Credit Cards and Rbi Guideliness On Credit Cards

CREDIT CARDS AND RBI GUIDELINESS ON CREDIT CARDS
EXECUTIVE SUMMARY ON CREDIT CARDS AND RBI GUIDELINESS A credit card is a system of payment named after the small plastic card issued to users of the system. A credit card is different from a debit card in that it does not remove money from the user's account after every transaction. In the case of credit cards, the issuer lends money to the consumer (or the user) to be paid to the merchant. It is also different from a charge card (though this name is sometimes used by the public to describe credit cards), which requires the balance to be paid in full each month. In contrast, a credit card allows the consumer to 'revolve' their balance, at the cost of having interest charged. Most credit cards are the same shape and size, as specified by the ISO 7810 standard.
OBJECTIVE OF THE STUDY y To study about the credit cards and RBI guidelines on credit cards. y To analyze the implementation of credit cards process in banking sector. y To study the profile of ICICI BANK andTHE INDIAN BANK and study their functions performance of credit cards.
IMPORTANCE OF CREDIT CARDS
Credit cards are a very important part of life. Credit cards are important because they give you the ability to pay for items and necessities when you dont have the cash or money. If you find yourself in hard times or strapped for cash applying or using a credit card may be your only choice. However, it is very important to keep in mind that with these terms comes ultimately a lot of responsibility. It is important to keep your credit score in mind when applying for a credit card. The better your credit is and the more you have in savings and cash, the more likely you are to get a credit card with better terms, lower fees, and a lower interest rate.
With lower fees, terms, and interest rates you are insuring yourself that you will pay less in the long run and be paying for ultimately the cash that you borrowed. To make sure that this happens you should extensively research the cards that you are thinking about getting. By doing this, you will get a card that fits you and your lifestyle. The card that fits you, your spending habits, and your lifestyle is the smartest card for you because it will make sure that you will get everything that you need in a credit card. Credit cards are a vital part of everyday life.
RESEARCH METHODOLOGY Research Methodology is the technique of collecting the data sources for doing the project, i.e. primary datas and Secondary datas. Primary data:Primary datas had been adopted by informal interviews to the Branch manager. Of The Indian bank and ICICI bank and some handbooks of their branch related to my topics.
Secondary data:Secondary datas are adopted by collecting the informations from different books, websites of banking sector and especially The Indian bank and ICICI BANK websites and current news from newspaper, the name the secondary data had been specified in the Bibliography.
LIMITATIONS OF THE STUDY The topic of CREDIT CARDS AND RBI GUIDELINESS ON CREDIT CARD is a vast topic. Thus, I selected THE INDIAN BANK AND ICICI BANK to limit my study and to learn and acquire knowledge about the entire system and CREDIT CARDS AND RBI GUIDELINESS ON CREDIT CARDS in a specific branch of THE INDIAN BANK, TILAK NAGAR BRANCH AND ICICI BANK, ODEON, GHATKOPAR (E). By utilizing that information. I have completed my project.
CHAPTER 1 CREDIT CARDS AND RBI GUIDELINESS ON CREDIT CARDS
Introduction to smart cards:Progress is being made towards developing standards for the newer payment instruments like SMART cards. A pilot project on SMART cards technology in India institute of technology, Mumbai to find out the viability and use of SMART CARDS as retail payments instruments within the country. It came out with a set of recommendation on SMART cards standards .With a view to examine these recommendations and to determine the standards for the banking industry the Reserve Bank in September 1999 set up a WORKING GROUP to study and recommend a SMART card based payment systems standards . The working group submitted its report to reserve bank in January 2000 and they were accepted by reserve bank. Smart cards looks like plastic card contain a small microprocessor or computer chip on the face of the card. Smart card is actually a debit card loaded with sum of money. It can be used for both small payments and prepaid telephone cards. Such a card facilities small purchases with exact change i.e. cup of coffee or tea, a newspaper , bus, railway fare etc. n finalizing the purchases submit the smart card to merchant outlet .the merchant establishment need a special device to transfer the money from the smart cards. The moment the card is inserted to the merchant.
Introduction to credit cards:In India commercials banks, introduced the credit card facility in the early eighties. Credit cards are a convenient medium of exchange. It is a cute card made of plastic .It has method of identification or a stamp size photo of the card holder. It authorize the holders to charge goods and services to his account for which he is billed. Credit cards are otherwise called plastic money. The most important difference between a credit card and a debit cards is while credit cards is a post paid one the latter is pre paid. Credit cards are designed to reduce the use of either cash or cheque for transactions. It enables a customer to purchase goods or services within prescribed limits from certain authorized retail and services establishments without making immediate cash payments. The customer thus possessing a credit card need not carry any cash and is empowered to spend wherever and whenever he wants goods or services with his credit cards within the limits prescribed by his banks. It reduces the physical movement of cash and enables to transfer money electronically. The customer can avail the credit card facility only in those establishments, which accepted them. After purchase of goods or services, the customer will hand over the card to the supplier\seller who swipe the card in an electronic terminal, which read the cardholders name, card number etc.on accepting the card by the machine, the supplier records the amount of the transactions in the machine. The imprinter of the machine print a sales voucher showing the card holders name , card number, card type, name of business establishment ,transaction id, invoice number, amount transaction etc. the holder signs the voucher and the signature is
cross checked by the suppliers with that of the specimen signature on the card. The signature voucher is then sent to the bank, which pays it after deducting its service charges. Once in a month the bank sends a statement of all the credit card purchases in the previous month to the credit card holder and the latter has to remit the amount either by cash or cheque. Credit cards statement will be dispatched on a particular date in every month free of cost in the mailing address of the cardholders or online. The monthly bill amount can be remitted to the bank either totally or in installments under the revolving credit facility scheme. If revolving credit facilities are granted by the bank for the payments of the bill amount, the bank charges interest for the outstanding balance. The business establishments will receive the money from the institutions operating the plan either in the same day or in the next day. Credit cards are generally issued by the banks only to those prompt customers having either savings or current account .the bank should issue cards to its customers only having good financial standings , with satisfactory records of accomplishments. The credit limit or purchasing power is fixed by the bank issuing the cards. On the basis of credit limits bank issues different types from bank to bank. The bank assumes the risk and responsibility of collecting the dues from the customers and they permit cardholders a cash advance facility from its branches. The upper-limit of the cash advances facility will be fixed by the banks. Banks, which issue cards tie up with the international organizations like masters, visa, maestro, cirrus, American express, diners, discover etc. that issue credit cards. Card issuing banks gives a service charge to the card issuing international organizations. While certain banks issues credit cards
free of cost to customers, some other banks charge a small amount from the customers as annual service charges. Loyalty bonus is also given by banks to their customers for encouraging bulk purchases using credit cards by them. Usually the card issuing institutions supply a guide or booklet with the card containing detailed terms and conditions,risks, on the account when the card is lost or misused and other relevant information with regard to the usage of the card.
Credit cards: Money as a medium of exchange brought convenient changes in the payment mechanism. With the introduction of paper currency the payments are made easy to undertake major transactions. Credit card emerged recently into banking systems as an instrument of convenient payments for the banks customers who hold the card. Credit cards also entered into developing countries like India and supplementing the payments mechanism in routine life.
Meaning:Credit card as a part of payment system. It is issued to the users of the bank payments system. The issuer grants a line of credit to the user. Most credit cards are issued by banks. Credit card is a small plastic card that contains the identity and signature of the holder is billed periodically. A credit card is token issued by bank that represents an account that extends credit to consumers to make payments to the traders.
DEFINTIONS:Any card issued by a bank even a nontraditional bank that accesses customers financial resources. {American bankers association}
A plastic card that allows it is holder to buy goods and services on credit and to pay at fixed intervals through the card issuing agency. {Natarajan & Parameswaran}
A card establishing the privilege of the person to whom it is issued to charge bills. {Banking terms}
CHAPTER 2
BRIEF HISTORY OF CREDIT CARDS Credit cards originated and developed in USA and are more popular in USA payments systems especially in e-payments. Credit cards were introduced in 1920s when the oil companies issued small tokens to customers to purchase oil in company outlets. The first universal card issued by dinners club, USA in 1950. Later bank credit cards entered the markets. For the first time at national plan, the bank of America issued bank Americard in California in 1958. it has its overseas affiliates, eventually it evolved into visa systems . Master card entered into the market in 1966 when group of credit card issuing banks established master charge in 1969 the Citibank merged its everything card and gave significant, popularity to master card globally. In 1966 Barclay bank UK issued first credit card outside the US.
FEATURES OF THE CREDIT CARDS:Credit cards are the same size as specified by the ISO 7810 standard. The card is small size with information on both sides. On one side it consist of the logo of issuing bank, EMV chip, hologram ,credit card number, card band logo, expiry date, card holders name. On the reverse side magnetic stripe, signature stripe and security code will be given.
ISSUING OF CREDIT CARDS:To obtain credit card from the bank, customer has to apply in the prescribed application from to the bank. He has to give details of name, occupation, address, income, bank account number etc.along with proof of regular income. The bank scrutinizes the application. If the banker satisfies with the credit worthiness of the applicant, the bank issues the card. While issuing the card the issuing bank sanctions the credit limit Up to which the card holder can obtain credit. Bank covers the administrative costs from the service charges and interest collected from card holders.
Parties involved in credit card transactions: 1. Card holder who uses the card to make purchases. He is the bank customer or consumer of card issuer. 2. Card issuing bank; the bank or the other organization that issues the credit card. This bank bills the customer for repayment. 3. Merchant or seller who accepts credit card payments for products and services sold to the cardholder. 4. Acquiring bank that accepts payments for the products or services on behalf of the merchant. 5. Credit card association: an association of card-issuing banks such as Visa, master card etc. this association sets transaction terms for merchants, card issuing banks and acquiring banks.
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STEPS IN CREDIT CARD TRANSACTIONS:The transactions between the card holder and the trader through the banks is always coordinated by card association .this is known as interchange. It consists of the following:1. Purchases: the credit card holder (consumer) visits a shop and purchases products or services and gives the card to the seller. 2. Authorization: the seller submits the transactions to the acquiring bank. The acquirer verifies the credit card number with the card issuing bank etc. it also verifies card holders credit limit. The bank gives approval code, which the trader stores with the transaction. 3. Batching: authorized transactions are stored in batches. They are sent to the acquirer. 4. Clearing and settlement: the acquirer sends the batch transactions through the credit card association .the association debits the issuers for payments and credits the acquirer. The issuer pays the acquirer for the transaction. 5. Funding: now the acquirer pays to the merchant after deducting foe for processing the transaction. 6. Charge back: a charge back is an event in which money in the merchant account is held due to a dispute relating to the transaction charge back is usually initiated by the card holder.
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ADVANTAGES OF CREDIT CARDS: Three parties are involved in credit card transactions.
1. consumer, the card holder 2. merchant ,the seller of product or service 3. banker All these three gain some benefits out of credit card transactions.
1. Customers: bank credit cards are issued to the customers of issuing bank. they gain the following benefits; y Important advantage to the customer is that he can purchase goods and service without paying cash immediately. He will be given one month time to pay back to his bank. y A credit card is more convenient to carry and use when compared to currency or cheque. y Risk of dealing with cash such as storing, carrying and also the payment risks can be reduced by using credit card. y Card holder can purchase goods from different outlets without taking cash with him. This is the most useful function in times of emergency. y Card holders have facility to obtaincash on credit cards in time of short term emergency needs so that it saves card holder from embarrassing situation. y For this type of revolving credit the customer need not approach the banker every time and apply for loan .this facility motivates bank customers to hold a credit cards.
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y If the card is misused by the other, it loss will be to the extent of its value. y Credit card can also be used for mail order shopping. Under the facility customer selects items from order for the selected items. He makes payment using credit card. y Credit cards sales and purchases are perfectly recorded including date, time etc. all the transactions are reported to the bank and bank prepares the statement. Such records are useful to the customers for record keeping and support him if there are disputes in future. y One attractive advantage to the card holder is that he need not use his personal fund. The card permits loan facility. Due to this benefit many prefer to take a card. y Using the card requires simple procedures:y Credit card issued recently by different banks carry additional benefits such as insurance coverage , special discounts on some items in selected shops , concessions in services etc. y Credit cards are accepted in all small and big shops, hotels etc.
A credit card and its features:Having described how the transaction using a credit cardworks lets us see what a credit card is and understand its features. A credit card facility can be defined as one where the issuing bank provides the customer access to payment services and a pre approved line of credit usually for a time period, which is predetermined .this would enable the
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cardholder to make transactions now, and make payments later to banks. The issuing bank charges the customer a joining fees as well as an annual fee for each year the credit card services are used. The structure of the card number varies with the system .for example, American express cards start with number 37, carte blanche and diners club with38. Other details are as follows:American express: - digits three and four are typed and currency digits 5 through 11show the account number; digits 12 through 14 show the card number within the account and digits 15 is a check digit. Visa: - digits 2 to 6 show the bank number; digits 7 TO 12 OR 7 TO 15 show the account number and digit 13 to 16 is check digit. Master card:- digits 2 and 3, 2 to 4 ,2 to 5 or 2 to 6 are banks numbers .digits after the bank number up to digit 15 are account numbers and 16 is check digit. The backside of the card is also important. The stripe on the back of credit cards is amagnetic stripe; often called a magstripe .The magstripe is made up of tiny iron based magnetic particles in aplastic like film. The magstripe on the back of the card is very similar to a piece of cassette tape. ANS standard X4.13-1983 is the system used by most national and international credit card systems. A magstripe reader can understand the information on the three track stripe. The magnetic stripe is divided into following 4 tracks:Track 1:- card holder name. Track 2:-card verification value (CVV) for visa card, and (CVC) for master card. Track3:-the docutal standards, docutal standards are basically used for approving ATM transactions.
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Track 4:- individual bank information. Each track is about one tenth of an inch wide. The ISO/IEC standard 7811, which is used by banks, specifies that: Track one is 210bits per inch and holds 79 6-bit plus parity read only characters. Track two is 75 bpi and holds 40 4-bit plus parity bit characters. Track three is 210bpi and holds 107 4-bit plus parity bit characters.
USES OF CREDIT CARDS:Benefits of using credit cards are manifold and these are available to all parties concerned,via the cardholder, the retailer the acquiring bank the issuing bank and also the network sponsors like visa /master car, etc. Benefits to the cardholders:Benefits ranges from not having to carry cash to making purchases to easy payment .some of these benefits are listed below: Convenience: - credit cards offer no hassle shopping wherein no cash cheque or additional identification is needed. Additional care that is normally needed to protect cash in case travelling etc. is not required as the credit card cannot be used by the finder as it happens in the case of cash. Security:-lost cash can be used by the finder .if the card is lost the card holder as soon as possible and it will preclude anyone from an authorized use of card. However different banks may have different liability policies. Emergency protection: -A credit card will get the cards holder through almost any financial emergency .Its like a security blanket that will cover him/her in most of situations.
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Universal acceptance:-some credit cards are accepted at as many as over 20 million merchant locations worldwide. A personal has no such acceptance .also in case of cash needs one can get it at ATMs of banks around the world that accept the parties brand of credit cards. Simplified record keeping: -Credit cards give you record of all the transactions for the month so keep track of expenses is easier. Many credit cards issuing banks gives records of all the transactions made at the end of the year, consolidated for the whole year from purposes, etc. Consumer protection:-while purchasing goods services with credit cards, a card holder will have more clout if a product is not satisfactory because the card issuer may intervene on the card holders behalfs. The process takes form of charge book, etc as again this, if payments is by cash or cheque for an item .the merchant may not be too interested in making adjustments. Value added benefits:-many credit cards offer rebate cash refunds, contributes to favorites charity other special value added benefits that one may not go by paying cash. Easier budgeting: - with credit cards it is possible to plan to finance a major purchase and pay it off on schedule that fits ones budget.
Benefits to the retailer: A retail shop can attract more number of customers, if it offers multiple options of payments like credit cards /cash/cheque. Also if the retail shop does not accept payment via credit card, but its competitors do, it could result in loss of business. People tend to buy more with credit cards. Also acceptance of credit cards means that payment is guaranteed
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unlike a bank cheque which may bounce. Hence, credit cards can boost sales of retailers. Benefits to the acquiring bank:-The acquiring bank can earn a commission fee by mediating with retailer. And this also gives the bank a platform to broaden its banking relationship with retailers. Benefits to the company issuing:-As a part of the personal financial services offered to the customers this payments services earns not only an annual fee for a bank but also generates revenue for every transactions made by the cardholder. The bank can get more business by cross selling its other product to the cardholders. Interest / services charges levied on balance outstanding of credit cards, if any is higher than the average rate of interest charged on others loan/credit given by a bank. Benefits to the network sponsor: -Bank takes membership of sponsors like visa, master card, etc. to gain access to the network of payment services offered by the latter. The sponsors earn membership fee income percentage of commission earned by the acquiring bank for providing clearing services etc .given the high volume of transactions under the credit card business a huge amount is earned by all the three parties concerned. The network provider also charges a fee to the issuing bank for issuing warning listing, etc.having seen what credit card is, its working and its benefits we now examine , in brief history of the credit card industry, details of the major players and the industry compositions.
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Brief history, evolution and major players in the credit card industry:-
A prototype of the credit cards which was originally the charge card, was first introduced in the city of the new York as chargeit in 1946. However the formal launch of modern credit cards can be traced to Franklin national bank in New York, in 1951. The year 1976 saw the birth of the trade name visa that was previously known as the BankAmericard. While master card was started in 1966 as the InterBankCard Association.
The main players in the industry are visa, master American express. It should be noted that these players do not issue card directly to the customers primarily they sponsor a payment network .this payment services network is sponsored by one of these agencies. A bank or a financial institution desiring to offer cards to its customers can do so by joining this network on payment of a membership fee. The banks issue credit cards to the final consumers with a wide range of benefits. The cardholders carry the card bearing the logo of sponsors and that of the issuing bank. The further the networks reach the larger will be the benefits available to the cardholder in terms of wider acceptance in given ex. cardholder having a SBI credit card of visa can make transaction all over the world with all retailers who accept visa cards.
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CHAPTER 3
THE INDIAN SCENARIO With the onset of financial sector liberalization the Indian market saw an upsurge in credit cards. The foreign banks in Indian market like HSBC, Citibank, standard chartered bank and others were instrumental in popularizing the concept of credit cards in India. However, many of the major public sector banks like SBI are now taking a lead position in this industry. incidentally, SBI launched its credit cards in exclusive arrangement with visa and has tie-up with GE capital to process the back end transaction.SBI now leads in card issuance thanks to its strong network of existing branches and customers. Among the private sector banks ICICI bank.ltd. Tops the list in card issuance with 3.5 million cards. Many of the public sector and private sector banks have taken a keen interest in card business in India. Some of the important players in the Indian marketare: Andhra bank Bank of Baroda Bank of India Canara bank Citi bank HDFC HSBC ICICI SBI CARDS AND PAYMENTS SERVICES Standard chartered bank Vijaya bank Central bank of India
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VARIOUS TYPES OF CREDIT CARDS
Credit cards: -a credit card provides consumers with access to a line of credit .Consumers make payments using their card and receive a bill at the end of the billing cycle. The card issuer usually demands a minimum payment against the outstanding balance but, beyond this the customer can choose how much of the bill he/she wishes to repay. Any balances not repaid within the interest free period offered by the issuer attracts interest at the rate stipulated by the card issuer.
Charge card: -Charge cards allow customers to defer the cost of purchases made on the card until the end of the payments cycle. Accordingly a card holder has a fixed period to settle the bill in full. A charge card account is not directly linked to a customers account, be it savings or current although with most cards it is possible to link the two by means of a direct debit payments.
Debit cards: - the debit card is directly linked to the savings/ current account of the customers and hence any transaction automatically leads to reduction of the balance amount in the account instantaneously. This card also is used as an ATM card. Visa issues debit card under the brand name of ELECTRON while master card issues its debit card under the brand name MAESTRO. In this card, electronic authorization enabled by either a signature or personal identification number is required for each transactions. With this authorization,a debit card is ideal for customers with new banking relationship or for acceptances in countries requiring 100% electronic authorization.
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Affinity card-with affinity card a third party organization an alumni association or a charity or a museum for example- receives a portion of each transaction made with the card. Some affinity card partners like professional sports teams or environmental protection foundation, may also offer perks like discounts at selected stores or a gift with the first purchase made with the card. These programmers aregenerally sponsored by nonprofitorganization, professional and fraternal societies or lifestyles association. This affinity programmers sponsor receives a percentage of the revenues generated by usage of the affinity card, so cardholders have a very tangible way to support the organization.
Co-branded and affinity cards carry the name of the third party on the card in addition to the name of the bank or financial institution that issue the card and the card brand. Both co-branded and affinity card offer additional value from each transaction made with card. The difference is who benefits cobranded and affinity credit cards not only help one earn, say free air travel etc. but also help in the support of onesfavorites charitable /religious institution.
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SALES AND MARKETING OF CREDIT CARDS
The success of credit cards issuance business will depend on attracting customers and making them accept a banks credit card. This calls for substantial efforts in marketing and sales. Given the high level of competition and multicity of credit cards issuers in the industry, it is important that banks have an efficient and a strong sales channel. It should be noted that an increase in customers base does not mean that the business is saturated as customers can have more than one card. Of late it seen that people spending amount remains constant the usage of each card is sound to fall as more and more players enter the markets. It is here that the role of marketing department becomes important. Various customer loyalty programmers like bonus points etc. are introduced to make the customers spend more by promising reward to them for the continued patronage of a particular credit card. This works in the form of a lock in . For ex:-let us say, a person has credit card of bank X and he /she get 1 bonus point for every rs.100 spends on this card, the more chances of him/ her accumulating bonus points which can be redeemed in return , for some gifts , or it can be used to pay the annual fees. So even if the customers have more than one banks credit cards he/ she will be incentivized to use only a particular card to maximize his /her bonus profit. Thus the customer has been induced/ locked in customers early has benefits of maximum usage on their cards. Therefore, it becomes difficult for the rival bank either issue card to this customer or even if a card is issued to him /her to make him/her spend more with the latter card. This is where creative and new ideas of marketing help the issuer to not only issue more cards but also to increase spending on the card which is one of the major revenue earners for the issuers.
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In this regard, programmers like free cards, discounts on annual fees, chances of winning gifts like foreign jaunt,cars, etc are launched by banks to attract new customers. This leads banks to have tie-up with other leading organizations to increase their card base as well as card spending. This cobranded cards and affinity cards are useful to the issuers, customers and the partners organizations.
There are various channels through which banks try to sell their cards. The following is an illustrative list of the way sales are done: Cross selling to existing customers. Banks in house sales force targeting corporate clients. Use of direct selling agents.(DSAs) Advertisements and endorsements by celebrations. Special programmer during specific events like the world cup, etc. Other channels like internet and direct mail offers. The basic tenets of marketing consist of what is known as the Four Ps. They refer to the following parameters of marketing (which is also known as product mix):1. Product 2. Price 3. Place 4. promotion
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PRODUCT: -This refers to various features of the product. In this case of credit cards, the product could vary from being a classic card, more importantly the credit limit, will be very minimum and basic in nature. In these lower type cards, the credit limit will generally vary from 15,000 to 50,000 and insurance benefits will be of low amount, compared with gold cards. Rate of interest or services charges may also vary .it seen that premium products carry additional benefits and certain other services will be available on exclusive basis. Basic cards will not have any of these additional features. But in view of variety of customers, banks need to have the product line complete with all types of products,i.e. from basic to premium. This will ensure that all types of customers, viz, first time users, loyal users and high profile users will have the features that they want. It does not make business sense to have only one kind of card / product even if that is the most profitable. Thus, even in those cases where gold and platinum cards are more profitable, banks do offer classic cards as the customer should have a choice in terms of product types.
PRICE:-The next movement is the price of the product. The price has to be such that it has some corresponding value or interest. The bank cannot give a platinum card at the same price as the classic card. Likewise banks cannot price classic card too high. Pricing has to be such that customers feel that they must get certain advantage. Also the price must be not such that the customers get lot more that what they pay .price should be viable for the bank. Hence there must be a good balance between the price and the benefits derived. Thus, with different products types, the price points have to be different. The pricing of a credit card will generally be in terms of annual fee and the benefits derived. The pricing of credit cards will generally be in
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terms of the annual fee and the one time joining fee. The other charges and fees, such as interest on the use of funds remain by and large, the same within the industry.
PLACE:-Every bank should identify its targets customers. This is referred to in the literature as either place or population. Thepeople, that the bank targets have certain features and characteristics. There will be groups which have similar features. Within a larger group there could be different features amongst different smaller groups. The bank needs to targets each different group in different ways. No single approach will be sufficient to tackle all the different groups. For ex:-, groups which have predominantly young people need to be targeted by saying using a celebrity endorsement ,while the professional group may be targeted with financial benefits which matter most to them . Certain other groups like doctors can be targeted with professional cards (SBI launched one such scheme for doctors.) thus, we come across different product types and different target groups.
PROMOTION:-This refers to the way the product is brought before the customers, in terms of concept , design and physical appearance and the customers are made aware of the product in terms of the various benefits that the product in terms of the various benefits that the product carries. This is termed as concept selling. Once the market has bought the concept then the banks can sell the cards to those customers who are most suitable to them. Thus promotion can start with concept selling and finally end with selling the product. As said earlier, different promotion strategies need to be adopted for different product types. The promotion for a classic card can take the form of say a big push through direct selling agents (outside agency
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which has to sell cards for the bank on commission basis). By doing so. They may be in a position to enlist large number of classic (general) cardholders .however, direct selling may not be the method if the banks need to attract high profile customers for the platinum (high end) cards .for this the banks may opt to deploy its sales force in place like the golf course, during tournament time, where the selling can happen not so directly, but by networking. One of the issues in the promotion is that customers are price sensitive. If majority of the customers are price sensitive, certain promotions can be used which give those customers benefits in terms of lowerprice, by opting for a particular banks credit card. If the customers value other benefits more than price , the banks need to pay more attention to providing additional benefits and incidentally can sell the higher priced card to customers who are less price sensitive.
Thus, we see the importance of taking into account a number of factors that would make a product successful.
CUSTOMER SERVICES: This is one of the most important functions of an issuer. If it is very tough to acquire a customer, it is all the more difficult to retain him/her. Therefore, proper customers services and satisfactory resolution of customers issues/problems are important. It is acknowledged by industry experts that it is almost ten times more expensive to get new customers than to retain an old one. Therefore, banks need to take care to see that old customers base is not eroded in the course of attracting new customers. For example if the old customers have paid a full annual fee to hold credit cards and the bank decides to waive off all the charges to the new customers, it can lead to
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further competition by the rivals at the end of which, banks end up losing one set of customers to gain another set, at the cost of loss in revenue. So any issue that may impact the customers adversely has to be dealt with care so that inconvience caused to the customers is minimized.
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CHAPTER 4
CHANNELS OF COMMUNICATION AVAILABLE TO THE CUSTOMERS ARE: Emails and websites on the internet. Post office mailers (though less preferred by the young customers). Telephone contacts with the branch. Customer services centers (generally outsourced nowadays) Drop boxes and suggestion boxes at various locations in the city. Direct contact with designated contact officer in case of corporate customers.
These are the ways in which customers can get in touch with card issuers for any clarifications, or to lodge a complaint. The main contact need for customers is felt in the area of receiving statement and remitting payments towards the same. Hence the issuers need to make sure that the statement are sent on time at the right address and is also convenient for cardholders to make payments. Many banks use either the postal services or the courier services to have statements delivered. But today we find that many banks aggressively push statement delivered. But today we find that many banks aggressively push statements through the email/internet. This means that a customers needs a log on to the website of the issuers with a unique password and can view/download the required statement on the date of generation itself.
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The electronic format has two benefits; one is that customers need not worry about postal delays, or moving to another address, or having gone out on a temporary vacation, they can still view/ print the statement in whichever part of the world they are. Banks, on the other hand, can be assured that customers receive the statement s promptly and hence the chance of non-payment due to non-receipt of statements is reduced. Another benefit is in the form of cost saving. The bank can save money on the postal/courier charges, printing expenses on the staff needed to handle dispatch of statements to customers. This in itself represents a reasonable cost saving to a bank which many pass on to customers by the way of additional bonus points for receiving statements electronically. Thus, use of technology can lead to better service and cost reduction for the bank over a period of time.
There are issuers who are pretty routine and simple in nature but customers desire to know in detail. For ex: - a customer may desire to know his outstanding balance on his /her card at a point of time or he/ she may be, interested in knowing the procedure for increasing his credit limit. These types of queries may take up a lot of time of the banks staff and hence can be costly for a bank in terms of time and money to service the customers. Bank may not allot highly trained and expensive staff for such simple queries, which are very large in number and also are repetitive in nature .alternatively, these can be outsourced to the technology by encouraging the customers to use the internet for viewing the outstanding balance, etc. this means that n o staff intervention is required in these transactions at all. If the customers can log on to the websites and find out for themselves
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balances outstanding in their cards, the calls made to the bank/ call centres will come down. Consumer can. Through the internet, also request for increase in credit limit. Banks can consolidate at end of each day, all such request for speedy action. It is obvious that this is more convenient for customers. Some banks have also installed Interactive Voice Systems (IVS) whereby customers can punch in the card number and other security identity numbers like PINs and get the required details. This also frees up time of staff from answering routine calls and a few staff can handle large customer base. Some of the information which customers can access without the banks staffs intervention is: Information on balance outstanding Location of ATMs to draw cash Locations of other banks ATMs to withdraw cash , when there is a tie up Various types of charges and fees like late fee, fee for breaching credit limit, etc. Latest promotion and schemes Procedure for increasing credit limit Bonus points and means of redeeming the same Various types of availability of cards and eligibility criteria etc.
There can be specific and complex requirements of customers needing staff intervention. Here contact may be in the nature of reporting of lost cards, or lodging a strong complaint or making suggestions to the bank. These are the activities that have to be handled personally by the bank. These are the
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activities that have to be handled personally by the bank staff, which can lead to a sense of satisfaction to customers. Human psychology demands that while dealing with significant issues , bank staff talk to customer either in person or over the phone ,instead of customer interacting with a third party or lodging serious complaints over the internet . These issues though generally small in number, can be handled person ally by the bank staff. This personal interaction with customers we enable the bank to resolve problems easily and also lead to customer retention. This kind of interaction can also throw up many suggestions which may prove beneficial to the bank. In view of the above, there is a need to understand types of customer contact and appropriate response which can enable banks to serve better and at low cost.
ADVICE ON CREDIT CARD:Credit cards are one of those modern conveniences that we seemingly cannot do without in this day and age. Everywhere you go more and more people are whipping out the plastic to pay for their purchases, when once upon a time they would have laid out a pile of cash. Credit cards are convenient, indispensable and impossible to live withoutor are they? While it is true that credit cards offer consumers numerous advantages over cash and checks, they have a number of disadvantages as well. Of course a lot of it depends on the particular user, but even in the best-case scenario with the best of intentions, credit cards can be more trouble than they are worth.
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One of the more obvious advantages of credit cards is that they allow you to purchase products and services in a pinch even if you do not have enough cashor any at all, for that matterwith you. Lets say you have a medical emergency or your car breaks down, and you have no way of getting to a nearby ATM. Without a credit card at hand, you will be totally out of luck and will have to both depend on the kindness of strangers to get you through this emergency or possibly rely on your bargaining skillsand lets face it: without cash or a credit card at hand, you dont really have much you can bargain with. On the other hand, having a credit card with you at all times also means that if you come across something that you want, but do not necessarily need, you are more likely to fall victim to what is commonly called impulse buying. Far too many people whip out the plastic too quickly on the spur of the moment when faced with something that they must absolutely have, and it is this situation that has forced so many people into credit card debt land. Another benefit that credit cards can give you is offering you protection against theft of your cash. Of course there are unfortunately such criminal elements as credit card thieves, but there are ways that you can prevent the use of your credit card once it has left your possession. In any case it is still much harder for a thief to benefit from a stolen credit card than from ready cash. A further advantage to credit cards, and one that can have a lasting effect on your financial future, is that using a credit card responsiblythat is to say paying your bills on time and avoiding building up too much interestcan actually build up a good credit history. This will come in useful later on when you want to purchase a car or a house for example. If you can show a
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lending institution that you are able to manage your credit cards effectively, they will be more willing to grant you a loan. So you see, the effectiveness of a credit card is really largely a matter of personal responsibility and accountability.
WHAT ARE SECURED CREDIT CARDS:Credit are cards without doubt an indispensable part of modern day 21st century life. Almost everyone has a credit card of some form or another nowadays, and the number of new applicants is steadily on the rise. And this is totally understandable. Credit cards after all allow users the convenience of being able to pay for any type of service or product even without any cash over a wide range of applications. Hospitals, restaurants, gas stations, tow truck servicesit is hard to think of any business establishment that does not take payment in the form of credit cards. Its not all good news however. Irresponsible credit card use has put more than a few people in some very serious financial situations that can be very hard to get out of. For all the benefits and advantages that they can provide, credit cards actually allow you to spend money that you do not even have yet. If you use it to purchase something that is well beyond your financial means to pay for, you could be in for some serious trouble. Even if you are able to pay for the full amount of the item you have bought, there is also interest to consider, and over time this can amount to quite a healthy chunk of cashso much so that the amount that you ultimately pay could be way more than the actual value of your purchase.
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If you want to avoid these as well as other similar situations, you may want to consider applying for a secured credit card as opposed to an unsecured one. Secured credit cards are simply a form of credit card issued to you by a bank in exchange for money that you deposit into an account. The total amount that you have in your account corresponds to your credit limit. If you deposit $1,000 for example, you are limited to spending only that much when you make a purchase with your secured credit card. Now the obvious benefit to this is that you will be far less likely to go over your head financially speaking. If you have earmarked the money in your account solely for expenses, then there is no way that you can go over budget by using that secured credit card. A further advantage to using secured credit cards is that replenishing your account by depositing more money in it will also serve to build a good credit record for you. Not only will this help you become more eligible for a secured credit card, this will also repair any bad credit history that you may have built up. On the other side of the coin, there are some disadvantages to secured credit cards, the most obvious being the self imposed credit limit can actually be a serious obstacle when you need more money than what you have in your account. On the whole though, the advantages of secured credit cards far outweigh the disadvantages, and for that reason alone they are worth looking into. So you see, the effectiveness of a credit card is really largely a matter of personal responsibility and accountability.
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WHAT ARE PREPAID CARDS Prepaid credit cards at its most basic form are a type of credit card that is issued by either banks or certain government-regulated financial institution. Much like a regular credit card, prepaid credit cards allow consumers to pay for a wide variety of services and products from many different stores and business establishments. In fact, although there are a number of key differences between the two types of cards, prepaid credit cards share many similarities with regular credit cards. They are easy, convenient andperhaps most importantlyyou should thoroughly acquaint yourself with every aspect of their use before you even think about pulling out one to pay for your purchases. It's not quite there with regular credit cards in terms of popularity, but it's slowly gaining ground. Motley Fool, a website often used to compare mortgages, is even predicting that it can replace the current credit card system we have in a matter of years because of its more practical applications. One of the most important considerations with regard to prepaid credit card use is the existence of any fees or miscellaneous charges. Far too many people have neglected this important aspect in the excitement of using their prepaid credit card, and have paid the priceboth literally and figurativelyas a result. You should also find out any limitations regarding the actual use of the prepaid credit cards. Some cards cannot be used for online transactions for example, some cards cannot be used to withdraw money from an ATM, and still other cards cannot be used outside the United States. Being aware of
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these restrictions beforehand will help you avoid any inconvenience in the future. If there is anything at all that you do not understand about your prepaid credit card, you can ask help from the company that you purchased it from. It is your money that we are talking about after all, and it is their job to help you make the most of your purchase. You may be wondering what guarantees you have in terms of the safe use of your prepaid credit card. While it is true that these types of cards are not normally protected by federal laws, many of the more reputable prepaid credit card companies offer users the same type of protection that is typically available to credit and debit card users. With these companies, you will, for example, be provided with a replacement card if the one you have gets lost or stolen. In the event of authorized use of your prepaid credit card, you will also be re-credited for the full amount. In order to be eligible for this type of protection, prepaid credit card companies will usually require you to fill up a form to register your card, as well as go through a card activation process. In any case, it would be a good idea for you to write down your card information, and keep it in a safe place so you can more easily get a replacement in the event of loss or theft. While youre at it, you may also want to take note of the customer service telephone number. This will come in handy if you have any sort of problem related to your prepaid credit card. If they cant or wont help you with your concern, you should file a complaint with the relevant government agency.
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So you see, the effectiveness of a credit card is really largely a matter of personal responsibility and accountability.
WHAT ARE STUDENTS CREDIT CARDS:More and more students of college ageand sometimes even youngerown credit cards nowadays. If you belong in this category, you probably already have one yourself, or are planning to apply for one in the near future. While this can be a good thing, it is also a potentially serious step that could have long lasting effects on your financial life in the long term. This issue brings up the question of why credit card companies offer credit cards to college studentswho do not typically have a lot of moneyin the first place. As it turns out, it is a simple matter of economics. Well, that is the main reason at least, and there are actually a few others besides. One of the ways that banks make their money is through the collection of various fees for their services. These can come in the form of annual fees, late payment charges and interest charges on existing credit card balances. We mentioned earlier that college students usually do not have a lot of money to spare. While this would seemingly make them poor candidates for credit cards, the fact that they are not able pay off their balances totally every month assures the banks that they remain in that present arrangement for a long time; a captive audience if you will. This means that the banks in question are in a position to earn money from these customers for a longer period of time.
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It is not all bad news however. There are actually a number of ways that a credit card can work for you if you are a college student, provided that you use them wisely. Students typically use credit cards for purchasing books and materials that they need in school, or for personal or medical emergencies. Over time this can add up to quite a large amount of transactions, and if a student is able to manage these purchases and the associated bills effectively, doing so will not only teach him or her valuable financial lessons that will be useful later in life, they will also contribute towards building a good credit record. Credit records take into consideration your history of paying bills, the accounts that you have signed up for and many other factors. A good credit record will have a great deal to do with how easily you will be approved for various types of loans, the rate of insurance that you will have to pay, and in some cases it may even affect your prospects for future employment. Paying your bills on timein full is even betterwill go a long way in building a good credit standing. Conversely, paying your bills past the due date or worse, not at all, will hurt your credit standing. If you are just starting out with credit cards, you may want to get started building a good credit record by signing up for a card with a low limit, so that you can control the amount that you spend. So you see, the effectiveness of a credit card is really largely a matter of personal responsibility and accountability.
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WHAT IS BUSINESS CARD:Credit cards are obviously an invaluable thing to have in a pinch. If you are not convinced just ask someone who has been in the unfortunate position of being stuck on the road in the middle of the night with car trouble, or the person who finds himself in the emergency room after a car accident. It does not even have to be such a serious situation; it could be something as seemingly trivial as running out of cash in a crowded grocery line or finding a tremendously good deal in a shopping mall. In all these situations and so much more, credit cards can indeed save the day. One other use of credit cards, which many people are probably not aware of, is as a tool for business. One of the biggest advantages to this usage is that it allows you to keep your business related financial transactions separate from your personal ones. Obviously, this is tremendously useful for medium to large-scale businesses, but even smaller startup operations can greatly benefit from this approach. Before you decide on any particular business credit card, you should figure out exactly how much money you will need for your company every month. This will help you pinpoint the credit limit that you should aim for. You should also check out as many different business credit cards as possible so that you can compare features. Different card companies will have varying interest rates, customer service procedures, branch access, protection, and miscellaneous fees. This would also be a good time to determine how many business credit cards you really need. Depending on the size of your operations, you may actually need more than one or two.
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Make a list of a few of your employees who need credit cards in their line of work, and if you feel that they are responsible enough to handle it, those are the people you need to give credit cards to. It may be a small matter but you may want to go with a credit card company that offers perks as part of the contract. These can be anything from airline miles to hotel, restaurant and even department store discounts. This will give you an idea of how the particular company values its customers. Finally, you will probably want to go with a credit card company that has made a name for itself. More often than not, these will likely be the major companies such as Visa, American Express, and MasterCard. Companies such as these have been in the business for a long time and have a generally excellent track record of good service and reliability. They will also usually provide you with access to your account record through their official web site, where you can check your balance and transactions. When applying for a business credit card, you will typically have to wait up to 10 business days before you find out if your application has been accepted or not. If after 15 days you have not received any update regarding your application, you can either call them or send an email. So you see, the effectiveness of a credit card is really largely a matter of personal responsibility and accountability.
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WHAT ARE GIFT CREDIT CARDS:As tremendously useful as credit cards are, there are certain situations where they are not really the ideal option for a number of people. Someone who wishes to avoid the various fees and costs associated with credit card use for example, may wish to sign up for another type of credit card entirely, such as a secured credit card. The high interest rates, the credit limits which may give a false sense of security in terms of the amount that can be spent, and the temptation to use the card for purchases that are not really necessaryall of these are valid reasons to not own a credit card. There is no denying however that the convenience and flexibility of a credit card is a good thing to have in the event of an emergency or for purchasing something that you did not plan on. How many times after all have you encountered a situation where in a ready supply of cash could have come in very handy? Everyone appreciates the benefits of having a credit card at hand, and all the more so when it comes with no strings attached. The basic credit card does not come with this advantage however, which makes receiving a gift credit card very welcome for those who receive them. Gift credit cards have become an increasingly popular choice for a number of people because they provide many of the advantages of regular credit cards but with few of the drawbacks. Giving someone a gift credit card as a present will surely be appreciated but before you do so, there are some issues related to their use that bear looking into. As in any sort of financial or business transaction, you should read the terms and conditions of use thoroughly before buying a gift credit card for
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someone. These rules will probably come in the form of fine print so look through them carefully to find out just what it is you are getting into. There are many different gift credit card companies out there and some of them will have different terms of use. If you do not like what you see in the fine print, check out another gift credit card that offers a deal that is acceptable to you. Fees are one way that these companies make their money, and they can add up to quite a lot. Find out all the related fees and miscellaneous charges that come with the gift credit card so that there are no unpleasant surprises down the line. Also make sure that the recipient is not liable for any additional fees on his or her end. Think of it from the point of view of the recipient: it would really take a bit of the pleasure away from receiving a gift credit card when you realize that you have to pay a certain amount to use it! Checking out as many different gift credit cards as possible will give you a good idea of whats out there and will help you decide on what can be a very useful and much appreciated gift. So you see, the effectiveness of a credit card is really largely a matter of personalresponsibility and accountability.
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CHAPTER 5 ONLINE SHOPPING How credit cards is used for online shopping: Online business or on line shopping became very common. To buy goods such as books, mobile sets etc or to book tickets in airlines or railways to pay examination fee or to pay subscription, any such payments can be made through online payment. For online payments credit cards can be used more conveniently. Online credit card transactions are same as in offline purchases except one or two differences. The merchant never sees the buyer or the card actually used for purchases. He cannot get signature of customers or any other physical proof. Such purchases are popular as CNP (card not present) purchases.
PROCEDURES: Customer visits the merchants website or through online shopping mall gets into the homepage of the trader. Selects the products and ads to the shopping carts. He creates secure sockets layer (SSL) and using encryption he gives credit card information. Once the customer is credit card information reaches the sellers system, the system contracts the clearing house for authentication of credit cards. It verifies the card and balances through the issuing bank. After verification the issuing bank credits the accounts of the trader and debits the customer account.
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A credit card is the only form of payment card that offers a revolving line of credit in addition to its function as a means of electronic payment. In contrast, charge cards as offered by American Express must be paid off monthly. How does a credit card work in practice? Suppose you buy a TV and present a Visa card, bearing the logo of the issuer, say Citibank, in payment. You swipe your card through a card reader, which reads the data on the magnetic stripe and adds information that identifies the merchant and the dollar value of the purchase. This electronic message automatically goes via telephone line to a computer maintained by the merchants acquirer, also a member of the Visa association. That computer reads the message and determines that you used a Visa card. It calls up Visas computer, which checks with
Citibanks computer to verify that you have a credit balance sufficient to cover the purchase. If you have enough credit, the Citibank computer will send back a message to the Visa computer authorizing the transaction. Visa relays the message back to the terminal at the store. The entire process takes just seconds, and finishes by printing out the credit charge receipt that you must sign. Since the transaction is captured and stored electronically, the receipt is used only to settle disputes that might arise for example due to a stolen card with a forged signature, The merchant submits a request for payment to its acquirer, which in turn sends it to Visas computer. The Visa computer passes on the request to Citibanks computer, which posts the transaction to your account with
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Citibank. Visas computer consolidates this transaction with all other Visa transactions that day and settles the accounts among banks. The merchant receives about 2 percent less than the amount you paid for the TV. That 2 percent is called the merchant discount, and is paid to the acquirer. The acquirer keeps a portion for his services, and pays about 1.4 percent of the purchase amount to the issuer, in this case Citibank. That 1.4 percent is called the interchange fee which is set by Visa. American Express does not have an interchange fee because it is both the issuer and acquirer, and keeps the entire merchant discount. Credit Card Associations Visa and MasterCard are by far the largest payment card systems. Visa accounts for more than half of global purchases, with MasterCard ranking second and American Express third. Surprisingly, neither Visa nor MasterCard earn profits. Both are forprofit corporations, yet they are operated on a break-even basis. They cover their costs with fees levied on their membership, which totals many thousands of banks. The associations have their own management and employees, but they are owned by the banks that issue their cards, and are supervised by boards of directors composed of representatives of those banks. A bank can be a member of both associations, but may serve on the board of directors of only one or the other. The daily operations of the two associations are run by separate managements. The following rules apply to the Visa association, but the MasterCard association has similar rules. The board of directors of an association is elected by the member banks, which are allocated votes based on the volume of various products they
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offer. The board appoints the management which hires the staff and is responsible for the following: Developing operating regulations Processing transactions and interchange payments between members. Developing technologies. Promoting the association brand through advertising. Coordinating other system wide matters, such as fraud control. Individual members, besides being responsible for their own financial commitments, set card interest rates, fees, special features, and sign up card holders (as issuers) and merchants (as acquirers). Issuers Card issuers receive revenues from two sources: merchants who accept their cards and consumers who use their cards. Finance charges on credit card loans comprise over three-quarters of the revenues. By comparison, merchant discount fees comprise over half of the revenues on American Express charge cards. Issuers must properly manage a number of expenses, of which the cost of funds and bad debt charge-offs are the largest. Other expenses include labor, data processing, system development and maintenance, and new card solicitations. Computerized credit scoring has increased issuers' ability to weed out potential deadbeats, but it remains hard to predict which cardholders will default. The delinquency rate on bankcard loans remains well above that on mortgages, auto loans, and personal loans. Acquirers system-wide innovations such as interchange
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Only members of the association can enter into contracts with merchants, although member banks can work with third-party firms to do so. Acquirers perform the following functions: Signing up merchants and managing the relationship Installing terminal equipment Providing authorization services when customers present their cards Keeping track of transactions and reporting the data to merchants Transferring funds to the merchant on a daily basis to cover card purchases, i.e. clearing and settlement Responding to merchant problems with card processing Some acquiring banks conduct all aspects of merchant acquiring, from signing up the merchant to transaction processing and customer service. Other banks serve as the customers point of contact but outsource the processing functions to third parties. Still others serve only as the
depository institution where clearing and settlement occurs, leaving the third party as the active member of the merchant relationship. Visa Membership Any financial institution eligible for FDIC insurance is eligible for Visa membership. This now includes financial institutions owned by or
affiliated with nonbanks such as retailers, investment firms, insurance companies, and automakers. However companies issuing cards that
compete directly with Visa, namely Discover and American Express, are precluded from issuing Visa cards. To become a member of the Visa association, an institution must pay an initial service fee that depends on the type of membership applied for, the type of cards to be issued, and the number of accounts. However the
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membership fee is trivial relative to the typical revenues from bankcard operations. Credit Card Loans Credit card loans have higher interest rates than most other consumer loan rates, due mainly to loan defaults, overhead, and the cost of financing the loans. Unlike most other consumer loans, credit card loans are not secured by assets that could be seized if the consumer defaulted. In addition a card holder is more inclined to use the full line of credit when his financial situation worsens precisely the riskiest time for a creditor. Credit card loans usually include other costly benefits such as frequent flier miles, purchase guarantees, and insurance. About 40 percent of credit card holders use them only as payment devices and pay off their short-term loans before the issuer charges interest. In spite of these expenses, credit cards are an important profit center for most issuers.
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 vary, but usually range from 20 to 50 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
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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.
Fees charged to customers The major fees are for: 1. Late payments or overdue payments. 2. Charges that result in exceeding the credit limit on the card (whether done deliberately or by mistake), called overlimit fees. 3. Returned cheque fees or payment processing fees (e.g. phone payment fee). 4. Cash advances and convenience cheques (often 3% of the amount) 5. Transactions in a foreign currency (as much as 3% of the amount). A few financial institutions do not charge a fee for this. 6. Membership fees (annual or monthly), sometimes a percentage of the credit limit. 7. Exchange rate loading fees (sometimes these might not be reported on the customer's statement, even when applied) The variation of exchange rates applied by different credit cards can be very substantial, as much as 10% according to a Lonely Planet report in 2009.
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Credit card numbering The numbers found on credit cards have a certain amount of internal 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. The next nine digits are the individual account number, and the final digit is a validity check code. In addition to the main credit card number, credit cards also carry issue and expiration dates (given to the nearest month), as well as extra codes such as issue numbers and security codes. Not all credit cards have the same sets of extra codes nor do they use the same number of digits.
Avoiding Credit and Charge Card Fraud

A thief goes through trash to find discarded receipts or carbons, and then uses your account numbers illegally. A dishonest clerk makes an extra imprint from your credit or charge card and uses it to make personal charges. You respond to a mailing asking you to call a long distance number for a free trip or bargain-priced travel package. You're told you must join a travel club first and you're asked for your account number so you can be billed. The catch! Charges you didn't make are added to your bill, and you never get your trip. Credit and charge card fraud costs cardholders and issuers hundreds of millions of dollars each year. While theft is the most obvious form of
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fraud, it can occur in other ways. For example, someone may use your card number without your knowledge. It's not always possible to prevent credit or charge card fraud from happening. But there are a few steps you can take to make it more difficult for a crook to capture your card or card numbers and minimize the possibility. Guarding Against Fraud Here are some tips to help protect you from credit and charge card fraud.
Do: Sign your cards as soon as they arrive. Carry your cards separately from your wallet, in a zippered compartment, a business card holder, or another small pouch. Keep a record of your account numbers, their expiration dates, and the phone number and address of each company in a secure place. Keep an eye on your card during the transaction, and get it back as quickly as possible. Void incorrect receipts. Destroy carbons. Save receipts to compare with billing statements. Open bills promptly and reconcile accounts monthly, just as you would your checking account. Report any questionable charges promptly and in writing to the card issuer. Notify card companies in advance of a change in address.
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Don't: Lend your card(s) to anyone. Leave cards or receipts lying around. Sign a blank receipt. When you sign a receipt, draw a line through any blank spaces above the total. Write your account number on a postcard or the outside of an envelope. Give out your account number over the phone unless you're making the call to a company you know is reputable. If you have questions about a company, check it out with your local consumer protection office or Better Business Bureau.
AUTHORIZATIONS:-
This is one of the most important operations at the backend. customer interaction is more intense here as all issues that are be handled are live which can prove to be sensitive to the customers as well as to banks.
WHAT IS AUTHORIZATION:Authorization refers to a decision process in which issuing bank informs the merchant via the acquiring banks system that the card the customers desires to use , is in good standing, and has enough balance/limit to make the transactions. This would reassure the merchant as well as the acquiring bank that the card held by the customer is good and valid and hence the chance of the card being fraudulent is almost low. such backing by the issuing bank in terms of authorizing lends credibility to the whole process.
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THE STEPS IN AUTHORIZATION ARE AS FOLLOWS:1. PROCESS FLOW:-once a purchase is made flow starts with the request from the merchant to the acquiring bank, from there to the network and finally to the issuing bank. The issuing bank checks the balance and the status of the card and either grants an approval or reject the request. Either way, the decision is conveyed back in the reserve order from the issuing bank to the network, then to the acquiring bank and finally to the merchant. This flow of messages will take not more than a few seconds. Approval/ rejection of the transaction is given within 7-13 seconds failing which the transaction shows TIME OUT. The EDC machine of the merchants is hooked on to the systems of the acquire bank. The request for the authorization is routed to the acquire bank and in turn the bank passes this request to the issuing bank via the network sponsor. The issuing bank then checks the account status of the customer and on confirmation that the customer is indeed good, and has enough balance in his account, gives out a unique authorization number, which means that the transaction is authenticated .alongside, the bank also reduces the balance available for the customer to use the card, from his overall limits, so that he does not overshoot his limit. Then message is passed on to the acquiring bank via the same network and from acquiring ban, the merchants get the message. The whole process takes only 7-13 seconds beyond which the operation time out and the merchants have to try again for authorization.
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All the parties involved in the transaction are parties process. The customer wants to purchase goods and hence presents his card to merchants. The merchant, then swipes the card on the EDC(electronic data capture) machine after a few seconds of processing gives confirming message that the transaction is approved and gives out an authorization number on the charge slip which the customer signs.
2. OFFLINE TRANSACTION:At times, the merchant may not have an EDC machine or it may not be in a working condition of the network between the banks may have temporal snapped and hence the online mode of transaction cannot be used by the merchant. In this scenario, the bank will have a manual back-up for providing authorization services. In the manual authorization, the merchant has to call up his/her bank that can get in touch with the issuing bank, either through their systems or by phones/fax/telex. Then details of the transaction are given to the issuing bank which manually verify the account of the customer and give the authorization code. It may be noted that the code given here will be the one which is NOT generated by the system, and hence the master files does not have details of the transactions. That means the balance in the customer account will still reflect a position without taking into account the latest transaction for which the authorization was manually requested. Therefore, the authorization officer has to immediately update the master file so that the credit limit set by the bank is not breached.
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While providing the authorization services, the bank needs to be sure that the cardholder is indeed the real customer. Hence some checks are conducted to verify the bonafides of the customer.Some of the details of checks are conducted to verify the genuineness of the customer. y The full name of the customer as it appears on the card y The customers mothers maiden name y The last three digit on the backside of the card, which Is unique-not taken always. y Date of the birth y Billing address y The date of the last payment made y The mode of last payment y The credit limit on the card y Any other details that the bank may have previously collected about the customers y Last two transactions. Reasons why bank reinforces these checks, in case of offline authorization is that the bank needs to be sure before committing itself to the acquiring bank that it will honors the transaction . In online routine cases the cost to the banks in terms of having an officer doing these checks and then issuing the approval is very high. Systems can automatically take care of these issues without any additional cost and more importantly, without any additional costs and more importantly, without any inconvenience to the customer .so the banks have to balance between safeguard the funds to be lent versus the operation costs. In this regard, statics have proved that, generally frauds are
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uncommon in case of smaller amounts. So there are guide lines issued by visa and master card, stating that the merchants need not seek any authorizations for amount smaller than a certain sum. 3. HOT LIST BULLETIN:This bulletin is the compilation of all the cards which are reported as stolen or lost by the banks customers. This gives the list of all banks cards which cannot be accepted as the issuing banks will not honor the cards. Hence in case the merchant still accepts the card, he / she will not be reimbursed the charges as the bank is not liable for the card, as it has already sent across the message that the card is hot listed. This bulletin is updated every fortnight and hence the acquiring bank is expected to give this information to all merchants. The merchant can look into bulletin and in case the card is listed there, he should pick up the card and the issuing bank will reward him for this service as per the rules laid down by the visa/ master card network , as explained earlier. 4. REFERRALS:A bank needs to very careful with respect to some of the transaction which need to be constantly monitored and, can prove to very costly to a bank in case of incidence of fraud. For ex:- if a customer has brought a disproportionately high amount of food grains , it may not be of much concern to the banks as the underlying goods, viz., the food grains are not easily convertible to cash and the carrying cost is pretty high . As against this, if customer has bought a large amount of jewelers, it is very easy to convert the same to cash. Occurrence of fraud in latter case is more probable. Thus those purchases which can be easily converted into cash have to be tracked carefully.
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Hence some of the transactions need to be tracked on a regular basis. Following is a list for supervision: cash withdrawal purchase of jewels and precious stones purchase of antiques purchase of highly valued electronic goods(which are not bulky in nature) purchase of travels ticket(especially international tickets0 an unusual flurry of activities say 8 to 10 transactions in a day when the previous records reflect that the customer used his/her cards only once a week or so. Any single purchase which happens to cross a certain percentage of the overall credit limit , for ex:- any single transaction valued at more than 60% of the credit limit. These activities generally should attract attention of the issuing bank as it is the banks money which is being used by the customer and the bank has every right to know if there is any chance of the amount not being prepaid. Hence in these cases, the banks generally use the procedure known as REFERRAL
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PROCEDURE AT THE TIME OF PURCHASE AT MEMBER ESTABLISHMENTS. When a card holder intends to make purchase he presents his credit card for payment. The member establishment scrutinizes the card with reference to the following: 1. The validity period of the card has not expired. 2. The card has not been hot listed as per the latest hot list/ warning bulletin.Whenever bank receives information about the card lost/ withdrawn/ cancelled it issues a warning letter. The hot list gives the latest list of invalid cards and supersedes all warning bulletin. 3. The signature of the card holder tallies with specimen signature on the credit card. 4. The card has not been tampered within any manner. On being satisfied with the validity of the credit card , the merchant proceeds in the following way: 1. Obtain the impression of the card with help of the imprinter. 2. Obtain cardholders signature in the space provided and check whether signatures tallies with the signature on the card. 3. Prepare a chargeship in triplicate giving all details. Give one copy to the customer, keep one copy for records and forward one copy to the bank.
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PROCEDURE FOR REIMBURSEMENT The following procedure is followed for reimbursement to member Establishments. 1. The merchant can claim reimbursement from the designed branches of the bank. 2. All transactions emanating during the day are consolidated in the summation sheet cum BAR in triplicate. 3. The summation sheet cum BAR in duplicate along with the banks copy of the charge slip should be submitted to the designated branch for reimbursement. 4. Reimbursement should be obtained within 30days from the date of chargeslips. 5. The banks after deducting commission credit the amount of claim to the member establishments account or pay by D/D as earlier agreed.
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CHAPTER 6 CREDIT CARDS OPERATIONS OF BANKS-RBI GUIDELINESS:Pursuant to the announcement made in the Annual Policy Statement 2004-05, the Reserve Bank of India had constituted a Working Group on Regulatory Mechanism for Cards. The Group has suggested various regulatory measures aimed at encouraging growth of credit cards in a safe, secure and efficient manner as well as to ensure that the rules, regulations, standards and practices of the card issuing banks are in alignment with the best customer practices. The following guidelines on credit card operations of banks have been framed based on the recommendations of the Group as also the feedback received from the members of the public, card issuing banks and others. All the credit card issuing banks / NBFCs should implement these guidelines immediately.
Each bank / NBFC must have a well documented policy and a Fair Practices Code for credit card operations. In March 2005, the IBA released a Fair Practices Code for credit card operations which could be adopted by banks / NBFCs. The bank / NBFC's Fair Practice Code should, at a minimum, incorporate the relevant guidelines contained in this circular. Banks / NBFCs should widely disseminate the contents thereof including through their websites, at the latest by November 30, 2005.
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GUIDELINESS FOR IMPLEMENTATION
1. Issue of cards
A). Banks / NBFCs should independently assess the credit risk while issuing cards to persons, especially to students and others with no independent financial means. Add-on cards i.e. those that are subsidiary to the principal card, may be issued with the clear understanding that the liability will be that of the principal cardholder.
B). As holding several credit cards enhances the total credit available to any consumer, banks / NBFCs should assess the credit limit for a credit card customer having regard to the limits enjoyed by the cardholder from other banks on the basis of self declaration/ credit information.
C). The card issuing banks / NBFCs would be solely responsible for fulfillment of all KYC requirements, even where DSAs / DMAs or other agents solicit business on their behalf.
D). While issuing cards, the terms and conditions for issue and usage of a credit card should be mentioned in clear and simple language (preferably in English, Hindi and the local language) comprehensible to a card user. The Most Important Terms and Conditions (MITCs) termed as standard set of conditions, as given in the Appendix, should be highlighted and advertised/
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sent separately to the prospective customer/ customers at all the stages i.e. during marketing, at the time of application, at the acceptance stage (welcome kit) and in important subsequent communications.
2. Interest rates and other charges
A). Card issuers should ensure that there is no delay in dispatching bills and the customer has sufficient number of days (at least one fortnight) for making payment before the interest starts getting charged.
B). Card issuers should quote annualized percentage rates (APR) on card products (separately for retail purchase and for cash advance, if different). The method of calculation of APR should be given with a couple of examples for better comprehension. The APR charged and the annual fee should be shown with equal prominence. The late payment charges, including the method of calculation of such charges and the number of days, should be prominently indicated. The manner in which the outstanding unpaid amount will be included for calculation of interest should also be specifically shown with prominence in all monthly statements. Even where the minimum amount indicated to keep the card valid has been paid, it should be indicated in bold letters that the interest will be charged on the amount due after the due date of payment. These aspects may be shown in the Welcome Kit in addition to being shown in the monthly statement.
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C). The bank / NBFC should not levy any charge that was not explicitly indicated to the credit card holder at the time of issue of the card and getting his / her consent. However, this would not be applicable to charges like service taxes, etc. which may subsequently be levied by the Government or any other statutory authority.
D). The terms and conditions for payment of credit card dues, including the minimum payment due, should be stipulated so as to ensure that there is no negative amortization.
E). Changes in charges (other than interest) may be made only with prospective effect giving notice of at least one month. If a credit card holder desires to surrender his credit card on account of any change in credit card charges to his disadvantage, he may be permitted to do so without the bank levying any extra charge for such closure.
3. Wrongful billing
A). The card issuing bank / NBFC should ensure that wrong bills are not raised and issued to customers. In case, a customer protests any bill, the bank / NBFC should provide explanation and, if necessary, documentary evidence to the customer within a maximum period of sixty days with a spirit to amicably redress the grievances.
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B). To obviate frequent complaints of delayed billing, the credit card issuing bank / NBFC may consider providing bills and statements of accounts online, with suitable security built therefore.
4. Use of DSAs / DMAs and other agents
A). When banks / NBFCs outsource the various credit card operations, they have to be extremely careful that the appointments of such service providers do not compromise with the quality of the customer service and the bank / NBFCs ability to manage credit, liquidity and operational risks. In the choice of the service provider, the bank / NBFCs have to be guided by the need to ensure confidentiality of the customers records, respect customer privacy, and adhere to fair practices in debt collection.
B). The Code of Conduct for Direct Sales Agents (DSAs) formulated by the Indian Banks Association (IBA) could be used by banks / NBFCs in formulating their own codes for the purpose. The bank / NBFC should ensure that the DSAs engaged by them for marketing their credit card products scrupulously adhere to the bank / NBFCs own Code of Conduct for credit card operations which should be displayed on the bank / NBFCs website and be available easily to any credit card holder.
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C). The bank / NBFC should have a system of random checks and mystery shopping to ensure that their agents have been properly briefed and trained in order to handle with care and caution their responsibilities, particularly in the aspects included in these guidelines like soliciting customers, hours for calling, privacy of customer information, conveying the correct terms and conditions of the product on offer, etc.
SKIMMING Skimming is the theft of credit card information used in an otherwise legitimate transaction. It is typically an "inside job" by a dishonest employee of a legitimate merchant. The thief can procure a victims credit card number using basic methods such as photocopying receipts or more advanced methods such as using a small electronic device (skimmer) to swipe and store hundreds of victims credit card numbers. Common scenarios for skimming are restaurants or bars where the skimmer has possession of the victim's credit card out of their immediate view. The thief may also use a small keypad to unobtrusively transcribe the 3 or 4 digits Card Security Code which is not present on the magnetic strip. Instances of skimming have been reported where the perpetrator has put a device over the card slot of a ATM (automated teller machine), which reads the magnetic strip as the user unknowingly passes their card through it. These devices are often used in conjunction with a pinhole camera to read the user's PIN at the same time. This method is being used very frequently in Europe, e.g. in the Netherlands. Another technique used is a keypad overlay
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that matches up with the buttons of the legitimate keypad below it and presses them when operated, but records or transmits the keylog of the PIN number entered by wireless. The device or groups of devices illicitly installed on an ATM are also colloquially known as a "skimmer". Recentlymade ATMs now often run a picture of what the slot and keypad are supposed to look like as a background, so that consumers can identify foreign devices attached. Skimming is difficult for the typical cardholder to detect, but given a large enough sample, it is fairly easy for the card issuer to detect. The issuer collects a list of all the cardholders who have complained about fraudulent transactions, and then uses data mining to discover relationships among them and the merchants they use. For example, if many of the cardholders use a particular merchant, that merchant can be directly investigated. Sophisticated algorithms can also search for patterns of fraud. Merchants must ensure the physical security of their terminals, and penalties for merchants can be severe if they are compromised, ranging from large fines by the issuer to complete exclusion from the system, which can be a death blow to businesses such as restaurants where credit card transactions are the norm.
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ANNEXURE
QUESTIONNARES PROFILE OF THE BANK. CREDIT CARD ELIGIBILITY. DOCUMENTS REQUIRED FROM THE CUSTOMERS. HOW THE BANKS ARE TIE-UP WITH THE BANKS. (VISA, MASTERO, MASTER) CREDIT CARDS WORTHINESS TYPES OF CREDIT CARDS AND THEIR PROSPECTS AS PER WHICH LAWS THESE ARE FOLLOWED. SO FAR THEY HAD ANY CREDIT CARD FRAUDS WHAT ARE THE STEPS TAKEN BY THE BANK TO PREVENT IT?
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CHAPTER 7 CASE STUDY
ICICI BANK
ICICI Bank is India's second-largest bank with total assets of Rs. 3,634.00 billion (US$ 81 billion) at March 31, 2010 and profit after tax Rs. 40.25 billion (US$ 896 million) for the year ended March 31, 2010. The Bank has a network of 2,035 branches and about 5,518 ATMs in India and presence in 18 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 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 United States, Singapore, Bahrain, Hong
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Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches in Belgium and Germany. 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). TYPES OF CREDIT CARDS IN ICICI BANK ICICI Bank Credit Cards are among the top-rated credit cards in India. A wide range of ICICI Bank Credit Cards are available, catering to the varying needs of different audience segments in India. History of ICICI Bank ICICI was formed in 1955 as an initiative of the World Bank, the Government of India and representatives of the Indian industry. In 1999, ICICI become the first non-Japanese Asian Bank to be listed on the NYSE. ICICI Bank is at present India's largest private sector bank in terms of market capitalization and second largest overall in terms of assets. ICICI Bank is also the largest issuer of credit cards in India. ICICI Bank Credit Card: Types A variety of ICICI Bank Credit Cards are available to choose from, depending on the needs and spending style of the individual, including:
y y
Premium Cards Classic Cards
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y y y y
Value for Money Cards Co-Branded Cards Affinity Cards EMI Cards
The bank offers over 50 different credit cards in India. These include: The ICICI Platinum Card
y y y y
Priority access to exclusive airport lounges worldwide Fuel-surcharge waiver across all petrol pumps High credit/cash limit Air-accident insurance of up to Rs.1 crore
ICICI Bank Titanium Credit Card
y y
Up to 25% discount at the best restaurants in major cities Access to the Oberoi Lounges across various domestic/international airports
International Lifestyle offers
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ICICI Bank Visa Signature Credit Card
y y
Air-accident insurance cover of up to Rs.3 crores Special travel-related experiential offers, from flying a Fighter Jet to watching the emperor Penguins in Antarctica.
y y y y y y y y y y y
ICICI Bank Future Gold Credit Card ICICI Bank Travel Smart Gold Credit Card ICICI Bank Platinum Premiere Credit Card ICICI Bank Online Credit Card ICICI Bank Punjab and Sind Card ICICI Bank Airtel Card ICICI Bank Big Bazaar Credit Card ICICI X-Box 360 Credit Card ICICI BPL Mobile Credit Card ICICI Bank-Toyota Credit Card ICICI Bank Singapore Airlines VISA Platinum Credit Card
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ICICI Bank Singapore Airlines VISA Platinum Credit Card
Exclusive Features - ICICI Bank Singapore Airlines VISA Platinum Credit Card
y
Special Exclusive fares from Singapore Airlines, when you make a booking at singaporeair.com/India/SQICICI with your card
y y
5000 Kris Flyer miles when you use your card the first time. Upto 18 Kris Flyer miles on every Rs.200 spent.
ICICI Bank Gold American Express Cards
Exclusive Features - ICICI Bank Gold American Express Card.

y
An exciting selection of year-round privileges and savings in travel, leisure, dining and shopping in key destinations around the world with American Express Selects
y y y
Fuel-surcharge waiver across all petrol pumps International Travel Assist Helpline number from American Express. Fabulous Rewards
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1. Earn 3 reward points for every Rs. 200 spent on the card 2. Fast forward your reward points and earn up to 4 reward points per Rs 200.
y
Hand-picked Rewards - Exchange your reward points for attractive shopping vouchers, holiday vouchers or lifestyle must haves from our premium catalogue.
As a way of saying 'welcome aboard' you get 750 reward points to redeem from ICICI Bank Hand-Picked Rewards
Miscellaneous Cards A few of the other ICICI Bank credit cards that people can apply for include the ICICI Bank Online Credit Card, ICICI Bank Big Bazaar Credit Card, ICICI Bank Future Gold Credit Card, ICICI Bank Toyota Credit Card, ICICI Bank X-Box 360 Credit Card, and the ICICI Bank Airtel Card
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CASE STUDY THE INDIAN BANK
A premier bank owned by the Government of India Established on 15th August 1907 as part of the Swadeshi movement Serving the nation with a team of over 19000 dedicated staff Total Business crossed Rs.1,50,886 Crores as on 31.03.2010 Operating Profit increased to Rs. 2747.35 Crores as on 31.03.2010 Net Profit increased to Rs.1554.99 Crores as on 31.03.2010 Core Banking Solution(CBS) in all 1762 branches
International Presence Overseas branches in Singapore and Colombo including a Foreign Currency Banking Unit at Colombo 240 Overseas Correspondent banks in 70 countries
Diversified banking activities - 3 Subsidiary companies
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Indian bank Merchant Banking Services Ltd Indian Bank Housing Ltd. Indian Fund Management Ltd
A front runner in specialized banking 97 Forex Authorized branches inclusive of 1 Specialized Overseas Branch at Chennai exclusively for handling Forex transactions arising out of Export, Import, Remittances and Non Resident Indian business 62 Special SME Branches extending finance exclusively to SSI units
Leadership in Rural Development Pioneer in introducing Self Help Groups and Financial Inclusion Project in the country Award winner for Excellence in Agricultural Lending from Honourable Union Minister for Finance Best Performer Award for Micro-Finance activities in Tamil Nadu and Union Territory of Pondicherry from NABARD Established 7 specialized exclusive Microfinance branches called "Microstate" across the country to cater the needs of Urban poor through SHG (Self Help Group)/JLG (Joint Liability Group) concepts A special window for Micro finance viz., Micro Credit Kendras are functioning in 44 Rural/Semi Urban branches Harnessing ICT (Information and Communication Technology) for Rural Development and Inclusive Banking Provision of technical assistance and project reports in Agriculture to
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entrepreneurs through Agricultural Consultancy & Technical Services (ACTS)
A pioneer in introducing the latest technology in Banking

100% Core Banking Solution(CBS) Branches 100% Business Computerization 1010 connected Automated Teller Machines(ATM) 24 x 7 Service through 57000 ATMs under shared network Internet and Tele Banking services to all Core Banking customers e-payment facility for Corporate customers Cash Management Services Depository Services Reuter Screen, Telerate, Reuter Monitors, Dealing System provided at Overseas Branch, Chennai I B Credit Card Launched I B Gold Coin
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CREDIT CARDS AVAILABLE IN INDIAN BANK
Credit Cards Salient Features VISA cards available in three variants : Gold, Classic and Bharat cards Gold and Classic cards: Indian Nationals and Eligibility NRIs in the age group of 18-80 years. Bharat cards: Indian Nationals in the age group of 25-60 years.
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* Gold and Classic cards are Global cards and Bharat cards are domestic cards. * Revolving credit Gold card: Rs.75001 to Rs.3 lakhs. Classic cards: Rs.25000 to Rs.75000 Bharat Cards: Rs.10000 to Rs.20000. * Upto 4 add on cards can be issued for Gold/Classic cards. * Insurance cover on death due to accident is Other Requirements/Details available. * Baggage cover is available. * Credit Shield on death is available. * Purchase protection cover is available. * No Joining / annual membership fee. * Card holder can avail reimbursement of loyalty points (Rs.1/= for every Rs.200/= spent.) * Interest free credit period for purchases: Minimum - 15 days and Maximum - Upto 45 days.
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BIBILOGRAPHY BOOKS: CREDIT CARDS (TAXMAN) CREDIT CARDS FRAUD B.SUJATA ( ICFAI UNIVERSITY) BANKING- N. T. SOMASHEKAR (NEW AGE PUBLISHER) BASIC OF BANKING AND FINANCE- O .P. AGRAWAL(HIMALAYA PUBLICATION) OTHER INFORMATION BY NET
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CREDIT CARDS AND RBI GUIDELINESS ON CREDIT CARDS