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CREDIT CARD INDUSTRIES IN INDIA

1

Chapter-1 Introduction

A credit card is a payment card issued to users as a system of payment.

It allows the cardholder to pay for goods and services based on the

holder's promise to pay for them. The issuer of the card creates a

revolving account and grants a line of credit to the consumer (or the user)

from which the user can borrow money for payment to a merchant or as a

cash advance to the user.

A credit card is different from a charge card: a charge card requires the balance to be paid in full each month .[2] In contrast, credit cards allow the

consumers a continuing balance of debt, subject to interest being charged.

A credit card also differs from a cash card, which can be used like

currency by the owner of the card.

The size of most credit cards is 85.60 × 53.98 mm (3 3/8 × 2 1/8 in),[3] and

conform to the ISO/IEC 7810 ID-1 standard. Credit cards have an

embossed bank card number complying with the ISO/IEC 7812

numbering standard.

http://en.wikipedia.org/wiki/Payment_card

http://en.wikipedia.org/wiki/Payment

http://en.wikipedia.org/wiki/Revolving_account

http://en.wikipedia.org/wiki/Line_of_credit

http://en.wikipedia.org/wiki/Consumer

http://en.wikipedia.org/wiki/Merchant

http://en.wikipedia.org/wiki/Cash_advance

http://en.wikipedia.org/wiki/Charge_card

http://en.wikipedia.org/wiki/Credit_card#cite_note-1



http://en.wikipedia.org/wiki/Credit_card_interest

http://en.wikipedia.org/wiki/Cash_card




http://en.wikipedia.org/wiki/ISO/IEC_7810

http://en.wikipedia.org/wiki/Bank_card_number



http://en.wikipedia.org/wiki/Bank_card_number



http://en.wikipedia.org/wiki/Cash_card

http://en.wikipedia.org/wiki/Credit_card_interest













2

Chapter-2 Background behind using

Credit CardHISTORY

The concept of using a card for purchases was described in 1887 by

Edward Bellamy in his utopian novel Looking Backward . Bellamy used

the term credit card eleven times in this novel.

The modern credit card was the successor of a variety of merchant credit

schemes. It was first used in the 1920s, in the United States, specifically

to sell fuel to a growing number of automobile owners. In 1938 several

companies started to accept each other's cards. Western Union had begun

issuing charge cards to its frequent customers in 1921. Some charge cards

were printed on paper card stock, but were easily counterfeited.

The Charga-Plate, developed in 1928, was an early predecessor to the

credit card and used in the U.S. from the 1930s to the late 1950s. It was a

2½ in × 1¼ in rectangle of sheet metal related to Addressograph and

military dog tag systems. It was embossed with the customer's name, city

and state. It held a small paper card for a signature. In recording a

purchase, the plate was laid into a recess in the imprinter, with a paper

"charge slip" positioned on top of it. The record of the transaction

included an impression of the embossed information, made by the

imprinter pressing an inked ribbon against the charge slip. Charga-Plate

was a trademark of Farrington Manufacturing Co. Charga-Plates were

issued by large-scale merchants to their regular customers, much like

department store credit cards of today. In some cases, the plates were kept

http://en.wikipedia.org/wiki/Edward_Bellamy

http://en.wikipedia.org/wiki/Looking_Backward


http://en.wikipedia.org/wiki/Fuel

http://en.wikipedia.org/wiki/Automobile

http://en.wikipedia.org/wiki/Western_Union

http://en.wikipedia.org/wiki/Addressograph

http://en.wikipedia.org/wiki/Dog_tag_%28identifier%29

http://en.wikipedia.org/wiki/Typewriter_ribbon

http://en.wikipedia.org/wiki/Typewriter_ribbon

http://en.wikipedia.org/wiki/Dog_tag_%28identifier%29

http://en.wikipedia.org/wiki/Addressograph

http://en.wikipedia.org/wiki/Western_Union

http://en.wikipedia.org/wiki/Automobile

http://en.wikipedia.org/wiki/Fuel


http://en.wikipedia.org/wiki/Edward_Bellamy




3

in the issuing store rather than held by customers. When an authorized

user made a purchase, a clerk retrieved the plate from the store's files and

then processed the purchase. Charga-Plates speeded back-office

bookkeeping that was done manually in paper ledgers in each store,

before computers.

In 1934, American Airlines and the Air Transport Association simplified

the process even more with the advent of the Air Travel Card .[6] They

created a numbering scheme that identified the Issuer of card as well as

the Customer account. This is the reason the modern UATP cards still

start with the number 1. With an Air Travel Card passengers could "buy

now, and pay later" for a ticket against their credit and receive a fifteen

percent discount at any of the accepting airlines. By the 1940s, all of the

major domestic airlines offered Air Travel Cards that could be used on 17

different airlines. By 1941 about half of the Airlines Revenues came

through the Air Travel Card agreement. The Airlines had also started

offering installment plans to lure new travelers into the air. In October

1948 the Air Travel Card became the first inter-nationally valid Charge

Card within all members of the International Air Transport Association.

The concept of customers paying different merchants using the same card

was expanded in 1950 by Ralph Schneider and Frank McNamara,

founders of Diners Club, to consolidate multiple cards. The Diners Club,which was created partially through a merger with Dine and Sign,

produced the first "general purpose" charge card, and required the entire

bill to be paid with each statement. That was followed by Carte Blanche

and in 1958 by American Express which created a worldwide credit card

network (although these were initially charge cards that acquired credit

card features after Bank Americard demonstrated the feasibility of theconcept).

http://en.wikipedia.org/wiki/Universal_Air_Travel_Plan




http://en.wikipedia.org/wiki/Frank_X._McNamara

http://en.wikipedia.org/wiki/Diners_Club


http://en.wikipedia.org/wiki/Carte_Blanche_%28credit_card%29#Carte_Blanche

http://en.wikipedia.org/wiki/American_Express


http://en.wikipedia.org/wiki/Carte_Blanche_%28credit_card%29#Carte_Blanche


http://en.wikipedia.org/wiki/Diners_Club

http://en.wikipedia.org/wiki/Frank_X._McNamara


http://en.wikipedia.org/wiki/Universal_Air_Travel_Plan




4

However, until 1958, no one had been able to create a working revolving

credit financial instrument issued by a third-party bank that was generally

accepted by a large number of merchants (as opposed to merchant-issued

revolving cards accepted by only a few merchants). A dozen experiments

by small American banks had been attempted (and had failed). In

September 1958, Bank of America launched the Bank Americard in

Fresno, California. Bank Americard became the first successful

recognizably modern credit card (although it underwent a troubled

gestation during which its creator resigned), and with its overseas

affiliates, eventually evolved into the Visa system. In 1966, the ancestorof MasterCard was born when a group of banks established Master

Charge to compete with BankAmericard; it received a significant boost

when Citibank merged its proprietary Everything Card (launched in

1967) into Master Charge in 1969.

Early credit cards in the U.S., of which Bank Americard was the most

prominent example, were mass produced and mass mailed unsolicited to

bank customers who were thought to be good credit risks. But, "They

have been mailed off to unemployables, drunks, narcotics addicts and to

compulsive debtors, a process President Johnson's Special Assistant Betty

Furness found very like 'giving sugar to diabetics'." These mass mailings

were known as "drops" in banking terminology, and were outlawed in

1970 due to the financial chaos they caused, but not before 100 million

credit cards had been dropped into the U.S. population. After 1970, only

credit card applications could be sent unsolicited in mass mailings.

The fractured nature of the U.S. banking system under the Glass – Steagall

Act meant that credit cards became an effective way for those who were

traveling around the country to move their credit to places where they

http://en.wikipedia.org/wiki/Bank_of_America

http://en.wikipedia.org/wiki/BankAmericard


http://en.wikipedia.org/wiki/Fresno,_California

http://en.wikipedia.org/wiki/VISA_%28credit_card%29

http://en.wikipedia.org/wiki/MasterCard

http://en.wikipedia.org/wiki/Citibank

http://en.wikipedia.org/wiki/Everything_Card

http://en.wikipedia.org/wiki/Glass%E2%80%93Steagall_Act






http://en.wikipedia.org/wiki/Everything_Card

http://en.wikipedia.org/wiki/Citibank


http://en.wikipedia.org/wiki/VISA_%28credit_card%29

http://en.wikipedia.org/wiki/Fresno,_California


http://en.wikipedia.org/wiki/Bank_of_America




5

could not directly use their banking facilities. In 1966 Barclaycard in the

UK launched the first credit card outside of the U.S.

There are now countless variations on the basic concept of revolvingcredit for individuals (as issued by banks and honored by a network of

financial institutions), including organization-branded credit cards,

corporate-user credit cards, store cards and so on.

Although credit cards reached very high adoption levels in the US,

Canada and the UK in the mid twentieth century, many cultures were

more cash-oriented, or developed alternative forms of cash-less

payments, such as Carte bleue or the Eurocard (Germany, France,

Switzerland, and others). In these places, adoption of credit cards was

initially much slower. It took until the 1990s to reach anything like the

percentage market-penetration levels achieved in the US, Canada, or UK.

In some countries, acceptance still remains poor as the use of a credit card

system depends on the banking system being perceived as reliable.

Japan remains a very cash oriented society, with credit card adoption

being limited to only the largest of merchants, although an alternative

system based on RFIDs inside cellphones has seen some acceptance.

Because of strict regulations regarding banking system overdrafts, some

countries, France in particular, were much faster to develop and adopt

chip-based credit cards which are now seen as major anti-fraud credit

devices. Debit cards and online banking are used more widely than credit

cards in some countries.

The design of the credit card itself has become a major selling point in

recent years. The value of the card to the issuer is often related to the

customer's usage of the card, or to the customer's financial worth. This

http://en.wikipedia.org/wiki/Barclaycard

http://en.wikipedia.org/wiki/Carte_Bleue

http://en.wikipedia.org/wiki/Eurocard_%28payment_card%29

http://en.wikipedia.org/wiki/Japan

http://en.wikipedia.org/wiki/Debit_card

http://en.wikipedia.org/wiki/Online_banking


http://en.wikipedia.org/wiki/Debit_card

http://en.wikipedia.org/wiki/Japan

http://en.wikipedia.org/wiki/Eurocard_%28payment_card%29

http://en.wikipedia.org/wiki/Carte_Bleue

http://en.wikipedia.org/wiki/Barclaycard




6

has led to the rise of Co-Brand and Affinity cards, where the card design

is related to the "affinity" (a university or professional society, for

example) leading to higher card usage. In most cases a percentage of the

value of the card is returned to the affinity group.

http://en.wikipedia.org/wiki/Affinity_credit_card_scheme

http://en.wikipedia.org/wiki/Affinity_credit_card_scheme




7

Chapter-3 Features of Credit

Cards

FEATURES

For a fresh applicant card is issued for one year , which is renewed

for 2 year on each expiry therafter.

For photo card rs. 50/- is charged each time the photo is emboseed.

The cheque encashment facility limit is rs. 2,500/- which is free of

charge & available at all branches of central bank of india.

Either you can avail the total amt of rs. 5000 , in one month by way

of signing the chargeslip i.e. through cash advance facility or if you

so desire , you can avail of both the facilities. Then under cheque

encashment you are allowed to have rs. 2,500(maximum) & the

rest through cash advance facility, since the aggregate limit when

taken together is rs. 5000 per month only.

If you do not pay the card usage within the stipulated due date,

service charges @2.5% per month is levied (computed monthly)

until the outstanding is fully paid off.




8

CHAPTER- 4 Types of CREDIT

CARDS

Categories OF CREDI T CARDS

Credit cards have come to the rescue of people with hot pockets. They,

nowadays, put their trust in the innovation of credit cards where theyneed not carry large sums of money with them; instead simply carry a

credit card which is linked up with their bank account enabling them to

make payments without batting an eye.

It is a trend, now, to make payments at a hotel, restaurant or a

departmental store/ mall using a credit card. Because of the fear of one's

bank account details being swiped and stolen, more and more credit cards

are made secure so that even if a credit card is stolen, the money in one's

bank account stays safe.

Credit cards now are of various types with different fees, interest rates

and rewarding programs. When applying for a credit card, it is important

to learn of their diverse types to know the one best suited to their lifestyleand financial status. Different types of credit cards available by banks and

other companies/organizations are briefly described below

Standard Credit Card: This is the most commonly used. One is

allowed to use money up to a certain limit. The account holder has to top

up the amount once the level of the balance goes down. An outstanding

balance gets a penalty charge.




9

Premium Credit Card: This has a much higher bank account and

fees. Incentives are offered in this over and above that in a standard card.

Credit card holders are offered travel incentives, reward points, cask back

and other rewards on the use of this card. This is also called the Reward

Credit Card. Some examples are: airlines frequent flier credit card, cash

back credit card, automobile manufacturers' rewards credit card. Platinum

and Gold, MasterCard and Visa card fall into this category.

Secured Credit Card: People without credit history or with tarnished

credit can avail this card. A security deposit is required amounting to thesame as the credit limit. Revolving balance is required according to the

'buying and selling' done.

Limited Purpose Credit Card : There is limitation to its use and is

to be used only for particular applications. This is used for establishing

small credits such as gas credits and credit at departmental stores.

Minimal charges are levied.

Charge Credit Card: This requires the card holder to make full

payment of the balance every month and therefore there is no limit to

credit. Because of the spending flexibility, the card holder is expected to

have a higher income level and high credit score. Penalty is incurred if

full payment of the balance is not done in time.

Specialty Credit Card: is used for business purposes enabling

businessmen to keep their businesses transactions separately in a

convenient way. Charge cards and standard cards are available for this.

Also, students enrolled in an accredited 4-year college/university course

can avail this benefit.




10

Prepaid Credit Card: Here, money is loaded by the card holder on to

the card. It is like a debit card except that it is not tied up with a bank

account.

COL L ECTI BL E CREDI T CARDS

A growing field of numismatics (study of money), or more specifically

exonumia (study of money-like objects), credit card collectors seek to

collect various embodiments of credit from the now familiar plastic cards

to older paper merchant cards, and even metal tokens that were acceptedas merchant credit cards. Early credit cards were made of celluloid

plastic, then metal and fiber, then paper, and are now mostly polyvinyl

chloride (PVC) plastic.

http://en.wikipedia.org/wiki/Numismatics

http://en.wikipedia.org/wiki/Exonumia

http://en.wikipedia.org/wiki/Metal

http://en.wikipedia.org/wiki/Celluloid

http://en.wikipedia.org/wiki/Fiber

http://en.wikipedia.org/wiki/Polyvinyl_chloride




http://en.wikipedia.org/wiki/Fiber

http://en.wikipedia.org/wiki/Celluloid

http://en.wikipedia.org/wiki/Metal

http://en.wikipedia.org/wiki/Exonumia

http://en.wikipedia.org/wiki/Numismatics




11

Chapter-5 Working of Credit Cards

H OW CREDI T CARDS WORK

Credit cards are issued by a credit card issuer, such as a bank or credit

union, after an account has been approved by the credit provider, after

which cardholders can use it to make purchases at merchants accepting

that card. Merchants often advertise which cards they accept by

displaying acceptance marks – generally derived from logos – or may

communicate this orally, as in "We take (brands X, Y, and Z)" or "We

don't take credit cards".

When a purchase is made, the credit card user agrees to pay the card

issuer. The cardholder indicates consent to pay by signing a receipt with a

record of the card details and indicating the amount to be paid or by

entering a personal identification number (PIN). Also, many merchants

now accept verbal authorizations via telephone and electronic

authorization using the Internet, known as a card not present transaction

(CNP).

Electronicverification systems allow merchants to verify in a few seconds

that the card is valid and the credit card customer has sufficient credit to

cover the purchase, allowing the verification to happen at time of purchase. The verification is performed using a credit card payment

terminal or point-of-sale (POS) system with a communications link to the

merchant's acquiring bank. Data from the card is obtained from a

magnetic stripe or chip on the card; the latter system is called Chip and

PIN in the United Kingdom and Ireland, and is implemented as an EMV

card.


http://en.wikipedia.org/wiki/Acceptance_mark

http://en.wikipedia.org/wiki/Receipt

http://en.wikipedia.org/wiki/Personal_identification_number

http://en.wikipedia.org/wiki/Card_not_present_transaction

http://en.wikipedia.org/wiki/Electronics

http://en.wikipedia.org/wiki/Credit_card_terminal


http://en.wikipedia.org/wiki/Point_of_sale

http://en.wikipedia.org/wiki/Magnetic_stripe_card

http://en.wikipedia.org/wiki/Smart_card

http://en.wikipedia.org/wiki/Chip_and_PIN


http://en.wikipedia.org/wiki/United_Kingdom

http://en.wikipedia.org/wiki/Ireland

http://en.wikipedia.org/wiki/EMV

http://en.wikipedia.org/wiki/EMV

http://en.wikipedia.org/wiki/Ireland

http://en.wikipedia.org/wiki/United_Kingdom



http://en.wikipedia.org/wiki/Smart_card

http://en.wikipedia.org/wiki/Magnetic_stripe_card

http://en.wikipedia.org/wiki/Point_of_sale






http://en.wikipedia.org/wiki/Personal_identification_number

http://en.wikipedia.org/wiki/Receipt






12

For card not present transactions where the card is not shown (e.g., e-

commerce, mail order, and telephone sales), merchants additionally

verify that the customer is in physical possession of the card and is the

authorized user by asking for additional information such as the security

code printed on the back of the card, date of expiry, and billing address.

Each month, the credit card user is sent a statement indicating the

purchases undertaken with the card, any outstanding fees, and the total

amount owed. After receiving the statement, the cardholder may dispute

any charges that he or she thinks are incorrect (see 15 U.S.C. § 1643,

which limits cardholder liability for unauthorized use of a credit card to

$50, and the Fair Credit Billing Act for details of the US regulations).

Otherwise, the cardholder must pay a defined minimum proportion of the

bill by a due date, or may choose to pay a higher amount up to the entire

amount owed. The credit issuer charges interest on the amount owed if

the balance is not paid in full (typically at a much higher rate than most

other forms of debt). In addition, if the credit card user fails to make at

least the minimum payment by the due date, the issuer may impose a

"late fee " and/or other penalties on the user. To help mitigate this, some

financial institutions can arrange for automatic payments to be deducted

from the user's bank accounts, thus avoiding such penalties altogether as

long as the cardholder has sufficient funds.

Many banks now also offer the option of electronic statements, either in

lieu of or in addition to physical statements, which can be viewed at any

time by the cardholder via the issuer's online banking website.

Notification of the availability of a new statement is generally sent to the

cardholder's email address. If the card issuer has chosen to allow it, the

cardholder may have other options for payment besides a physical check,such as an electronic transfer of funds from a checking account.


http://en.wikipedia.org/wiki/Electronic_commerce


http://en.wikipedia.org/wiki/Mail_order

http://en.wikipedia.org/wiki/Card_Security_Code


http://en.wikipedia.org/wiki/Title_15_of_the_United_States_Code

http://www.law.cornell.edu/uscode/15/1643.html

http://en.wikipedia.org/wiki/Fair_Credit_Billing_Act

http://en.wikipedia.org/wiki/Interest

http://en.wikipedia.org/wiki/Late_fee



http://en.wikipedia.org/wiki/Late_fee

http://en.wikipedia.org/wiki/Interest

http://en.wikipedia.org/wiki/Fair_Credit_Billing_Act

http://www.law.cornell.edu/uscode/15/1643.html

http://en.wikipedia.org/wiki/Title_15_of_the_United_States_Code



http://en.wikipedia.org/wiki/Mail_order







13

Depending on the issuer, the cardholder may also be able to make

multiple payments during a single statement period, possibly enabling

him or her to utilize the credit limit on the card several times over.

I NTEREST CH ARGES

Credit card issuers usually waive interest charges if the balance is paid in

full each month, but typically will charge full interest on the entire

outstanding balance from the date of each purchase if the total balance is

not paid.

For example, if a user had a $1,000 transaction and repaid it in full within

this grace period, there would be no interest charged. If, however, even

$1.00 of the total amount remained unpaid, interest would be charged on

the $1,000 from the date of purchase until the payment is received. The

precise manner in which interest is charged is usually detailed in a

cardholder agreement which may be summarized on the back of the

monthly statement. The general calculation formula most financial

institutions use to determine the amount of interest to be charged is

APR/100 x ADB/365 x number of days revolved. Take the annual

percentage rate (APR) and divide by 100 then multiply to the amount of

the average daily balance (ADB) divided by 365 and then take this total

and multiply by the total number of days the amount revolved before

payment was made on the account.

Financial institutions refer to interest charged back to the original time of

the transaction and up to the time a payment was made, if not in full, as

RRFC or residual retail finance charge. Thus after an amount has

revolved and a payment has been made, the user of the card will still

receive interest charges on their statement after paying the next statement

http://en.wikipedia.org/wiki/Annual_percentage_rate







14

in full (in fact the statement may only have a charge for interest that

collected up until the date the full balance was paid, i.e. when the balance

stopped revolving).

The credit card may simply serve as a form of revolving credit, or it may

become a complicated financial instrument with multiple balance

segments each at a different interest rate, possibly with a single umbrella

credit limit, or with separate credit limits applicable to the various

balance segments. Usually this compartmentalization is the result of

special incentive offers from the issuing bank, to encourage balance

transfers from cards of other issuers. In the event that several interest

rates apply to various balance segments, payment allocation is generally

at the discretion of the issuing bank, and payments will therefore usually

be allocated towards the lowest rate balances until paid in full before any

money is paid towards higher rate balances. Interest rates can vary

considerably from card to card, and the interest rate on a particular card

may jump dramatically if the card user is late with a payment on that card

or any other credit instrument , or even if the issuing bank decides to raise

its revenue.

http://en.wikipedia.org/wiki/Revolving_credit

http://en.wikipedia.org/wiki/Balance_transfer


http://en.wikipedia.org/wiki/Interest_rate

http://en.wikipedia.org/wiki/Interest_rate



http://en.wikipedia.org/wiki/Revolving_credit




15

Chapter-6 Merits of credit card todifferent groups:

BENEF I TS TO CUSTOM ERS

The main benefit to each customer is convenience. Compared to debit

cards and cheques, a credit card allows small short-term loans to be

quickly made to a customer who need not calculate a balance remaining

before every transaction, provided the total charges do not exceed the

maximum credit line for the card.

Different countries offer different levels of protection. In the UK, for

example, the bank is jointly liable with the merchant for purchases ofdefective products over £100 .[8]

Many credit cards offer rewards and benefits packages, such as enhanced

product warranties at no cost, free loss/damage coverage on new

purchases, various insurance protections, for example, rental car

insurance, common carrier accident protection, and travel medical

insurance. Credit cards can also offer reward points which may be

redeemed for cash, products, or airline tickets.








16

DETRI M ENTS TO CUSTOM ERS

High interest and bankruptcy

Low introductory credit card rates are limited to a fixed term, usually between 6 and 12 months, after which a higher rate is charged. As all

credit cards charge fees and interest, some customers become so indebted

to their credit card provider that they are driven to bankruptcy. Some

credit cards often levy a rate of 20 to 30 percent after a payment is

missed .[9] In other cases a fixed charge is levied without change to the

interest rate. In some cases universal default may apply: the high default

rate is applied to a card in good standing by missing a payment on an

unrelated account from the same provider. This can lead to a snowball

effect in which the consumer is drowned by unexpectedly high interest

rates. Further, most card holder agreements enable the issuer to arbitrarily

raise the interest rate for any reason they see fit. First Premier Bank at

one point offered a credit card with a 79.9% interest rate, however they

http://en.wikipedia.org/wiki/Bankruptcy




http://en.wikipedia.org/wiki/Universal_default

http://en.wikipedia.org/wiki/First_Premier_Bank

http://en.wikipedia.org/wiki/First_Premier_Bank

http://en.wikipedia.org/wiki/Universal_default


http://en.wikipedia.org/wiki/Bankruptcy




17

pulled the plug on this card in February 2011 because of persistent

defaults.

Complex fee structures in the credit card industry limit customers' abilityto comparison shop, help ensure that the industry is not price-competitive

and help maximize industry profits.

Inflated pricing for all consumers

Merchants that accept credit cards must pay interchange fees and discount

fees on all credit-card transactions. In some cases merchants are barred bytheir credit agreements from passing these fees directly to credit card

customers, or from setting a minimum transaction amount (no longer

prohibited in the United States). The result is that merchants may charge

all customers (including those who do not use credit cards) higher prices

to cover the fees on credit card transactions. In the United States in 2008

credit card companies collected a total of $48 billion in interchange fees,or an average of $427 per family, with an average fee rate of about 2%

per transaction.

Weakens self regulation

Several studies have shown that consumers are likely to spend more

money when they pay by credit card. Researchers suggest that when people pay using credit cards, they do not experience the abstract pain of

payment. Furthermore, researchers have found that using credit cards can

increase consumption of unhealthy food.

http://en.wikipedia.org/wiki/Interchange_fee

http://en.wikipedia.org/w/index.php?title=Discount_fee&action=edit&redlink=1




http://en.wikipedia.org/wiki/Interchange_fee




18

Grace period

A credit card's grace period is the time the customer has to pay the

balance before interest is assessed on the outstanding balance. Grace periods may vary, but usually range from 20 to 55 days depending on the

type of credit card and the issuing bank. Some policies allow for

reinstatement after certain conditions are met.

Usually, if a customer is late paying the balance, finance charges will be

calculated and the grace period does not apply. Finance charges incurred

depend on the grace period and balance; with most credit cards there is no

grace period if there is any outstanding balance from the previous billing

cycle or statement (i.e. interest is applied on both the previous balance

and new transactions). However, there are some credit cards that will

only apply finance charge on the previous or old balance, excluding new

transactions.




19

BENEF I TS TO M ERCH ANTS

An example of street markets accepting credit cards. Most simply display

the acceptance marks (stylized logos, shown in the upper-left corner ofthe sign) of all the cards they accept.

For merchants, a credit card transaction is often more secure than other

forms of payment, such as cheques, because the issuing bank commits to

pay the merchant the moment the transaction is authorized, regardless of

whether the consumer defaults on the credit card payment (except for

legitimate disputes, which are discussed below, and can result in charges

back to the merchant). In most cases, cards are even more secure than

cash, because they discourage theft by the merchant's employees and

reduce the amount of cash on the premises. Finally, credit cards reduce

the back office expense of processing checks/cash and transporting them

to the bank.


http://en.wikipedia.org/wiki/Merchants

http://en.wikipedia.org/wiki/Cheque

http://en.wikipedia.org/wiki/File:WeTakeCreditDebitCardsCrop.jpg

http://en.wikipedia.org/wiki/Cheque

http://en.wikipedia.org/wiki/Merchants





20

Prior to credit cards, each merchant had to evaluate each customer's credit

history before extending credit. That task is now performed by the banks

which assume the credit risk. Credit cards can also aid in securing a sale,

especially if the customer does not have enough cash on his or her person

or checking account. Extra turnover is generated by the fact that the

customer can purchase goods and/or services immediately and is less

inhibited by the amount of cash in his or her pocket and the immediate

state of his or her bank balance. Much of merchants' marketing is based

on this immediacy.

For each purchase, the bank charges the merchant a commission

(discount fee) for this service and there may be a certain delay before the

agreed payment is received by the merchant. The commission is often a

percentage of the transaction amount, plus a fixed fee (interchange rate).

In addition, a merchant may be penalized or have their ability to receive

payment using that credit card restricted if there are too many

cancellations or reversals of charges as a result of disputes. Some small

merchants require credit purchases to have a minimum amount to

compensate for the transaction costs.

In some countries, for example the Nordic countries, banks guarantee

payment on stolen cards only if an ID card is checked and the ID card

number/civic registration number is written down on the receipt togetherwith the signature. In these countries merchants therefore usually ask for

ID. Non-Nordic citizens, who are unlikely to possess a Nordic ID card or

driving license, will instead have to show their passport, and the passport

number will be written down on the receipt, sometimes together with

other information. Some shops use the card's PIN for identification, and

in that case showing an ID card is not necessary.

http://en.wikipedia.org/wiki/Credit_history


http://en.wikipedia.org/wiki/Credit_risk

http://en.wikipedia.org/wiki/Nordic_countries

http://en.wikipedia.org/wiki/ID_card

http://en.wikipedia.org/wiki/ID_card

http://en.wikipedia.org/wiki/Nordic_countries

http://en.wikipedia.org/wiki/Credit_risk






21

Costs to merchants

Merchants are charged several fees for accepting credit cards. The

merchant is usually charged a commission of around 1 to 3 percent of thevalue of each transaction paid for by credit card. The merchant may also

pay a variable charge, called an interchange rate, for each transaction .[13]

In some instances of very low-value transactions, use of credit cards will

significantly reduce the profit margin or cause the merchant to lose

money on the transaction. Merchants with very low average transaction

prices or very high average transaction prices are more averse toaccepting credit cards. In some cases merchants may charge users a

"credit card supplement", either a fixed amount or a percentage, for

payment by credit card. This practice is prohibited by the credit card

contracts in the United States, although the contracts allow the merchants

to give discounts for cash payment.

Merchants are also required to lease processing terminals, meaning

merchants with low sales volumes may have to commit to long lease

terms. For some terminals, merchants may also need to subscribe to a

separate telephone line. Merchants must also satisfy data security

compliance standards which are highly technical and complicated. In

many cases, there is a delay of several days before funds are deposited

into a merchant's bank account. Because credit card fee structures arevery complicated, smaller merchants are at a disadvantage to analyze and

predict fees.

Finally, merchants assume the risk of chargebacks by consumers.

http://en.wikipedia.org/wiki/Commission_%28remuneration%29

http://en.wikipedia.org/wiki/Interchange_rate

http://en.wikipedia.org/wiki/Credit_card#cite_note-how-12



http://en.wikipedia.org/wiki/Profit_margin

http://en.wikipedia.org/wiki/Chargebacks

http://en.wikipedia.org/wiki/Chargebacks

http://en.wikipedia.org/wiki/Profit_margin


http://en.wikipedia.org/wiki/Interchange_rate

http://en.wikipedia.org/wiki/Commission_%28remuneration%29




22

Parties involved

Cardholder: The holder of the card used to make a purchase; the

consumer. Card-issuing bank: The financial institution or other organization

that issued the credit card to the cardholder. This bank bills the

consumer for repayment and bears the risk that the card is used

fraudulently. American Express and Discover were previously the

only card-issuing banks for their respective brands, but as of 2007,

this is no longer the case. Cards issued by banks to cardholders in adifferent country are known as offshore credit cards.

Merchant: The individual or business accepting credit card

payments for products or services sold to the cardholder.

Acquiring bank: The financial institution accepting payment for the

products or services on behalf of the merchant.

Independent sales organization: Resellers (to merchants) of the

services of the acquiring bank.

Merchant account: This could refer to the acquiring bank or the

independent sales organization, but in general is the organization

that the merchant deals with.

Credit Card association: An association of card-issuing banks such

as Discover, Visa, MasterCard, American Express, etc. that set

transaction terms for merchants, card-issuing banks, and acquiring

banks.

Transaction network: The system that implements the mechanics of

the electronic transactions. May be operated by an independent

company, and one company may operate multiple networks.

Affinity partner: Some institutions lend their names to an issuer to

attract customers that have a strong relationship with that


http://en.wikipedia.org/wiki/Offshore_credit_card

http://en.wikipedia.org/wiki/Acquiring_bank

http://en.wikipedia.org/w/index.php?title=Independent_sales_organization&action=edit&redlink=1

http://en.wikipedia.org/wiki/Merchant_account

http://en.wikipedia.org/wiki/Discover_Card

http://en.wikipedia.org/wiki/Visa_%28company%29





http://en.wikipedia.org/wiki/Visa_%28company%29

http://en.wikipedia.org/wiki/Discover_Card

http://en.wikipedia.org/wiki/Merchant_account

http://en.wikipedia.org/w/index.php?title=Independent_sales_organization&action=edit&redlink=1

http://en.wikipedia.org/wiki/Acquiring_bank

http://en.wikipedia.org/wiki/Offshore_credit_card





23

institution, and get paid a fee or a percentage of the balance for

each card issued using their name. Examples of typical affinity

partners are sports teams, universities, charities, professional

organizations, and major retailers. Insurance providers: Insurers underwriting various insurance

protections offered as credit card perks, for example, Car Rental

Insurance, Purchase Security, Hotel Burglary Insurance, Travel

Medical Protection etc.

The flow of information and money between these parties — always

through the card associations — is known as the interchange, and it

consists of a few steps.




24

Chapter-7 Steps involved in Credit

Cards

TRANSACTION STEPS

Authorization: The cardholder presents the card as payment to

the merchant and the merchant submits the transaction to theacquirer (acquiring bank). The acquirer verifies the credit card

number, the transaction type and the amount with the issuer (Card-

issuing bank) and reserves that amount of the cardholder's credit

limit for the merchant. An authorization will generate an approval

code, which the merchant stores with the transaction.

AUTHORIZATION

BACHING

CLEARING &

SETTELMENTFUNDING

CHARGEBACKS

http://en.wikipedia.org/wiki/Authorization_hold





25

Batching : Authorized transactions are stored in "batches", which

are sent to the acquirer. Batches are typically submitted once per

day at the end of the business day. If a transaction is not submitted

in the batch, the authorization will stay valid for a period

determined by the issuer, after which the held amount will be

returned to the cardholder's available credit (see authorization

hold) . Some transactions may be submitted in the batch without

prior authorizations; these are either transactions falling under the

merchant's floor limit or ones where the authorization was

unsuccessful but the merchant still attempts to force the transaction

through.

Clearing and Settlemen t : The acquirer sends the batch

transactions through the credit card association, which debits the

issuers for payment and credits the acquirer. Essentially, the issuer

pays the acquirer for the transaction.

Funding : Once the acquirer has been paid, the acquirer pays the

merchant. The merchant receives the amount totaling the funds in

the batch minus either the "discount rate," "mid-qualified rate", or

"non-qualified rate" which are tiers of fees the merchant pays the

acquirer for processing the transactions.

Chargebacks : A chargeback is an event in which money in a

merchant account is held due to a dispute relating to the

transaction. Chargebacks are typically initiated by the cardholder.

In the event of a chargeback, the issuer returns the transaction to

the acquirer for resolution. The acquirer then forwards the

chargeback to the merchant, who must either accept the chargeback

or contest it.



http://en.wikipedia.org/wiki/Floor_limit

http://en.wikipedia.org/wiki/Chargeback

http://en.wikipedia.org/wiki/Chargeback

http://en.wikipedia.org/wiki/Floor_limit






26

Chapter -8 CREDIT CARD

ISSUING BANKS IN INDIA

If you are planning to get a credit, the first thing you should know is

which are the credit card issuing banks in India. There are several banks

which provide credit cards in India. Given below is a list of Credit Card

service providing banks along with the various types of Credit Cards they

offer.

Indian Banks offering Credit Card facility to its

customers are:

Axis Bank

Bank of Baroda

Canara Bank Corporation Bank

HDFC

ICICI Bank

Indian Overseas Bank

Kotak Mahindra.

Punjab National Bank

SBI

Syndicate Bank

Union Bank of India

Vijaya Bank




27

Chapter-9 Types of Credit Cards1.)SUPER PREM I UM

INFINIA

LOW-COST PRIVILEGES. ALWAYS.

With the HDFC Bank Infinia Credit Card, you can access the best things

in life at the lowest cost of ownership possible. Low-cost benefits that

come with this card are:

Low interest rate: You can enjoy upto 50 days of interest-free

credit period* with the HDFC Bank Infinia Credit Card. You also




28

have the convenient option of managing your payments according

to your requirement. If you choose to carry forward your balance to

the next month, an unbelievably low interest rate of 1.99% per

month is applicable. No cash withdrawal fee: Withdraw cash of upto 40% of your credit

limit without any cash withdrawal charges.

Lowest foreign currency markup fee: We understand that

international travel is an essential part of your life and hence your

HDFC Bank Infinia Credit Card offers you the lowest markup fee

of 2% on all foreign currency transactions. No fuel surcharge: Enjoy 0% surcharge on all your fuel purchases

above Rs 400 across numerous fuel stations.

UNRESTRAINED SPENDING POWER

Shop without worrying about credit or spending limits. The HDFC Bank

Infinia Credit Card comes with a minimum credit limit of Rs 10 lakh and

the unique NPSL* (No Pre- set Spending Limit) feature. What’s more,

your card is safeguarded against fraudulent transactions, so that your

interests are protected, always.

DON’T LOSE SLEEP OVER A LOST CARD

If you lose your HDFC Bank Infinia Credit Card, do not worry. All you

need to do is report the loss to us by calling our 24-hour call centre or the

dedicated customer care number. We will immediately block all

transactions on your card and deliver a new card at a nominal charge.




29

Moreover, any fraudulent transactions after report of the loss will be

covered by insurance.

CARDS FOR YOUR ENTIRE FAMILYThe benefits of your HDFC Bank Infinia Credit Card can be utilized by

your family members too. You can avail of upto 3 add-on cards for your

spouse, parents, siblings, son and/or daughter (over 18 years and not >70

years).

2.)REGELIA CARD

ou will get some exclusive features and benefits with your HDFC Bank

Regalia Card

WELCOME BENEFIT

Get 10000 Reward Points and a renewal benefit with 2500 reward

points




30

TRAVEL & ENTERTAINMENT PORTAL

Find the best prices and super deals on your flight tickets, hotel

bookings and movie tickets with ease on our online Travel &Entertainment Portal.

Visit www.hdfcbankregalia.com and earn 8 Reward Points for

every Rs. 150 spent on this portal. Redeem your reward points

against Regalia Vouchers on airline tickets, hotel bookings or

movie tickets with your HDFC Bank Regalia Credit Card.

COMPLIMENTARY TAJ EPICURE PLUS

MEMBERSHIP

Enjoy a complimentary Taj Epicure Plus Membership Card thatentitles you to some very exquisite benefits* at Taj Hotels and

Resorts. With the Gold level status at the TajInnerCircle you earn

2.5 Epicure Points (each point worth Rs. 10) for every Rs. 100

spent on food and beverages at participating restaurants in India.

You can redeem your points for meals and holidays at the Taj or

simply use them to pay your dining and hotel room bills. Two

certificates for 50% off on the rack rate during weekends at select

Taj hotels (Check-in on a Friday or Saturday and check-out on a

Saturday or Sunday).

A certificate for 50% off on a buffet lunch at a Taj Coffee Shop

between Monday and Saturday.

http://hdfcbankregalia.myrewardz.com/default.aspx





31

A voucher for a complimentary round of drinks at participating

bars and restaurants on any evening of the week.

Stay benefits such as: Reward Points each time you stay, 10%

discount on the rack rate at Taj Leisure Hotels in India, 10%

discount on telephone and fax usage charges, 15% discount on

laundry and 20% discount on business centre services.

FANTASTIC REWARDS

Celebrate the power of unparalleled rewards exclusively on your

Visa Regalia Credit Card. Now with every Rs. 150 that you spend,

you get:

8 Reward Points on all purchases at www.hdfcbankregalia.com

6 Reward Points on all your dining spends

4 Reward Points on all other spends

3.)SUPER PROTECTION BENEFITS

We provide you excellent insurance cover –

Accidental Death: In case of death in an air accident, your

nominated next of kin will receive a compensation of Rs. 1 Crore.

Emergency Hospitalization: Protection of up to Rs. 12 Lakhs

against any medical emergency when you are travelling abroad.






32

ROCK BOTTOM INTEREST RATES

Enjoy up to 50 days of interest free credit and manage your payments at your convenience. You can choose to pay only the

minimum amount due (5% of total amount due subject to a

minimum of Rs. 200) or any portion of the total amount due that is

greater than the minimum amount due, whichever is convenient for

you. You can carry forward the balance amount to next month at an

extremely low interest charge of just 1.99% per month.

SPECIAL OFFERS

Get an exclusive offer from Matrix Cellular on HDFC Bank

Premium Credit cards. For other similar offers visit HDFC Bank

SmartBuy.

4.) JETPRIVILEGE HDFC BANK WORLD

CREDIT CARD

http://www.hdfcbanksmartbuy.com/







33

ELIGIBILITY

You are eligible for a JetPrivilege HDFC Bank World Credit Card based

on the following

FOR SALARIED

Minimum Age 21 years

Maximum Age 60 years

FOR SELF-EMPLOYED Minimum Age 21 years


You will get the following exclusive features and benefits with your

JetPrivilege HDFC Bank World Credit Card

WELCOME BENEFIT

1. Embark on your exciting journey with one complimentary Jet

Airways

2. Avail of up to 10,000 Bonus Miles, which includes,

o 5,000 Bonus JPMiles on the first swipe of your card within

90 days of card setup




34

o 5,000 Bonus JPMiles on the total retail spends of Rs. 75,000

and above, within 90 days of the card setup

3. Experience luxury and savings with a discount voucher* worth

Rs 750/- to be availed for booking a return ticket on

www.jetairways.com or www.jetkonnect.com

*Terms and Conditions apply, kindly click here for Base Fare

Waived complementary Ticket TnC and click here for discount

voucher TnC

JPMILES REWARD PROGRAM o Enjoy 6 JPMiles on every Rs. 150 spent on retail expenses

with your HDFC Bank World MasterCard Credit Card.

o Get 3 times more than you ask for with the 'triple reward' on

every flight ticket booked on www.jetairways.com orwww.jetkonnect.com.

Note: Only retail purchases qualify for JPMiles. Cash advance,

fees and other charges do not accrue any JPMiles. Transaction

amounts less than Rs. 150 will not accrue any JPMiles.

TIER POINTS

Get one 'Tier Point' in your JetPrivilege Frequent Flier

Membership on every Rs. 2,00,000/- spend (retail) on your card.

http://www.jetairways.com/

http://www.jetkonnect.com/

http://www.hdfcbank.com/assets/pdf/JetPrivilege-FreeTicket-TnC.pdf

http://www.hdfcbank.com/assets/pdf/JetPrivilege-DiscountVoucher-TnC.pdf






http://www.hdfcbank.com/assets/pdf/JetPrivilege-FreeTicket-TnC.pdf






35

PRIVILEGES ON JET AIRWAYS AND JET

KONNECT

o Avail of a 5% discount* on all domestic air ticket (revenue

flights) bookings, made on www.jetairways.com or

www.jetkonnect.com

o Enjoy premier check-in for all domestic flights of

JetAirways and JetKonnect

o Benefit from a 10 kg additional baggage allowance on all

domestic JetAirways flights

*Terms and Conditions apply, kindly click here to read through the

terms and conditions

PRIORITY PASS MEMBERSHIP

Your HDFC Bank JetPrivilege World Credit Card offers you a

complimentary Priority Pass membership* that allows you preferential access# to more than 600 airport lounges around the

world, no matter which airline or class you fly. It offers you well

deserved rest, refreshment and the use of business facilities like

phones, fax, internet access and conference rooms. You will surely

find it useful to relieve travel fatigue and escape airport chaos.

* Priority Pass membership worth $99 per annum is

complimentary.

A usage fee of up to $27 per person per visit (including any

accompanying guest) will be charged to the Card Account. The

above fee is indicative and usage charges may vary from lounge to

lounge.

Please visit www.prioritypass.com for more details.



http://www.hdfcbank.com/assets/pdf/JetPrivilege-5discount-TnC.pdf

http://www.prioritypass.com/








36

MASTERCARD LOUNGE PROGRAM

Be greeted with luxury each time you travel, with access to selectlounges at airports in India under the MasterCard Lounge Access

Program*

* MasterCard Feature

FUEL SURCHARGE WAIVER

Enjoy complete freedom from fuel surcharge when you purchase

fuel between Rs. 400 and Rs. 5000 across all fuel stations..

ZERO LIABILITY ON LOST CARD

If you lose your Card, report it immediately to our 24-hour call

centre. After reporting the loss, you have a zero liability on any

fraudulent transactions made with your card.

REVOLVING CREDIT

Enjoy Revolving Credit on your Credit Card at an interest rate of3.05% per month.

INTEREST FREE CREDIT

Avail up to 50 interest free days from the date of purchase (subject

to the submission of the charge)

http://www.hdfcbank.com/personal/find-your-nearest/find-credit-card-helpline-numbers







37

5.)JETPRIVILEGE HDFC BANK PLATINUM

CREDIT CARD

ELIGIBILITY

You are eligible for a JetPrivilege HDFC Bank Platinum Credit Card

based on the following

FOR SALARIED



FOR SELF-EMPLOYED





38


You will get some exclusive features and benefits with your JetPrivilege

HDFC Bank Platinum Credit Card

WELCOME BENEFIT

1. Embark on your exciting journey with one complimentary Jet

Airways Ticket* (Base Fare Waived)




o 2,000 Bonus JPMiles on the total retail spends of Rs. 50,000and above, within 90 days of the card setup


Rs 750/- to be availed for booking a return ticket on

www.jetairways.com or www.jetkonnect.com



voucher TnC












39

JPMILES REWARD PROGRAM

o Enjoy 5 JPMiles on every Rs. 150 spent on retail expenses

with your JetPrivilege HDFC Bank Platinum Credit Card.

o Get 3 times more JPMiles on every flight ticket booked on

www.jetairways.com or www.jetkonnect.com.




PRIVILEGES ON JET AIRWAYS AND JET

KONNECT

o Avail of a 5% discount* on all domestic air ticket (revenue

flights) bookings, made on www.jetairways.com or

www.jetkonnect.com

*Terms and Conditions apply, kindly click here to read through theterms and conditions


Be greeted with luxury each time you travel, with access to select

lounges at airports in India under the MasterCard Lounge Access

Program*















40


Enjoy complete freedom from fuel surcharge when you purchase fuel between Rs. 400 and Rs. 5000 across all fuel stations..



centre. After reporting the loss, you have a zero liability on anyfraudulent transactions made with your card.

REVOLVING CREDIT

Enjoy Revolving Credit on your Credit Card at an interest rate of

3.05% per month.



to the submission of the charge by the Merchant).








41

6.)JETPRIVILEGE HDFC BANK TITANIUM

CREDIT CARD

ELIGIBILITY

You are eligible for a JetPrivilege HDFC Bank Titanium Credit Card

based on the following

FOR SALARIED



FOR SELF-EMPLOYED





42


You will get some exclusive features and benefits with your JetPrivilege

HDFC Bank Titanium Credit Card

WELCOME BENEFIT




o 1,000 Bonus JPMiles on the total retail spends of Rs. 25,000

and above, within 90 days of the card setup


Rs 750/- to be availed for booking a return ticket onwww.jetairways.com or www.jetkonnect.com



voucher TnC

JPMILES REWARD PROGRAM o Enjoy 4 JPMiles on every Rs. 150 spent on retail expenses

with your JetPrivilege HDFC Bank Titanium Credit Card

o Get 3 times more JPMiles on every flight ticket booked on

www.jetairways.com or www.jetkonnect.com.
















43





Be greeted with luxury each time you travel, with access to select

lounges at airports in India under the MasterCard Lounge Access

Program*









REVOLVING CREDIT

Enjoy Revolving Credit on your JetPrivilege HDFC Bank Titanium

Credit Card at an interest rate of 3.15% per month.








44


Avail up to 50 interest free days from the date of purchase (subjectto the submission of the charge by the Merchant).

7.)PLATINUM PLUS CREDIT CARD

ELIGIBILITY

You are eligible for a Platinum Plus Credit Card based on the following:

SALARIED EMPLOYEE



SELF EMPLOYED





45


You will get some exclusive features and benefits with your HDFC Bank

Platinum Plus Credit Card

ATTRACTIVE REWARD POINTS

Earn 2 Reward Points on every Rs. 150 for spends up to Rs. 50,000

per statement cycle. For incremental spends above Rs. 50,000 in a

statement cycle, earn 50% more Reward Points i.e. 3 RewardPoints per Rs. 150.

0% FUEL SURCHARGE


fuel between Rs. 400 and Rs. 5,000 with your Platinum Plus CreditCard.


If you lose your Credit Card, report it immediately to our 24-hour

call centre. After reporting the loss, you carry zero liability on any


INTEREST FREE CREDIT FACILITY

Avail of up to 50 days interest free from the date of purchase

(subject to the submission of the charge by the Merchant).




46

REVOLVING CREDIT FACILITY

Enjoy the Revolving Credit facility on your Platinum Plus CreditCard at an interest rate of 3.15% per month.

FREE ADD-ON CARD

Share the excellent features of your Platinum Plus Credit Card with

your loved ones. Get up to 3 lifetime free add-on cards, which youcan give to your spouse, children (above 18 years of age), parents,

brothers or sisters.

UTILITY BILLS PAYMENTS

Register your Platinum Plus Credit Card with SmartPay, HDFC

Bank's Utility Bill payment service. You can then ensure that all

your utility bills are paid on time, conveniently and easily.




47

8.)TITANIUM CREDIT CARD

ELIGIBILITY

You are eligible for a Titanium Credit Card based on the following:

SALARIED EMPLOYEE



SELF EMPLOYED




Titanium Credit Card




48

TITANIUM REWARDS

Earn 2 Reward Points for every Rs.150 when you spend up to Rs.35,000 per statement cycle. For incremental spends above Rs.

35,000 in a statement cycle, earn 50% more Reward Points (i.e. 3

Reward Points per Rs. 150).

ZERO PETROL SURCHARGE

Enjoy the benefit of zero fuel surcharge when you purchase fuel

between Rs. 400 and Rs. 5,000 with your Titanium Credit Card.



centre. After reporting the loss, you carry zero liability on any


INTEREST-FREE CREDIT FACILITY

Avail of up to 50 interest free days from the date of purchase



You can enjoy the Revolving Credit facility that comes with your

Titanium Credit Card at an interest rate of 3.15% per month.








49

9.)GOLD CREDIT CARD

ELIGIBILITY

You are eligible for a Gold Credit Card based on the following:

SALARIED EMPLOYEE



SELF EMPLOYED




Gold Credit Card




50

ATTRACTIVE REWARD POINTS

Earn 1 Reward Point for every Rs.150 for spends up to Rs. 20,000 per statement cycle. For incremental spends above Rs. 20,000 in a

statement cycle, earn 50% more Reward Points i.e. 1.5 Reward

Points per Rs. 150.

REDEMPTION OF REWARD POINTS

After earning all those reward points on your HDFC Bank Gold

Credit Card, redeem them for exciting gifts and services! You

could even convert them to airline miles with India's leading

airlines through the MyRewards program.

ACCEPTED WORLDWIDE

Your Gold Credit Card is accepted at over 23 million Merchant

Establishments around the world, including 110,000 in India.

REVOLVING CREDIT

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 and carry forward the balance to a better

financial month. For this facility you pay a nominal charge of just

3.25% per month (39.0% annually).




51

FREE ADD-ON CARD

We offer you the option of an add-on card for your spouse,children or parents at no extra cost.








10.)WOMEN GOLD CREDIT CARD








52

ELIGIBILITY

You are eligible for a Women’s Credit Card based on the following:

SALARIED EMPLOYEE



SELF EMPLOYED




Womens Gold Credit Card

ATTRACTIVE REWARDS PROGRAMME

Earn 1 Reward Point for every Rs. 150 spent up to Rs. 20,000 per

statement cycle. For any incremental amount spent above Rs.

20,000 in a statement cycle, earn 50% more Reward Points (i.e. 1.5

Reward Points per Rs. 150).

TONS OF REDEMPTION CHOICES

MyRewards gives you an array of redemption opportunities for

your points; from microwaves to refrigerators, from Barbie dolls to

the latest fashion labels. That’s not all; you can also redeem your




53

accumulated reward points for air miles on leading airlines

including Jet Airways, Air India and Kingfisher Airlines.


Pay a minimum amount, which is 5% (subject to a minimum

amount of Rs. 200) of your total Credit Card bill or any higher

amount as per your convenience and carry the balance forward to

the following months. Pay a nominal charge of 3.25% per month

(39% annually) for revolving credit.


Avail of up to 50 interest free days from the date of purchase


WORLDWIDE ACCEPTANCE

Accepted at over 23 million merchant establishments around the

world, including 110,000 merchant establishments in India.





FREE ADD-ON CARD




54

We offer you the option of an add-on card for your spouse,

children or parents at no extra cost.

11.)SILVER CREDIT CARD

With your Silver Credit Card you can enjoy a ton of features and benefit:

ALL-PURPOSE CREDIT CARD

Your HDFC Bank Silver Credit Card can be used for all your

expenses including shopping, eating out, holiday, fuel, railway

ticket reservations and lots more.




55

EARN WHILE YOU SPEND*

Money spent is money earned. For every Rs. 200 you spend withyour card, you earn 1 Reward Point. You can redeem the Reward

Points you accumulate for exciting gifts and offers from our

exclusive rewards program.

ADD-ON CARDS

Get up to 3 add-on cards for your spouse, parents, brothers or

sisters, sons and daughters (over 18 years) and allow them to enjoy

the same privileges you do.


If you lose your card, report it immediately to our 24-hour call



WIDELY ACCEPTED

Your card is accepted at over 110,000 merchant establishments

across India and Nepal and close to 18 million merchant

establishments around the world.








56

Chapter -10 Credit Cards for

Professionals

PROFESSIONAL

1.)DOCTORS SUPERIA CREDIT CARD

ELIGIBILITY

You are eligible for a Doctors Superia Credit Card based on the following

SALARIED DOCTORS






57

SELF-PRACTICING DOCTORS




Doctor’s Superia Credit Card

WELCOME BENEFIT

Renewal Benefit: 2000 reward points

DOCTOR’S SUPERIA TRAVEL CLUB

o 1) International Miles - Enjoy redemption of Reward Points

at over 20 international airlines through KrisFlyer -

Singapore Airline's Frequent Flyer Program. You can enroll

for a KrisFlyer membership by registering at

www.krisflyer.com.

o 2) India Miles - Enjoy redemption of Reward Points against

air miles on Jet Airways, Kingfisher Airlines and Air India.

You can also redeem your Reward Points against Air

Vouchers of other leading domestic airlines.

DOCTOR ’S SUPERIA REWARDS

Enjoy spending on your HDFC Bank Doctor’s Superia Credit Card

with 3 Reward Points for every Rs. 150 you spend. Accumulate

Reward Points and redeem them for air miles on more than 20

international airlines or on any major domestic airline. (100

Reward Points = 70 air miles / Rs. 70 Air Voucher)

http://www.krisflyer.com/

http://www.krisflyer.com/




58

You can also redeem your Reward Points for exciting gifts from an

exclusive rewards catalogue, at the applicable redemption rate.

Please click here for further details.

Only retail purchases qualify for Reward Points. Cash advance,

fees and other charges do not accrue any reward points.

Transaction amounts less than Rs. 150 will not accrue any Reward

Points.

POWER DINING

Your HDFC Bank Doctor’s Superia Credit Card gives you tons of

reasons to dine out. Enjoy 50% more reward points* when you

dine. Now every meal will be more rewarding.

* 50% more Reward Points are offered to the Cardholders only on

those transactions which are classified under the 'Restaurant'

Merchant Category Code (MCC) as defined by VISA/ MasterCard.

Merchant Category Code (MCC) classified under 'Hotel' categories

will not qualify for 50% more Reward Points.

PRIORITY PASS MEMBERSHIP

Your HDFC Bank Doctor’s Superia Credit Card offers you a

complimentary Priority Pass membership* that allows you

preferential access# to more than 600 airport lounges around the

world, no matter which airline or class you fly. It offers you well

deserved rest, refreshments and the use of facilities like phones,

http://www.hdfcbank.com/personal/rewards/simple-rewards-catalogue?id=gts8mir8&path=myrewards





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fax, internet access and conference rooms. You will surely find it

useful to relieve travel fatigue and escape airport chaos.

* Priority Pass membership worth $99 per annum iscomplimentary.

A usage fee of up to $27 per person per visit (including any

accompanying guest) will be charged to the Card Account. The

above fee is indicative and usage charges may vary from lounge to

lounge.

Please visit www.prioritypass.com for more details.




SAFE & SECURE TRANSACTIONS

DIP your Chip Card at any Chip enabled POS or swipe your card at

any non-chip POS (Regular POS) .






http://www.hdfcbank.com/personal/credit_card/credit-card/doctors-superia/h3r9okf2


















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REVOLVING CREDIT

Enjoy Revolving Credit on your Doctor’s Superia Credit Card at aninterest rate of 3.05% per month.




SPECIAL OFFERS

Exclusive offer from Matrix Cellular on HDFC Bank Premium

Credit cards.

For more such offers visit HDFC Bank SmartBuy.

2.)DOCTOR'S PLATINUM CREDIT CARD

http://www.hdfcbanksmartbuy.com/post/postid-568.aspx







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ELIGIBILITY

You are eligible for a Doctor's Platinum Credit Card based on the

following

SALARIED DOCTORS



SELF-PRACTICISG DOCTORS Minimum Age 21 years



Doctor's Platinum Credit Card

WELCOME BENEFIT

Welcome Benefit: 2000 Reward Points

Renewal Benefit: 1000 reward points

DOCTOR'S PLATINUM TRAVEL CLUB

India Miles - Redeem Reward Points against air miles on Jet

Airways, Kingfisher Airlines and Air India. Also, redeem your

Reward Points against Air Vouchers on other leading domestic

airlines.




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DOCTOR'S PLATINUM REWARDS

Enjoy spending on your HDFC Bank Doctor's Platinum CreditCard with 3 Reward Points for every Rs. 150 you spend.

Accumulate the Reward Points and redeem them against air miles

on all the major domestic airlines. (100 Reward Points = 70 air

miles / Rs. 70 Air Voucher). Redeem your Reward Points for

exciting gifts from an exclusive rewards catalogue, at the

applicable redemption rate. Please click here for further details.

Only retail purchases qualify for Reward Points. Cash advance,

fees and other charges do not accrue any reward points.

Transaction amounts less than Rs. 150 will not accrue any Reward

Points.

POWER DINING

Your HDFC Bank Doctor's Platinum Credit Card gives you tons of

reasons to dine out. Enjoy 50% more reward points* when you

dine. Now every meal will be more rewarding.

* 50% more Reward Points are offered to the Cardholders only onthose transactions which are classified under the 'Restaurant'

Merchant Category Code (MCC) as defined by VISA/ MasterCard.

Merchant Category Code (MCC) classified under ‘Hotel’

categories will not qualify for 50% more Reward Points.






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Enjoy complete freedom from fuel surcharge when you purchasefuel between Rs. 400 and Rs. 5000 across all fuel stations..

SAFE & SECURE TRANSACTIONS

DIP your Chip Card at any Chip enabled POS or swipe your card at

any non-chip POS (Regular POS) .





REVOLVING CREDIT

Enjoy Revolving Credit on your Doctor's Platinum Credit Card at

an interest rate of 3.15% per month.




http://www.hdfcbank.com/personal/credit_card/credit-card/doctors-platinum/h3r9okj7

















64

SPECIAL OFFERS

Exclusive offer from Matrix Cellular on HDFC Bank Doctor's

Platinum Credit cards.

For more such offers visit HDFC Bank SmartBuy.








65

Chapter -11 Credit Cards used by

corporate sectors:

CORPORATE PLATINUM CREDIT CARD

With a Corporate Platinum Credit Card you can enjoy a ton of features

and benefits:

CORPORATE FEATURES

24x7 online MIS

Upto 60 MIS reports for better informed business decisions

o Spending Analysis by category

o Expense reports

o Cost allocation details & summary

o Merchant summary & details

o Account management for detailed transaction information at

employee level




66

Substantial savings for the business through better negotiations

with airlines, hotel chains and other service providers.

Streamlined accounting procedures by consolidating transaction

data from around the world. Help in integrating with the existing accounting systems.

Help in minimising paperwork and simplifying reconciliation and

compliance tasks.

CARDHOLDER BENEFITS

MY REWARDS

Earn up to 2 reward points for every Rs. 150 spent on your card.

PETROL SURCHARGE WAIVER

0% surcharge on petrol transactions between Rs. 400 to Rs. 5,000

only, across all petrol pumps.

REVOLVING CREDIT

Up to 50 interest free days on your card.

PROTECTION THROUGH INSURANCE

To show how much we care, we provide you accident insurance

cover up to 10 lakhs on air travel and 3 lakhs on rail or road travel.

Click here for more details

http://www.hdfcbank.com/assets/pdf/INSURANCE_WEBSITE.pdf






67

EXCLUSIVE LOUNGE ACCESS

Unique offer only for our corporate card customers – get access to

airport lounges at select airports.

If you hold a MasterCard Corporate Platinum Card - Click here for

details.

If you hold a Visa Corporate Platinum Card - Click here for details.

CORPORATE WORLD MASTERCARD

CREDIT CARD

Features and benefits of a Corporate World MasterCard Credit

Card

CORPORATE FEATURES

24x7 online MIS

60 MIS reports for better informed business decisions


o Expense reports




68




employee level Substantial savings for the business through better negotiations

with airlines, hotel chains, etc.

Streamlining accounting procedures by consolidating transaction

data from around the world.

Integrating with the existing accounting systems.

Minimising paperwork and simplifying reconciliation andcompliance tasks.

CARDHOLDER BENEFITS

MY REWARDS





REVOLVING CREDIT

Up to 50 interest free days on your credit card




69



cover up to 10 lakhs on air travel and 3 lakhs on rail or road travel.Click here for more details

EXCLUSIVE LOUNGE ACCESS

Unique offer only for our Corporate World MasterCard Credit

Card customers – get access to airport lounges at select airports.Click here for details.

CORPORATE VISA SIGNATURE CREDIT

CARD

features and benefits of a Corporate Visa Signature Credit Card

CORPORATE FEATURES






70

24x7 online MIS

60 MIS reports for better informed business decisions


o Expense reportso Cost allocation details & summary



employee level


with airlines, hotel chains, etc. Streamlining accounting procedures by consolidating transaction


Integrating with the existing accounting systems.

Minimising paperwork and simplifying reconciliation and

compliance tasks.

CARDHOLDER BENEFITS

My rewards





REVOLVING CREDIT

Up to 50 interest free days on your credit card.




71


Stay protected with accident insurance cover up to 10 lakhs on airtravel and 3 lakhs on rail or road travel. Click here for more details

PRIVILEGES

Complementary membership to Priority Pass usage will be charged

CORPORATE CREDIT CARD

With a Corporate Credit Card you can enjoy a ton of features and

benefits:

CORPORATE FEATURES

24x7 online MIS

Upto 60 MIS reports for better informed business decisions







72

o Expense reports




employee level


with airlines, hotel chains, etc.

Streamlining accounting procedures by consolidating transaction


Integrating with the existing accounting systems. Minimising paperwork and simplifying reconciliation and

compliance tasks.

CARDHOLDER BENEFITS

MY REWARDS



0% surcharge on petrol transactions between Rs. 400 to Rs. 2,500only, across all petrol pumps.

REVOLVING CREDIT

Up to 50 interest free days on your card along with an interest rate

of 3.25% per month.






cover up to 10 lakhs on air travel and 3 lakhs on rail or road travel.Click here for more details

Unique offer only for our corporate card customers – get access to

CONCLUSION

A credit card is a payment card issued to users as a system of payment.

It allows the cardholder to pay for goods and services based on the

holder's promise to pay for them. The issuer of the card creates a

revolving account and 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.

Hdfc bank issued different types of credit card for customer & it is useful

for customer to there day to day life . gold credit card,women gold credit

card,or silver credit card,commercial credit card ,jet privilege credit card

& so on this type of credit card issue hdfc bank .provide better service tothere customer.

















CREDIT CARD FINAL.docx

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