide movement to end tying
currency to gold. Today, few nations tie the value of their currency to the price of gold. Other
government and financial institutions now try to control inflation.

TODAY:
At present, nations continue to change their currencies. For example, the U.S. has already changed
its $100 and $20 banknotes. More changes are in the works.

TOMORROW:
Tomorrow is already here. Electronic money (or digital cash) is already being exchanged over the
Internet.

ATM CARDS
HISTORY OF ATM CARDS:
Don Wetzel has been credited with developing the first
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modern ATM. The idea came to him in 1968 while waiting

in line at a Dallas bank, after which he proposed a project
to develop an ATM to his employer, Docutel.22 A major
part of the development process involved adding a
magnetic stripe to a plastic card and developing standards
to encode and encrypt information on the stripe. A working
version of the Docutel ATM was sold to New Yorks
Chemical Bank, which installed it in 1969 at its Rockville
Center (Long Island, N.Y.)Office Although the Docutel
ATM did use the modern magnetic stripe access card, the technology remained primitive compared
with todays. The Docutel ATM only dispensed cash and was an offline machine. To enable
payment processing, the machine printed a transaction record that was MICR encoded.
By the early 1970s, ATM technology advanced to the system we know today. ATMs were first
accessed primarily with credit cards, but in 1972, City National Bank of Cleveland successfully
introduced a card with an ATM but not a credit function.24 ATMs were developed that could take
deposits, transfer money from checking to savings or savings to checking, provide cash advances
from a credit card, and take payments.

ATM CARD:
An ATM card (also known as a bank card, client card, key card or cash card) is an ISO/IEC 7810
card issued by a bank, credit union or building society.
It can be used:
at an ATM for deposits, withdrawals, account information, and other types of transactions,
often through inter bank networks
at a branch, as identification for in-person transactions
at merchants, for EFTPOS (point of sale) purchases
Unlike a debit card, in-store purchases or refunds with an ATM card can generally be made in
person only, as they require authentication through a personal identification number or PIN. In
other words, ATM cards cannot be used at merchants that only accept credit cards.
However, other types of transactions through telephone or online banking may be performed with
an ATM card without in-person authentication. This includes account balance inquiries, electronic
bill payments or in some cases, online purchases.
In some countries, the two functions of ATM cards and debit cards are combined into a single card
called a debit card or also commonly called a bank card. These are able to perform banking tasks at
ATM's and also make point-of-sale transactions, both functions using a PIN. Europe's Maestro are
examples of networks that link bank accounts with point-of-sale equipment.
Magnetic stripe cloning can be detected by the implementation of magnetic card reader heads and
firmware that can read a signature embedded in all magnetic stripes during the card production
process. This signature known as a "MagnePrint" or "BluPrint" can be used in conjunction with
common two factor authentication schemes utilized in ATM, debit/retail point-of-sale and prepaid
card applications.
ATM Cleaning Cards are the primary means of cleaning ATM machines to ensure that the machine
stays functioning properly.

ATM
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An automated teller machine (ATM) is a computerized

telecommunications device that provides the customers of a
financial institution with access to financial transactions in
public space without the need for a human bank teller on
most modern ATMs, the customer is identified by inserting
a plastic ATM card with a magnetic stripe or a plastic
smartcard with a that contains a unique card number and
some security information, such as an expiration date or
Security is provided by the customer entering a
identification number" personal identification number
(PIN).
Using an ATM, customers can access their bank in order to
make withdrawals (or credit card cash advances) and check
their account balances as well as purchasing mobile cell
phone prepaid credit. ATMs are known by various other names including automated transaction
machine, automated banking machine, money machine, bank machine, cash machine, hole-in-thewall, cash point etc.

DEBIT CARDS
HISTORY OF DEBIT CARD:

The history of debit card implies that the concept of debit card is not new. History of debit card
dates back around 20 years ago which highlighted the introduction of e-commerce and alternative
means of payment.

DEBIT CARD:
A debit card (also known as a bank card or check card) is a plastic card which provides an
alternative payment method to cash when making purchases. Functionally, it can be called an
electronic check, as the funds are withdrawn directly from either the bank account, or from the
remaining balance on the card. In some cases, the cards are designed exclusively for use on the
Internet, and so there is no physical card.
The use of debit cards has become widespread in many countries and has overtaken the check and
in some instances cash transactions by volume. Like credit cards, debit cards are used widely for
telephone and Internet purchases, and unlike credit cards the funds are transferred from the bearer's
bank account instead of having the bearer to pay back on a later date.
Debit cards can also allow for instant withdrawal of cash, acting as the ATM card for withdrawing
cash and as a cheque guarantee card. Merchants can also offer "cashback/cashout" facilities to
customers, where a customer can withdraw cash along with their purchase.

TYPES OF DEBIT CARD:

There are currently three ways that debit card transactions are processed; Although many debit
cards are of the Visa or MasterCard brand, there are many other types of debit card, each accepted
only within a particular country or region.

online debit card / PIN debit

offline debit card/ signature debit
Electronic Purse Card

ONLINE DEBIT CARD:

Online debit cards require electronic authorization of every transaction and the debits are
reflected in the users account immediately. The transaction may be additionally secured with
the personal identification number (PIN) authentication system and some online cards require
such authentication for every transaction, essentially becoming enhanced automatic teller
machine (ATM) cards. One difficulty in using online debit cards is the necessity of an
electronic authorization device at the point of sale (POS) and sometimes also a separate PIN
pad to enter the PIN, although this is becoming commonplace for all card transactions in many
countries. Overall, the online debit card is generally viewed as superior to the offline debit card
because of its more secure authentication system and live status, which alleviates problems
with processing lag on transactions that may have been forgotten or not authorized by the
owner of the card.

OFFLINE LINE DEBIT CARD:

Offline debit cards have the logos of major credit cards (e.g. Visa or MasterCard) or major
debit cards (e.g. Maestro in the United Kingdom and other countries, but not the United States)
and are used at the point of sale like a credit card. This type of debit card may be subject to a
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daily limit, and/or a maximum limit equal to the current/checking account balance from which
it draws funds. Transactions conducted with offline debit cards require 23 days to be reflected
on users account balances. In some countries and with some banks and merchant service
organizations, a "credit" or offline debit transaction is without cost to the purchaser beyond the
face value of the transaction, while a small fee may be charged for a "debit" or online debit
transaction (although it is often absorbed by the retailer). Other differences are that online debit
purchasers may opt to withdraw cash in addition to the amount of the debit purchase (if the
merchant supports that functionality); also, from the merchant's standpoint, the merchant pays
lower fees on online debit transaction as compared to "credit" (offline) debit transactions.

ELECTRONIIC PURSE CARD:

Smart-card-based electronic purse systems (in which value is stored on the card chip, not in an
externally recorded account, so that machines accepting the card need no network connectivity)
were tried throughout Europe from the mid-1990s, most notably in Germany, Austria, Belgium,
The major boom in smart card use came in the 1990s, with the introduction of the smart-cardbased SIM used in GSM mobile phone equipment in Europe. With the ubiquity of mobile
phones in Europe, smart cards have become very common.

ADVANTAGES AND DISADVANTAGES

ADVANTAGES:
Debit and check cards, as they have become widespread, have revealed numerous advantages and
disadvantages to the consumer and retailer alike. Advantages are as follows;

A consumer who is not credit worthy and may find it difficult or impossible to obtain a
credit card can more easily obtain a debit card, allowing him/her to make plastic
transactions.

Use of a debit card is limited to the existing funds in the account to which it is linked
(except cases of offline payments), thereby preventing the consumer from racking up debt
as a result of its use, or being charged interest, late fees, or fees exclusive to credit cards.

For most transactions, a check card can be used to avoid check writing altogether. Check
cards debit funds from the user's account on the spot, thereby finalizing the transaction at
the time of purchase, and bypassing the requirement to pay a credit card bill at a later date,
or to write an insecure check containing the account holder's personal information.

Like credit cards, debit cards are accepted by merchants with less identification and
scrutiny than personal checks, thereby making transactions quicker and less intrusive.
Unlike personal checks, merchants generally do not believe that a payment via a debit card
may be later dishonored.

Unlike a credit card, which charges higher fees and interest rates when a cash advance is
obtained, a debit card may be used to obtain cash from an ATM or a PIN-based transaction
at no extra charge, other than a foreign ATM fee.
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DISADVANTAGES:
The Debit card has many disadvantages as opposed to cash or credit:

Some banks are now charging over-limit fees or non-sufficient funds fees based upon preauthorizations, and even attempted but refused transactions by the merchant (some of
which may not even be known by the client).

Many merchants mistakenly believe that amounts owed can be "taken" from a customer's
account after a debit card (or number) has been presented, without agreement as to date,
payee name, amount and currency, thus causing penalty fees for overdrafts, over-the-limit,
amounts not available causing further rejections or overdrafts, and rejected transactions by
some banks.

In some countries debit cards offer lower levels of security protection than credit cards[6].
Theft of the users PIN using skimming devices can be accomplished much easier with a
PIN input than with a signature-based credit transaction. However, theft of users' PIN codes
using skimming devices can be equally
easily
accomplished with a debit transaction
PIN
input, as with a credit transaction PIN
input,
and theft using a signature-based credit
transaction is equally easy as theft using
a
signature-based debit transaction.

In many places, laws protect the

consumer from fraud a lot less than
with
a credit card. While the holder of a
credit
card is legally responsible for only a
minimal amount of a fraudulent
transaction made with a credit card,
which is often waived by the bank, the
consumer may be held liable for
hundreds of dollars in fraudulent debit
transactions. The consumer also has a much shorter time (usually just two days) to report
such fraud to the bank in order to be eligible for such a waiver with a debit card [6], whereas
with a credit card, this time may be up to 60 days. A thief who obtains or clones a debit
card along with its PIN may be able to clean out the consumer's bank account, and the
consumer will have no recourse.

In the UK and Ireland, among other countries, a consumer who purchases goods or services
with a credit card can pursue the credit card issuer if the goods or services are not delivered
or are unmerchantable. While they must generally exhaust the process provided by the
retailer first, this is not necessary if the retailer has gone out of business. This protection is
not provided by legislation when using a debit card but may be offered to a limited extent
as a benefit provided by the card network, e.g. Visa debit cards.

When a transaction is made using a credit card, the bank's money is being spent, and
therefore, the bank has a vested interest in claiming its money where there is fraud or a
dispute. The bank may fight to void the charges of a consumer who is dissatisfied with a
purchase, or who has otherwise been treated unfairly by the merchant. But when a debit
purchase is made, the consumer has spent his/her own money, and the bank has little if any
motivation to collect the funds.

In some countries, and for certain types of purchases, such as gasoline (via a pay at the
pump system), lodging, or car rental, the bank may place a hold on funds much greater than
the actual purchase for a fixed period of time [6]. However, this isn't the case in other
countries, such as Sweden. Until the hold is released, any other transactions presented to
the account, including checks, may be dishonored, or may be paid at the expense of an
overdraft fee if the account lacks any additional funds to pay those items.

While debit cards bearing the logo of a major credit card are accepted for virtually all
transactions where an equivalent credit card is taken, a major exception in some countries
is at car rental facilities. In some countries car rental agencies require an actual credit card
to be used, or at the very least, will verify the creditworthiness of the renter using a debit
card. In these unspecified countries, these companies will deny a rental to anyone who does
not fit the requirements, and such a credit check may actually hurt one's credit score, as
long as there is such a thing as a credit score in the country of purchase and/or the country
of residence of the customer.

WHAT IS THE DIFFERENCE BETWEEEN A DEBIT CARD AND A CREDIT

CARD?
The difference between a "debit card" and a "credit card" is that the debit card deducts the balance
from a deposit account, like a checking account, where the credit card allows the consumer to
spend money on credit to the issuing bank. In other words, a debit card uses the money you have
and a credit card uses the money you don't have.
"Debit cards" which are linked directly to a checking
account are sometimes dual-purpose, so that they
can be used as a credit card, and can be charged by
merchants using the traditional credit networks. A
merchant will ask for "credit or debit?" if the card is
a
combined credit+debit card. If the payee chooses
"credit", the credit balance will be debited the
amount of the purchase; if the payee chooses
"debit", the bank account balance will be debited the
amount of the purchase.
The "debit" networks usually require that a personal identification number be supplied. The
"credit" networks typically require that purchases be made in person and often allow cards to be
charged with only a signature, and/or picture ID. However, most merchant agreements in the
United States forbid picture ID as a requirement to use a Credit Card.
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CRDEIT CARDS
HISTORY OF CREDIT CARD:
CREDIT CARD:
A credit card is part of a system of payments named after the small plastic card issued to users of
the system. It is a card entitling its holder to buy goods and services based on the holder's promise
to pay for these goods and services. The issuer of the card grants a line of credit to the consumer
(or the user) from which the user can borrow money for payment to a merchant or as a cash
advance to the user.
A credit card is different from a charge card, where a charge card requires the balance to be paid in
full each month. In contrast, credit cards allow the consumers to 'revolve' their balance, at the cost
of having interest charged. Most credit cards are issued by local banks or credit unions, and are the
shape and size specified by the ISO/IEC 7810 standard as ID-1.

HOW CREDIT CARDS WORK?

Credit cards are issued after an account has been approved by the credit provider, after which
cardholders can use it to make purchases at merchants accepting that card.
When a purchase is made, the credit card user agrees to pay the card issuer. The cardholder
indicates 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 personal identification number (PIN). Also, many merchants
now accept verbal authorizations via telephone and electronic authorization using the Internet,
known as a 'Card/Cardholder Not Present' (CNP) transaction.
Electronic verification systems allow merchants to verify that the card is valid and the credit card
customer has sufficient credit to cover the purchase in a few seconds, allowing the verification to
happen at time of purchase. The verification is performed using a credit card payment terminal or
Point of Sale (POS) system with a communications link to the merchant's acquiring bank. Data
from the card is obtained from a magnetic stripe or chip on the card; the latter system is in the
United Kingdom and Ireland commonly known as Chip and PIN, but is more technically an EMV
card.
Other variations of verification systems are used by eCommerce merchants to determine if the
user's account is valid and able to accept the charge. These will typically involve the cardholder
providing additional information, such as the security code printed on the back of the card, or the
address of the cardholder.
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 (see Fair Credit Billing Act
for details of the US regulations). Otherwise, the cardholder must pay a defined minimum
proportion of the bill by a due date, or may choose to pay a higher amount up to the entire amount
owed. The credit issuer charges interest on the amount owed if the balance is not paid in full
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(typically at a much higher rate than most other forms of debt). Some financial institutions can
arrange for automatic payments to be deducted from the user's bank accounts, thus avoiding late
payment altogether as long as the cardholder has sufficient funds.

INTEREST CHARGES:
Credit card issuers usually waive interest charges if the balance is paid in full each month, but
typically will charge full interest on the entire outstanding balance from the date of each purchase
if the total balance is not paid.
For example, if a user had a $1,000 transaction and repaid it in full within this grace period, there
would be no interest charged. If, however, even $1.00 of the total amount remained unpaid, interest
would be charged on the $1,000 from the date of purchase until the payment is received. The
precise manner in which interest is charged is usually detailed in a cardholder agreement which
may be summarized on the back of the monthly statement.
The credit card may simply serve as a form of revolving credit, or it may become a complicated
financial instrument with multiple balance segments each at a different interest rate, possibly with
a single umbrella credit limit, or with separate credit limits applicable to the various balance
segments. Usually this compartmentalization is the result of special incentive offers from the
issuing bank, to encourage balance transfers from cards of other issuers. In the event that several
interest rates apply to various balance segments, payment allocation is generally at the discretion
of the issuing bank, and payments will therefore usually be allocated towards the lowest rate
balances until paid in full before any money is paid towards higher rate balances. Interest rates can
vary considerably from card to card, and the interest rate on a particular card may jump
dramatically if the card user is late with a payment on that card or any other credit instrument, or
even if the issuing bank decides to raise its revenue.

BENEFITS TO CUSTOMERS:
The main benefit to each customer is convenience. Compared to debit cards and checks, a credit
card allows small short-term loans to be quickly made to a customer who need not calculate a
balance remaining before every transaction, provided the total charges do not exceed the maximum
credit line for the card.

DETRIMENTS TO CUSTOMERS:
Credit cards with low introductory rates are limited to a fixed term, usually between 6 and 12
months after which a higher rate is charged. As all credit cards assess fees and interest, some
customers become so encumbered with their credit debt service that they are driven to bankruptcy.
Credit cards will often stipulate a default rate of 20 to 30 percent in the event a payment is missed.
That is, if a consumer misses a payment, the rate will automatically increase to a very burdensome
level. This can lead to a snowball effect in which the consumer is drowned by unexpectedly high
interest rates. Further most card holder agreements enable the issuer to arbitrarily raise the interest
rate for any reason they see fit.

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GRACE PERIOD:
A credit card's grace period is the time the customer has to pay the balance before interest is
charged to the balance. Grace periods vary, but usually range from 20 to 40 days depending on the
type of credit card and the issuing bank. Some policies allow for reinstatement after certain
conditions are met.
Usually, if a customer is late paying the balance, finance charges will be calculated and the grace
period does not apply. Finance charges incurred depend on the grace period and balance; with most
credit cards there is no grace period if there is any outstanding balance from the previous billing
cycle or statement (i.e. interest is applied on both the previous balance and new transactions).
However, there are some credit cards that will only apply finance charge on the previous or old
balance, excluding new transactions.

BENEFITS TO MERCHANTS:
An example of street markets accepting credit cards. Most simply display the logos (shown in the
upper-left corner of the sign) of all the cards they accept.
For merchants, a credit card transaction is often more secure than other forms of payment, such as
checks, because the issuing bank commits to pay the merchant the moment the transaction is
authorized, regardless of whether the consumer defaults on the credit card payment (except for
legitimate disputes, which are discussed below, and can result in charges back to the merchant). In
most cases, cards are even more secure than cash, because they discourage theft by the merchant's
employees and reduce the amount of cash on the premises. Prior to credit cards, each merchant had
to evaluate each customer's credit history before extending credit. That task is now performed by
the banks which assume the credit risk. Credit cards can also aid in securing a sale, especially if
the customer does not have enough cash on his or her person or checking account.
For each purchase, the bank charges the merchant a commission (discount fee) for this service and
there may be a certain delay before the agreed payment is received by the merchant. The
commission is often a percentage of the transaction amount, plus a fixed fee. In addition, a
merchant may be penalized or have their ability to receive payment using that credit card restricted
if there are too many cancellations or reversals of charges as a result of disputes. Some small
merchants require credit purchases to have a minimum amount (usually between $5 and $10) to
compensate for the transaction costs, though this is strictly prohibited by credit card companies and
credit card companies attempt to get consumers to report such merchants.
In some countries, for example the Nordic countries, banks guarantee payment on stolen cards
only if an ID card is checked and the ID card number/civic registration number is written down on
the receipt together with the signature. In these countries merchants therefore usually ask for ID.
Non-Nordic citizens, who are unlikely to possess a Nordic ID card or driving license, will instead
have to show their passport, and the passport number will be written down on the receipt,
12

sometimes together with other information. Some shops use the card's PIN for identification, and
in that case showing an ID card is not necessary.

COSTS TO MERCHANTS:
Merchants are charged many fees for the privilege of accepting credit cards. The merchant may be
charged a discount rate of 1%-3%+ of each transaction obtained through a credit card. Usually, the
merchant will also pay a flat per-item charge of $0.05 - $0.50 for each transaction. Thus in some
instances of very low value transactions, use of credit cards may actually cause the merchant to
lose money on the transaction. Merchants choose to pay these costs in exchange for the increased
profitable sales they can create. Thus, they are considering part of the overall cost of marketing.
Merchants with very low average transaction prices or very high average transaction prices are
more averse to accepting credit cards. But rates are often reduced in an attempt to include more of
these types of merchant.

PARTIES INVOLVED
CARD HOLDER
The holder of the card used to make a purchase; the consumer.

CARD ISSUING BANK:

The financial institution or other organization that issued the credit card to the cardholder. This
bank bills the consumer for repayment and bears the risk that the card is used fraudulently.
American Express and Discover were previously the only card-issuing banks for their
respective brands, but as of 2007, this is no longer the case. Cards issued by banks to
cardholders in a different country are known as offshore credit cards.

MERCHANT:
The individual or business accepting credit card payments for products or services sold to the
cardholder.

ACQUIRING BANK:
The financial institution accepting payment for the products or services on behalf of the
merchant.

INDEPENDENT SALES ORGANIZATION:

Resellers (to merchants) of the services of the acquiring bank.

MERCHANT ACCOUNT:
This could refer to the acquiring bank or the independent sales organization, but in general is
the organization that the merchant deals with.

CREDIT CARD ASSOCIATION:

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An association of card-issuing banks such as Visa, MasterCard, Discover, American Express,

etc. that set transaction terms for merchants, card-issuing banks, and acquiring banks.

TRANSACTION NETWORK
The system that implements the mechanics of the electronic transactions. May be operated by
an independent company, and one company may operate multiple networks.

AFFINITY PARTNER:
Some institutions lend their names to an issuer to attract customers that have a strong relationship
with that institution, and get paid a fee or a percentage of the balance for each card issued using
their name. Examples of typical affinity partners are sports teams, universities, charities,
professional organizations, and major retailers.
The flow of information and money between these parties always through the card associations
is known as the interchange, and it consists of a few steps.

TRANSACTION STEPS

AUTHORIZATION:

The cardholder pays for the purchase and the merchant submits the transaction to the acquirer
(acquiring bank). The acquirer verifies the credit card number, the transaction type and the
amount with the issuer (Card-issuing bank) and reserves that amount of the cardholder's credit
limit for the merchant. An authorization will generate an approval code, which the merchant
stores with the transaction.

BATCHING:

Authorized transactions are stored in "batches", which are sent to the acquirer. Batches are
typically submitted once per day at the end of the business day. If a transaction is not submitted
in the batch, the authorization will stay valid for a period determined by the issuer, after which
the held amount will be returned back to the cardholder's available credit (see authorization
hold). Some transactions may be submitted in the batch without prior authorizations; these are
either transactions falling under the merchant's floor limit or ones where the authorization was
unsuccessful but the merchant still attempts to force the transaction through. (Such may be the
case when the cardholder is not present but owes the merchant additional money, such as
extending a hotel stay or car rental.)

CLEARING AND SETTLEMENT:

The acquirer sends the batch transactions through the credit card association, which debits the
issuers for payment and credits the acquirer. Essentially, the issuer pays the acquirer for the
transaction.

FUNDING:

Once the acquirer has been paid, the acquirer pays the merchant. The merchant receives the
amount totaling the funds in the batch minus the "discount rate," which is the fee the merchant
pays the acquirer for processing the transactions.
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CHARGEBACK:

A chargeback is an event in which money in a merchant account is held due to a dispute

relating to the transaction. Charge backs are typically initiated by the cardholder. In the event
of a chargeback, the issuer returns the transaction to the acquirer for resolution. The acquirer
then forwards the chargeback to the merchant, who must either accept the chargeback or
contest it.

TYPES OF CREDIT CARDS:

Secured credit cards

Prepaid "credit" cards

SECURED CREDIT CARDS:

A secured credit card is a type of credit card secured by a deposit account owned by the cardholder.
Typically, the cardholder must deposit between 100% and 200% of the total amount of credit
desired. Thus if the cardholder puts down $1000, they will be given credit in the range of $500
$1000. In some cases, credit card issuers will offer incentives even on their secured card portfolios.
In these cases, the deposit required may be significantly less than the required credit limit, and can
be as low as 10% of the desired credit limit. This deposit is held in a special savings account.
Credit card issuers offer this because they have noticed that delinquencies were notably reduced
when the customer perceives something to lose if the balance is not repaid.
The cardholder of a secured credit card is still expected to make regular payments, as with a
regular credit card, but should they default on a payment, the card issuer has the option of
recovering the cost of the purchases paid to the merchants out of the deposit. The advantage of the
secured card for an individual with negative or no credit history is that most companies report
regularly to the major credit bureaus. This allows for building of positive credit history.

PREPAID "CREDIT" CARDS:

A prepaid credit card is not a credit card, since no credit is offered by the card issuer: the cardholder spends money which has been "stored" via a prior deposit by the card-holder or someone
else, such as a parent or employer. However, it carries a credit-card brand (Visa, MasterCard,
American Express or Discover) and can be used in similar ways just as though it were a regular
credit card.
After purchasing the card, the cardholder loads the account with any amount of money, up to the
predetermined card limit and then uses the card to make purchases the same way as a typical credit
card. Prepaid cards can be issued to minors (above 13) since there is no credit line involved. The
main advantage over secured credit cards (see above section) is that you are not required to come
up with $500 or more to open an account. [11] With prepaid credit cards you are not charged any
interest but you are often charged a purchasing fee plus monthly fees after an arbitrary time period.
Many other fees also usually apply to a prepaid card.
15

Prepaid credit cards are sometimes marketed to teenagers for shopping online without having their
parents complete the transaction.
Because of the many fees that apply to obtaining and using credit-card-branded prepaid cards, the
Financial Consumer Agency of Canada describes them as "an expensive way to spend your own
money". The agency publishes a booklet, "Pre-paid cards", which explains the advantages and
disadvantages of this type of prepaid card.

GLOBAL PLAYERS IN CREDIT CARDS

MASTER CARD:
Master card is the product of Master card International and along with visa is distributed by
financial institutions around the world. Card Holder borrow money against a line of credit and pay
it back with interest if balance is carried over for one month .Today 23000 financial institutions in
220 countries issues its product. In 1998there were almost 100 mill cards in circulation whose
users spend $650 billion in more than 16.2 mill localities.

AMERICAN EXPRESS:
The world's favourite card is American express credit card. More than 7 million cards are in
circulation and growing and it is growing further. Around US$ 123 was spent last year through
American express cards and it is poised to world's no. 1 card in near future. In a regressive US
economy the total amount spent last year rose by 4%. American express cards are very popular in
America, Canada, and Asia and are used widely in retail and every day segment.

DINER CLUB INTERNATIONAL:

Diner club is worlds number one charge card Company .Its card holder resides all over the
world and is all the time favorite for the corporate.
There are more than 8 mill Diner club card holders. They are affluent and are frequent travelers in
premier business including fortune 500 companies leading global corporation

VISA Card:
VISA card is a product of VISA USA and along with Master card is distributed by financial
institution around the world. A VISA card Cardholder borrows money against a credit line and
repay the money with interest if the balance is carried over from month to month in a revolving
line of credit. Nearly 600 m. cards carry one of the VISA brand and more than 14 m. locations
accept VISA card.

JCB Card:

16

JCB card has a merchant net work of 10.93 m. in approximately 189 countries. It is
supported by over 320 financial institutions worldwide. The JCB philosophy of identify the
customer need and please the customer with service from the heart and paying rich dividend as
their customer spend $ 43 billion annual on JCB cards.

SCENARIO OF PLASTIC MONEY IN PAKISTAN

Plastic Money business is definitely going big time here in Pakistan. In a country where two years
back housewives have hardly heard the word plastic money or credit card, more than 7000
merchants are accepting above 140,000 cards.
It has been estimated that there are likely to be around half million potential card users in the near
future. This forecasting derives credibility from the fact that more and more local and international
financial institutions are exhibiting enthusiasm in this direction. This in turn reflects prospects in
Pakistan market in accommodating numerous credit card competitors operating on the circuit,
ensuring healthy and competitive card business deals.

MARKET SCENARIO:
Although credit card was introduced in Pakistan decades ago when Habib Bank, the largest bank in
Pakistan, launched its gold card, but housewives had hardly know about this card because of its
very limited issuance. Approximately four years back, Allied Bank of Pakistan had launched its
Master Card. Two years back Citibank had launched its VISA Card and that was the turning point
in the history of Plastic Money in Pakistan.
Citibank had done a tremendous job to educate housewives of Pakistan, as well as, financial
industry about credit cards and its significance in today's world. Because of very aggressive
marketing and heavy investment in technology, Citibank is well deserved to be called the industry
leader of Pakistan's credit card business.
After successful launch of Citibank card, Muslim Commercial Bank, Bank of America, and
National Bank of Pakistan had launched their credit cards. Very soon we are expecting more local
and international banks on the horizon of Pakistan's credit card business.
*In alphabetical order
17

Citibank is the industry leader in credit card business here. In short span of time, Citibank
had issued over 125,000 VISA cards and covers most of the potential market segment.
Muslim Commercial Bank had launched its Master Card and it is expected that by the end
of 1997, MCB card users will be over 250,000 (that makes 5% of its total account holders).
Diners Club and AMEX are very selective in credit cards business and so far entertains a
very limited market segment.
Bank of America is the transaction processing hub for most of the local banks, including
Muslim Commercial Bank, Allied Bank and National Bank of Pakistan.
Some departmental stores have also issued their own branded cards; however, these stores are
operating in a very restrictive domain.

TECHNOLOGY AND INFRASTRUCTURE

One of the most important features that Plastic Money offers is the technology associated with this
business. Credit card business relies on very reliable and secure technology and demands very
strong connectivity backbone. Although a third world country, with lot of insecurities and almost
no infrastructure, Pakistan has no exception when it comes to credit card business. There are
approximately 3000 Point Of Sale Terminals (POST) present on merchant's sites connected with
bank host system. Inter-city connectivity are accomplish through X.25 networks.
Perhaps, it is the most important time in the history of Pakistan as the parameters of its
infrastructure are coming into existence. There is an immense need of reliable wide area
connectivity and this market is so huge and lucrative that it can accommodate many more industry
giants. Soon the Automatic Teller Machines (ATMs) will be seen every where in Pakistan and it
will require a very reliable and secure wide area connectivity setup.

GOVERNMENT RULES AND REGULATIONS REGARDING CREDIT

CARDS
The SBP has issued prudential regulations and operational guide lines For
Cr cards Business Lets Discuss them One by one.

PRUDENTIAL REGULATIONS
REGULATION O-1
The banks / DFIs should take reasonable steps to satisfy themselves that cardholders have
received the cards, whether personally or by mail. The banks / DFIs should advise the card holders of the need to take
reasonable steps to keep the card safe and the PIN secret so that frauds are avoided

REGULATION O-2
Banks / DFIs shall provide to the credit card holders, the statement of account at monthly intervals, unless there has
been no transaction or no outstanding balance on the account since last statement.

REGULATION O-3
18

Banks / DFIs shall be liable for all transactions not authorized by the credit card holders after they have been properly
served with a notice that the card has been lost / stolen. However, the banks / DFIs liability shall be limited to those
amounts wrongly charged to the credit card holders account. In order to mitigate the risks in this respect, the banks /
DFIs are encouraged to take insurance cover against wrongly charged amounts, frauds, etc.
The bank/DFI shall, however, not charge the borrowers account with any amount under the head of insurance
premium (by what so ever name called) without obtaining consent of each existing & prospective customer in
writing. In addition to obtaining consent in writing, the banks/DFIs may also use the following modes for obtaining
prior consent of their customers provided proper record is maintained by banks/DFIs:i) Customers consent on recorded lines via out bound/in bound call center (after due verification)
ii) ATM screens screen pop up before conducting transaction and after inputting pin code
iii) Signed consent acquired with credit card application or as separate form
iv) IVR (Integrated Voice Recording)

REGULATION O-4
In case the cardholders make partial payment, the banks / DFIs should take into account the partial payment before
charging service fee / mark-up amount on the outstanding / billed amount so that the possibility of charging excess
amount of mark-up could be avoided.

REGULATION O-5
Due date for payment must be specifically mentioned on the accounts statement. If fine / penalty
is agreed to be charged in case the payment is not made by the due date, it should be clearly mentioned in the
agreement.

REGULATION R-7
MAXIMUM CARD LIMIT
Maximum unsecured limit under credit card to a borrower (supplementary cards shall be considered part of the
principal borrower) shall generally not exceed Rs 500,000/.
Banks / DFIs may, however, assign a clean limit beyond Rs 500,000 but not in excess of Rs 2 million to their prime
customers who have extraordinary strong repayment capacity, moderate debt burden and a clean track record. But the
aggregate limits in this respect should not exceed 10% of the total credit card portfolio at any point in time. However,
while availing benefit of this provision, banks / DFIs would place on record well defined criteria for terms "Prime
Customers" and "Moderate Debt Burden" approved by their Board of Directors / Chief Executive.
Banks / DFIs may also allow financing under the credit card scheme in excess of Rs 500,000/(up to Rs 2 million) to other customers as well, provided the excess amount is appropriately secured according to the
definition given in Part A of these regulations.
The loan secured against liquid securities shall, however, be exempted from the above limit.
The loans against the securities issued by Central Directorate of National Savings (CDNS) shall be subject to such
limits as are prescribed by CDNS / Federal Government / State Bank of Pakistan from time to time. For Charge Cards,
pre-set spending limits generated by the standardized systems, as is the global practice, shall be allowed.

REGULATION R-8
CLASSIFICATION AND PROVISIONING
The credit card advances shall be classified and provided for in the following manner
CLASSIFICATION

1)
Loss

DETERMINANT

TREATMENT OF
INCOME

PROVISION TO
BE MADE

2)
Where markup
/ interest or
principal is
overdue by
180 days or

3)
Unrealized markup
/ interest to be
put in Suspense
Account and not to
be credited to

4)
Provision of 100% of
the difference
resulting from the
outstanding balance of
principal less the

19

more from the

due date

Income Account
except when
realized in cash

amount of liquid
securities with the
bank / DFI

It is clarified that the lenders are allowed to follow more conservative policies. Further, provisioning may be
created and maintained by the bank / DFI on a portfolio basis provided that the provision maintained by the bank / DFI
shall not be less than the level required under this
Regulation

SBP issues operational guidelines for credit card business

The State Bank of Pakistan today issued comprehensive operational guidelines for credit
card business of commercial banks/DFIs, outlining code of conduct for various aspects of
credit card operations including their marketing, interest rate charges, recovery of dues,
billing processes etc.
According to the guidelines, banks/DFIs are advised to quote interest rate and service
charges on annual basis. Although, they are free to set the aforesaid rates, banks/DFIs are
required to set well defined service level for each of the product/service; whether charged
or free. Banks/DFIs should also inform the credit card holder on the interest rate or services
charges through advertisement and/or sending information to card holders on their
addresses.
Banks/DFIs should not levy any charge that was not explicitly mentioned either in the User
Guide or Application Form or Schedule of Charges provided to the customer at the time of
selling credit card, without the prior consent of the card holder. However, this would not be
applicable to excise duty or other charges which may be levied by the Provincial or Federal
Government or any other statutory authority from time to time. Banks/DFIs should,
however, timely update the customers on the imposition of such levies. Banks are also
advised that interest amount should be charged on net credit i.e. after deducting the amount
paid by the card holder. The outstanding amount due to roundingoff of paisas, should not
be considered as partial payment and interest amount should not be charged on it.
According to the guidelines, banks/DFIs must ensure that their recovery/collection officers
should not resort to any verbal or physical harassment of the delinquent credit card holder,
their family members, referees and friends during recovery/collection efforts.
Recovery/collection officers should also not humiliate publicly or in private or intrude the
privacy of the credit card holders family members, referees and friends. Telephone calls
and visits to credit card holders for recovery of unpaid dues should be restricted to a
convenient time and the same may be defined in the
Bank/DFIs public policy and should be properly communicated to customers at the time of
issuance of credit card. In addition, recovery should only be made from principal card
holder and in no case supplementary card holders shall be resorted to any sort of pressure
to pay the unpaid amount.
However, supplementary card holders may be contacted only to enquire about the
whereabouts of the principal card holder. Moreover, banks/DFIs should not start recovery
process for reported disputed transactions until the investigation carried out by cardissuing
Bank/DFI/Banking Ombudsman/State Bank of Pakistan is completed. In case of wrong/
inappropriate basis of rejection of customer claim, bank/DFI would be liable for penalty.
With regard to marketing of credit cards, banks/DFIs should discourage aggressive and
hard selling & marketing practices during working/office hours; except with prior
20

appointment of the prospective customer. In case a customer is called during office hours
for seeking appointment, he/she should be first asked for the option to continue with the
call or not.
Banks/DFIs should seek prior consent of their customers/account holders for informing
them on new products and services on telephone as and when introduced. In this regard,
banks should maintain a Dont call list comprising the contact details of those customers
who do not want to be contacted. The list should be accessible to all marketing staff and
they should be advised not to contact such customers /account holders for introducing or
offering new banking products. In this connection, banks should update the database of
existing customers within three months from the date of issue of these guidelines.
Banks/DFIs should follow the Code of Conduct for marketing of credit cards which will be
issued by Pakistan Banks Association (PBA) in consultation with SBP.
Guidelines stipulate that credit card may only be issued by the banks/DFIs, pursuant to a
written application duly filled and signed by the prospective customer. However, in order to
reward and retain highend existing customers, preembossed cards may be issued after a
proper acceptance by the customer, which may be in the form of any verifiable mode such
as recorded phone call. Nevertheless, these preembossed Credit Cards should be activated
only after receiving complete application form from highend customers and criteria for
selecting high end customers must be defined in the bank policy.
Keeping in view the complex nature of credit cards, the banks/DFIS are advised to simplify
the credit card terms and conditions, and keep them clear and understandable both in
English and Urdu languages. In order to mitigate fraudulent use of credit cards, banks/DFIs
should have built in functionality in their systems to monitor the usage of credit card.
Additionally, it should also promptly identify unusual or out of pattern transactions. In this
connection, banks/DFIs may introduce checks or limits on certain category of transactions,
customers, merchants etc. Under the SBP guidelines banks/DFIs are required to dispatch
monthly Statement of Account to credit card holders at least 15 days before the due date.
Towards this end, banks/DFIs may offer online, email or IVR billing facility, with
appropriate security measures. If the customer lodges complaint regarding nonreceipt of
monthly Statement of Account, the statement should be dispatched to him/her free of cost,
within two working days from the date of complaint.
Banks/DFIs are also advised that they should have an appropriate complaint resolution
structure in place commensurate with the volume of complaints and better service
consideration. Credit card complaints resolution mechanism must be prominently disclosed
on the official website of the Bank/DFI. The Bank/DFI may also arrange online complaint
registration on their websites. Complaint number should be provided to each complaint
submitted to bank/DFI and same should be communicated to the Credit card holder.
Banks/DFIs must resolve the disputed transactions/complaint of the credit card holder
promptly and as per the franchise rules of VISA, MasterCard, AMEX or any other
international card association, taking into account nature of the transaction, distances, time
zones, etc. However, in no case complaint resolution time should exceed 45 days from the
date of complaint for the transaction(s) under dispute originated within Pakistan.
In addition, interest amount should not be charged to customer during investigation period.
Bank/DFI will recover interest amount accumulated during investigation period only when
the dispute is settled in favour of bank/DFI. If decision turns in favour of the customer, the
bank/DFI needs to refund the amount of disputed transactions, even to those customers
21

who had made the payment of disputed transaction and cancelled the card after lodging
complaint.
Under the guidelines, banks/DFIs are advised to develop sound risk evaluation procedures
for enlisting /registration of merchants keeping in view the franchise rules of their
respective franchiser.
The enlistment/registration process may interalia include proper identification, verification
and good credit history, clean track record in Visas National Merchant Alert Service and /
or Master Cards Member Alert to Control High Risk Merchants etc. Banks/DFIs providing
acquiring services need to educate their merchants about the use of Point of Sale (POS)
Machine, genuineness of credit cards, signature verification, their rights and responsibilities
under the agreement.
Acquirer banks/DFIs are required to facilitate merchants by providing prompt payments
and timely maintenance/service of POS machines. Acquirer Banks/DFIs should maintain
track record of merchants performance and categorize them, based on risks, involvement
in frauds & disputed transactions etc. and develop a data base or negative list of merchants
involved in fraudulent activities. The merchants involved in credit card related frauds
should be delisted and their particulars should be shared with other banks/DFIs through
PBA.

BANK ALFALH
B
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D
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DEBIT CARD
In our endeavor to provide you versatile banking options to fulfill your financial needs, Bank
Alfalah Limited presents the Alfalah HilalCard, a Debit Card which gives you unlimited access to
22

your current / savings

account with a simple
swipe at millions of retail
shops and ATMs
worldwide. The Alfalah
HilalCard comes with a
host of conveniences and benefits combined with the wide reach of Visa Network, enabling it to be
accepted at more than 1.2 million ATMs and 29 million retail outlets around the world, making it
the most acceptable Debit Card available in Pakistan.
What's more, it is easy to operate and can be used on any electronic self-printing POS machine
where VISA is accepted, locally and internationally. No more hassle of remembering your PIN for
retail transactions and no need to go to the ATM for cash withdrawal! one swipe and your
transaction is complete.

CREDIT CARD
Your Bank Alfalah Credit Cards is your partner everywhere and is globally accepted and
welcomed at locations displaying the VISA logo. It is accepted at nearly 29 million locations in
more than 150 countries around the globe and over 27,000 Bank Alfalahs establishments in
Pakistan. The credit cards offered by Bank Alfalah are as follows:

VISA CARDS
PLATINUM CARD

It is accepted at nearly 29 million locations in more than 150 countries around

the globe and at over 27,000 establishments in Pakistan.
GOLD & SILVER CARD

A perfect card combination for all segments of salaried & professional

individuals
SUPPLEMENTARY CARD
23

Now you can give Supplementary Cards to anyone you care for. Gift your family
members with exclusive Alfalah VISA supplementary cards and let them also enjoy the privileges
of Alfalah VISA. Only Alfalah VISA gives you the unique feature of having up to six free
supplementary cards for anyone you care for. All supplementary Card members share your credit
limit. All charges incurred on the supplementary cards will be reported on your monthly statement

FEATURES
The features of all the VISA credit cards are the same.

No Joining Fee
Join Alfalah VISA without paying any joining fee. Start enjoying your free card from the moment
you get hold of it.

No Annual / Renewal Fee

Alfalah VISA is the only credit card in Pakistan with no annual or renewal fee, so benefit from
your card without worrying about any renewal fee.

Balance Transfer Facility

As an Alfalah VISA Card member you can avail balance transfer facility at a low rate of only 2%
(24% APR) per month (for initial six months), which is the lowest in Pakistan. The balance transfer
facility can only be availed if the total outstanding balance does not exceed beyond the credit limit
assigned by Bank Alfalah for Alfalah VISA card.

Global Acceptability
Your Bank Alfalah VISA card is your partner everywhere and is globally accepted and welcomed
at locations displaying the VISA logo. It is accepted at nearly 29 million locations in more than
150 countries around the globe and at over 27,000 establishments in Pakistan.
24

Revolving Credit
With Alfalah VISA you have the option of paying only 5% of your outstanding balance by the
payment due date. Service charges will be levied on the balance unpaid spending and carried
forward. These charges are calculated on a daily basis from the transaction date for all cash and
retail transactions. The following month you have the option of either the full amount payment or
if you wish, pay only the minimum amount due and revolve again.

Card Expiry Period

Effective 7 June 2005, all VISA credit cards being issued by our Card Division will have an expiry
of 3 years on them.

Zero Loss Liability

If you ever lose your card, Bank Alfalah ensures that you never have to worry about it. You are
covered for all fraudulent charges made on your card as soon as it has been reported lost to us. Just
make sure that you report the lost card immediately upon discovery. You are completely secure
against loss/theft after the card loss has been reported to us.

All Billing in Pak Rupees

Whether you make transactions in Dollars or any other currency, for your convenience, all your
billing will be in PAK Rupees.

Statement of Account
For your convenience we give you a single glance, easy to manage monthly statement which
contains the following:
1. Card Account Number.
2. Statement Date.
3. Page Count.
25

4. Transaction Description Indicating: The date of transactions made, Transaction

reference, Name of merchant establishment, Amount charged and Currency type (If the
transaction is made in any currency other than Pak Rupees).
5. Credit Limit indicating: The total credit limit assigned to you for all your card accounts
(principal and supplementary).
6. Payment Due Date: Indicating the date by which your payment should reach Bank Alfalah
to avoid any late payment charges.
7. Current Balance: Indicating the total outstanding amount on your card account on the
statement date.
8. Payment coupon: To be used for making payments.

Transactions that can be Transferred to SBS

o Retail Transactions (Domestic & International)
o Cash Transactions (Domestic & International)
o Balance Transfer Transactions

How Can I Apply?

It is a simple three-step process:
1. Fill in the SBS application form available at any of the Alfalah Branch or Cards Center
(required only at the time of first transaction, when you apply for SBS plan.)
2. Call at 111-225-786 and book the transaction under SBS.
3. For normal SBS choose from 3, 6, 9, 12, 18, 24, 30, 36 months affordable payment plans.
And for BTF to SBS choose from 6, 9, 12, 18, 24, 30, 36 months plans.

SPECIAL FEATURES

Cash Advance Facility 50% of Credit Limit

Now you can avail Cash Advance Facility up to 50% of your available credit limit. Enjoy the
benefits of this exclusive offer on your Bank Alfalah Credit Cards. You can get cash from Alfalah
ATMs or cash counters of Bank Alfalah branches and other VISA member banks in Pakistan.

26

24-Hours Phone Banking Service

Our well-trained and qualified phone banking team Is available to help you 24 hours a day. Just
dial 111-225-111 for:
1.
2.
3.
4.

Activating your card

Answering your queries
Registering and resolving your complaints
Reporting a lost/stolen card

Comprehensive Travel Protection

Alfalah VISA offers a comprehensive cover up to Rs. 3.5 Million on Alfalah VISA Gold Card in
case of an accident, while traveling on any common carrier. It is applicable only if the tickets are
charged through Alfalah VISA card. The details are given as follows:

Limits of Indemnity:

Rs. 3.5 million = For Gold Card Holders

Rs. 1.75 = For Classic, Classic Blue and Women Exclusive Cards

Coverage::

Personal accidents travel insurance for card holders during travel

only, if ticket is bought using the card, as per benefits listed
below.

Death:

100%

Special Exclusion:

This policy will not cover any claim due to death or permanent
injury unless the same is caused due to any accident of the
carrying vessel/vehicle.

Geographical Limit:

World Wide

Permanent Disablement
Permanent total loss of both eyes or two limbs:
27

100%

Permanent total loss of one eye and one limb:

Permanent total loss of one eye or one limb:
Permanent total loss of one finger or thumb or toe:

75%
50%
10%

Fortunes
For every Rs. 50 you spend on your Alfalah VISA card, you will earn one fortune point. Your
accumulated fortune points can be exchanged for a whole range of items displayed in our Fortunes
Catalogue.. It offers a wide range of lifestyle categories always catering to you and your family's
taste. Once you have accumulated enough points to redeem the gift of your choice, fill out a simple
form available at all Bank Alfalah branches or call our 24 hour phone banking service and order
the item of your choice. The fortune items will be delivered at your doorstep.

Acceptance at 1LINK ATMs

Avail Cash Advance up to 50% of your credit limit at over 2200 1Link ATMs in Pakistan in
addition to over 1.2 million ATMs worldwide.

Instant SBS Monthly Installment Plan

Bank Alfalah cardholders can convert any transaction of Rs. 3,000 or above into easy installments
of 3,6,12,18,24,30 and 36 months tenures at the time of transaction.

Utility bill Payments

Now Utility bill payments* can be made through Alfalah VISA credit cards either by calling Call
Centre or through Direct Debit instructions. *Available on FESCO, LESCO, SSGC, SNGPL,
IESCO, HESCO, GEPCO, KESCO, PTCL & WARID. Other companies will be added soon.

Call and Pay Facility

28

Cardholders now have the convenience of using their cards to make payments even on locations
where credit cards are not accepted by calling our 24 hours Call Center and getting pay orders
issued to any third party through debit to Alfalah Visa Credit Card.

Prepaid Mobiles Top ups

Alfalah cardholders are also being provided the facility to get their prepaid mobile connections of
any company topped up by just one call to 24 hours Call Center. Alfalah credit cardholders can
also use their reward points to get the prepaid mobile top ups.

Alfalah Credit on Phone

Alfalah cardholders can call the Call Center and get credit up to 75% of their available credit limit
assigned by Bank Alfalah or available credit limit whichever is lower at just 2.0% per month (24%
APR). Payment of credit amount can be made to them through a cheque at the doorstep or directly
into the account in Bank Alfalah.

Credit Card Bill Payment through Alfalah Hilal Card

Now Bank Alfalah account holders can make their credit card bill payments through Alfalah Hilal
Card by using it on ATMs.

Step By Step (SBS) Plan

Now you can convert any transaction amount of Rs. 3,000/- and above, to a Step-By-Step payment
plan. It gives you the flexibility to convert your large payments into small equal monthly
installments.

MASTER CARDS

29

TITANIUM
Titanium MasterCard is your partner everywhere and is globally accepted and welcomed at
locations displaying the MasterCard logo

YOUR PARTNER WHEREVER YOU GO

Your Bank Alfalah Titanium MasterCard is your partner everywhere and is globally accepted and
welcomed at locations displaying the MasterCard logo. It is accepted at nearly 29 million locations
around the globe and at over 27,000 Bank Alfalahs merchant establishments in Pakistan. You can
withdraw any amount upto 50% of your assigned credit limit.

FEATURES
MONTHLY CARD STATEMENT
To keep a check on the transactions you have made on your Alfalah Titanium MasterCard, you will
receive a monthly statement indicating the following:
i)
Purchases
ii)
Cash withdrawals
iii)
Service Charges
iv)
Applicable fee (if any)
v)
Fortune Reward Points

Foreign Transactions
Transactions made outside Pakistan will be converted from the transaction currency to US Dollars,
based on international exchange rate prevailing on that date (Currency Conversion rate is a rate
selected by MasterCard Worldwide from the range of rates available in wholesale currency markets
for the applicable processing date, which may vary from the rate MasterCard Worldwide itself
receives, or the government-mandated rate in effect for the applicable processing date in each
instance, plus or minus any adjustment determined by the issuer). In order to assist card members,
all transactions will be converted to Pak Rupees for payment. This conversion will be based on the
market exchange rate quoted by authorized money changers and in accordance with the Banks
Procedures applicable from time to time.

SPECIAL OFFER FOR ALFALAH TITANIUM CARDHOLDERS

Relax and escape the stress of the airport
Priority Pass The worlds largest independent airport VIP lounge program
Access to over 500 airport VIP lounges in 90 countries and over 275 cities so you can treat
yourself like a VIP no matter where you travel, or which airline and class you fly.

CONVENIENCE AND RELIABILITY

30

Auto Debit
This facility is specially designed for our account holders. It gives you the option of making your
minimum or full payments due as specified in your Alfalah VISA monthly statement through your
Bank Alfalah Account. If you are not a Bank Alfalah Account holder and wish to avail this facility,
kindly contact your nearest Bank Alfalah branch.

BALANCE TRANSFER FACILITY

Offering an easy and convenient way to settle payments on all your existing credit cards in
Pakistan @ 2% per month (24% APR).This rate can be reduced to an incomparable rate of 0.99%
per month (upto 21.44% APR) if the Balance transfer transaction amount is converted to Step-ByStep (SBS) Monthly Installment Plan within TEN days of the transaction.
Payments
Plan
Normal SBS
BTF conversion to SBS
Factor @
1.75% p.m

APR

Monthly Factor @
Installment 0.99% p.m
(Rs.)

APR

Monthly
Installment
(Rs.)

03 months
0.35083 31.23%

2,104.98

N/A

17.73%

N/A

0.18417 35.15%

1,105.02

0.1766

20.09%

1,059.60

0.12861 36.36%

771.66

0.121

20.90%

726

0.10083 36.74%

604.98

0.0932

21.25%

559.2

0.07306 36.68%

438.36

0.0655

21.44%

393

0.05917 36.22%

355.02

0.0516

21.37%

309.6

0.05083 35.66%

304.98

0.0432

21.21%

259.2

0.04528 35.07%

271.68

0.0377

21.01%

226.2

06 months

09 months

12 months

18 months

24 months

30 months

36 months

31

CREDIT COVER

Low Rates - High Protection

Protection against Uncertainties
While You Recover - We will cover
Convenient and Hassle Free

BUY YOUR DREAMS ONLINE!

Alfalah Titanium MasterCard can be used on the Internet

CASH WITHDRAWALS AT ATMs & CASH COUNTERS

Now, your Alfalah MasterCard gives you easy access to cash 24 hours a day, 7 days a week
through ALFALAH ATMs!

MONTHLY CARD STATEMENT

Each month upon receiving your monthly statement make sure to check the following:
Card Account Number: Your Card Account Number(s) is clearly stated on your statement.
Statement Date: The date on which the statement is generated.
Page: This indicates the number of pages your statement consists of.
Transactions Description: This indicates the date of transactions made, transaction reference,
name of merchant establishment, amount charged and currency type (if the transaction is made
on any currency other than Pak Rupees) to your Card Account.
Credit Limit: This indicates the total credit limit assigned to you for all your Cards (Primary
and Supplementary)
Payment Due Date: The date by which your payment should reach Bank Alfalah to avoid any
late payment charges.
Current Balance: This figure indicates the total outstanding amount on your Card Account on
the statement date.
Payment Coupon: The upper portion of your statement carries the payment coupon to be used
for making payments. Fill this out carefully and attach it along with the cash/cheque payment.
Detailed information on charges, payment options, etc. has also been provided at the back of
your statement for reference and convenience.
Fortunes Rewards Summary: This indicates the detail of fortune points - carry forward,
earned this month, adjustments, redeemed and available points.

SPECIAL FEATURES
The special features of Master card are the same as of VISA card's.

32

PREVILEGES IN PAKISTAN
The Alfalah card holders have privileges in the following outlets.

33

SERVICES
Credit Cover -Protection when you need it!
Bank Alfalah offers card members a new and powerful protection against the uncertainties of life.
In the unfortunate event of prolonged illness, disability or death, its reassuring to know that with
Alfalah Credit Cover you have no cause to worry about your monthly credit card repayments.
Alfalah Credit Cover has a range of features designed to protect you from the setbacks of life, at
rates that are affordable.

Low Rates - High Protection

As an Alfalah Credit Card member (Basic card member up to the age of 65), you can protect
yourself with Alfalahs Credit Cover that offers you an unbelievable low rate of 0.55% of your
outstanding amount in each monthly credit card statement as Credit Cover Premium to insure
your credit balance.

Protection against Uncertainties

In the unfortunate event of terminal illness, permanent disability or death, your entire outstanding
balance amount on your Alfalah Credit Card account will be waived without causing any
inconvenience to your dear ones. Additionally, all supplementary credit card balances will also be
waived. No worry-just peace of mind.

While You Recover - We will Cover

In the unfortunate event of temporary disablement due to an injury or illness for a period
exceeding 45 days, we will pay the minimum outstanding payment on your Alfalah Credit Card.
Its just our way of ensuring that you enjoy complete peace of mind with flexibility.

Convenient and Hassle-free

34

Being automatically enrolled to the benefits of Credit Cover, you do not need to complete any
forms or submit any applications for it. If you feel you do not need Credit Cover then simply call
our 24-Hour Phone Banking Service on 111-225-111 to cancel.

All on the Statement

All transactions will appear under a separate heading stated as Credit Cover Premium You will
be charged 55 paisas per Rs. 100 of your statement balance.

Always There for You

Call us on 111-225-111 and we will assist you through the procedure and help you with all the
necessary requirements. Our 24-Hour Phone Banking Service will make sure that you get
complete peace of mind with the assurance of Alfalah Credit Cover.

Bank Alfalah Limited / VISA & SHELL Free- Fuel Voucher Scheme"
Special introductory Offer By PC Muzaffarabad For Bank Alfalah Cardholders
Arena Family Recreational Sports Complex
Exclusive Dining Privileges
Special Membership Offer for Dream world Resort
Alfalah Credit On Phone
Convert Your Current Mobile Operator to Warid
Prepaid Air Time
Call & Pay
Consumer Durables on Easy Monthly Installments (SBS)
Registration for utility bills
Alfalah Cards SMS Facility
Special Offer of Warid connections
Instant SBS on POS
Cash Withdrawal at 1 Link
35

Standard Chartered
The Debit and Credit cards of standards Chartered can be shown in a simple hierarchy given below

Standard Chartered Debit/Credit Cards

Debit Card

Credit Card

Visa Debit Card

Visa Card

Master Cards

America Express

Visa Cr Card

Master Cr Card

American Express Cr Card

PIA CoBrand Cr Card

Cricket Cr Card

American Express Charge Card

Saadiq Visa Card

Easy Cr Card

36

Visa Debit Card

Convenience of Visa Debit, using your own money
With the Standard Chartered Visa debit Card
you get the convenience of making purchases
or withdrawing cash wherever Visa is
accepted.
Visa Debit Card is an ATM/Debit card that lets
you shop worry-free and cash-free. No bill
payments at the end of the month as you
make purchases using your own money. You
can use your Visa Debit Card almost anywhere in the world wherever you see
the Visa symbol. Its quick and secure and you can use it for purchases big or
small.

Features at Glance
Use your own money at 27 million outlets and 160 countries worldwide
wherever Visa is accepted
Each withdrawal taken directly from your Standard Chartered Bank
Account
Enjoy peace of mind by not having to carry cash
You can call support 24 hours a day, 7 days a week with any queries
All POS transactions on your card are signature based. Simply swipe and
sign!
The validity period of the card is 5 years from the date of issue.

Maximum amount that can be withdraw using Visa Debit

Card
Classic cardholders:
ATM withdrawal of up to Rs.30, 000
POS spending of up to Rs. 100,000 or equivalent to any other currency
Platinum cardholders:
ATM Withdrawal: Up to Rs. 60,000
POS Spending: Up to Rs. 300,000 (or equivalent in other currency)

Special Features
Exclusive benefits available on Visa Debit Card:
37

Shopping:
Use your debit card for all your shopping, at home and abroad

Petrol:
Use your debit card to pay for petrol at any filling stations

Restaurant:
Use your debit card to pay for dinner at your favorite restaurants

Cash:
Use your debit card to withdraw cash at any Standard Chartered Bank
ATM or any ATM worldwide that displays the Visa symbol

E-Statement Service:
With our E-Statement service, you can relax and enjoy the convenience
of receiving the summary of your debit card transactions on a monthly
basis in your email inbox. Subscribe for this service, free of charge by
filling out a form at your parent branch

Choose your own PIN:

You can generate your ATM PIN by calling up our 24Hr Helpline 111-002002 and following the directions through IVR (interactive voice
response). You may change your PIN any time by visiting the nearest
Standard Chartered ATM.

Lost or stolen cards:

If you become aware that your debit card is lost or stolen, immediately
call our 24-hour Phone Banking at 111-002-002 / 0800-66-666 or from
outside Pakistan call (9221) 111-002-002 / 0800-66-666 to report loss /
theft. You are protected from financial liability arising from any
unauthorized transaction done on your card after being reported
lost/stolen. Well cancel your old card and order a new one for you
straight away.

Fees and Charges

Items

Description

Card Fees

Issuance fee:
Rs.500 for Current Account
Rs.750 for Savings Account
Annual card fee:
Rs.500 for Current Account
Rs.750 for Savings Account

38

Cash
withdrawal /
Balance
No charges apply
Enquiry at SCB
ATMs
Cash
withdrawal /
Balance
Enquiry at
non-SCB ATMs

Rs. 15 for cash withdrawal

Rs. 5 for balance enquiry

2.5% or Rs.300 (whichever is higher)of

the transaction amount of any foreign
currency transaction made or charged to
your account.
Currency
The exchange rate between the
conversion
transaction currency and the billing
fee on foreign currency used for processing foreign
transactions
currency transactions is a wholesale
(ATM/POS)
market rate selected by Visa from within
a range of wholesale rates in effect plus
the percentage that Standard Chartered
Bank charges for the Foreign Currency
Conversion Fee above.

Credit Card
Standard Chartered Credit Card can be used in Pakistan and as well as
globally for any transaction at any merchant outlet accepting MasterCard
and/or VISA Credit. It provides you following facilities

1.

. Card Cash withdrawal

However Card Cash withdrawal is limited to 30% of your

available credit limit.

2. Withdrawals through ATM's

39

For cash withdrawals through ATM's or over the counter transactions, a

nominal fee will be charged as per the Schedule of Charges.

3. Transfer your other Credit Card's outstanding balance

You also can transfer your other Credit Card's outstanding
balance to your Standard Chartered Credit Card at a nominal financial
charge of 3.25 % per month (MasterCard) and 3.25 % per month (VISA).
When you transfer balances on to your Standard Chartered Credit Card, you
will also earn Treasure points, which you can redeem for exciting gifts from
our Treasures Catalogue.

4. Clearance of outstanding balance

You have the option of paying back the entire availed amount or
paying as little as 5 % of your outstanding balance at competitive financial
charges. Your remaining outstanding amount will be carried forward to your
next monthly statement, where you will again have the choice of paying as
little as 5 % of the outstanding amount or the entire amount.

5. Service fee be charged

With Standard Chartered's VISA and MasterCard, you have the
opportunity to avail 51 and 45 free credit days respectively. That means no
service fee will be charged if you pay back your entire amount within the
due date. However, you can also choose to make minimum payment of only
5 % of your outstanding balance at a highly competitive financial charge of
2.75 % per month on VISA and 2.50 % per month on MasterCard

6. Discrepancy In statements
If you notice any discrepancy in your monthly statement, report the matter
to our Customer Services Team on 111-002-002 within 7 days. In order to
check statement entries, retain all your sales slips and printed receipts.
This will help you keep a record of all your transactions.

7. Monthly Payments
You can make your monthly payment by:
Paying cash over the counter at any of the Standard Chartered branches
in Pakistan.
Sending a cheque / pay order / draft in the name of Standard Chartered
Bank, Credit Cards' by mail or through the drop box at all Standard

40

Chartered branches. Please indicate your name and card number on the
reverse of the cheque.
Through Auto Debit for Standard Chartered customers (5 % of the
outstanding balance or the total amount)
By Telegraphic Transfer. Your payment will be credited to your Card
account after funds are received by Standard Chartered, Consumer
Banking, and Cards Pakistan.

8.

Stolen and Lost Cards

In the event that your card is lost or stolen, please report it to a

member of our Customer Services Team immediately on 111-002-002

9. Problem Regarding Standard Chartered Credit Cards

If at any time you face any problem regarding your Credit Card or Credit
Card account, call our 24-hour Customer Service on 111-002-002 or you
can email your queries directly to ask.us@pk.standardchartered.com

Types Of Standard Chartered Credit

Credit cards of standard chartered can be divided into 3 basic Categories.
1. Visa Cards
2. Masters Cards
3. American Express Card

Cards Standard Chartered Visa Cards

Standard Chartered VISA Card is a globally renowned brand that has
world wide acceptance. You can avail of exciting
features and benefits attached with this Card. Get
ready to bring ultimate indulgence to your lifestyle.

Standard Chartered is providing following types of

Visa Card
1. Saadiq VISA Credit Cards

41

2. Easy Credit Card

3. Standard Chartered PIA Co Brand Credit Card

Saadiq VISA Credit Cards

At Standard Chartered, we believe in respecting your values. We are
pleased to introduce Standard Chartered Saadiq VISA Credit Cards
Pakistans first Shariah-compliant Riba Free Credit Cards, which combine
the international acceptability of VISA with worldwide reliability and
excellent service.
The Saadiq VISA Credit Cards have been
carefully developed by an international
team of professionals with Islamic financial
expertise, who ensure that our products are
within the guidelines of Islamic finance.
Saadiq Credit Cards operate on the Ujrah
concept which is based on a fixed fee
structure, meaning that only fixed fee will
be charged to the customer. The Card would
not be levied with any floating percentage fee dependent upon the
outstanding balance. The entire fee structure is based on fixed fee unlike
conventional credit cards where fee is a percentage of the outstanding
amount or transaction amount.

How it Works

Saadiq VISA Credit Cards give you the option of either paying the
entire outstanding amount or pay only a minimum amount of the
outstanding balance by the payment due date.

Incase, you opt to pay any amount less than the total outstanding
balance, the remaining balance gets transferred to the Service Account
which is a non-interest and non-profit bearing account, linked to your
Saadiq Credit Card.

A fixed monthly maintenance fee will be levied only for the month the
Service Account is used and reflects an outstanding balance.

Service Account
42

Service Account is a non-interest and non-profit bearing account which is

maintained by the Bank for the Saadiq VISA Credit Card members.
Any amount of the current balance which is due and unpaid after the
relevant payment due date, is transferred from the Card Account into Service
Account.
A fixed monthly maintenance fee will be levied when the customer has
balance on his Service Account irrespective of the outstanding balance

Charges
A fixed fee is charged for maintenance of the Service Account and
continued usage of the Card. The fee would vary for different card types
(Classic, Classic Blue, Gold and Gold Plus), however, would remain the same
for a particular card type. Maintenance fee will be charged only if the Service
Account is utilized and/or reflects a balance for that specific month. The fee is
not dependent on duration of the Service Account maintained and/or the
amount of the outstanding balance. No fee will be charged for the months
when the Service Account is not utilized

Easy Credit Card

One of the most unique products, the Pakistan

43

Standard Chartered Easy Credit (EC) combines the

power of a Credit Card with the convenience of a
Cheque book. As an EC card member you will be
entitled to a host of benefits that no other facility offers. EC provides you with
the lowest financial charge and access to Standard Chartered services around
the globe. This means that Easy Credit is the best facility offering more and
more across the country.

Cash Withdrawal Limit

You can withdraw cash up to 30 % of your credit limit. For example, if your
credit limit is Rs. 100,000 and your withdrawal limit is 30 %, then your cash
withdrawal limit will be Rs. 30,000

Eligibility Criteria
For being eligible for easy card you just need to meet the Easy Credit criteria.
You have to apply for the cheque book, through the request form, which is part
of the Easy Credit Application Form. You will be required to pay a fee to have
an Easy Credit cheque book issued. This service is valid for both Basic and
Supplementary Card member

Usage of easy Credit Card

You can use the Easy Credit cheque book anywhere you like. For example,
Easy Credit cheques can be used for payments where the merchant does not
have a Credit Card processing machine or does not accept Credit Cards. It can
also be used to pay anyone with a bank account. However Easy Credit
cheques are 'Account Payee' cheques and can only be used within Pakistan.

Difference between an ordinary account cheque and an

Easy Credit cheque
The amount is debited from the customer's bank account when using an
ordinary account cheque, whereas with an Easy Credit cheque, the amount
mentioned on the cheque is deducted from your Easy Credit Card Account.
This means you don't have to pay the whole amount at the same time. Also
Easy Credit Cheques are 'Account Payee' cheques only, i.e. the amount
mentioned on the cheques can only be credited to the payee's account.

Fee for cash withdrawal

No fee is charged for cheques used to pay third parties. However, a fee will be
charged as per the Schedule of Charges, for cash withdrawals through an ATM
or over-the-counter

44

Charges for the services of Easy card

A highly competitive financial charge of 2.08% per month will be levied from
the transaction date till the complete outstanding balance on your Easy Credit
is paid in full.

Some Special Benefits of Easy Credit Card

Features and benefits of Easy Credit Card that make your life easier:
Lowest Service Charges:
Standard Chartered Easy Credit Card offers you global acceptability with
a higher than usual credit limit and a highly competitive financial charge
of only 2.5% per month. Financial charges are levied on the amount from
the transaction date and will apply on the billing date.
Cheque Book Convenience:
When you receive your Easy Credit Card (EC) you also receive an Easy
Credit Cheque book. As an added convenience you can issue EC
Cheques in Pakistan to your friends and family or to anyone you
absolutely please. Furthermore, you can also issue EC Cheques at all
places where Credit Card processing machines are not available.
ATM Convenience:
Your Easy Credit Card can also to act as an ATM Card. It lets you
withdraw cash at ATMs bearing the MasterCard or M-Net logo worldwide.
Global Acceptability:
With EC Card's global acceptability - you have no fear of running out of
cash anywhere in the world. You can use your EC Card globally and
benefit from MasterCard's legendary global acceptability.
Supplementary Cards:
Be it your friends, family or loved ones, you can have Supplementary
Cards issued and have the power of Easy Credit extended to absolutely
anyone. Supplementary EC Card members receive a Supplementary EC
cheque book as well. So feel free to share the countless advantages of
Standard Chartered Easy Credit with others.
BTF Ready:
Easy Credit also offers you Balance Transfer Facility. You can now have
other Credit Cards' outstanding balances transferred to your Easy Credit
Card (EC) Account at a highly competitive financial charge of 2.5 % per
month and then pay back at your convenience.
45

 Travel Accident Cover:

As an international traveler, you are automatically covered for travel
accidents up to 1 million Rupees, if you purchase your ticket through EC.
Credit Cover:
Easy Credit protects you from life's uncertainties with Credit Cover, be it
prolonged illness or disability. If due to unforeseen circumstances, you
are unable to pay your bill, you can just take advantage of the EC Credit
Cover and have all outstanding payments covered.
Zero Loss Liability:
It is for your comfort and security, that with Zero Loss Liability, Easy
Credit covers you for all fraudulent charges made on your EC Account.
All you have to do is report the matter to us immediately and
subsequently you are secured against loss, theft and even bad luck.
Foreign Transactions:
When you use your EC Card outside Pakistan, the transaction amount
will be converted from the transaction currency to US Dollars, based on
the international exchange rate prevailing on that date. In order to assist
card members, all transactions will be converted into Pak Rupees for
payment.

Standard Chartered PIA Co Brand Credit Card

Your Standard Chartered PIA CoBrand Credit Card offers you the best of
both worlds. Alongside the global benefits of
Standard Chartered Credit Cards, you can now
also enjoy an exclusive range of privileges with
PIA's Frequent Flyer Membership, PIA Awards
+Plus Program.

Some Special Privileges Of Standard

Chartered PIA Co Brand Credit Card
15% Savings on PIA tickets:
Enjoy exclusive 15% discount on purchase of your PIA tickets both
domestic and international through your PIA CoBrand Credit Card from
all PIA Booking Offices or PIA Reservation Counters at airports within
Pakistan.

46

 PIA CoBrand Card members both primary and supplementary can avail
discounts on their personal tickets (not in the name of any other person
or family members)
Discount will be given on all domestic and international tickets issued
from Pakistan
No discount will be applicable on taxes.
No discount will be applicable on already discounted classes

Complimentary PIA Awards +Plus Membership:

PIA Awards +Plus:
A distinctive frequent flyer program greets air travelers to a world of
exceptional travel privileges and rewards. Whether you are looking for free
tickets, class upgrades, excess baggage options, business lounge access, or
privileged check-in counters, PIA Awards + Plus is the right travel
companion for you.
And you earn this privilege by flying on PIAs network of 52 destinations
around the globe. The PIA Awards +Plus Program offers you an Emerald
Membership, a Sapphire Membership, or a Diamond Membership. The more
you travel, the more you get to enjoy the benefits of PIA Awards +Plus
Program.
Awards +Plus Cards:
PIA CoBrand Credit Card members will get an Awards +Plus card within 4
weeks of activation of PIA CoBrand Credit Card
1,000 bonus Airmiles upon becoming an Awards +Plus Member
Sapphire Awards Plus Card is valid for a period of 3 years
Emerald Awards Plus Card has no validity period
PIA Awards +Plus Terms and Conditions will apply
The Emerald Awards +Plus Card is issued with PIA CoBrand Classic
Credit Card. As an Emerald Member, you are entitled to the following
benefits:
10% bonus Air miles for traveling in Economy Plus Class

47

 25% bonus Air miles for traveling in Business Class

Check-In at Awards +Plus counter where available
The Sapphire Awards +Plus Card is issued with PIA CoBrand Gold Credit
Card. As a Sapphire Member, you will enjoy the following value added
benefits:
25% bonus Air miles on all PIA trips
10% bonus Air miles for travel in Economy Plus Class
25% bonus Air miles for travel in Business Class
10kg Extra baggage allowance in addition to entitlement as per ticket
(not applicable on journeys to/from US & Canada)
Check-In at Awards +Plus counter (Business Class counter in the
absence of Awards +Plus counter)

Spend and Fly:

Your PIA CoBrand Credit Card helps you accumulate Air miles at an
incredible rate; every time you shop, and every time you fly. Heres how:
You will earn 1 Air mile on every Rs. 50 spend on your PIA CoBrand
Credit Card which is automatically transferred to your PIA Awards +Plus
Card once in a month
Whenever you purchase your ticket from PIA booking office, you will get
Air miles on your PIA Awards +Plus Card by presenting your PIA Awards
+Plus Card / Frequent Flyer Number when booking your ticket. For More
details, please log onto www.piaawards.com/pia/CalcAccrual.aspx

Upgrade Check-In:
What's more, as an Emerald Card member, you may check in at Awards
+Plus counter where available and as a Sapphire Card member, you may
48

check in at Awards +Plus counter and Business Class counter in the

absence of Awards +Plus counter

Upgraded Lounge Access:

As a PIA Gold Credit Card member, you can enjoy access to designated
Business Class lounges in Karachi, Lahore and Islamabad Airports by
presenting your PIA CoBrand Gold Credit Card along with Sapphire Awards
+Plus Card even if you are traveling economy class. If, for any reason, the
Business Lounge is not available, you may avail the CIP Lounge. These
lounges grant you complimentary access to secretarial services, a buffet,
and comfortable couches to help you unwind before the journey ahead.

Rewards for PIA CoBrand Card members:

Redeeming Air miles is as easy as earning them. When you are ready to
reward yourself or your family, you can redeem your Air miles for any of the
following:
Free Tickets
Excess Baggage
Class Upgrade

Travel Accident Cover (International Travel)

In case of death due to an accident while travelling on any common
carrier (provided the tickets are purchased on your PIA CoBrand Credit Card) is
valid for cover up to Rs. 3.5 million on a PIA CoBrand VISA Classic Card and up
to Rs. 7 million on a PIA CoBrand VISA Gold Card.

Travel Inconvenience Cover (International Travel)

If your flight/baggage is delayed by more than 6 hours, then you may
enjoy refreshments and meals and have then charged to your PIA CoBrand
Credit Card. Charges made up to Rs. 15,000 may be claimed for
reimbursement. Furthermore, in the event that your baggage is lost, please
use your PIA CoBrand Credit Card to buy the necessary items lost in the
baggage and claim reimbursement up to Rs. 30,000

49

Standard Chartered

Master Cards
Standard Chartered Master Card is a card with
worldwide acceptance. A card which is reliable and has
a low mark up, it forwards you the financial freedom
you deserve. Enjoy the exclusive promotions and
rewards awarded to you on this offering from Standard
Chartered Bank. Standard Chartered Master Card
includes
Cricket Credit card
Lets study it in detail

Cricket Credit Card

Standard Chartered Bank introduces Pakistans first and only Cricket Credit
CardAt Standard Chartered, we believe in offering our customers the best
value. The Standard Chartered Cricket Credit Card is your key to enjoy
cricket up, close and personal with original memorabilia, coaching camps,
discounts, free match tickets, talk shows and much more.Use your Standard
Chartered Cricket Card to score runs and redeem them in order to get
cricket memorabilia autographed by famous Pakistani cricketers.
Remember . 1 Run equals to 1 Treasure Point

Special Privileges
Your Standard Chartered Cricket Card opens the door to:

Meeting Cricket Celebrities*

Watching matches live at the stadium*

Summer Coaching Camps*

Special Discounts
50

*Terms and conditions will apply.

Some Common Features And Benefits of Standard

Chartered VISA/MASTER Cards
1)

Global Acceptability:
Standard Chartered Credit Cards can be used at 24 million
establishments across the globe in 210 countries including 10,000 in
Pakistan displaying the Credit Cards logo.

2) Cash Advance Facility:

You can withdraw cash up to 30% of your available credit limit at any
VISA/MasterCard ATM across the globe. Cash can also be withdrawn
Over-the-Counter at financial institutions worldwide or at any of the
Standard Chartered branches and all other VISA/MasterCard member
banks in Pakistan.
3) Supplementary Cards:
Gift your family members, friends, employees or absolutely anyone, with
exclusive Standard Chartered VISA/MasterCard Supplementary Cards
and let them enjoy the privileges these Cards have to offer. You can
have up to 5 Supplementary Cards made for anyone who is more than
18 years of age.
4) Foreign Transactions:
When you use your Credit Card abroad, the transaction amount will be
converted from the transaction currency to US Dollars, based on the
international exchange rate prevailing on that date. In order to assist
Card members, all transactions will be converted into Pak Rupees for
payment.
5) 24hr Phone Banking:
Quick and easy access to your credit details is just a phone call away!
Just dial 111-002-002 and start making online transactions 24 hours a
day, 7 days a week. Our online Customer Service Team is equally
accessible via e-mail, so simply e-mail us at:
ask.us@pk.standardchartered.com.
6) E-Statements:
Now you can receive your Credit Card statements through email
anywhere in the world - absolutely free. And if you do not have an email
address then till such time that you do, you will continue to receive your
Credit Card statements by courier.

51

7) Dial -a- Draft:

Make payments to places where cards are not accepted such as clubs,
schools or utility bills. Just call our Customer Services and order a
Draft/Pay Order to be made. It will be delivered to you within 2 working
days.
8) Revolve Your Credit:
Standard Chartered gives you the option of paying the minimum
amount, which would only be 5% of your outstanding balance or Rs 500
(which ever is greater) by the payment due date. Service charges are
levied on the balance unpaid and balance amount is carried forward. The
following month either pays the full amount or if you wish pay only the
minimum amount due and revolve again
9) Auto Debit:
You have the convenience of making minimum or 100% payment as
specified on the monthly statement, through your Standard Chartered
Bank account. If you wish to use this facility, please contact our
Customer Services Staff at least 2 days before your statement date.
10)
Balance Transfer Facility:
Transfer any other credit cards outstanding balance to Standard
Chartered Credit Cards at an extremely low rate of 2.50 % (per month on
MasterCard) and 2.75 % (per month on VISA card). Additionally, every
time you transfer your balance onto your VISA/MasterCard Credit Card
you earn Treasure Points too. These points can be redeemed for exciting
gifts that you will find in our Treasures Catalogue.
11)
Treasures:
The most comprehensive rewards program for VISA/MasterCard Credit
Card members packed with more style, variety and unbeatable value
than ever before. For every Rs. 50 you spend on your Credit Card, earn 1
Treasure Point. So the more you spend, the more points you gain. Then
simply exchange the accumulated Treasure Points from a range of
exciting gifts present in our Treasures Catalogue.
12)
Travel Privileges:
You also have the opportunity to avail some of the best travel packages,
offered from time-to-time by Akbar Group-one of the largest airline
reservation networks, representing most prestigious international
airlines
13)
CIP Lounge:
As a Standard Chartered Gold Card member, you can enjoy
complimentary lounging facilities at the Quaid-e-Azam International
52

Airport Karachi, with privileges like free secretarial services, free buffet,
24-hour porter service and so much more.
14)
Zero Loss Liability:
Isn't it comforting to know that if you lose your Card you would have
nothing to worry about? You are covered for all fraudulent charges made
on your Credit Card as soon as it has been reported lost to Standard
Chartered. So make sure you report the loss immediately upon
discovery.
15)
Credit Cover:
In the unfortunate event of an illness, injury or death Standard
Chartered will always be there to cover your payments. The entire
outstanding amount on your Standard Chartered Credit Card will be
waived without causing any inconvenience to your near and dear ones.
These waivers also include any Supplementary Credit Card transactions
made on your Credit Card.
16)
Travel Accident Cover
You have a comprehensive cover of up to Rs. 3.5 million on your
Standard Chartered VISA/MasterCard (Classic) and Rs. 7 million on
Standard Chartered VISA/MasterCard (Gold) in case of an accident while
travelling around the globe on any common carrier. The transaction
however, must be made on a Standard Chartered Credit Card if the
above is to apply.
17)
Travel Inconvenience Cover:
While travelling outside Pakistan, you are covered up to Rs. 10,000 on
flight delays (exceeding 6 hours) for restaurant meals, refreshments,
etc. and Rs. 10,000 on baggage delays. Also in the case of lost baggage
in transit, you are covered for up to Rs. 20,000 (exclusive of the amount
by the airline). All amounts are reimbursed on placing your claim
provided the ticket was bought on your Standard Chartered VISA Card.

Standard Chartered American Express

SELECTSSM

53

Standard Chartered

American Express SELECTSSM brings you a world of privileges with an

exciting selection of year round offers and savings. Wherever you find
yourself, from New York to London to Sydney, you'll enjoy exceptional value
and privileges in travel, leisure, dining and shopping. So use your card now
and discover an array of attractive benefits in key destinations worldwide.

Special Privileges

Host of special benefits offered on American Express Credit Card:

1) Instant Recognition:
The American Express Credit Card is
warmly welcomed at thousands of
merchant establishments in Pakistan
and millions worldwide. You can rely on
it as your trustworthy partner while
dining, shopping, and traveling or
simply spending on a daily basis.
2) Revolving Facility:
American Express Credit Card offers you the option of paying your
monthly outstanding balance in full or over a period of time. A service
charge of only 3% per month gives you an added comfort in
managing your finances every month.
3) Balance Transfer:
You can conveniently transfer the balances from your other credit or
charge cards to the American Express Credit Card. With a balance
transfer rate of only 1.67% per month, you may enjoy substantial
savings on the service charges.
4) Express Cash:
You can use the American Express Credit Card to avail instant cash
advance facility from 168 designated ATMs of Standard Chartered Bank
in Pakistan and over 550,000 ATMs worldwide

54

5) Travel Service Locations:

American Express Credit Card has the power to redefine traveling,
whether within the country or across the globe. The dedicated staff in
more than 1700 American Express Travel Service Offices in over 130
countries is readily available to assist Card members with their travelrelated needs. Invaluable assistance can be provided for travel
arrangements, car rentals, local area/culture information and hotel
bookings etc.
6) CIP Lounge:
In Pakistan, the American Express Credit Card can become your gateway
to the CIP Lounge (International Departures) at Jinnah International
Airport, Karachi. Just present The Card and enjoy enviable royal
treatment at absolutely no charge.
7) Marhaba - Meet and Greet Service:
You can avail complimentary Marhaba - Meet and Greet Service on
international travels at the Quaid-e-Azam International Airport Karachi.
Trained staff of Marhaba will escort you through all check-ins to minimise
the hassle of standing in long queues at the airport. The service is
available at special rates and accompanying family members and
friends, on both domestic and international flights.
8) Free Travel Accident Insurance:
Every time you use the American Express Credit Card to purchase airline
or railway tickets, you and your spouse along with any dependent
children under 23 years of age are automatically covered through Travel
Accident Insurance. The cover amount is Rs. 60,00,000 on the Green
Card and Rs. 1,20,00,000 on the Gold Card.
9) Global Assist:
If you are traveling outside Pakistan, you can depend on the American
Express Credit Card in the event of any medical or legal emergency.
American Express' attentive staff can promptly get you in touch with a
doctor or lawyer in your locality through a simple phone call, anytime of
the day.
10)
Membership Rewards:
The American Express Credit Card earns you 1 Membership Reward
point for every Rs. 50 spent on the Card (excluding cash advance and
balance transfers). These points can easily be translated into exciting
gifts from a wide range of categories including travel, retail, fashion, and
dining to name a few.
11)
Supplementary Cards:
You can also share the power, prestige and benefits of the Card with up
to five family members, in the form of Supplementary Credit Cards. And
the good news is that the spending on your supplementary cards will be
added on to your Membership Reward points, bringing that coveted gift
of your choice even closer to you.
55

12)
24 - Hour Toll-Free Customer Service:
As an American Express Card member you can enjoy round-the-clock
access to customer service from virtually anywhere in the world

American Express Charge Card

Special Privileges
1) No Preset spending limit:
The American Express Charge Card has no preset spending limit.
You are usually free to spend as much as you please, based on
your past payment pattern and personal resources. This means
that with the American Express Card you always have access to
your funds. All we ask is that you pay your Card Account in total
and on time each month.
2) Express Cash at 168 designated ATMs and over

550,000 ATMs worldwide:

As a Card member you enjoy access to over 550,000 Express Cash

ATM locations worldwide. Locally, Express Cash is available to you
at 168 designated ATMs of Standard Chartered Bank.
3) Travel Accident and Inconvenience Insurance:
Every time you use the Card to purchase tickets for airlines,
railways or other public carriers, you, your spouse and dependent
children (under 23 years) are each automatically covered with
Travel Accident Insurance for up to Rs. 6,000,000 on the Personal
Card and Rs. 12,000,000 on the Gold Card. This benefit is available
to you absolutely free of charge.
4) Support network and exclusive services
5) Of 1700 American Express travel locations in over 130 countries of
the world:
Wherever you are in the world, our network of 1700 American
Express Travel Service Locations in more than 130 countries is on
hand to give you immediate assistance wherever you need it.
6)

Worldwide Services

As an American Express Card member you have the following

services available to you worldwide:
7) Assistance with travel arrangements, travel booking
8) Assistance with car rental
9) Local area and culture information, city maps
56

10)
American Express Travelers Cheques and Foreign Exchange
sales
11)
Replacement of lost/stolen cards
12)
Worldwide Emergency Services:
American Express Cards offer you unique assistance around the
world, whenever you need it the most. Should you be unfortunate
enough to run into trouble on your trip, we can provide you with
immediate advice and referral to a doctor or lawyer virtually
anywhere in the world, 24 hours a day. Once a Card member, you
will have the comfort of knowing where to call and who to contact,
when in need, anywhere across the globe. The American Express
Global Assist Hotline is available to you 24 hours a day, 7 days a
week, giving you the peace of mind that we are always there for
you, no matter where you are.
13)
Membership Rewards:
Once a Card member; you are automatically enrolled in The
American Express Membership Reward Program. With this
program, you will earn 1 point for every Rs. 50 / $USD 1 spent on
your card (excluding cash advances). You will soon discover that
your reward points can quickly add up to earn you a variety of
exciting gifts, covering travel, retail, fashion, dining and many
more.
14)
Supplementary Cards:
Apply for American Express supplementary cards and let your
family receive all the security and privileges that you enjoy. And
what is more, every time they spend on the Card, you earn
membership reward points, which means you can redeem the
reward of your choice much faster.
15)
24-Hour Toll Free Phone Banking:
To apply, simply fill in and return the American Express Card
Application form today. Just call us at 0800-99-999 for further
assistance. Our friendly Phone Banking officer will be on hand to
help you. And once approved, you can take full advantage of that
extra measure of recognition and respect that only American
Express Card membership provides.
16)
Card Replacement:
American Express Card offers peace of mind as never before. If the
Card is lost or stolen anywhere in the world, just inform us by
calling Standard Chartered Phone Banking at 0800-99-999 toll
free. If you are outside Pakistan , call (9221) 240-0015. You will
57

receive a replacement card free of charge-usually within 2 working

days in Pakistan and 4-5 working days if you are overseas. And for
your total comfort, you will not have any liability for charges on
your lost/stolen Card, from the time the Card is reported
lost/stolen to Standard Chartered.
17)
CIP Lounge:
As a Standard Chartered Card member, you can enjoy
complimentary lounging facilities at the Quaid-e-Azam
International Airport Karachi, with privileges like free secretarial
services, free buffet, 24-hour porter service and so much more.
18)
Marhaba - Meet and Greet Service:
You can avail complimentary Marhaba Meet and Greet Service on
international travels at the Quaid-e-Azam International Airport
Karachi. Trained staff of Marhaba will escort you through all checkins to minimise the hassle of standing in long queues at the
airport. The service is available at special rates and accompanying
family members and friends, on both domestic and international
flights.

58

Topic of Survey:
To study Housewife perception towards credit
cards.
Sample size:
50
Sampling technique:
Convenient sampling
Objective:
Our main objective of survey to find out the positive and
negative features of credit cards that affects housewives
behavior towards credit cards.
On the basis of our result suggest such measure that will
help banks to design their product according to housewife
needs.

Note: the questionnaire is attaches at the end of the report.

Only the analysis is given here.

59

Q#1: to which age group you belong?

a)
b)
c)
d)

20-30
30-40
40-50
50-60

Comment: from this proportion we conclude that among 20 to 40 age group credit card is
most popular. The reasons can be frequently availability of financial resources and more
awareness about the credit card.

Q#2: Credit Card of which Bank you prefer most?

ICICI; 15%

SBI; 31%

CITI; 23%
SBI

SCB

HSBC; 8%

HSBC

CITI

SCB; 23%

60

ICICI

Comment: from the high rating of State Bank of India, Standard Chartered Bank and Citi Bank,
we have perceived that features and packages of above three banks are better than the other and
thats why housewives prefer them.

Q#3: Why you prefer it?

a) I have relationship with bank
b) It provide good packages
c) It provides good services

a; 24%

c ; 38%
a

b; 38%

Comments: major reasons for preferring credit cards are its quality services and good packages.

Q#4: why you purchased the credit card?

a)
b)
c)
d)
e)
f)

It is convenient (w.r.t cash and safety)

Status symbol
It has beautiful appearance
It gives special discount on shopping
It is your need
Any other specify-------------------

61

a; 59%

b 33%
e;

b; 8%

Comments: 59% purchase credit cards because it is convenient with respect to cash and safety.
And 30% housewives said that it is their need.

Q#5: how much transactions you do per month?

a)
b)
c)
d)

0 Rs.
500 1000 Rs.
10000 15000 Rs.
15000 so on

Comments: normally housewives transact from credit card within the range of 500 to 10000.

Q#6: from which channel you heard about it that induced you to purchase it?

62

tv, media; 17%

relatives; 50%
salerelativ
represtative;
33%
es

sale represtativ e

tv , media

Comments: 50% housewives rely on their internal resources before purchasing decision.

Q#7: Are you satisfied with its services?

a) Yes
b) No
c) Neither satisfied nor dissatisfied

no; 17%
nethier satisfied ni dissatisfied; 8%

yes

no

nethier satisfied ni dissatisfied

yes; 75%

Comments: 75% housewives are satisfied with the services of credit cards and its fulfill their
need.

Q#8: do you want some extra features to be added in your card? If yes then
specify.

63

other; 8%

no

other

no; 92%

Comments: 92% housewives dont want any feature to be added in their credit card but they want
annual charges should be eliminated and interest rate should be decreased.

Q#9: do you have any complaints against its?

a) Fine structure
b) Limit of credit card
c) Seller doesnt explicitly brief terms and conditions

a; 15%
b; 20%
c; 65%
a

Comments: 65% housewives want their credit card limit should be extended and rest of the
housewives have complaint against fine structure and terms and conditions.

64

no; 50%

yes; 50%
yes

no

Q#10: would you advise other

housewives to buy credit card?
a) Yes
b) no
Comments: the ratio of advising and not advising others is fifty fifty.

Q#11: do you think credit card has created a habit of over spending?
a) Agreed
b) Disagreed
disagree; 34%
agree

agree; 66%
disagree

Comments: 66% housewives consider credit card create a habit of over spending.

65

Strengths
1. The most important strength of Plastic cards is that they are convenient with respect to
safety and there is no need to carry cash.
2. The greatest strength of the banks is their sales force. The more the qualified the sales force
more that bank will have competitive edge over other.
3. Our survey has told that the customer prefer those banks which provide quality services so
the quality services are the basic strength for bank.
4. The easy procedure for obtaining a debit or credit card is also strength of plastic card.
5. Inflation is a positive point for banks as due to increased inflation is purchasing power is
decreasing and housewives are more inclined towards use of credit card.

Weaknesses
1. The greatest weakness is that housewives have a very bad perception and they think that it
is a very bad product and once a person used it and he will be a prey to the veracious of
interest.
2. The banks dont provide complete information about terms and conditions that give rise to
much confusion in the mind of housewives.
3. High service charges and annual fee charged by banks are that are a point of worry for
consumers.
4. Housewives have severs complaints against fine structure.

66

Opportunities
1. There is a large room for banks in the fields and they can capture the market by providing
new features like standard chartered bank.
2. Use of insurance cover provides the bank facilities to take exposure easily.
3. Banks can capture the market by providing the cheaper services.
4. Trained and well groomed sales force will prove useful in creating opportunities for bank.
5. The housewives can be attracted towards plastic money by creating awareness about these
products and decreasing the bad perceptions prevailing in our society

Threats
1. Unethical practices of sales force of banks are the greatest threat for banks.
2. The image of these cards of being an interest based product is a threat to its success.
3. The frauds due to lower security arrangements are a major threat for plastic money
products.
4. Strict SBP rules and regulations are a threat for banks in carrying out plastic money
business.
5. The perception of housewives that use of plastic money leads towards over spending.

67