Credit Cards

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INTRODUCTION TO CREDIT CARD
A credit card is a type of retail transaction settlement and credit system, named after
small plastic card issued to users of the system. A credit card is different from a debit
card in that the credit card issuer loans the consumers money rather than having the
money removed from an account. Most credit cards are the same shape and size, as
specified by the ISO 7810 standard.
A credit card is a thin plastic card, usually 3-1/8 inches by 2-1/8 inches in size that
contains identification information such as signature or picture, and authorizes the
person named on it to charge purchases or services to his account – charges for which
he will be billed periodically. Today the information on the card is read by automated
teller machines (ATM’s), store readers, bank and Internet computers.
Credit cards are gaining around in India too. More and more banks are encouraging
their people to go in for credit cards. Besides the various freebies and rewards doled
out, customers feel it very convenient to carry a plastic card rather than bundles of
currency.
The expected growth rate of credit card business in India is 25-30%. With the advent
of globalization and privatization, the concept of credit cards is gaining popularity.
Customers no longer have to carry huge amount in their wallet. Most of the bill
payments including utility payments can he taken care by credit cards. Further in India
at least people perceive the card as a status symbol.
T.Y.B.COM (BANKING & INSURANCE) Page 1

A credit card, as the name suggests, gives you credit – obviously for a charge. The
days of credit one gets could range from 20- 50, days depending on the date when one
made the purchase. You can choose to pay your entire dues at one go, or stagger them
after paying the minimum amount due every month. Besides this, it entitles the
member to plethora of benefits like travel discounts, discount on retail loans.

HISTORY OF CREDIT CARDS
Credit was first used in Assyria, Babylon and Egypt 3000 years ago. The bill of
exchange the forerunner of banknotes – was established in the 14th century.
Christopher Thornton, who offered furniture that could be paid off weekly,
placed the first advertisement for credit in 1730.
From the 18th century until the early part of 20th, tallymen sold clothes in return
for small weekly payments. They were called “tallymen” because they kept a
record or tally of what people had bought on a wooden stick. One side of the
stick was marked with notches to represent the amount of debt and the other
side was a record of payments.
According to Encyclopedia Britannia, the use of credit cards originated in the

United States during the 1920’s, when individual companies, such as hotel
chains and oil companies, began issuing them to customers for purchases made
at those businesses. This use increased significantly after World War II. In the
1920s, a shopper’s plate – a “buy now, pay later” system – was introduced in
the USA. It could only be used in the shops, which issued it.
Dinners club, Inc, introduced the first universal credit card one that could be
used at a variety of stores and businesses in 1950. With this system, the credit
card company charged cardholders an annual fee and billed fee and billed them
on a monthly or yearly basis. In 1951, Dinners club issued the first credit card to
200 customers who could use it at 27 restaurants in New York. But it was only

until the establishment of standards for the magnetic strip in 1970 that the credit
card became part of the information age. The American Express
Company established another major universal card “Don’t leave home without
it” in 1958.
Later came the bank credit card system. Under this plan, the bank credits the
account of the merchants as sales slips are received (this means merchants are
paid quickly something they love) and assembles charges to be billed the
cardholder at the end of the billing period. The card holder, in turn, pays the
bank either the entire balances or in monthly installments with interest
(sometimes called carrying charges).
The first national bank plan was bank of America, which was started on a
statewide basis in 1959 by the Bank of America in California. This system was
licensed in other states starting in 1966, and was renamed Visa in 1976.
Other major bankcards followed, including master card formerly master charge.
In order to offer expanded services, such as meals and lodging, many smaller
banks that earlier offered credit cards on a local or regional basis formed
relationships with large national or international banks.

VISUAL FEATURES OF CREDIT CARD
1. Size: A credit card is a thin plastic card, usually 3-1/8 inches by 2-1/8 inches in
size.
2. Front Side: Front side contains following information:
(a) Printed
(i) Name and Logo of the Issuing Bank
Name and Logo of Co-branding Merchant Establishment, if
any.
(ii) Name and Logo of member affiliate (e.g. Visa, Master, etc.)
(iii) Photo of the cardholder / his family (optional feature)
(iv) Picture (Any deity or scene of holder’s choice) (Optional Feature)
(b)Embossed:
(i) Period of Validity as Valid from Date and Valid Through Date.
(ii) Name of the Card Holder.
(iii) Card Number
The numbers found on credit cards have a particular structure, and share
a common numbering scheme.
The card number’s prefix, called the Bank Identification Number, is the
sequence of digits at the beginning of the number that determine the bank to
which a credit card number belongs. This is the first six digits for MasterCard
and Visa cards. Worldwide there is a uniform numbering arrangements for bank
and VISA /Master Identification. The last ten digits are the individual account
number.
(3) Back side: - Back side contains following information:

A) The stripe on the back of a credit card i.e. a magnetic stripe, often called a
magstripe. (CVV1 is embedded in this stripe) The magstripe is made up of tiny iron
based magnetic particles in a plastic like film. Each particle is really a tiny bar
magnet about 20 millions of an inch long. The magstripe on the back of the card is
very similar to a piece of cassette tape.
B) Credit Card Number in Print

C) The card Verification Value or Code (CVV or CVC) 2. CVV2 is always the
final group of numbers printed on the back signature panel of the card.
D) Contact Numbers of the issuing bank.
E) Space for holder’s signature.
F) Terms and disclaimer clause of the bank.
Financial Features of Credit Card
1. ANNUAL MEMBERSHIP FEE: Most members are expected to pay annual
membership fee to their issuing authority. This is towards maintenance of the card
account by the bank or ‘service charges’. These are waived off to some customers
who transact significant value through their credit card. Banker’s earning is by
interest income on credit cards. More the usage of card more the income to the bank.
Hence bank encourages more use of car & when is achieved, bank waves off annual
fees. This is a reward for using the card.
2. MINIMUM PAYMENT: All the issuers insist upon minimum payment by the
card holder for every billing cycle. This is usually 5 % of merchant transaction bill.

Full amount is to be paid for EMI’s of the loan. It is payable within 20 days of
billing. This is free credit period i.e. no interest is payable. Amount unpaid and
rolled over to the next billing cycle attracts interest rate as decided by the bank.
3. RATE OF INTEREST (Annual Percentage Rate (APR): Rate of interest for
the amount rolled over to the next billing cycle is usually high. In India it is around
2.5% to 3% per month. Hence, it’s very costly to rollover such amount. For the
cardholder, it is much cheaper to on time.
4. EMI Conversions: When outstanding amount on the card is high or purchase is
for high value (for e.g. TV set, laptop etc.) then it is not possible to pay full amount
within one billing cycle. Carrying forward is expensive as interest rate is prohibitive.
Banks offer to convert such purchases / outstanding to Equated Monthly Installments
(EMIs). Rate of interest to these schemes is relatively lower (around 16% per
annum) but still high in absolute terms.
5. BALANCE TRANSFER: Bankers encourage cardholders to transfer their
outstanding dues to other issuer’s card to their bank card. This transfer is again at a
concession rate of interest.
6. PERSONAL LOAN: Issuers extend personal loan facility to the cardholders. It
may be noted that EMI or balance transfer or personal loan are all in the form of loan
only. A cheque favoring the cardholder or nominated beneficiary is issued by the
bank in all these cases. EMI payable is charged to the card in monthly billing
statements.
7. INSURANCE: Most bankers (issuers) insure the life of cardholders at
concessional rate and assign insurance proceeds towards outstanding bills on the
card. In case of eventuality, insurance proceeds meet bankers outstanding dues &
remainder amount is paid to the heirs of the card holder
8. ATM: Card holder users can withdraw cash from ATM’s with pre-specified
limits
TERMS OF CREDIT CARD
A credit card is a form of borrowing that often involves charges. Credit terms
and conditions affect your overall cost. So it’s wise to compare terms and fees before
customers agree to open a credit or charge card account. The following are some
important terms to consider that generally must be disclosed in credit cards
applications or in solicitations that require no application.
1. Credit Card–
Credit cards provide convenience of purchasing goods and paying for them later.
The outstanding balance of the credit card account can be paid either full after
receiving a monthly statement, or by making payments over time. A credit card
account is a form of a loan, and therefore the credit card holder must eventually pay
all charges made on the credit card.
2. Credit Card Issuer –
Credit card issuer in an organization that is issuing credit cards and provides credit
lines to individuals or organizations. In most cases these issuers are financial
institutions such as banks or credit unions. Department stores, gasoline companies
and other organizations also issue credit cards.

3. Credit Limit –
Credit limit is the largest amount of outstanding balance that the credit card issuer
authorizes customers, to carry on credit card. For e.g. if credit limit is 50,000 you
are allowed to use the 50,000 as a revolving line of credit by using credit purchases
and withdrawals, the maximum amount of money customer could borrow on credit
card would be, in this case, 50,000.
4. Annual Percentage Rate
The APR is a measure of the cost of credit, expressed as a yearly rate. It also must
be disclosed before customer become obligated on the account statements.
5. Annual Fees –
Most issuers charge annual membership 0participation fees. They often vary from
organization to organization and credit cards to credit card. Generally a card with
higher annual fee enjoys more benefits like higher credit card limit, higher accident
insurance cover, accessibility to airport lounges, travel discounts etc.
6. Transaction Fees and Other Fees –
Transaction fee and other fees are fees that are charged by credit card issuers for
cash advances from Automated Teller Machines (ATM) or a bank, cash advance
cheques, and returned cash advances cheques, late payments, overdrawing on credit
limit or in some cases monthly fees charged by some issuers.
7. Additional Card–
Additional card is a card that can be issued to a person other than the primary credit
card holder. Additional cards may be issued for spouse, children or anybody else
customers want to use existing line of credit. An additional cardholder is not
responsible for any charges made on the credit card even though his or her name
appears on the credit card. This responsibility remains with the primary cardholders
and a consigner, if any. However in case of a joint account all card holders are
responsible for all charges.
8. Available Balance -
Available credit is the unused amount of your total authorized credit line. For e.g., if
your total authorized credit line is 3000 and your current balance is 400, your
available credit is 2600.
9. Balance Transfer –
Balance transfer is a transfer of balance from one credit card or a loan to another
credit card. Many credit card issuers offer introductory interest rates that are much
lower than the standard interest rates.
10. Cash Advance–
Cash can be withdrawn from available credit card account. Typically using credit card
at an automated teller machine or a bank does this.
11. Consigner –
Consigner may be family member or a friend who is wiling to act as a guarantor of

the potential credit card debt that may be an accumulated by the credit card holder.
12. Due Date –
A credit card issuer should receive payment on or before the due date that is stated on
monthly statement. The due date is the date which the credit card issuer should receive
the payment, not the date by which should pay credit card bill.
13. Late Charges –
In order to avoid any late charges, make sure that at least the minimum due amount, as
started on monthly statement, reaches the credit issuer by the due date. Too many late
payments recorded on credit report could make it harder for customers to qualify for
any kind of loan or credit card in the future.
14. Outstanding Balance –

Outstanding balance is the amount of money that customer owe to the credit card
issuer. The outstanding balance constantly changes as customer purchases, cash
advances, and interest charges and any other charges are added to the previous
balance. For e.g. if your balance is Rs. 800, and you make a payment of RS.600, new
outstanding balance is RS.200.
15. Secured Credit Card –

Secured credit card can help establish or re-establish credit history. A security deposit is
required before a credit card issuer will issue a secured credit card.
16. Unsecured Credit Card –

Unsecured credit card does not require any cash deposit or any other collateral before
the credit card is issued. Only credit history and your financial resources available back
the unsecured credit card.
17. Add-On-Card
The supplementary card/add- on card fee is the payable per additional card that a
member may request for his close family member like father, brother, sister or spouse.

HOW CREDIT CARD WORKS
An example of the front of a typical credit card:

1. Issuing Bank logo
2. EMV chip
3. Hologram
4. Cardholder
5. Card brand logo
6. Expiry Date
7. Cardholder’s name
An example of reverse side of typical credit card:
1. Magnetic strip
2. Signature strip
3. Card security code
A user issued credit card after an account has been approved by credit
provider (often a general bank, but sometimes a captive bank created to
issue a particular brand of credit card, such as wells Fargo or American
Express or Centurion Bank), with which the user will be able to make
purchases from merchants accepting that credit card up to a pre-
established credit limit.
When a purchase is made, the credit card user agrees to pay the card
issuer. The cardholder indicates their consent to pay, by signing a
receipt with a record of the card details and indicating the amount to be
paid or by entering a PIN. Also, many merchants now accept the verbal
authorization via telephone and electronic authorization using the
internet, kwon as a customer not present transaction.

Electronic verification system allows merchants to verify that the card is

valid and the credit cards 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 terminal
or Point of Sale (POS) system with a communication link to merchant’s
acquiring bank. Data from the card is obtained using from a chip on the
card; the later system is commonly known as chip and PIN, but is more
technically an EMV card.
Other variations of verification system 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 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 otherwise, the cardholder
must pay a defined minimum proportion of bill by due date or may
choose to pay higher amount up to the entire amount owed. The credit
provider charges on the amount owed (typically at much higher rate
than most other forms of debt). Some financial institution can arrange
for automatic payments to be deducted from the user’s accounts.
Credit card issuers usually waive interest charges if the balance is paid
in full interest on the entire outstanding balance from the date of each
purchase if the total balance is not paid.
For merchants, a credit card transaction is often more secure than other
forms of payments, such as cheques, because the issuing bank commits
to pay the merchant the moment the transaction is verified. The bank
charges a commission (discount fee), to the merchant for this service
and there may be a certain delay before the agreed payment is received
by the merchants. In addition, a merchant may be penalized or have
their ability to receive payment using the credit card restricted if there
are too many cancellations or reversals of charges.
Merchant receives money directly in his account from the bank if he is

networked through electronic swipe machines. If he is takes impression
of card then he has to send slip to the bank for payments.
PARTIES TO CREDIT CARDS:
Following are the parties involved in credit card chain:

1) Issuer: Banks or finance organizations are issuers of the cards.
2) Cardholder: Card is in possession of cardholder and he is expected to use it for

purchases, etc.
3) Merchant Establishment: Such as shops, malls, restaurants, hotels, railways,

airlines accept payments by card. They get authorization the cardholder at the time of
payment. An actual payment comes to them from issuer.
4) Payment to Networking Organization: Visa and Master card are popular

umbrella organization in payment.

SETTLES BY CARD
DELIVERS GOODS
CARD HOLDER MERCHANT
BILL SENT VOUCHER SENT
PAYMENT MADE PAYMENT MADE

BANK
SYSTEM OPERATION OF CREDIT CARD

CREDIT CARDS BOON OR CURSE
Benefits of Credit Card to Cardholders, Issuers and Payment networks are as

follows:
To Cardholders:
1. Convenience: It is very convenient to carry a card compared to cash. Its
acceptance is better than cheques. Risk of theft is less and if stolen, stoppage and
recovery is better than cash and cheques.It is even more convenient for unplanned
purchases and needs as one may not carry enough cash every time.
2. Spot credit: As and when needed, credit is available. It’s pre-negotiated credit
limit which can be availed of whenever desired. Credit is free of interest till first
time immediate billing cycle. This improves purchasing power.
3. Easy Payments: Minimum balance payment for each bill is a must. Over and
above this it is Cardholder’s ability and willingness to pay for each card bill.
4. ATM cash: Cash can be withdrawn from ATMs as and when required. This is
very important feature in countries like India where cash usage is more as
compared to other modes of payments. Thus cards improve liquidity and credibility
of the cardholder.
5. Rewards point and Discounts: There are additional benefits provided by
issuer for usage of card. Reward points can be converted to discounts and gifts as
per catalogue of issuer.
6. Privileges: Access to VIP lounges at the airport and star hotels is an additional
privilege for the cardholder.
7. Other Loans: Bankers provide personal loans, car loans, etc. with some
priority and ease if cardholder’s payment history is good.

To Issuers:
1. Profit: Annual Percentage Rate (APR) is high on credit cards as these are high
risk unsecured loans. If cards are issued with proper diligence then defaults is less
and bankers’ profits in card business are high.
2. New Customers: New customers get hooked to bankers as cardholders. It is
easy to sell them other products such as housing loans, auto loans and
bancassurance products later on.
3. Brand Image: Card issuing bank create better brand image in minds of its
customer as compared to other banks.
4. ATM sharing Fees: Bankers who establish their own ATMs get sharing fees
from other banks if other banks’ customer uses their ATM.This is additional
income from them.
To Payment Networks (VISA\Maser card):

1. Profit: These networks charge fees for their usage of name and network. Hence
it’s a profit for them.
2. Brand Image: With every new user, brand grows. With every new merchant
establishment accepting brand, global image scores points.
DISADVANTAGES OF CREDIT CARD

To cardholders:
1. Cost: Cost of card is high. Annual fee, APR, penalties, ATM usages charges,
lost card replacement charges is significant.
2. Overspending: As purchasing power is not limited to cash, people tend to
spend more. It’s a machine to provoke consumerism in the society. it in a favors of
capitalism and against socialism.

3. Habitual borrowing: with popularity of cards, stigma on loans as negative

feature of life has vanished. Borrowing and enjoying life is no longer looked down
Upon. Unknowingly everyone has become a habitual borrower.incidentially no

religious book approves of this style of living.
To issuers:
1. Risk: Cards are unsecured loans. Recovery mechanism does not have any
recourse on assets. Legal backup thus is limited. Establishing a recovery system
within these limitations is a high cost affair.
2. Servicing cost: cards are technology oriented. Cards are costly .issuance process,
billing and payment processing is a laborious and costly affair.
3. Utilization Dependency: Bank earns well on cards if cards are used frequently by
the holders. Indian psyche is not very tuned to careless use. Cards which are not used
much are in fact cost burden on the banks.
4. Payment Habits: APR Interest earnings are significant provided part of billed
amount is rolled over to the next billing. If many customers pay full bill every time,
there is no APR earning for banks.
To payment networks:
Payment networks do share some responsibility and risks. Even if member bank
defaults or delays, these networks have to own up timely payments to merchant
establishments so as to maintain their brand image.

DIFFERENCE BETWEEN DEBIT CARD & CREDIT CARD
A debit card operates like cash or a cheque. When customer makes a purchase with a
debit card, the money is immediately withdrawn from customer bank account. With a
debit card, customers are only allowed to spend the money that is in customer bank
account. Customer do not incur interest, but customer may have to pay customer bank”
transaction fees or pay interest if customer have to use the overdraft protection.
A credit card allows purchasing now and paying later. You have a certain amount of time
from when you make the purchase to when you receive the bill. With a credit card, you
are allowed to spend up to the limit pre-determined by the bank. Interest rates and fees
vary, but the majority of card issuers do not charge interest when you pay the full balance
each month.

CIBIL- CREDIT INFORMATION BUREAU [INDIA] LIMITED
CIBIL is a repository of information, which contains the credit history of commercial

and consumer borrowers. CIBIL provides this information to its Members in the form
of credit information reports.
CIBIL's equity was held by State Bank of India, Housing Development Finance
Corporation Limited, Dun & Bradstreet Information Services India Private Limited
and Trans Union International Inc. The shareholding pattern was in the proportion of
40:40:10:10 respectively.
CIBIL is a composite Credit Bureau, which caters to both commercial and consumer
segments. The Consumer Credit Bureau covers credit availed by individuals while the
Commercial Credit Bureau covers credit availed by non-individuals such as
partnership firms, proprietary concerns, private and public limited companies, etc.
Members of CIBIL
Banks, Financial Institutions, State Financial Corporations, Non-Banking Financial
Companies, Housing Finance Companies and Credit Card Companies are Members of
CIBIL.
Functioning of CIBIL
For credit grantors to gain a complete picture of the payment history of a credit
applicant, they must be able to gain access to the applicant's complete credit record
that may be spread over different institutions. CIBIL collects commercial and
consumer credit-related data and collates such data to create and distribute credit
reports to Members.

CIBIL primarily gets information from its Members only and at a subsequent stage
will supplement it with public domain information in order to create a truly
comprehensive snapshot of an entity’s financial track record.
A Credit Information Report (CIR) is a factual record of a borrower's credit payment

history compiled from information received from different credit grantors. Its purpose
is to help credit grantors make informed lending decisions - quickly and objectively.
The CIR only provides available factual credit information and does not provide any
opinion, indication or comment pertaining to whether credit should or should not be
granted. The credit grantors who have received an application for credit will make the
credit decision. CIBIL does not grant or deny credit
Benefits to borrower from CIBIL

CIBIL's CIRs are aimed at helping credit grantors make fast and objective lending
decisions. This will contribute to a more competitive credit marketplace among Credit
Grantors. With a Bureau in place, responsible customers can expect faster and more
competitive services at better terms from the Credit Grantors.
Final RBI guidelines on credit cards

The credit card user in India has faced several problems, including bills not being
received on time, wrong bills and, worst of all, receiving unsolicited cards. But all this
may soon become history.
Reserve Bank of India has issued guidelines to banks and non-banking finance
companies (NBFCs) on credit card operations, which touch upon issues such as credit

limit, interest rate, wrong billing, sharing of credit information and fair practices, and
code of conduct for the issuers.
The guidelines state that each bank and NBFC must have a Fair Practices Code for
credit card operations, which should be widely displayed on their Web sites before
November 30.
As per the guidelines, framed by the RBI Working Group on Regulatory Mechanism
for Cards, banks and NBFCs issuing credit cards will now have to ensure that
customers get at least 15 days to make payment before charging interest for delayed
payment.
In the case of a wrong bill, the card issuer will have to explain and provide the
customer with documentary evidence within 60 days.
The issuers will have to give at least one-month notice before hiking any charge. Also,
if a customer wishes to surrender his credit card on account of change in charges, the
bank will not charge him extra for such closure.
Banks should also maintain a Do Not Call Registry (DNCR) containing phone
numbers of customers as well as non-customers who have informed the bank they do
not wish to receive unsolicited marketing calls for credit card products. The DNCR
should be set up within two months, the guidelines said.
In case a bank issues an unsolicited card without the consent of the recipient, the bank
should reverse the charge and also pay a penalty amounting to twice the value of the
charges reversed.

The monthly statement sent to customers must carry information such as the
annualized percentage rates, annual fee and late payment charges and the method of
calculation of rates.
RBI has also asked banks or NBFCs who outsource credit operations to ensure
confidentiality of customers' records. Banks can also formulate their own code of
conduct for direct sales agents or use the code formulated by the Indian Banks'
Association and display these on their Web site.
In case the credit card is issued to persons without independent financial means such
as students, the liability will be that of the principal cardholder.
With regard to multiple credit cards, the issuer should assess the limit on the basis of
self-declaration or credit information, the guidelines said.
Banks must also publicize their grievance redressal machinery and mention the name
and contact number of the officer concerned.
RBI said it has the right to impose any penalty on a bank or NBFC for violation of any
of these guidelines.

SELECTION OF RIGHT CREDIT CARDS
The proliferation of cards in the market would simply clutter the process of
choosing.
The following are the important features, which should be kept in mind before
selecting the credit card.
• Generally, a card with a higher annual fee enjoys more benefits like higher
credit limit, higher accident insurance cover, accessibility to airport lounges, travel
discounts etc.
• If customers are interested in buying add-on cards for customer’s children,
spouse or friend, ask for the add-on card fee.
• If customers were the sorts who forgets to pay on time, or likes to celebrate and
live off credit, interest rate would be permanent importance. Most credit cards
companies charge anywhere between 2% to 3% per month.
• A global card can be used for paying expenses in foreign currency just like
customer uses a credit card to pay in rupees if the customer is an overseas traveler.
• A partnership between a card issuer and the non-profit, social or lifestyle
association is what results in an affinity card. This is for providing financial rewards to
the group or association. E.g., Citibank women’s card donates a percentage of
transaction value made through the card to the WWF fund for its environmental
conservation activities.
• If a customer is loyal to one brand, he will go for co-branded cards. For
e.g.Bank of India and Taj group of hotels etc.
• Check out if the bank has any ATMs near house or work place. This surely
helps in times of emergency. If customers are going to withdraw cash frequently,
better watch out for this cost.

• A 24-hour help line service from the card company helps the cardholders during
the non-banking hours. Reporting the theft, checking of available credit limit and other
enquiries can be made by the cardholder round the clock.
PROTECTION OF A CREDIT CARD

Following are the some important tips for protecting credit card.
 Sign card-as soon as customer received it.

 When customer use card at an ATM, enter your PIN in such way that no one
can easily memorize key strokes.
 Don’t live receipt behind at the ATM.
 Customer PIN and account NO. From a discarded receipt could make
customer vulnerable to credit card frauds, also through out credit card
statement, receipt, or carbons without first shredding them.
 Never give credit card number over the telephone unless customer initiated
the call.
 Ignore any credit card offer that require customer to spend money up-front or
fails to disclose the identity of the credit card issuer.
 Make certain customer to get card back after make purchase and make sure
tat customer personally rip of any voided or cancelled sales slips.
 Always keep a list of credit card, credit card number and toll free number in
case customer card is stolen or lost.

QYALIFYING FOR A CARD
There is no way to know if customers qualify for a credit card without doing
some research. Some of the basic things that lenders look for include.
 Good payment record:-
If customer pay bills on time, customer will score major points with lenders.
If customers have lot of late payments, this can hurt customers chances of
getting a card, and if the lender decides to issue a card, it’s probably going to
have a higher interest rate.
 Control of Debt load

Lenders generally want to see that customers are good credit risk and those
customers aren’t living beyond customer means. Experts say that non-
mortgage credit payments each month should not exceed more than 10% to
15% of take home pay.
 Signs of stability and responsibility

Lenders perceive things such as longevity in home and job (at least 2 years)
as signs of stability. Having a respected profession doesn’t hurt either.
 Lack of credit enquiries

This one is little strange. Whenever customers apply for a credit card, the
lenders pulls credit report from one or major bureaus as part of the approval
process. Each time a report is pulled, it’s marked as an inquiry and stay on
credit bureau report for two years. Lenders perceive several inquiries on
report as indications that customers are scrambling for loans and may

consider a poor credit risk. So, in order to beat this system, don’t allow every
credit card issuer speak with to pull report.
 Lack of available or unsured credit

Did customer know that customer don’t use and have a zero balance on
could hurt your credit? The rationale here, experts say, is that if customers
have all this available credit lying around, customers could run it up at any
time. Get rid of the cards don’t use. Be sure to ask the credit –reporting
bureaus to remove the discarded cards from report, nothing that customer not
the creditor closed the account.
Once customers qualify for a card, or several cards, there’s always the
chance that customers will end up spending more than you’ve got.

ICICI BANK
ICICI Bank is India's second-largest bank with total assets of Rs. 3,446.58
billion (US$ 79 billion) at March 31, 2007 and profit after tax of Rs. 31.10
billion for fiscal 2007. ICICI Bank is the most valuable bank in India in terms of
market capitalization and is ranked third amongst all the companies listed on the
Indian stock exchanges in terms of free float market capitalization*. The Bank
has a network of about 950 branches and 3,300 ATMs in India and presence in
17 countries. ICICI Bank offers a wide range of banking products and financial
services to corporate and retail customers through a variety of delivery channels
and through its specialized subsidiaries and affiliates in the areas of investment
banking, life and non-life insurance, venture capital and asset management. The
Bank currently has subsidiaries in the United Kingdom, Russia and Canada,
branches in Singapore, Bahrain, Hong Kong, Sri Lanka.
ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and
the National Stock Exchange of India Limited and its American Depositary
Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian

financial institution, and was its wholly-owned subsidiary. Financial institution
from non-Japan Asia to be listed on the NYSE.

ICICI BANK- PREMIUM CARDS
• ICICI BANK Premium Credit Card

• ICICI BANK Co-branded Credit Card
• ICICI BANK- Classic Credit Card
• ICICI BANK Affinity Credit Card
• ICICI Bank Corporate Credit Cards
Premium Cards
ICICI Bank Solid Gold Credit Card
Most Powerful Global Card
Benefits
 Welcomed internationally at over 22 million merchant establishments.

 High credit and cash limits.
 Dial a Draft at 2.5% of the draft amount subject to a minimum of
Rs.300.
 Lifetime Balance Transfer offer: 0.75% for first 6 months (9% p.a.),
followed by 1.49% (17.88% p.a.) thereafter.
 Zero lost Card liability.
 Most powerful catalogue based rewards Program.
 Mobile Alerts and Statement by E-mail

ICICI Bank American Express Gold Credit Card
Benefits
 Earn 5 I-miles for every Rs. 100 spent on the card, which you can
redeem for a range of exciting rewards such as air-tickets, holidays,

shopping vouchers, electronics and more.
 Redeem your I-miles for air miles or vouchers from leading domestic
and international airlines frequent flyer programmes such as Air
Sahara Cosmos, Indian Airlines Flying Returns, Jet Airways Jet
Privilege, Singapore Airlines Kris Flyer and more. Or redeem your I-
miles into gift vouchers, electronics or even holidays.
 Discount of 3% on basic airfares and 5% on holiday packages from
makemytrip.com.
 Enjoy an exciting selection of year round privileges and savings in
travel, leisure, dining and shopping in key destinations around the
world with American Express.
 Access over 2,200 American Express Travel Services Office
locations* in over 130 countries worldwide for assistance in travel

bookings and arrangements, purchase or encashment of travellers
cheques, or simply to access cash.
 Life time Free – Your ICICI Bank American Express card comes with
no annual fee for life
 Free Add-On card

 0% Balance Transfer offers for 90 days

 Round the clock customer service hotline
ICICI BANK Travel Smart Gold Credit Card
Exclusive Benefits
 10% cash back (discount) on any airline ticket booked through related
Website.
 24x7 Personal Travel Desk for assistances in booking flights, hotels,
holiday packages.
 Up to 50% discount on holiday packages booked through related
website.
 Up to 20% discount at over 500 fine restaurants in India.
ICICI BANK Golf Card
Benefits:
 Free annual membership of the Indian Golf union.
 Access to over 160 golf courses across India.
 Up to 25% discount on green fees.
 Offers on International Luxury Golf Holiday Packages.
 10% discount on premium Golf equipment brands & also get 0% EMI
offer at select outlets.
 Special discount available on Golf line Magazine & Golf Digest.
 24x7 Golf Concierge Service for assistance on booking tee off
times, finding golf coaches and obtaining tickets to golfing

events.

CO-BRANDED CARDS
• ICICI Bank - HPCL Silver Credit Card
Benefits:
 Refund of surcharge on fuel purchases.

 Exciting rewards programme.
 15% discount on tiers, batteries and auto accessories sold at select
HPCL petrol pumps.
 All the benefits of the sterling silver credit cards.
• ICICI Bank HPCL Gold Credit Card
Benefits:
 Refund of surcharge on fuel purchases.

 Exciting rewards programme.
 15% discount on tiers, batteries and auto accessories sold at select
HPCL petrol pumps.
 All the benefits of the sterling silver credit cards.
• ICICI Bank BPL Mobile Credit Card
Benefits:
 Easy pay facility.

 Ram free national facility at no additional deposit.
 Double reward points
 Mobile phone insurance
 Revolving credit facility.
 All the benefit of the Sterling Silver Credit Card.
• ICICI Bank Amway Credit Card
Benefits:
 Enrollment bonus.
 Double reward points.
 Zero Lost Card liability.
 Comprehensive Travel Benefits.
 Accepted at over 22 million merchant establishments globally.
• ICICI Bank Trinethra Credit Card
First super market credit card in India.
Benefits:
 Double reward point for Rs 100 spent

 Complimentary gift on purchase of Rs 800\-
 Complimentary gift voucher of Rs 200 on membership.
 Express check- out counter for members.

 All benefits of the Sterling silver credit card.
• ICICI Bank Big Bazar credit card
The most powerful retail credit card in India.
Benefits:
 Big Bazar vouchers Rs 500 with the credit card.

 No finance charges on EMI purchase above Rs 1500.
 1 reward points per Rs 100 on purchase.

 4 reward points per Rs 100 on purchase at Big Bazar.
 Bonus 100 reward points on purchase of Rs 10000 or more in month.
 Exclusive privilege such as Tele-ordering\home delivery\special
purview of products.
 All benefits of the sterling silver credit cards.
Classic Cards:
• ICICI Bank Sterling Silver Credit Card
Benefits:
 Zero Lost Card liability.

 Comprehensive Insurance for both primary and add-on-cards up to

Rs 10 lakhs.
 Household Insurance up to Rs 20000/-.
 Baggage Insurance up to Rs 10000/-.
 Purchase protection of Rs 20000/-.
 Balance transfer at 1.75%.
 Comprehensive Travel Benefits.
 Most powerful catalogue based rewards Program.
 Accepted at over 22 million merchant establishments globally.
 Mobile Alerts and Statement by E-mail.
• ICICI Bank American Express Green credit card
Benefits
 Personal accident insurance.
 Comprehensive travel related insurance.

 Travel booking.
 Zero fuel surcharges.
 Card member loyalty program.
 Emergency card replacement.
 24-hour customer service.
 Credit shield.
 Traveller cheque and forgein exchange.
Affinity Cards
• ICICI Bank Dentist Credit card
Benefits:

 Free professional Indemnity Insurance.

 Electronic Equipment Insurance EMI.
 Saving on ICICI Bank Medical Equipment Loan.
 Saving on ICICI Bank personal loan.
 All the benefits of Sterling Silver Credit card.
• ICICI Bank Age India Credit Card
Benefits:
 Option to contribute your Rewards points to your Help age India

 All the benefits of the Sterling silver or Solid Gold Credit Card.
Corporate Credit Cards
ICICI Bank Corporate Cards
The ICICI Bank Corporate cards give you another opportunity

to recognize your senior executive in a very special way by nominating them to
become Card Members.

The Corporate Card Programme is exclusively designed to be an

effective tool in managing customer companies and employees’s business
expenses. The card system also gives you valuable information, in the form of
month reports, on individual card member expenses and also cumulative
expenses by various Merchant Establishment categories. And of course card
member get to enjoy all the benefits and privileges that come with an ICICI
Bank Corporate Card.
Powerful Benefits from ICICI Bank Corporate Cards:-
Benefits to the company:
 Corporate Identity
 Management MIS
 Cost Saving
 Reduced Administration Burden
 Choice of Individual corporate Liability.
Benefits to Employees
 Convenience
 Security\insurance cover
 World class service
 Membership Rewards
Other Benefits to Card Members:-
 Free Teleoptima Calling Card for use overseas with discounts on airtime and
a cost saving tariff plan
 Overseas Insurance Cover

 Emergency Assistance Services that enables Card Members to obtain

emergency legal\medical referrals while traveling overseas.
SPECIAL OFFERS
 Anything customer can buy on ICICI Card could be free. When customer
will use American Express Card can win whatever customer purchase. From
gas and groceries to meals, air tickets or holiday bills. Every ten days 25
lucky card members will have a winning transaction credited back to their
Card account.
 For Medical Emergencies like surgeries, accidents and sudden illnesses,
ICICI brings family PLUS, a complete insurance plan that is flexible enough
to cover every member of family.
 The freedom and convenience of anywhere, anytime banking with “ICICI
Bank Internet Banking” services.
Service Charge, Eligibility and Age Criteria for ICICI Credit Card
Cards Service charges Eligibility criteria

On Late Salaried Self-
Revolving Payment employed
Credit Fee
Amway / Big Bazaar / 2.95% 25% Rs. Rs.
BPL Mobile / HPCL
60,000/- 50,000/-
Silver / Mini / Pru Life /
Sterling Silver / p.a. p.a
Trinethra / True Blue /
True Value / Affinity /
Cash card -silver
Solid Gold / HPCL 2.95% 25% Rs. Rs.

Gold / Affinity Gold /
Cash Card -Gold 1,20,000/- 1,00,000/-

p.a. p.a.
American Express® 2.75% 25% Rs. Rs.
Green
1,20,000/- 1,20,000/-
p.a. p.a.
American Express® 2.5% 25% Rs. Rs.
Gold
3,00,000/- 3,00,000/-
p.a. p.a.
Age Criteria
Minimum Age Maximum Age

Salaried 18 70
Retired N\A 70
Self Employed 18 65
CARDS JOINGING FEE ANNUAL FEE SUPPLEMENTRY

FEE
ICICI Bank- Rs 300\- Rs 1,500\- Rs 750\-
Solid Gold card
ICICI Bank- Rs 500\- Rs 2,000\- Rs 1000\-
American
Express® Gold
ICICI Bank- Rs 300\- Rs 1500\- Rs 750\-
HPCL Gold
ICICI Bank- Nil Rs 750\- Rs 375\-
BPL Mobile
Card
ICICI Bank- Nil Rs 750\- Rs 375\-
Amway Card
ICICI Bank- Nil Rs 500\- on First Add on Card
Big Bazar Card renewal Rs 750\- Free, on renewal
Rs 150\-
ICICI Bank-
Trinethra Card
Nil Rs 750\- Rs 375\-

HDFC BANK
HOUSING DEVEOLPMENT FINANCE CORPORATION LTD
INTRODUCTION
HDFC was incorporated in 1977 with the primary objective of meeting a social
need that of promoting home ownership by providing long-term finance to
households for their using needs. HDFC was promoted with an initial share
capital of Rs 100 million.
The primary objective of HDFC is to enhance residential housing stock in

country through the provision of housing finance in a systematic and
professional manner, and to promote home ownership. Another objective is to
increase the flow of resources to housing sector by integrating the housing
finance sector with the overall domestic financial market.
HDFC’s main goals are as follows.
 Develop close relationship with individual households.

 Maintain is position as a premier housing finance institution in country.
 Transform idea in to viable and creative solution.
 Provide consistently higher returns to shareholders.
 To grow through diversification by leveraging if the existing client base.
The first chairman and founder of HDFC Bank was Hasmukhbhai Parekh.
Today’s Chairman of HDFC Bank is Mr. Jagdish Capoor. HDFC Bank's

business philosophy is based on four core values - Operational Excellence,

Customer Focus, Product Leadership and People.
Awards
 Best Retail Bank in India-2007, in Retail financial service awards.
 Best Bank in India-2006 by Business today.

 HDFC Ranked No-3 – ‘India’s Best Managed Companies’ by Finance Asia.
 One of the Top Ten – Most Admired Companies in India-2003 by Business
Barons.
 Best Listed Bank of India-2006 by Business World.
Besides this, HDFC Bank got many awards.
HDFC Credit Cards
To keep with the changing times, HDFC Bank offers you the finest Payment
solution, from Debit Cards all internationally valid.
Following are credit cards offered by HDFC Bank:
 International Gold Credit Card

 International Silver Credit Card
 Value plus Credit Card
 Health plus credit Card
 Gold Business Credit Card
 Women’s Gold Credit Card

HDFC BANK –CREDIT CARDS
• International Silver credit card
Features and Benefits
 All-purpose credit card
The HDFC Bank Silver Credit Card can be used for all your
requirements, be it shopping, eating out, holidaying, and fuelling up your
vehicle, railway ticket reservations - just about any financial requirement,
planned or on impulse.
 Earn while you spend
With us, money spent is money earned. For every Rs. 100 you spend, you
earn 2 reward points. You can redeem these accumulated points for
exciting gifts and offers from our exclusive rewards program.
W.e.f 1 June, 2007 you will accumulate 1 reward point per Rs 150 spent
with your HDFC Bank Silver Credit Card.
 Add on cards
Get up to 3 add-on cards for your spouse, parents, siblings (own

brother/sister), son and/or daughter (over 18 years) and allow them to
enjoy the many benefits of the HDFC Bank International Silver Credit
Card.

 Zero liability on lost card
In case your credit card gets lost, report it immediately to our24 hour call
center. After you do this, you carry zero liability on any fraudulent
transactions on your card
 Widely accepted
Accepted at over 110,000 merchant establishments across India and

Nepal and close to 18 million merchant establishments around the world.
 Privilege Pricing Loans:
As HDFC Bank International Silver Credit Card holder gets loans from
the bank at special rates. The rate discount offered is as follows.
LOAN DISCOUNT OFFERED

Personal loans 1%
Car Loans 0.5%
Used Car loans 0.5%
Special Benefits Cards
1. Value plus Credit Card

 Value plus Cash back- Anytime Anywhere
Use your Value plus Credit Card anywhere anytime during the year and
avail up to 5% cash back on all retail spends.
 Worldwide acceptance
The HDFC Bank International Value plus Credit Card is accepted at over
23 million Merchant Establishments around the world, including 110,000
Merchant Establishments in India. so now one don’t carry large amount
of cash while you shop, travel or entertain, making that purchase on
impulse or planned one so much more convenient.
One can also use to ATMs to:
• Withdraw Cash
• Check the available Credit limit
• Apply for a PIN change
• Pay your credit card bills
 Accidental Death
In case of death in an air accident your nominated next of kin will receive
compensation of Rs 2, 00,000 and in case of death in rail or road
accident, your nominated next of kin will receive a compensation of Rs 1,
00,000.
 24-hour customer Call Center
If you have a query or need any assistance, just call the 24-hour Customer
Call Center.
 Cash Advance

Just step into any one of our ATMs or VISA Member ATMs and
withdraw cash up to 30% of your credit limit at a very nominal charge.
 Interest Free Credit Period
Your Card now gets an Interest Free Credit Period of up to 50 days

from the date of purchase.
 Balance Transfer Option
If you have any other credit card and wish to transfer their balances to
your HDFC Bank International Value plus Card, those balances will
attract a nominal charge for a period of six months from the transfer
Date. The outstanding amount transferred can be up to 50% of your
HDFC Bank International Value plus Card Credit Limit.
Description Charges for Value Plus Credit

Card
Interest Free Period Up to 50 days
Minimum Repayment 5% Minimum of Rs 200
Amount
Cash Advance Limit 30% of credit limit
Joining fee Rs .300
Annual Fee Rs .700
Additional card fee Free for Life
Charges on revolving 2.95%p.m. 35.4% annually- from
Credit transaction date
Cash Advance Charges 2.5% of amount withdrawn or Rs 300
whichever is higher
Balance transfer Processing Rs. 100
charges
Petrol Transaction Charges 2.5% (subject to a minimum of Rs 10)

Railway Ticket Purchase Rs 30 + 2.5% of transaction amount

Fee
Reissue of Lost, Stolen or Rs. 100
Damaged Card
Outstation Cheque Rs. 100

Processing Charge
Service Tax Applicable on all fees, interst and

other charges.
2. Health plus Credit Card
A Credit Card that takes care of your financial health as well as your family's
health and fitness. This is not just a card but a guarantee of a healthy and
secure future.
Features and Benefit
 Cashless Mediclaim
This credit card comes with a free cashless mediclaim cover of Rs.50,
000 plus a critical illness cover of Rs.1.5 lakhs. The critical illness
cover includes open heart surgery, cancer, kidney failure and vascular
stroke. You can avail cashless mediclaim facility at any of more than

3000 networked hospitals of the Third Party Administrator (TAPE)

across the country.
 Extra protection for your family - Add-on Float Cover
You have the option of extending the Rs.50,000 mediclaim plus the
critical illness cover of Rs.1.5 lakhs cover to the add-on cardholders,
be it your spouse, children, brothers or sisters. What's more, the add-

on cardholders can also avail the discounts at participating hospitals.
 Protection through insurance
The HDFC Bank Health plus International Credit Card offers you a
comprehensive insurance package at no additional cost. In case of
death in an air accident, the nominated kin will receive a
compensation of Rs.10 lakhs. In the case of a rail or road accident the
nominated kin will receive a compensation of Rs.2 lakhs.
 Cash Advance
Just step into any one of our ATMs or any ATM displaying
MasterCard logo or Maestro Cirrus logo and withdraw cash up to 30%
of your credit limit at a very nominal charge.
 Revolving credit facility
This feature allows you to pay a minimum amount, which is 5%

(subject to a minimum amount of Rs.200) of your total bill amount or
any higher amount whichever is convenient for you. You can then
carry forward the balance to a better financial month, for which you
pay a charge of 2.95% (2.85% per month for HDFC Bank Account
Holders), per month.


from the date of purchase (subject to the submission of the charge by
the Merchant). Subsequently, if you carry forward your outstanding
balance you just pay a nominal interest of 2.95% (2.90% per month
for HDFC Bank Account Holders) per month.

from the date of purchase (subject to the submission of the charge by
the Merchant). Subsequently, if you carry forward your outstanding
balance you just pay a nominal interest of 2.95% (2.90% per month
for HDFC Bank Account Holders) per month.
 Third Party Administrator (TPA)
The TPA is an intermediatery between the hospital, the Insurer and

the card member. Under the TPA system, the mediclaim policyholders
need not pay the medical bills upfront. Instead the settlement is to be
done between the hospital and the TPA. For the customer, medical
expenditure becomes a cashless transaction. For the HDFC Bank
Health plus International Credit Card, the insurer United India
Insurance Company (UIIC) has appointed Family Health Plan Limited
(FHPL) as the TPA.
Eligibility
You are eligible for the Health plus International Credit Card if you are:
Salaried Self Employed

Minimum 21 21
Age
Maximum 60 65
Age
Annual Rs 2,00,000 p.a. Rs 1,50,000 p.a
Income(Rs)
Fees and Charges
Description Charges for Health plus Credit

Card
Interest Free Period Up to 50 days
Minimum Repayment 5% Minimum of Rs 200
Amount
Cash Advance Limit 30% of credit limit
Joining fee Rs .300
Annual Fee Rs .700
Additional card fee Free for Life
Charges on revolving Credit 2.95%p.m. 35.4% annually- from
transaction date
Cash Advance Charges 2.5% of amount withdrawn or Rs 300
whichever is higher
Balance transfer Processing Rs. 100
charges
Late Payment Charges Rs 350 for credit card bills up to Rs
10000, Rs 500 for credit card bills
between Rs 10000 and Rs 20000, Rs
600 for credit card bills above Rs
20000 *
Petrol Transaction Charges 2.5% (subject to a minimum of Rs 10)
Railway Ticket Purchase Fee Rs 30 + 2.5% of transaction amount

Reissue of Lost, Stolen or Rs. 100

Damaged Card
Outstation Cheque Rs. 100

Processing Charge
Service Tax Applicable on all fees, interest and

other charges.
• Commercial Credit Cards
1. Corporate card
HDFC Bank Corporate card is the first among few to provide you with truly world beating features on
your credit card. It comes with a unique 24x7 Expense management solution called SMART DATA
ONLINE, powered by MasterCard International.
Corporate benefits
 24x7 online MIS availability.
 60 MIS reports for better informed business decisions.
 Substantial savings for the business through better negotiations with
airlines, hotel chains and other service providers.
 Streamlines accounting procedures by consolidating transaction data
from around the world.
 Helps in integrating with the existing accounting systems.

 Helps in minimizing paperwork and simplifying reconciliation and
compliance tasks.
 Smart Data online Reports
- Card programme analysis including transaction totals, ATM

usage etc.
- Spending Analysis by category
- Expense reports
- Cost allocation details & summary
- Merchant summary & details
- Account management for detailed transaction information at
employee level.
Card-Holder Benefits
 My rewards
Earn up to 1 reward points for every Rs.150 spent on the card. Points
earned can be redeemed for exciting gifts and Air miles.
 Fabulous Discounts all over the world
Complementary IBTC membership would ensure you get up to 50%

discounts at over 10,000 Star Hotels all over the world.
 Petrol Surcharge Waiver
Offering 0% surcharge on petrol spends across all petrol pumps.
 Lower Interest rates
Up to 50 days interest free period on your along with lower interest

rates of 2.25 % on your card.
 Protection Through Insurance
To show how much we care, we have provided insurance covers

against the various risks you might face and to ensure a hassle free
travel, a host of travel-related insurance covers are provided on your

card.
2. Gold Business Credit Card
Features of card
 Higher Credit Limits

Get Up to 10 lakes as credit limit on the card basis the company /
business financials.
 Spend Based Interest Rates

Pay lesser rate of interest when you spend more on the Gold
Business card. The card offers you a unique benefit of spend based
interest rates. i.e. the more you spend on the card in a month the
less interest you accrue. The interest rates are 2.75% for spends up
to Rs.10, 000 in a month and 2.35% for spends more than Rs.10,
000 on incremental spends.

 Petrol surcharge waiver

Drive the extra mile with the Gold Business card. Enjoy full waiver
of the fuel surcharge across all fuel pumps.
 Earn rewards with your Card

Enjoy the benefits of our exciting Rewards Programme. You will
earn 1 Rewards Point for every Rs.200 spent on your Card. By
accumulating these, you can redeem them into air miles, gift cards
and host of exciting gifts and offers.
 Save on Business spends
Save on your business related spends with our extensive partner

tie-ups. Our partner tie-ups are across office and business
equipment, services and supplies, Travel services,
Telecommunications & Security System and Services with leading
brands including HP Laptops, Tata AGE, Airtel Blackberry,
Godrej, AFL Wiz and many more.
 Business and Travel Insurance Covers
HDFC Bank Gold Business card provides you insurance against

various risks the business and the cardholder might face.
 Business Insurance
The card offers inbuilt insurance to cover your business office
premises towards fire and burglary for up to 2 lacs.
 Travel Insurance Covers

o Air Accident Cover - 10 Lacs.

o Rail / Road Accident Cover - 3 Lacs.
o Purchase Protection - 50,000.
o Hospitalization Cover - 50,000
 Cash at your fingertips
In a situation where you need cash, just step into any one of our
ATMs or MasterCard Member ATMs and withdraw cash up to
40% of your credit limit at a very nominal charge.
 Free Credit Period*

Enjoy up to 45 days interest free credit on your purchases.
Women’s Gold Credit Card
Features and Benefits

 5% cash back on your Monthly household purchases
Get whopping 5% cash back on all grocery/supermarket &

select departmental store purchases on your woman's card.
Here's more good news - there is no upper limit on this cash
back! It functions as the ideal household credit card.
 Discounts on hotel tariff
Assured 50% discount on hotel stays across 30cities in India

through International Business Traveler’s Club. It also entitles
you to discounts of up to 50% at over 10000 hotels worldwide.

 Accelerated rewards programme
Rewards simply multiply with Woman's Gold card. Get 5

reward points for every Rs.100 spent above Rs.5, 000 in a
month. For spends up to Rs 5000 in a month you get 2 reward
points per Rs 100 spent.
 Worldwide acceptance
Accepted at over 23 million merchant establishments around the

world, including 110,000 merchant establishments in India.
Articles
SOURCE: The Economic Times, 16 July, 2007.
PLASTIC MONEY
There are about 22 million credit cards in India (as on January 2007). And the
total value of such transactions almost doubled between 2003-04 and 2005-06,
to around Rs 33,900 crore. The latest available data, which covers the first 10
months of 2006-07, indicate continues robust growth, in the number of credit
cards increasing at 28% year-on-year. Over the same period, the value of credit
card transaction grew by 20%. But the number of credit cards in India-22-
million-is tiny for a country with a population exceeding 1.1 billion. Since many
people have multiple cards, the number of card holder is much smaller than the
number of cards in circulation. Credit card issuers in India have plenty of room
to expand their customer bases aggressively over the next few years.
Period Number Of Value Of Transactions

Transactions (Rs Crore)

(in millions)
April 2005-March 156.1 33,900
2006
April 2006-January 155.7 33,500
2007
ICICI Bank credit card to enter 50 more cities

Source: - Economic Times, 27 July, 2007
NEW DELHI: The country's largest private sector lender ICICI Bank is
planning to expand its credit card business to another 50 cities and expects 20-
25 per cent increase in business during the current fiscal.
"We already have presence in 125 cities and plans to spread our footprint to
another 50 cities this year," ICICI Bank Head (credit cards product group)
Sachin Khandelwal told media.
The wide presence will not only grow the card business but will act as a loyalty
tool for retaining customers too, he said.
Besides, it helps in attracting new customers for the bank, he added.
By far, ICICI is the market leader in the credit card business with 85 lakh credit
card floating in the market against the total market size of 2.3 crore.
With almost 35 per cent market share, the bank expects 20-25 per cent growth
in the card business during the year, he said.
At present, it is offering over half a dozen cards such as Gold, Titanium,

Platinum, Silver, True value Star. Besides, there are many co-branded cards.
During early this month, the bank unveiled 'Visa Signature card' for high

networth individual with a joining fee of Rs 25,000 and an annual subscription

thereafter of Rs 2,500.
Talking about the features of the card, Khandelwal said, this would be available
only to a select few and would be priced, unlike most other cards on offer today.
Gold passe, platinum in for banks

Source: - Economic times, 16 Aug,2007
NEW DELHI: Banks seem to be seeing more colour in the silver-white of

platinum than the bright yellowness of gold when it comes to credit cards, as
being shown by their growing focus on the premium segment of customers for
Credit lending instruments.
The shift comes amid credit card companies seeking to tap the growing
population of affluent people who, according to industry estimates, spend about
Rs 3,60,000 a year, 10 times more than the average consumer in the country.
There are about 15 lakh people under this category in the country and the
segment is increasing rapidly at a rate of 25 per cent a year.
Till a few months back banks like Citigroup, Deutsche Bank and American
Express were offering high-end credit cards under the "platinum" and
"signature" series, but today nearly all major players are offering such
instruments that come with larger credit limits as compared to the lower-end
silver and gold cards.
Typically, silver and gold cards offer credit limits of Rs 20,000-60,000, whereas
the cap on platinum and signature cards goes into lakhs. American Express
India Vice President (Engagement Brand and Lending) Amit Dutta said the
bank was targeting high-value customers for its platinum cards.
Generally, such cardholders are international travellers in the age group of 35-
45 years and include high salaried executives, Dutta said. Emerging affluent
consumers earn between Rs 20-25 lakh or upwards in a year, he added.
Deutsche Bank, which which forayed into the premium card segment last year,
has already issued 10,000 platinum cards.

Realising the potential of the segment, SBI Card, a joint venture between PSU
giant State Bank of India and GE Money, also forayed into the platinum card
segment last week.
It is offering a competitive 3.5 per cent waiver surcharge on spending made

abroad in foreign currencies and hopes to distribute about one lakh cards in next
12 months. Unlike its foreign competitors, SBI Card does not involve any
subscription fee or annual charges.
Country's biggest credit card issuer ICICI Bank, last month, unveiled 'Visa
Signature card' for high networth individual with a joining fee of Rs 25,000 and
subscription fee thereafter of Rs 2,500.
The card would be made available only to a select few, said ICICI Bank Head
(Cedit Cards Product Group) Sachin Khandelwal. Besides, it is loaded with
exclusive bouquet offer valued in excess of Rs 50,000, including a Tag Heuer
watch or travel vouchers for destination of choice and a Rs 3-crore air travel
insurance cover.
CONCLUSION
Surely credit cards are all set to make a define impact on the lifestyle of the people. A
boom in credit cards business is quite expected. Merchants establishments should be
enrolled in large number to offer variety to card users in the choice of shop to shop.
About 40,000 establishments in India accept credit cards of one firm or other. True
some merchants establishments do not align with credit card business. They hopefully
feel enough is enough. Even some feel that credit card sales are nuisance. Credit card
benefit only customer and not to us.

Incremental sales definitely results and that merchant establishment stand to gain.
Accepting credit cards is a competitive tool. Merchant firms should be forward
looking and some forward to accept cards. Regarding the credit card holding
population in India their size should be about 11million present.
BIBLOGRAPHY
The project has been done with the help of the following materials.
NEWSPAPER:
• ECONOMIC TIMES

WEBSITES:
• www.yahoo.com
• www.google.com
• www.hdfcbank.com
• www.icicibank.com
BOOK:
Gordon and Natrajan

Credit Cards

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INTRODUCTION TO CREDIT CARD

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HISTORY OF CREDIT CARDS

According to Encyclopedia Britannia, the use of credit cards originated in the

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VISUAL FEATURES OF CREDIT CARD

(3) Back side: - Back side contains following information:

B) Credit Card Number in Print

Financial Features of Credit Card

1. ANNUAL MEMBERSHIP FEE: Most members are expected to pay annual

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3. RATE OF INTEREST (Annual Percentage Rate (APR): Rate of interest for

4. EMI Conversions: When outstanding amount on the card is high or purchase is

5. BALANCE TRANSFER: Bankers encourage cardholders to transfer their

6. PERSONAL LOAN: Issuers extend personal loan facility to the cardholders. It

7. INSURANCE: Most bankers (issuers) insure the life of cardholders at

TERMS OF CREDIT CARD

2. Credit Card Issuer –

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4. Annual Percentage Rate

6. Transaction Fees and Other Fees –

10. Cash Advance–

Consigner may be family member or a friend who is wiling to act as a guarantor of

12. Due Date –

13. Late Charges –

14. Outstanding Balance –

15. Secured Credit Card –

16. Unsecured Credit Card –

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HOW CREDIT CARD WORKS

An example of the front of a typical credit card:

An example of reverse side of typical credit card:

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Electronic verification system allows merchants to verify that the card is

Other variations of verification system are used by eCommerce

Merchant receives money directly in his account from the bank if he is

PARTIES TO CREDIT CARDS:

Following are the parties involved in credit card chain:

2) Cardholder: Card is in possession of cardholder and he is expected to use it for

3) Merchant Establishment: Such as shops, malls, restaurants, hotels, railways,

4) Payment to Networking Organization: Visa and Master card are popular

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CARD HOLDER MERCHANT

BILL SENT VOUCHER SENT

PAYMENT MADE PAYMENT MADE

SYSTEM OPERATION OF CREDIT CARD

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CREDIT CARDS BOON OR CURSE

Benefits of Credit Card to Cardholders, Issuers and Payment networks are as

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To Payment Networks (VISA\Maser card):

DISADVANTAGES OF CREDIT CARD

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3. Habitual borrowing: with popularity of cards, stigma on loans as negative

Upon. Unknowingly everyone has become a habitual borrower.incidentially no

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DIFFERENCE BETWEEN DEBIT CARD & CREDIT CARD

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CIBIL- CREDIT INFORMATION BUREAU [INDIA] LIMITED