Plastic Money

PLASTIC MONEY
CREDIT CARD
INTRODUCTION:-

A credit card is a small plastic card issued to users as a system of payment. It allows 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. Usage of the term "credit card" to imply a credit card account is a metonym.

When a purchase is made the user would indicate consent to pay by signing a receipt with a record of the card details and indicating the amount to be paid. Issuer agrees to pay the merchant and the credit card user agrees to pay the card issuer.

DEFINITION:-

The credit card can be defined as “A small plastic card that allows its holder to buy goods and services on credit and to pay at fixed intervals through the card issuing agency
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Plastic Money

MEANING:-

A credit card is a card or mechanism which enables card holder to purchase goods, travels and dine in a hotel without making immediate payments. The holders can use the cards to get credit from banks up to 45 days.

The credit card relieves the consumers from the botheration of carrying cash and ensures safety. It is a convenience of extended credit without formality. Thus credit card is a passport to, “safety, convenience, prestige and credit.

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Plastic Money

HISTORY OF CREDIT CARDS
In 1914 there was credit system that was used by Western Union to give to their more prominent customers in the interest of good customer service. Prominent (prestigious) customers were given a metal card that was used to defer payments (interest free) on services used by them. This credit system was called

Metal Money

In 1924 General Petroleum Corporation (an oil company) saw the success and being aware of the value of goodwill this could offer to their customers, also issued their own metal money for gasoline and automotive services. This was first offered to their employees followed by selected customers then the general public after its great success. During the 1920s and 1930s this form of credit card system spread to other companies such as Railroad, hotel chains, airline, oil companies and department stores In the late 30’s American Telephone and Telegraph (AT&T) introduced their “credit card” called the Bell System Credit Card. The use of such “credit cards” greatly increased after World War II due to the rapid growth of businesses, increase in travel and the great demands for goods and services and thus, it popularity grows significantly.

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reimburse this participating retailer and collect the debt from the consumer at a later date with a flat fee to cover the costs of providing this credit loan. This merchant would copy the customers Information from a sales slip then obtains authorization from the bank thus. the first universal credit card was introduced by Diners Club. the first bank to implement this credit system was the Franklin National Bank in New York Customers would submit an application for a loan and were screened for credit. It was first used by members for restaurant services but quickly expanded beyond that service to cover general travel and entertainment expenses thus covering a variety of establishments. in turn. Approved customers were then given a card (Charge-It card) to make retail purchases. This was a new kind of credit card which set the foundation on which today’s card credit is established. Inc (invented by Diners' Club founder Frank McNamara). During the 1950s. Cardholders were charged an annual fee and billed on a monthly or yearly basis. This 4|Page . because of its convenience and efficiency.Plastic Money In 1950. This credit card system was similar to today’s system where consumers could make a purchase using the card at participating merchants. The bank would then. completing the purchase. unlike the other cards where they could only used for specific goods and services. its popularity increased and many merchants were very eager to accept the card because customers spend a lot more than if it was cash since they can charge it to their cards In 1951. the Diner Club had a more general use.

These licensing agreements allowed other banks to issue BankAmerica Blue. This means customers were now given the option to make regular monthly payments on the balance owed rather than having to pay off the entire balance at one time. Their credit card was used for travel and entertainment purposes and accepted at participating airline merchants. Bank of America foresaw more income potential and control and began issuing license agreements to other banks of all sizes in the US. other banks impressed with this credit system jumped on board and offered their customers similar services. restaurants and hotels. They were the first to introduce the revolving credit card. and Gold BankAmerica card and also to interchange transactions through these issuing banks 5|Page . In 1958. the Bank of America in California introduced the Bank of America card. Many other banks then followed offering this revolving credit option. Their credit system policy at the time (which changed in 1987) required cardholders to pay off their balances each month. In 1959. White. the American Express Company (a traveler’s check business) entered the credit card business with their version of the universal credit card “Don’t leave home without it”.Plastic Money system was very successful and after a couple of years. In other words. customers could carry a balance from month to month. In 1965.

they both lay down standards for credit card processing. became members of either the Master Charge program (MasterCard Association) or BankAmerica card program (Visa Association). This also means that most independent bank charge cards would now change over to either credit card programs. This new bankcard processing association would expand their services and increase their income potential. In 1977 Bank Americard spreading its credit card business globally had difficulty 6|Page .Plastic Money In 1966 a group of 14 US banks came together to form a new bankcard processing association that provides the ability to exchange information on credit card transactions. In 1969 banks interested in issuing cards of their own. thus. they shared card program costs. these small banks formed a mutual relationships with large national or international banks. Also. Both organizations issued credit cards through their member banks for their customers. This was mutually beneficial to all banks and small financial institutions since. In 1967 a group of four California banks formed a new Association entity called Master Charge (Renamed MasterCard in 1979) which is now known as MasterCard International This was done to compete with the BankAmerica card (later became Visa in 1977).

this gives an extra benefit to card holders since they could make deposits 24 hours a day from most countries around the world. its name was changed to Visa. In 1979 Master Charge changed its name to Master Card.“future credit cards” 7|Page . Also. The credit card/payment system will continue to evolve as a new technology payment system developed through the advancement in science and technology. This method decreased fraud. In the early 1980s the first Automatic Teller Machines (ATMs) came into existence. Also.Plastic Money achieving this due to the association of "America" in Bank America Card. MasterCard. Read articles below under the heading: Additional Info. and Discovery. ATMs give consumers the opportunity to have access to cash from their bank account or from their credit card. On credit Card. This changing of name was followed shortly (2 years after) by Master Charge to Master Card. increased speed of processing authorizations and decreases the usage of paper. American Express. VISA. the electronic processing of credit cards improved through electronic dial-up terminals and magnetic stripes on the back of credit cards. are the most popular and also have the most respected symbols when it comes to credit cards. Thus. This allowed consumers credit cards swiped by merchants to accessed issuing bank card holder information. 2005 and beyond: Today. This gave credit card holders access to cash in different currencies from different countries around the world as well as locally.

Only a few are listed but there are other bigger futuristic developments out there in the making 8|Page .Plastic Money that are in the making for the near future.

There is a scope and a potential for a better profitability out of income / commission earned from the traders turn over. It enhances the customer satisfaction. This gives the bank an opportunity to find the latent talent from among existing staff that would have been otherwise wasted. f) Better network of card holders and increased use of cards means higher popularity and image of the bank 9|Page . is simply to yield direct profit for the bank. d) This also provides additional customer services to the existing clients. e) More use by the car holder and consequently the growth of banking habits in general. b) To get new customers the bank has to employee special trained staff.Plastic Money ADVANTAGES OF CREDIT CARD (1) BENEFITS TO THE BANK:- a) A credit card is an integral part of banks major services these days. however. c) The more important function of a credit card. The credit card provides the following advantages to the bank: the system provides an opportunity to the bank to attract new potential customers.

Plastic Money g) Savings of expense on cash holdings. It increases h) customer. 10 | P a g e . Executive Card. j) It brings in new customers from various merchants outlet which accepts credit cards against sale of their goods/services. i.e. printing and man power to handle clearing transactions while considerably is reduced. k) It creates a brand name and popular image for the bank. stationery. n) This may increase the chances of relationship banking and there by retaining the customers.base of the bank i) It brings into banks fold high net worth customers by introducing various types of credit card like Gold Card. l) Large scale use of credits card and shops etc accepting them help to increase deposit base of the bank m) It increases interest income of the bank when card users avail of loan facilities to settle the bills.

The card is useful in emergency. g) The credit card saves trouble and paper work to traveling business man. either on card account or by using it as identification when encasings a cheque at the bank. thus. 11 | P a g e . b) The risk factor of carrying and storing cash is avoided. d) The card holder has the period of free credit usually between 30-50 days of purchase e) Cash can usually be obtained with the card. c) Months purchases can be settled with a single remittance.Plastic Money (2) BENEFITS TO CARD HOLDER:- The principal benefits to a card holder are: a) He can purchase goods and services at a large number of outlets without cash or cheque. tending to reduce bank and handling charges. It is convenient for him to carry credit card and he has trouble free travel and may purchase his without carrying cash or cheque. and can save embarrassment. f) Availing credit with minimum formality.

revolving credit becomes automatically available as the outstanding balance is reduced. in additional to an initial credit and interest free period. Future. j) It also gives him exposures to banking operation since systematic accounting for spending and payments are routed through banking channels. k) It also allows him to delegate spending power to add on members l) Credit card is considered as a status symbol 12 | P a g e . i) It provides a proof of spending through banking channels to strengthen his position in case of disputes with sellers.Plastic Money h) The card holder has the option of taking extended credit up to a pre arranged limit without reference to anyone.

h) Development of prestigious clientele base. f) Systematic accounting since sales receipts are routed through banking channels. c) The retailers gain from the impulse buying and trading up the tendency to buy the bigger or better article d) Credit card ensures timely and certainly of payments.Plastic Money (3) BENEFITS TO THE RETAILER:- The principal benefits offer credit card to the retailer is a) This will carry prestigious weight to the outlets. e) Suppliers/sellers no longer have to send reminders of outstanding debits. b) Increases in sale because of increased purchasing power of the cardholder due to unbilled credit available to the card holder. 13 | P a g e . g) Advertising and promotional support on national scale.

etc e) Customers may be denied cash discount for payment through card. c) Discounts and rebates can rarely be obtained.Plastic Money DISADVANTAGES OF CREDIT CARD The following are the common disadvantages of the credit card: a) Some credit card transactions take longer time than cash transactions because of various formalities. f) It might lead to spending habits and cardholders may end up in big debts i) Avoid the entire cost and security problem involved in handling cash. b) The customer tends to overspend out of immerse happiness. j) Losses to bad debts and reduced an additional liquidity is k) It also allows him to delegate spending power to add on members 14 | P a g e . d) The cardholder is responsible for charges due to loss or theft of the card and the bank may not be party for loss due to fraud or collusion of staff.

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S. 16 | P a g e .97 billion spent in 1980. there are lots of effective strategies you can utilize that will help you grow your business fast. in 2001.Plastic Money MARKETING STRATEGIES American companies spend billions of dollars each year on marketing. these figures may seem staggering to the independent professional on a budget. Many professionals are afraid to do this claiming that they’ll be leaving someone out. (Source: "Advertising: Exposure and Statistics“ November 2003 newsletter of the Media Education Foundation) Now. U. Here are some of my favorites Identify your niche:- One of the easiest ways to attract customers is to figure out which group of prospective customers you get your very best results for and go after them exclusively. As a matter of fact. more than doubling the $105. but don’t panic. advertising expenditures alone topped $230 billion. but many marketing experts agree that niche marketing as the easiest and fastest way to get business.

they refer business to me. And. while you’re at it don’t forget to. accountants and business attorneys. Likewise. Develop ongoing relationships with complementary professionals and build your referral team:- These are other professionals who sell non-competing services or products to the same niche customers you are targeting. seminars and tele-classes specifically geared towards helping your prospective customers and before long you’ll be regarded as an expert in your field. Once you’ve identified your niche. my clients often need the services of bookkeepers. it’s easier to trust a specialist than a generalist who’s trying to be everything to everyone. Provide free information products. Conduct workshops. collect names. write articles and white papers about the problems your clients face and how they can solve them.Plastic Money Position yourself as an expert:- Why? Experts make more money and get more media attention and that’s free advertising! Let’s face it. let the world know about how you can help. emails and addresses of prospects to keep filling your pipeline. Here are a couple of other examples: 17 | P a g e . For instance.

mortgage broker.Plastic Money • Residential realtor. Follow up with them in a variety of ways: call them to touch base. ask them to subscribe to a newsletter. By Keeping track of all of the people who’ve showed interest and keeping your business on their radar screen you’ll turn more of them into paying customers. Let your satisfied customers help you sell your products or services:- Here are a couple of ways to do this: 18 | P a g e . Put together a list of all of the people you’ve spoken to in the last 6-9 months who’ve showed interest in you but haven’t become paying customers. Institute a system to keep track of all of the people who are interested in your product or services. send them interesting articles. real estate attorney. that’s why you see commercials on TV over and over again for the same products. home improvement contractor. • Commercial printer. architect and interior designer. It takes numerous impressions to make the sale. or invite them to join you at events. graphic designer. go through your notes. and find creative ways of keeping in touch with them on a regular basis:- To start. copywriter. use email.

(also right away) and compile a list of testimonials to use in your all of your marketing collateral. Identify innovative ways to get more business from existing customers:- It’s much easier to get business from customers who are already happy with your services or products. by doing so.Plastic Money • Ask them for referrals . Create a marketing calendar and keep to it consistently:- Scheduling marketing activities that take place weekly. 19 | P a g e .right away (if you were a car salesman you wouldn’t wait for the new car to get dirty and dented!) • Ask them to write testimonials for you. And. marketing will become easier since it becomes a regular part of your business life. bi monthly. So develop additional services or products to keep customers coming back for more. monthly and quarterly will help you to avoid the feast or famine syndrome that most independent professionals fall prey to.

The merchant acquirer. the bank is buying the value represented by the draft and paying the merchant the face value of that sales draft. THE CARD ASSOCIATION The card issuer is the bank that issues the credit card to the cardholder. The use of a card involves an exchange of value between a consumer and a business.Plastic Money THE MECHANICS OF CREDIT CARD TRANSACTION Card transactions are processed through a chain of connected parties. The card represents an offer for payment in exchange for the merchant’s goods or services. THE ACQUIRE 5. THE CARD ISSUER 3. The five primary parties involved in processing a Visa or MasterCard credit card transaction are: 1. When an acquirer accepts a draft from merchants. The sales draft itself is the cardholder’s promise to pay. THE CARD HOLDER 2. Collecting payment through the interchange systems is a two-part process 20 | P a g e . often a bank. processes transactions on behalf of the merchant. THE MERCHANT 4. "Card Association" is another term used to describe Visa and MasterCard.

Clearing involves the exchange of data only. SETTLEMENT:- The second step is the actual exchange of funds. the bank posts the amount of the sale as a draw against the cardholder’s available credit and prepares to send payment to the acquirer. When the issuing bank gets this data.Plastic Money 1. The acquirer provides data required to identify the cardholder’s account and provide the dollar amount of the sales. 21 | P a g e . The issuer sends a record of money that is being transferred from its account to that of the acquirer. Funds are settled between issuers and acquirers through accounts with large banks that are members of the Federal Reserve System and have been selected for that purpose. From this account the acquirer pays the merchant. Payments to merchants are made usually through the Federal Reserve’s Automated Clearing House (the “ACH”) which is an electronic funds transfer system. 2. No money is exchange during clearing. CLEARING:- During the clearing process the acquirer provides the appropriate issuer with information on the sale.

the information may be keyed into the terminal in order to get an electronic response. The terminal records the response code which becomes part of the transaction and is included in the clearing data sent through interchange to the issuer 22 | P a g e . A. If the card cannot be electronically read by the terminal for any reason. The request is then routed through the processor’s VAP or MIP to the issuer’s authorization center.Plastic Money 3. Back-end processing provides financial accounting for acquirers and issuers and prepares and submits clearing and settlement data into the Visa and MasterCard interchange networks. Front End Processing Authorization is the acknowledgement by the issuer that a particular account may be charged for the amount of the sale. TRANSACTION PROCESSING: Transaction processing involves front-end processing and back-end processing: Front-end processing involves authorization and data capture services and message connections via various communication networks to pint of sale devices. The response is returned to the merchant’s terminal. The preferred method to obtain an authorization and the one that will receive the lower interchange rate is to swipe a card’s magnetic strip through the point of sale terminal’s card reader.

the card Associations will act as stand-in processors to provide authorizations. Other methods such as electronically generated audio responses (ARU) that permit the merchant to use the telephone like a key pad to enter sale information can also be used. Back-End Processing Back-end processing involves the various accounting functions that enable transactions to be recorded to the proper merchant or cardholder account. The merchant can call an 800 number to verbally provide cardholder information and receive an operator’s response. During back-end processing reports are created for distribution to the acquirers that include: 1) Settlement data 2) Security/fraud data 3) Retrieval/chargeback data 4) Funds disbursements data Transactions for internet and other card not present environments work similarly but can have additional processing steps. Both Visa and MasterCard have Internet authentication programs (not to be confused with authorization) named Verified by Visa (By) and MasterCard Secure 23 | P a g e . B. If for any reason the issuer or its authorization center cannot be reached.Plastic Money Authorization may also be obtain through other methods such as voice authorization.

a misleading reference and not to be confused with an offline EFT debit transaction) are different from PIN debit transactions in that the transaction does not involve use of a PIN number at the time of purchase.Plastic Money Code (MCSC) that do alter the transaction process somewhat. they must provide a pre-registered password at the time of purchase. The primary difference between signature debit transactions and credit transactions are that debit cards are linked to a bank account. Rather than offering the cardholder 30 days of float and the option to finance ongoing balances. debit cards simply debit the cardholder’s bank account for authorized purchases. This password is then passed along as part of the information flow of the transaction (these programs and other techniques for controlling fraud are discussed in more detail later in this section). If the cardholder is registered with one of these programs. PIN transactions also are processed on entirely different networks referred to as EFT networks and are discussed in Section IV. Signature debit transactions (which are sometimes also referred to as offline debit. Visa and MasterCard offer both signature debit and credit cards to consumers. 24 | P a g e .

In March 2005. the IBA released a Fair Practices Code for credit card operations which could be adopted by banks / NBFCs. regulations. The Group has suggested various regulatory measures aimed at encouraging growth of credit cards in a safe. secure and efficient manner as well as to ensure that the rules. standards and practices of the card issuing banks are in alignment with the best customer practices. Each bank / NBFC must have a well documented policy and a Fair Practices Code for credit card operations. The following guidelines on credit card operations of banks have been framed based on the recommendations of the Group was also the feedback received from the members of the public. incorporate the relevant guidelines contained in this circular.Plastic Money CREDIT CARD OPERATIONS OF BANK RBI GUIDELINES:- Pursuant to the announcement made in the Annual Policy Statement 200405. the Reserve Bank of India had constituted a Working Group on Regulatory Mechanism for Cards. card issuing banks and others. The bank / NBFC's Fair Practice Code should. All the credit card issuing banks / NBFCs should implement these guidelines immediately. 25 | P a g e . at a minimum.

especially to students and others with no independent financial means. even where DSAs / DMAs or other agents solicit business on their behalf. Add-on cards i. d) While issuing cards. Hindi and the local language) comprehensible to a card user.e. 26 | P a g e . may be issued with the clear understanding that the liability will be that of the principal cardholder. The Most Important Terms and Conditions (MITCs) termed as standard set of conditions. the terms and conditions for issue and usage of a credit card should be mentioned in clear and simple language (preferably in English.e. c) The card issuing banks / NBFCs would be solely responsible for fulfillment of all KYC requirements. those that are subsidiary to the principal card.Plastic Money GUIDELINES FOR IMPLENTATION:- 1. as given in the Appendix. b) As holding several credit cards enhances the total credit available to any consumer. Issue of cards a) Banks / NBFCs should independently assess the credit risk while issuing cards to persons. banks / NBFCs should assess the credit limit for a credit card customer having regard to the limits enjoyed by the cardholder from other banks on the basis of self declaration/ credit information. should be highlighted and advertised/ sent separately to the prospective customer/ customers at all the stages i.

at the acceptance stage (welcome kit) and in important subsequent communications 2.Plastic Money during marketing. it should be indicated in bold letters that the interest will be charged on the amount due after the due date of payment. The method of calculation of APR should be given with a couple of examples for better comprehension. at the time of application. Interest rates and other charges a) Card issuers should ensure that there is no delay in dispatching bills and the customer has sufficient number of days (at least one fortnight) for making payment before the interest starts getting charged. 27 | P a g e . Even where the minimum amount indicated to keep the card valid has been paid. including the method of calculation of such charges and the number of days. b) Card issuers should quote annualized percentage rates (APR) on card products (separately for retail purchase and for cash advance. The late payment charges. The APR charged and the annual fee should be shown with equal prominence. These aspects may be shown in the Welcome Kit in addition to being shown in the monthly statement. should be prominently indicated. The manner in which the outstanding unpaid amount will be included for calculation of interest should also be specifically shown with Prominence in all monthly statements. if different).

etc. Wrongful billing a) the card issuing bank / NBFC should ensure that wrong bills are not raised and issued to customers. the credit card issuing 28 | P a g e . this would not be applicable to charges like service taxes. the bank / NBFC should provide explanation and. should be stipulated so as to ensure that there is no negative amortization. If a credit card holder desires to surrender his credit card on account of any change in credit card charges to his disadvantage. a customer protests any bill. he may be permitted to do so without the bank levying any extra charge for such closure 3. including the minimum payment due. which may subsequently be levied by the Government or any other statutory authority. In case. if necessary.Plastic Money c) The bank / NBFC should not levy any charge that was not explicitly indicated to the credit card holder at the time of issue of the card and getting his / her consent. However. e) Changes in charges (other than interest) may be made only with prospective effect giving notice of at least one month. d) The terms and conditions for payment of credit card dues. b) To obviate frequent complaints of delayed billing. documentary evidence to the customer within a maximum period of sixty days with a spirit to amicably redress the grievances.

with suitable security built therefore. and adhere to fair practices in debt collection. respect customer privacy. b) The Code of Conduct for Direct Sales Agents (DSAs) formulated by the Indian Banks’ Association (IBA) could be used by banks / NBFCs in formulating their own codes for the purpose. The bank / NBFC should ensure that the DSAs engaged by them for marketing their credit card products scrupulously adhere to the bank / NBFC’s own Code of Conduct for credit card operations which should be displayed on the bank / NBFC’s website and be available easily to any credit card holder. In the choice of the service provider. particularly in the aspects included in these guidelines like soliciting 29 | P a g e . 4. liquidity and operational risks.Plastic Money bank / NBFC may consider providing bills and statements of accounts online. they have to be extremely careful that the appointment of such service providers does not compromise with the quality of the customer service and the bank / NBFC’s ability to manage credit. the bank / NBFCs have to be guided by the need to ensure confidentiality of the customer’s records. c) The bank / NBFC should have a system of random checks and mystery shopping to ensure that their agents have been properly briefed and trained in order to handle with care and caution their responsibilities. Use of DSAs / DMAs and other agents a) when banks / NBFCs outsource the various credit card operations.

but also be liable to pay such penalty as may be considered appropriate 30 | P a g e . In case. 5. The card issuing bank / NBFC would be responsible as the principal for all acts of omission or commission of their agents (DSAs / DMAs and recovery agents). maintaining confidentiality of customer information and fair practices in debt collection. In case. Protection of Customer Rights Customer’s rights in relation to credit card operations primarily relate to personal privacy. an unsolicited card is issued and activated without the consent of the recipient and the latter is billed for the same.Plastic Money customers. preservation of customer records. conveying the correct terms and conditions of the product on offer. etc. privacy of customer information. the card issuing bank / NBFC shall not only reverse the charges forthwith. Right to privacy a) unsolicited cards should not be issued. b) Unsolicited loans or other credit facilities should not be offered to the credit card customers. but also pay a penalty without demur to the recipient amounting to twice the value of the charges reversed. the credit sanctioning bank / NBFC shall not only withdraw the credit limit. clarity relating to rights and obligations. an unsolicited credit facility is extended without the consent of the recipient and the latter objects to the same. hours for calling.

The bank / NBFC should then refer to the Do Not Call Registry (DNCR) and only those numbers which do not figure in the Registry should be cleared for calling. The DNCR should be set up within two (2) months from the date of this circular and wide publicity should be given to the arrangement e) The intimation for including an individual’s telephone number in the Do Not Call Registry (DNCR) should be facilitated through a website maintained by the bank / NBFC or on the basis of a letter received from such a person addressed to the bank / NBFC.Plastic Money c) The card issuing bank / NBFC should not unilaterally upgrade credit cards and enhance credit limits. The bank / NBFC would be held responsible if a Do Not 31 | P a g e . g) The numbers cleared by the card issuing bank / NBFC for calling should only be accessed. f) The card issuing bank / NBFC should introduce a system whereby the DSAs/ DMAs as well as its Call Centers have to first submit to the bank / NBFC a list of numbers they intend to call for marketing purposes. Prior consent of the borrower should invariably be taken whenever there is any change/s in terms and conditions. d) The card issuing bank / NBFC should maintain a Do Not Call Registry (DNCR) containing the phone numbers (both cell phones and land phones) of customers as well as non-customers (non-constituents) who have informed the bank / NBFC that they do not wish to receive unsolicited calls / SMS for marketing of its credit card products.

. as regards the purpose/s for which the information will be used and the organizations with whom the information will be shared. b) In case of providing information relating to credit history / repayment record of the card holder to a credit information company (specifically 32 | P a g e . h) The card issuing bank / NBFC should ensure that the Do Not Call Registry (DNCR) numbers are not passed on to any unauthorized person/s or misused in any manner. Banks / NBFCs would be solely responsible for the correctness or otherwise of the data provided for the purpose. violation of "do not call" Customer confidentiality a) The card issuing bank / NBFC should not reveal any information relating to customers obtained at the time of opening the account or issuing the credit card to any other person or organization without obtaining their specific consent.Plastic Money Call Number (DNCN) is called on by its DSAs / DMAs or Call Centre/s. Banks / NBFCs should satisfy themselves. persistently bothering the card holders at odd hours. based on specific legal advice that the information being sought from them is not of such nature as will violate the provisions of the laws relating to secrecy in the transactions. i) Banks / NBFCs/ their agents should not resort to invasion of privacy viz.

Personal information provided by the card holder but not required for recovery purposes should not be released by the card issuing bank / NBFC. 2005. a well laid down procedure should be transparently followed. the bank / NBFC may explicitly bring to the notice of the customer that such information is being provided in terms of the Credit Information Companies (Regulation) Act. The card 33 | P a g e . Banks / NBFCs should be particularly careful in the case of cards where there are pending disputes. banks / NBFCs may ensure that they adhere to a procedure. duly approved by their Board. The procedure should also cover the notice period for such reporting as also the period within which such report will be withdrawn in the event the customer settles his dues after having been reported as defaulter. The Disclosure/ release of information. including issuing of sufficient notice to such card holder about the intention to report him/ her as defaulter to the Credit Information Company. should be made only after the dispute is settled as far as possible.Plastic Money authorized by RBI). particularly about the default. c) Before reporting default status of a credit card holder to the Credit Information Bureau of India Ltd. In all cases. (CIBIL) or any other credit information Company authorized by RBI. These procedures should also be transparently made known as part of MITCs d) The disclosure to the DSAs / recovery agents should also be limited to the extent that will enable them to discharge their duties.

banks / NBFCs may ensure that they. as also their agents. referees and friends. c) Banks / NBFCs / their agents should not resort to intimidation or harassment of any kind. b) In particular.07.007 / 2002–03 dated May 5. making threatening and anonymous calls or making false and misleading representations. BC. 2003) as also IBA’s Code for Collection of dues and repossession of security. In case banks / NBFCs have their own code for collection of dues it should. it is essential that such agents refrain from action that could damage the integrity and reputation of the bank / NBFC and that they observe strict customer confidentiality. Fair Practices in debt collection a) In the matter of recovery of dues. either verbal or physical. against any person in their debt collection efforts. 104 /09. adhere to the extant instructions on Fair Practice Code for lenders (circular DBOD. at the minimum. 34 | P a g e . All letters issued by recovery agents must contain the name and address of a responsible senior officer of the card issuing bank whom the customer can contact at his location. Leg.Plastic Money issuing bank / NBFC should ensure that the DSAs / DMAs do not transfer or misuse any customer information during marketing of credit card products. No. incorporate all the terms of IBA's Code. including acts intended to humiliate publicly or intrude the privacy of the credit card holders’ family members. in regard to appointment of third party agencies for debt collection.

Redresses of Grievances a) generally. The designated officer should ensure that genuine grievances of credit card subscribers are redressed promptly without involving delay. such as complaint number / docket number. address and contact number of important executives as well as the Grievance Redresses Officer of the bank / NBFC may be displayed on the website. The name.Plastic Money 6. even if the complaints are received on phone. a time limit of sixty (60) days may be given to the customers for preferring their complaints / grievances. The name and contact number of designated grievance redresses officer of the bank / NBFC should be mentioned on the credit card bills. he will have the option to approach the Office of the 35 | P a g e . There should be a system of acknowledging customers' complaints for follow up. d) If a complainant does not get satisfactory response from the bank / NBFC within a maximum period of thirty (30) days from the date of his lodging the complaint. b) The card issuing bank / NBFC should constitute Grievance Redresses machinery within the bank / NBFC and give wide publicity about it through electronic and print media. designation. c) The grievance redresses procedure of the bank / NBFC and the time frame fixed for responding to the complaints should be placed on the bank / NBFC's website.

Card issuing banks should have in place a suitable monitoring mechanism to randomly check the genuineness of merchant transactions. 7. the Standing Committee on Customer Service in each bank / NBFC may review on a monthly basis the credit card operations including reports of defaulters to the CIBIL. 8.Plastic Money concerned Banking Ombudsman for redresses of his grievance/s. Internal control and monitoring systems With a view to ensuring that the quality of customer service is ensured on an on-going basis in banks / NBFCs. Right to impose penalty The Reserve Bank of India reserves the right to impose any penalty on a bank / NBFC under the provisions of the Banking Regulation Act. Banks / NBFCs should put up detailed quarterly analysis of credit card related complaints to their Top Management. 1949 for violation of any of these guidelines. expenses. financial loss as well as for the harassment and mental anguish suffered by him for the fault of the Bank and where the grievance has not been redressed in time. The bank / NBFC shall be liable to compensate the complainant for the loss of his time. 36 | P a g e . credit card related complaints and take measures to improve the services and ensure the orderly growth in the credit card operations.

Check your agreement to find out what type of card you have.Plastic Money DIFFERENT TYPES OF CREDIT CARDS Credit cars are of various types. this type of credit card can be perfect for you. If you need to consolidate debts or if you like the idea of having low interest for a while. If you are looking for the right card. In most cases. everyone has to select credit cards on the basis of the pros and cons of each type of credit card and at the same time the nature of use. credit card customers enjoy more options and choices than ever before. credit card companies compete by offering new services and cards to customers. the low interest rate is for a limited time only. This article gives an insight into the several types of credit cards available in the market Today. After a set number of months. low interest credit cards are not really credit cards at all . chances are good that there is a card out there that would be ideal for you. To gain new customers. these cards just charge a few percent interests. No matter what your needs. you will begin paying higher interest rates. you can begin by considering the many types of cards available to you: Low Interest Credit Cards These types of credit cards offer very low interest.they are debit cards linked to a low-interest loan such as a line of credit. In some cases. Instant Approval Credit Cards 37 | P a g e . In some cases. The reasons for this are numerous.

you can quickly repay your bills. You then transfer all your credit card debt onto the new card and work to pay it off. these types of cards may not be for you. Instant approval credit cards are very popular online and applicants can apply via the internet or over the phone. you will be told whether you are approved or not right away. you should be aware that these cards do not guarantee that you will be approved right away . However.Plastic Money These cards are really a product of our fast-paced society.sometimes. The approval process only takes a few minutes. Another drawback to these cards is that they rely heavily on your credit score. more time is needed to process your application. 38 | P a g e . Since the new card has a low interest rate. They work this way: if you have several credit cards with a balance. If you are very impatient or need credit right away. Balance Transfer Cards Balance transfer cards are a type of temporary low-interest card that is meant to help you consolidate your debt. these types of cards can be for you. The idea behind this type of credit card is that once you fill out your application. If you have poor credit or any extenuating financial circumstances. you can get a balance transfer card.

However. rewards. Some also have very low points systems. It offers the convenience of one bill and low rates. a balance transfer card can be a great way to get out of debt. Rewards Credit Cards Rewards credit cards offer you points. meaning that you need to spend a lot with your credit card to get any rewards at all. you are entered into a draw to win specific prizes. Companies know that customers love rewards and prizes and so offer these enticements to lure customers. Also. However. you may find yourself even more in debt than before. Each time you use your card. Read the fine print carefully before signing.Plastic Money If you are in debt. travel. purchases. As you accumulate rewards or points. They can also be fun and rewarding for almost any credit card customer. These types of cards are really a marketing tool for card companies. The major advantage of these cards is that they can help you get more cash value for your money. or bonuses for every cash purchase made with your credit card over time. and other fun prizes. you can redeem your bonus for entertainment events. some cards have high fees. Some charge high fees to offset the costs of the bonuses. Some cards even offer customers extra automatic-enter sweepstakes and draws. if you run up your other cards after consolidating your debts or if you are unable to pay off your new card in the limited time before the low interest rate increases. 39 | P a g e . not all reward credit cards are a deal.

there are several drawbacks to these types of cards.Plastic Money Cash Back Credit Cards Cash back credit cards give you money rewards. you can get back about 1% of your total purchases.not on your balance. this card can help you accumulate points for a free trip or for a discount ticket. these cards can also charge high fees. These cards are great for those who are budget-conscious as they give you some money back from your purchases. Airline Credit Cards This type of card allows you to accumulate frequent flyer points on all your credit card purchases. Some charge high fees or have limits on how much money you can get back each year. these cards are great because they allow you to gather points for every purchase. However. When you accumulate enough points. When you make a purchase with this type of credit card. In many cases. Some cards have low cash-back percentage rates. If you travel a lot or love to travel. you get some points based on the amount of money you have spent with your credit card. In some cases. 40 | P a g e . do compare several card offers to find the best cash back credit card option. Most cards only offer you cash back advantages on purchases . If you decide this card is right for you. However. you get cash back. On most cards.

Plastic Money your points will expire if you do not use them within a specified time. your ability to get rewards you like may be very limited. However. They are not truly credit cards at all. some airline credit cards make use of a point system that is not very user-friendly. Worse. then. With secured credit cards. you will also have to cope with the additional fees and low credit limits that these credit cards have. If you do not love to travel and if you do not use your Credit card a lot. these cards are used by people with no credit or bad credit. Instead. since you are not getting credit or loans from the credit card company. 41 | P a g e . Often. Secured Credit Cards Secured credit cards use collateral to ensure that the card company will be paid back. You can then use your card to charge any amount up to the amount in the account. You may have to slowly accumulate an enormous amount of points to qualify for a trip. When you add more money. you can charge more to your card. these cards work by having you deposit some money into the card account. Prepaid Debit Cards These cards are sometimes called junior credit cards. you can enjoy credit card convenience even if you do not qualify for traditional cards.

42 | P a g e . They are also easier to apply for. These cards generally have very low credit limits and charge extra fees. including fewer bonuses and services. These cards may have no reward programs and may have fewer benefits. These cards often offer sign-up bonuses for students. than other cards. Student Credit Cards Student credit cards are cards meant to attract college and university students. these types of credit cards can be a great way to rebuild your credit history. This is because they are designed for people who are considered far less likely to repay their debts.Plastic Money Credit Cards for Bad Credit Bad credit cards are designed for people with poor credit histories. However. These cards can also allow you to have credit even if you would be rejected for most other cards due to your credit history. since credit card companies recognize that students have much shorter credit histories than the average customer. student credit cards can be a great option. there are some disadvantages to student credit cards. If you are a student. They are simple to use and can help you build a good credit rating before you graduate. If you have a bad credit rating.

extra cards for business employees.Plastic Money Business Credit Cards Business credit cards are created especially for business use. you can enjoy higher interest rates. but also offer services that can really help a business. for example. and services that let you keep your personal and business expenses separate on the same card. monthly reports on your expenses. 43 | P a g e . They offer many of the same advantages as traditional credit cards. With some business credit cards.

less rewards and promotional packages. and a lower threshold salary which banks use to evaluate your application in case you should apply. HDFC Bank. There are also some disadvantages to using silver credit cards. Silver credit cards come with advantages such as lower annual membership fees if there is any.Plastic Money TYPES OF CREDIT CARDS OFFERED BY INDIAN BANKS Silver Cards Silver credit cards rank lowest among the metal named cards. and less travel perks compared to gold and platinum cards. are commonly known as basic and standard credit cards. You can also avail of 0% interest balance transfer schemes which are made available for a period of 6-9 months for silver card holders. Silver credit cards will provide you with almost the same credit limit as other cards provided you have a good credit history. One would be the lower cash advance limits. because of lower prestige when compared to gold and platinum cards. and. ICICI offer silver credit cards through their HDFC Bank Silver cards and ICICI Sterling Silver credit card 44 | P a g e .

Some popular gold and platinum cards available are the American Express Gold card. and purchase protection insurance. Gold and platinum cards offer higher limit for cash advance withdrawals and sometimes can provide higher credit limits as compared to standard or silver cards. If you have a gold or platinum card. bringing prestige since getting gold and platinum cards usually require that you have good credit rating and a higher income levels. extended warranties for appliance purchases and special deals on specific products.Plastic Money Gold and Platinum Cards Gold and platinum credit cards are a status symbol for any credit card holder. and the ICICI Solid Gold Credit Card. It is not possible to cover them the exact offerings of these cards but I ill highly advice you to check all these websites of the banks to get all the info about the credit cards they are offering. Also try to talk to your friends who are having credit cards to get more info. you also get better perks and privileges such as travel insurance. You can also engage in some loyalty schemes that are offered for gold and platinum credit card holders which can sometimes involve cash back promos and reward points systems. 45 | P a g e .

where a customer can withdraw cash along with their purchase. Merchants may also offer cash back facilities to customers. and so there is no physical card. the cards are designed exclusively for use on the Internet. Debit cards may also allow for instant withdrawal of cash. debit cards are used widely for telephone and Internet purchases and. it can be called an electronic cheque. acting as the ATM card for withdrawing cash and as a cheque guarantee card. in some instances. unlike credit cards. Like credit cards. as the funds are withdrawn directly from either the bank account or from the remaining balance on the card. 46 | P a g e . In some cases. Functionally. the funds are transferred immediately from the bearer's bank account instead of having the bearer pay back the money at a later date.Plastic Money DEBIT CARD A debit card (also known as a bank card or check card) is a plastic card that provides an alternative payment method to cash when making purchases. In many countries the use of debit cards has become so widespread that their volume of use has overtaken the cheque and. cash transactions.

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 only issue online debit cards. essentially becoming enhanced automatic teller machine (ATM) cards. Some on-line debit systems are using the normal authentication processes of Internet banking to provide real-time on-line debit transactions.Plastic Money TYPES OF DEBIT CARD SYSTEMS Online Debit System:Online debit cards require electronic authorization of every transaction and the debits are reflected in the user’s account immediately. Visa or MasterCard) or major debit cards (e. 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.g. Overall. The transaction may be additionally secured with the personal identification number (PIN) authentication system and some online cards require such authentication for every transaction. but not the United States) and are used at the point of sale 47 | P a g e . although this is becoming commonplace for all card transactions in many countries. Maestro in the United Kingdom and other countries.g. The most notable of these are Ideal and POL Offline Debit System:- Offline debit cards have the logos of major credit cards (e.

most notably in Germany (Geldkarte). Belgium and Switzerland (CASH). Electronic Purse Card System:- Smart-card-based electronic purse systems (in which value is stored on the card chip. This type of debit card may be subject to a daily limit.Plastic Money like a credit card (with payer's signature). 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). not in an externally recorded account. all current bank cards now include electronic purses. and/or a maximum limit equal to the current/checking account balance from which it draws funds. Austria (Quick). also. the merchant pays lower fees on online debit transaction as compared to "credit" (offline) debit transaction. In Austria and Germany. so that machines accepting the card need no network connectivity) are in use throughout Europe since the mid-1990s. In some countries and with some banks and merchant service organizations. from the merchant's standpoint. 48 | P a g e . Transactions conducted with offline debit cards require 2–3 days to be reflected on users’ account balances. a "credit" or offline debit transaction is without cost to the purchaser beyond the face value of the transaction. the Netherlands (Chipknip).

Particularly for companies with a large number of payment recipients abroad. web-based services such as stock photography websites (stockpot). also called reload able debit cards or reload able prepaid cards. and affiliate networks (Media Whiz) have all started offering prepaid debit cards for their contributors/freelancers/vendors 49 | P a g e . prepaid debit cards allow the delivery of international payments without the delays and fees associated with international checks and bank transfers. The payer loads funds to the cardholder's card account. Providers include Caxton FX prepaid cards. are often used for recurring payments.Plastic Money Prepaid Debit Card:- Prepaid debit cards. outsourced services (odes). Prepaid debit cards use either the offline debit system or the online debit system to access these funds. [Escape prepaid cards and Travelex prepaid cards]Whereas.

Plastic Money ADVANTAGES OF DEBIT CARDS
The following are the benefits of the debit card services:

1. Free with Our Bank Account: Obtaining a debit card is easy. If we qualify to open a bank account, we usually get a debit card, if our bank offers the service.

2. No Background Check: When we are applying for a debit card, the ban does not need to look into our credit history. All we need is the documentation to open a bank, account, and money in our bank when we use our debit card.

3. Cash Withdrawals: The customer can withdraw a minimum of Rs. 100/- and a maximum Rs.10, 000/- per day

4. Convenience: A Debit card fees us from carrying a lot of cash or a cheque book. In case, we are an international traveler, we don’t need to stock up on Traveler’s Cheques or cash. We can use our debit card to withdraw Cash from over 500,000 ATMs around the world in over 100 countries. We can withdraw in the local currency of the country we are in, limited only by the money we

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Plastic Money
have back home in our account, and Business Travel Quota (BTQ) limit arability.

5. Fair Exchange If we return merchandise or cancel services paid for with a Debit card, the transaction is treated as if it were made with cash or a check. Customers usually get cash back for offline purchases; for on-line transactions, the amount is credited to our account.

6. Statement of Account: A statement of transactions can be obtained from the customer’s branch. For example, a mini statement containing the last four transactions and balance can be obtained at a State Bank Group during the working hours of the customer’s branch.

7. Banking cum Shipping Card: Your Debit card can be used as ATM card at any ATM across the world, as well as for making purchase at merchant locations. You can also withdraw cash from any of the 12000 ATMs in India.

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Plastic Money

FEATURES OF DEBIT CARD
The following are features of Debit cards

1. It is a combination of a Cheque and ATM card. Therefore, there are no fees for using the ATM for cash withdrawal, or as a debit card for purchase.

2. The Debit Card services in meant for withdrawals against the balance already available in the designated account.

3. It is the card holder’s obligation to maintain sufficient balance in the designated account to meet withdrawals and service charges.

4. A Debit card is more affordable than credit card. We just require our bank account for all our transactions. No credit period. Our bank account is debited immediately.

5. No credit check is required to get a Debit card.

6. Use of card is terminated without notice, upon the death, bankruptcy or insolvency of the cardholder or for other valid reasons.

7. Spending is limited to our bank balance.

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4. and the consumer will have no recourse. the consumer has spent his/her own money.Some banks are now charging over limit fees or non-sufficient funds fees based upon pre-authorizations. thus causing penalty fees for overdrafts. 5. and even attempted but refused transactions by the merchant (some of which may not even be known by the client).Plastic Money DISADVANTAGES OF DEBIT CARD 1. and rejected transactions by some banks. A thief who obtains or clones a debit card along with its PIN may be able to clean out the consumer's bank account. payee name. 53 | P a g e . amounts not available causing further rejections or overdrafts. 3. When a debit purchase is made. and dollar and cent amount. Debit cards offer lower levels of security protection than credit cards. and the bank has little if any motivation to collect the funds. over-the-limit. 2. without agreement as to date. Theft of the users PIN using skimming devices can be accomplished much easier with a PIN input than with a signature-based credit transaction.Many merchants mistakenly believe that amounts owed can be "taken" from a customer's account after a debit card (or number) has been presented.

The debit card programme requires installation of sophisticated communication network. 3. the holder can avail of credit for 30 days to 45 days whereas in a debit card the customer’s account is debited immediately. In the case of credit card. Possibility of risk of fraud is high in a credit card. 4. 5. 2. The credit card is a pay later product whereas a debit card is a pay now product. The risk is minimized through personal identification number in debit card programme 54 | P a g e . No sophisticated telecommunication system is required in credit card business.Plastic Money DIFFERENCE BETWEEN CREDIT CARDS AND DEBIT CARDS 1. A bank account and keeping required amount to the extent of transaction are essential in a debit card system. Opening a bank account and maintaining a required amount are not essential in a credit card.

but they can turn into nightmares in the wrong hands. Altered Cards 9. Discarded Charge Slips 4. Strange Requests for Your PIN Numbers 7. This pamphlet describes credit and debit cards and some common schemes involving card fraud with tips to help you avoid them The following are the types of frauds: 1. Counterfeit Cards 55 | P a g e . Today. In the past. Plastic cards bring new convenience to your shopping and banking. it is a big business for criminals. Extra Copies of Charge Slips 3.Plastic Money PLASTIC FRAUD State-of-the-art thieves are concentrating on plastic cards. Stolen Cards at the Office 2. Unsigned Credit Cards 5. this type of fraud was not very common. Loss of Multiple Cards 6. Legitimate Cards 8.

Plastic Money NEW TECHNOLOGY INTRODUCED FOR CREDIT CARDS New technology is making it more difficult for criminals to use. Fine-line printing: A repeated pattern of the card company name positioned as background for the company logo. laser produced optical device that changes its color and image as the card is tilted. Ultra-violet ink: Special ink that is visible only under ultra-violet light. Credit Card Data: Credit Card is either Visa or MasterCard which is the most popular and in some instance American Express. Some of the innovations are already in use. which will display the credit card company's logo. These security features have been added to major credit cards: Holograph: A three-dimensional. 56 | P a g e . alter. or counterfeit credit and debit cards.

and what will happen to a credit card holder if payments are not made on time .which usually consists of the need to pay late fees. One needs to use credit cards with diligence and care. When used. The account holder can add money to their pre-paid charge account at any 57 | P a g e . They can also bring us into a financial trouble if used to purchase extremely expensive articles. while still providing the convenience of the plastic money. and simple to obtain. A pre-paid charge card is associated with an account that has money in it. Credit cards which have been used over decades all over the world because they are easy to use. convenient. Credit cards are small. how much interest must be paid on outstanding credit balances. All of the many different types of credit cards in existence come with very specific and individual credit terms and conditions that state when payments must be made on credit balances. When a consumer uses a credit card he needs to use it with a thought that he owes a responsibility that comes along with the credit card of paying the credit. money is electronically withdrawn from that account. The basic concept behind a prepaid charge card is that it does not allow a person to spend money they do not have. rectangular pieces of plastic that can be used to purchase items in stores and on the Internet in place of cash.Plastic Money RESEARCH AND METHODOLOGY Objective: Most people either personally own or at least know about credit cards.

Before you rush and get one of these cards. Debit cards are very similar to pre-paid charge cards except that they are normally associated with a person’s regular checking or savings account at their local bank. young adults who have never owned a credit card and need practice. While a debit card may have a Visa or MasterCard logo on it. Debit cards may or may not have fees associated with them. parents who want to give a card to their children but do not trust them with official credit. or can transfer the money from another separate account on a scheduled basis and the card agency charges the account holder a small monthly/yearly fee each time the card is used. you should first look around and find the best offer possible. and offer you ATM access for instant cash. along with online access to your account. and the terms and conditions associated with debit cards will vary depending on a person's bank. Often. Most cards offer you some rewards and incentives. If a 58 | P a g e . The best cards are accepted around the world. money is automatically withdrawn from the person's checking or savings account. banks offer good deals on debit cards if a person agrees to have his or her regular payroll check directly deposited into their checking or savings account on a bi-weekly or monthly basis. Prime candidates for pre-paid charge cards are people who have owned a credit card and have developed bad credit. when the credit card is used. and people who never seem to have enough cash on hand.Plastic Money time.

and look for companies that offer you cards with excellent features at the lowest rates.Plastic Money card does not offer you these types of features. Other things to look for with cards are that they include no annual fees. If you encounter a problem. You should always compare features and rates. you can get everything you love from traditional cards while avoiding the hassle and worries of traditional credit instruments and build up your credit score with a great payment history again very fast. There are many to choose from. Customer support is very important with these types of offers. 59 | P a g e . If you take your time and research cards. This way. as you don't want a card that does not offer you great customer support. you should pass it by and look for one that does. you will find the best fit for your particular credit situation. especially if you look online. you want a company that is going to be there when it matters the most. and excellent customer support.

00.00.00.000 13% people have an annual income above 10.000 60 | P a g e .00.00.000 – 5.000 3.00.00.000 Out of sample size of 100 37% people have an annual income of 2.000 5. What is your annual income? 40% 35% 30% 25% 20% 15% 10% 5% 0% 2.000 18% people have an annual income between 5.00.Plastic Money MAJOR FINDINGS Q1.000 10.000 – 10.00.000 Above 10.000 5.00.00.00.000 32% people have an annual income between 3.

What is your occupation? 60% 50% 40% 30% 20% 10% 0% Service Business Other Out of sample size of 100 38% of the people were in service 59% of the people have their own business 3% opted others 61 | P a g e .Plastic Money Q2.

Which banks card do you use? 35% 30% 25% 20% 15% 10% 5% 0% ICICI SBI CITI HDFC Others Out of sample size of 100 17% people use ICICI card 29% people use SBI card 11% people use CITI card 10% people use HDFC card 33% people use other banks card 62 | P a g e .Plastic Money Q3.

Plastic Money Q4. How long have you been using the card? 40% 35% 30% 25% 20% 15% 10% 5% 0% Less than 1 year 3 Years 6 Years Above 6 Years Out of sample size of 100 15% less than 1 year 36% 3years 33% 6years 16% above 6 years 63 | P a g e .

since the limit to purchase goods is not limited to the extent of balance maintained in their account. Smart cards are preferred by people who travel by bus and taxi 64 | P a g e .Plastic Money Q5. Which Card do you prefer? 60% 50% 40% 30% 20% 10% 0% Debit Card Credit Card Smart Card Out of sample size of 100 59% of the people prefer Debit cards 25% of the people prefer Credit cards 16% of the people prefer Smart cards It was noted that majority of the young generation preferred credit cards. however. the middle age generation and the old age generation prefers debit cards since they can track the amount spent also the limit is to the extent of balance maintained in their account which according to them is safe.

rising customer expectations & shrinking margins. productivity & customer convenience. mobile banking. From educating customers about credit cards there is a need to educate them about the differentiating factors of the cards. etc have created a win-win situation by extending great convenience & multiple options for customer. banks have been using technology to reduce cost & enhance efficiency. Because visa and master card are advertising regularly and thereby increases awareness. As internet is growing at a fast rate the net users can be targeted by having interactive sites. The prospective company’s card personality could also be used in the home page to solve customer queries in the ‘Best Possible Manner’. They also need to identify potential customers and target those using mailers. 65 | P a g e .Plastic Money CONCLUSION 21ST Century banking has become wholly customer-driven & technology driven by challenges of competition. The strategy should be to emphasize on its differentiating characteristics. Technology intensive delivery channels like net banking.

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