19644540 Credit Card Presentation

7/31/2019 19644540 Credit Card Presentation

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On

Credit Cards

Prepared by.

D.PradeepKumar

Exe-MBA, IIPM,Hyderabad


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Service providers

And many more.!


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Types of Credit Cards

Major India Credit Card Types

Following are various types of credit cards available in India:

Premium Credit Cards Cash Back Credit Cards Gold Credit Cards Airline Credit Cards Silver Credit Cards Business Credit Cards Balance Transfer Credit Cards

Co-branded Credit Cards Low Interest Credit Cards Lifetime Free Credit Cards Rewards

There are 33 various premium credit cards available in India.


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7/24Source : annualcreditreport.co.uk


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Results as per the survey done in 2007

The largest year-on-year increase, of 16.2% was amongst under21s

Source : annualcreditreport.co.uk


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Interpreting the information on Credit Card Statements

80% of those surveyed had seen a copy of their credit file at some point.Respondents reported a significant difference in the understanding of the

information contained on credit files. According to the survey, online credit filesare easier to interpret than paper versions.

Source : annualcreditre ort.co.uk


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Source : annualcreditreport.co.uk


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A recent study of SME finances by Warwick Business Schoolhas shown that business credit cards are the most widelyused financing tool for small and medium-sized companies.SME's spend in excess of 1.8bn on their business creditcards every month, according to the findings of the study,

which was sponsored by the Bank of England, the Treasury,employers' groups and retail banks, and is the mostcomprehensive study of SME financing in the UnitedKingdom.

An SME is defined as a company with fewer than 250

employees: there are four million such businesses in theUK.

The study, which used a sample of 2,500 companies, foundthat 55 per cent of SME's used business credit cards;


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Usage of Credit Card

Over the last three years, the credit card industry in India has grown at a

compounded average growth rate of over 30%.

The usage of credit cards at retail outlets has nearly doubled from 30%-

35% two years ago to 50%-60% - Nirupam Sahay, VP (marketing), SBI

Card.

Credit cards are typically used for purchases above Rs. 1,000. But

nowadays people have started using them for even around Rs. 500

Krishnan Govindan, head (marketing), credit cards, ICICI Bank.

The departmental store category along with fuel and restaurant spendingaccount for the most frequent swipes.

In terms of value, jewellery, electronic goods and telecom account for a

major chunk .

Source :www.bizopedia.biz


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Nearly 44% Indian credit cards are inactive: Survey ( As on apr 2009)

As per RBI there were 28.3mn credit cards as on April 2008 (icici)

71% Indians use credit cards for dining: study

21 million urban Indian internet users in India

5.9 million urban Indians buy online (28% of all urban net users).

Frauds

ICICI Bank topped the list of Credit Card Frauds with a total of 8,280 complaintsinvolving Rs 11 crore [USD 2 mn] between April and Dec of 2008.

HSBC came next with total complaints of 2,484 cases involving Rs 4,90 crore whileAmerican Express Cards lost Rs 6.04 crore on 703 complaints. Citibank, incurred aloss of Rs 4.73 crore, Deutsche Bank loss of Rs 2.09 crore and Standard CharteredBank Rs 2.39 crore.

Sources :rediff.com

contentsutra.com

cardbhai.commydigitalfc.com


18/24Source : annualcreditre ort.co.uk


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Advantages:

They allow you to make purchases on credit without carrying around a lot of cash. This allowsyou a lot of flexibility.They allow accurate record-keeping by consolidating purchases into a single statement.They allow convenient remote purchasing - ordering/shopping online or by phone. They allow

you to pay for large purchases in small, monthly installments.Under certain circumstances, they allow you to withhold payment for merchandise whichproves defective.They are cheaper for short-term borrowing - interest is only paid on the remaining debt, notthe fullloan amount.Many cards offer additional benefits such as additional insurance cover on purchases, cash

back, air miles and discounts on holidays.Disadvantages:

You may become an impulsive buyer and tend to overspend because of the ease of usingcredit cards. Cards can encourage the purchasing of goods and services you cannot reallyafford.Credit cards are a relatively expensive way of obtaining credit if you don't use themcarefully, especially because of the high interest rates and other costs.Lost or stolen cards may result in some unwanted expense and inconvenience.The use of a large number of credit cards can get you even further into debt.Using a credit card, especially remotely, introduces an element of risk as the card detailsmay fall into the wrong hands resulting in fraudulent purchases on the card. Fraudulent orunauthorized charges may take months to dispute, investigate, and resolve.


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Dos Donts

1.Sign on the card immediately on receipt.Unsigned cards are invitations for misuse.

Throw away the expired card. Always cut the cardbefore disposing. This will ensure that the expired cardcannot be used for counterfeit / skimming.

2.

Keep the card in a prominent place in wallet /

vault. This will help you to notice if any ofyour cards is missing. Many times cardholdersrealise very late that their card is missing.

Reveal your card number / expiry date /personal details

to outsiders. Do not reveal personal details and cardnumbers in response to any suspicious scheme/ caller.This could be a social engineering attack.

3.

Ensure that the card you got back after thetransaction is yours before putting in thewallet. Many times, Card Member's cards getexchanged at crowded merchant location likeservice station /Super market.

Hand over your card to any one including your friends /family members. Card is meant for your use only. Evenwhen you are requested to hand it over to authorisedbank representative, always ensure to cut the card intotwo before handing over.

4.

Keep all card number, expiry date and contactnumber of the issuing bank at a secure placefor ready reference. It has to be kept in adifferent place than where you normally keepcards.

Allow the card to be taken out of your sight in amerchant location. Insist that all verification to be donein your presence.

5.

Inform issuing bank immediately if you losethe card or it is stolen from you. Alwaysfollow up with a written intimation.

Attempt to use your Debit Care for internet transactionor Provide your card number details on the internet.ICICI Bank Debit Cards cannot be used for internet

transactions.

6.

Memorise PIN and destroy the mailer PIN isan important validation of your identity. Theuse of PIN along with card is considered asyour authentic signature. Keep it secretalways.

Keep the PIN number written anywhere. Do not revealyour PIN to any one. Do not keep the PIN writtenanywhere especially in the wallet along with the card.

7.

Inform change of address to card issuingbank immediately. Inform postal authorities

also about the forwarding address.

Expose the card to excessive heat /magnetic field. In asimple case, where the card came into contact with the

magnetic lock on the ladies bag, the data on themagnetic stripe of the card got erased.


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Suggestions

Most of the best tips for using a credit card wisely are just commonsense. And, really, they all boil down to two basic points:

Dont use a credit card for impulse purchases; and Read your statement every month.

The second point is the one that trips up most people. Its surely easier to paythe balance or minimumor some amount in betweenand move on to more

interesting things.But keep in mind that errors are fairly common on credit card statements.Even if you dont have all of your credit card receipts handy, compare as manyas you have to the items listed in your statement to make sure the datesand amounts are right.

Also, credit card issuers are heavily regulated. They have to publish the changestheyre remaking to your accountand they do this in the fine print at the bottom

or on the back of the monthly statement. Most count on people not reading thesenotices.

Dont be that person


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Recommendation

if you are a food lover & watch movies regularly applyKotak Trump Card.

for general purchases apply ABN AMRO One Card.

for petrol and exciting offers apply ICICI Bank Card.


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Bibiography

Sources used :

rediff.com

contentsutra.comcardbhai.commydigitalfc.comannualcreditreport.co.ukwww.bizopedia.bizicicibank.com
http://www.bizopedia.biz/http://www.bizopedia.biz/


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Documents

19644540 Credit Card Presentation