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LOGO IN BLACK WHITE ON WHOLE

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Dedication
We are dedicating our work to Mr. Ozair Shah who is
our Statistic for Business and Economics course
instructor. He gave us direction about the project and
this research project was only possible due to her
guidance and encouragement. We got inspiration from
her and it is just because of his delegation and
guidance that we are able to complete this report.
She gave us direction at each and every step during
the project and gave us her precious time so that we
are able to complete this report. We are thankful for
her paternal attitude and all the guidance during the
completion of this project.

We are grateful to Allah Almighty, for enabling us to

fulfill this tiring, but interesting job for the completion
of our report.

We would not be going to do justice in presenting this

report without mentioning the people around us who
have been inextricably related with the completion of
this report.

We would like to express our heartfelt thanks to our

course instructor Mr. Ozair Shah for his support and
guidance, which he rendered throughout the study,
and provided us with such a wealth, led ideas, to
peruse and power of writing this report. It could not
have been possible to accomplish this report without
his thoughtful guidance and expertise.

Finally, for any all too fallible errors, omissions and

shortcomings in the writing of the report only we are
responsible for which we hope that all concerning
regards of this report will forgive us.
Executive summary

Authorization and Purpose

As students of BS Hons Management it was a requirement for us to write a
report encompassing smart billing. The purpose of this report is to give the
reader a comprehensive view of how Smart Billing will work. Our objective
was to examine closely the different elements that are involved in the
activities of operation.

Scope
This report will prove beneficial to any person who requires information
regarding our project and also to consumer.

Sources and Methods of Collecting Information

The method for the collection of the information was survey method and in
depth interview.

Major Facts and Figures

Consumers were willing to buy our product but they were little hesitant too
which will be shown in our Logical conclusion

Conclusion and Recommendations

From our research and experience, we can conclude that this idea of smart
billing will enter the consumers and banking sector into future. It is
completely effective and applicable.
Introduction
Nowadays it is hardly necessary to stress the importance of electronic
commerce. Suffice it to say that it is rapidly gaining momentum and is
equally appealing to both (electronic) merchants and consumers. One aspect
lagging behind is the availability of secure electronic payment methods. At
the same time, it is becoming rather obvious that the appeal of electronic
commerce without electronic payment is limited. Moreover, insecure
electronic payment methods are most likely to impede, rather than promote,
electronic commerce.

Theme of our project is smart billing. Smart billing is all about paying
your utility bills like Electricity, Gas, Landline phones, and Mobile phones
even. You can pay your bills at your homes using the service of smart billing.

Paying your bills is time consuming, hectic, and costly w.r.t. extra expenses
other than the actual bill itself. Now we should first define the parameter of
billing. There are several types of bills being paid by a particular household.

Connection charges
You may be asked to pay a connection charge for electricity, gas or the
telephone when you move in. It can be pricey unless you're sharing the costs
with other people.

Heating bills
You may be asked to pay a security deposit by some electricity or gas
companies. There are different ways of paying gas and electricity bills. Ask
about these when you move in. Bills are usually paid every month (monthly).
To make it easier you could open a post office account and put money aside
each week towards the bills. But it is also possible to pay monthly: buy
stamps each week, use a card meter or have money taken direct from your
income support.

Water rates
If you are in a private rented flat, an amount for water rates may be included
in your rent. Other tenants may have to pay water rates directly to the water
company. Contact them to see if you can pay it weekly or monthly.
Telephone bills
The phone bill is the most common source of money aggravation in large
households. You can be charged for a new line being put in, or for
reconnection.

And the rest

You may also be expected to pay a share of the television license, cable or
satellite TV connection, internet connection deals, and rental of items such
as washing machines. And don't forget to budget for mobile bills if you own
one.

Paying these bills using any means which include banks also requires the
consumer to go from their homes to the point of payment and give extra
charges for the service being provided by the bank. Smart Billing requires
only two major elements to pay your bills at home. One is credit card/debit
card and the other is machine.

Credit Cards
A credit card is part of a system of payments named after the small plastic
card issued to users of the system. It is a card entitling its holder to buy
goods and services based on the holders promise to pay for these goods and
services. The issuer of the card grants a line of credit to the consumer (or
the user) from which the user can borrow money for payment to a merchant
or as a cash advance to the user. A credit card is different from a charge
card, where a charge card requires the balance to be paid in full each month.
In contrast, credit cards allow the consumers to 'revolve' their balance, at
the cost of having interest charged. Most credit cards are issued by local
banks or credit unions, and are the same shape and size as specified by the
ISO 7810 standard.

How it works?
Credit cards are issued after an account has been approved by the credit
provider, after which cardholders can use it to make purchases at merchants
accepting that card.

When a purchase is made, the credit card user agrees to pay the card issuer.
The cardholder indicates his/her consent to pay, by signing a receipt with a
record of the card details and indicating the amount to be paid or by
entering a Personal identification number (PIN). Also, many merchants now
accept verbal authorizations via telephone and electronic authorization using
the Internet, known as a 'Card/Cardholder Not Present' (CNP) transaction.

Electronic verification systems allow merchants to verify that the card is

valid and the credit card customer has sufficient credit to cover the purchase
in a few seconds, allowing the verification to happen at time of purchase.
The verification is performed using a credit card payment terminal or Point of
Sale (POS) system with a communications link to the merchant's acquiring
bank. Data from the card is obtained from a magnetic stripe or chip on the
card; the latter system is in the United Kingdom and Ireland commonly
known as Chip and PIN, but is more technically an EMV card.

Other variations of verification systems are used by ecommerce merchants

to determine if the user's account is valid and able to accept the charge.
These will typically involve the cardholder providing additional information,
such as the security code printed on the back of the card, or the address of
the cardholder.

Each month, the credit card user is sent a statement indicating the
purchases undertaken with the card, any outstanding fees, and the total
amount owed. After receiving the statement, the cardholder may dispute any
charges that he or she thinks are incorrect (see Fair Credit Billing Act for
details of the US regulations). Otherwise, the cardholder must pay a defined
minimum proportion of the bill by a due date, or may choose to pay a higher
amount up to the entire amount owed. The credit provider charges interest
on the amount owed if the balance is not paid in full (typically at a much
higher rate than most other forms of debt). Some financial institutions can
arrange for automatic payments to be deducted from the user's bank
accounts, thus avoiding late payment altogether as long as the cardholder
has sufficient funds.

What Credit Card Numbers Mean

Although phone companies, gas companies and department stores have
their own numbering systems, ANSI Standard X4.13-1983 is the system used
by most national credit-card systems.
The structure of the card number varies by system. For example, American
Express card numbers start with 37; Carte Blanche and Diners Club with 38.

American Express - Digits three and four are type and currency, digits five
through 11 are the account number, and digits 12 through 14 are the card
number within the account and digit 15 is a check digit.

Visa - Digits two through six are the bank number, digits seven through 12 or
seven through 15 are the account number and digit 13 or 16 is a check digit.

MasterCard - Digits two and three, two through four, two through five or two
through six are the bank number (depending on whether digit two is a 1, 2, 3
or other). The digits after the bank number up through digit 15 are the
account number, and digit 16 is a check digit.

Credit Ratings and Card Types

If you've had credit problems, you might have to settle for a card with a
slightly higher rate. If you have poor credit or no credit, some banks will
issue you a secured credit card. This means that you deposit money into a
savings account that acts as collateral against your credit line.

The rate may be high, but a secured card offers you the convenience of a
credit card while you work on rebuilding your credit. Secured cards are often
the best option available to those with a bankruptcy in their past. Be sure to
choose a secured card that pays you interest on your deposit!

On the other hand, if you have a very good credit score and would like a
higher limit ($5,000 or more), check into applying for a gold card at the
same interest rates but with a slightly higher annual fee. Most gold cards
require that your annual income be at least $35,000, and platinum cards --
even higher!
With all of this money getting spread around, and lots more of it out there,
it's no wonder why most of us are constantly receiving notice that we're
"pre-approved" for an endless stream of credit cards. There's got to be a
catch...

A word of caution about those "pre-approved" card offers you get in the mail:
You may get an offer for a new credit-card account with a pre-approved
credit limit just slightly higher than your balance on your current card. The
fine print could reveal an extremely high interest rate and also state that, by
accepting the offer, you agree to transfer the entire balance of your other
credit-card account to the new, high-interest account. This is a trick, since
you would never consciously choose to pay more interest each month. Read
everything carefully so that you don't fall into this trap.

And before you toss this offer into the garbage, shred it so that no one can
fish it out and try to impersonate you.

No matter what kind of card and plan you choose, you should have access to
the following information under the federal Truth in Lending Act so that you
can compare one loan to another:

• Finance charges in Rupees and as an annual percentage rate (APR)

• Credit issuer or company providing the credit line

• Size of the credit line

• Length of the grace period, if any, before payment must be made

• Minimum payment required

• Annual fees, if applicable

• Fees for credit insurance (if any), which pays off your loan if you die
before the debt is fully repaid

Card Types
There are basically three types of credit cards:

Bank cards, issued by banks (for example, Visa, MasterCard and Discover
Card)

Travel and entertainment (T&E) cards, such as American Express and

Diners Club
House cards that are good only in one chain of stores (Sears is the biggest
one of these, followed by the oil companies, phone companies and local
department stores.) T&E cards and national house cards have the same
terms and conditions wherever you apply.

You may also be familiar with what is known as an affinity card. This card --
typically a MasterCard or Visa -- carries the logo of an organization in
addition to the lender's emblem. Usually, these cardholders derive some
benefit from using the card -- maybe frequent-flyer miles or points toward
merchandise. The organization solicits its members to get cards, with the
idea of keeping the group's name in front of the cardholder. In addition to
establishing brand loyalty, the organization receives some financial incentive
(a fraction of the annual fee or the finance charge, or some small amount
per transaction, or a combination of these) from the credit-card company.

No one card is right for everyone. Basically, the right card for you is one
that's accepted where you shop and charges you the smallest amount of
money for the services you use. Almost any U.S. business or establishment
that takes MasterCard also takes Visa, and vice versa. So if you only spend
money in the United States, you probably don't need both.

Credit Card Applications

Before we get into shopping for a card, let's go over some important terms
you'll encounter in credit-card brochures or discussions with potential
lenders:

Annual fee - A flat, yearly charge similar to a membership fee

Many companies offer "no annual fee" cards today, and lenders who do
charge annual fees are often willing to waive them to keep your business.

Finance charge - The dollar amount you pay to use credit

Besides interest costs, this may include other charges such as cash-
advance fees, which are charged against your card when you borrow cash
from the lender. (You generally pay higher interest on cash advances than on
purchases -- check your latest bill to find out what you're paying for this
service!)

Grace period - A time period, usually about 25 days, during which you can
pay your credit-card bill without paying a finance charge
Under almost all credit-card plans, the grace period only applies if you pay
your balance in full each month. It does not apply if you carry a balance
forward. Also, the grace period does not apply to cash advances.

Annual percentage rate (APR) - The yearly percentage rate of the finance
charge

Interest rates on credit-card plans change over time. Some of these

adjustments are tied to changes in other interest rates, such as the prime
rate or the Treasury bill rate, and are called variable-rate plans. Others
are not explicitly tied to changes in other interest rates and are called fixed-
rate plans.

Fixed rate - A fixed annual percentage rate of the finance charge

Variable rate - Prime rate (which varies) plus an added percentage (For
example, your rate may be PR + 3.9 percent.)

Introductory rate - A temporary, lower APR that usually lasts for about six
months before converting to the normal fixed or variable rate (This is a hot
topic -- more about it later.)

Experts say that if you're smart, you'll do the same kind of comparison
shopping for a credit card that you do when you're looking for a mortgage or
a car loan. This is a good idea because the choices you make can save you
money. The process is not a simple one -- here are some tips that should
help you get started:

Do some research - There are plenty of places, both online and offline,
where you can read about credit-card offerings and even get credit-card
ratings, but since rates and plans change so often, it's a good idea to call the
institutions you're interested in to confirm the information and to see if there
are other plans that might work for you.

A reliable and non-commercial resource is the Federal Reserve Board. Also,

the non-profit consumer credit organization U.S. Citizens for Fair Credit Card
Terms offers credit-card ratings from its research (and so do a lot of
commercial organizations -- many of whom are also credit-card issuers).

Make a list - Make a list of credit-card features that fit your financial needs
and rank the features according to how you plan to use the card and pay
your monthly bill.
Review the plans - Review all of the information you've gathered on
different plans. Pay special attention to the APR - - you want a low rate, but
not necessarily the lowest. This is because, depending on your lifestyle and
payment habits, you might benefit more from a card that offers cash
rebates, discounts or frequent-flier miles.

Check out credit unions - Look into the possibility of joining a credit union.
Credit unions are non-profit, and they have lower overhead so they can
charge lower interest rates. Credit unions are newer to the credit industry so
they are eager to generate credit-card loans. However, you'll probably be
required to open a share account or savings account to join.

Credit unions typically are limited to a particular employer and its

employees, but that's changing. Due to industry consolidations, credit unions
are rapidly expanding their fields of membership. To find out which credit
union you may be eligible to join, contact the Credit Union National
Association (CUNA).

Compare plans - If you already have a credit card, be sure that you're
making a good move before you swap cards. If you are a current cardholder
and have a good credit rating, see if the institution that issued your card will
lower your current rate. Don't be afraid to negotiate!

These are steps to take when deciding on a credit card. But your actual
breadth of options depends in great part on your credit history.

Credit Card Terminals (machines)

Several types of credit card terminals are available to merchants. Most have
the same basic purpose and functions. They allow a merchant to swipe or
key in required credit card information and transmit such data to the
merchant service provider. Most new models processes credit cards, gift
cards, and are expandable to perform check verification. The majority of
credit card terminals transmit data over a standard telephone line or the
internet. Wireless terminals can transmit card data using either cellular
networks or satellite networks. Some also have the ability to store data and
transmit over a standard telephone line when one becomes available.

Obtaining terminals
Credit card terminals are made available to merchants by merchant service
providers. Merchant usually must buy or lease the terminal. Some providers
also offer free refurbished terminals to own, or free new terminals that the
merchant must return to the provider in new condition at the end of service.

Protocols of Smart Billing

All SMART BILLING protocols are based on the existing credit-card payment
system. The players of the payment system are shown in Figure 1.

The payment system is operated by a payment system provider like Euro

pay, MasterCard, VISA. This payment system provider has fixed business
relations with certain banks who act as issuers of credit cards to customers
or as acquirers of payment records from merchants. Each issuer has a Bank
Identification Number, BIN, which it receives at the time it signs up with a
payment system provider, and which is embossed on each credit card issued
as part of the credit card number. The BIN also identifies the payment
system provider. A customer receives a credit card from an issuer, and is in
possession of a PIN as is common in current systems. In 1KP and 2KP,
payments will be authenticated only by means of the credit card number and
this PIN (both suitably encrypted!), while in 3KP, a digital signature is
additionally used.

It is assumed that (as can be expected for electronic payment) that the
customer is using a computer to execute the payment protocol. Since this
computer must receive the customer's

SMART BILLING {A Family of Secure Electronic Payment Protocols PIN or

secret signature key, it must be a trustworthy device. We caution that even a
customer-owned machine is vulnerable: it may be used by several persons
or it may contain a Trojan horse or a virus that could steal PINs and secret
keys. The best payment device would be a secure isolated computer, e.g., a
tamper-resistant smartcard, connected to the computer used for shopping
via a customer-owned smartcard reader with its own keyboard and display.
(This is often called an Electronic Wallet.) Technically, 1KP and 2KP can be
used with any kind of payment device, while for 3KP the customers need
personal devices that store their secret signature keys and certificates. A
merchant signs up with the payment system provider and with a specific
bank, called an acquirer, to accept deposits. Like a customer, a merchant
needs a secure device that stores the merchant's secret keys and performs
the payment protocol. Clearing between acquirers and issuers is done using
the existing financial networks. The SMART BILLING protocols deal with the
payment transaction only (i.e., the solid lines in Figure 1), and therefore
involve only three parties, called C {Customer, M {Merchant, and A
{Acquirer Gateway. Note that A is no acquirer in the financial sense, but a
gateway to the existing credit card clearing/authorization network. In other
words, the function of A is to serve as a front-end to the current
infrastructure that remains unchanged. The protocols presented here
describe the core of a payment system only. Besides this, additional
mechanisms are needed, e.g., for cancelation of payment orders and for
providing statements of account.

The issuer and the acquirer are assumed to enjoy some degree of mutual
trust. Moreover, an infrastructure enabling secure communication between
these parties is already in place. Therefore, we join the requirements of the
issuer and the acquirer.

A1 Proof of Transaction Authorization by Customer

When the acquirer debits a certain credit card account by a certain amount,
the acquirer must be in possession of an unforgettable proof that the owner
of the credit card has authorized this payment. Note that the information
certified must include at least the amount and currency of the payment, the
date and time, and the merchant identification. Note also that in this context
the merchant may be an adversary, and even such a merchant must not be
able to generate a fake debit.

We distinguish between: a. Weak Proof, which authenticates the customer to

the acquirer but does not serve as a proof for third parties, and b.
Undeniable Proof, which provides full non-repudiation, i.e., can be used to
resolve disputes between the customer and the payment system provider.
The same distinction will be made for all subsequently required proofs of
transaction.

A2 Proof of Transaction Authorization by Merchant.

When the acquirer authorizes a payment to a certain merchant, the acquirer

must be in possession of an unforgettable proof that this merchant is willing
to accept the payment.

Merchant Requirements

M1 Proof of Transaction Authorization by Acquirer

The merchant needs an unforgettable proof that the acquirer has authorized
the payment. This includes certification and authentication of the acquirer,
so that the merchant knows he is dealing with the real acquirer, and
certification of the actual authorization information. Note that again the
amount and currency, the time and date, and information to identify the
transaction must be certified. We also distinguish between [a] Weak proof
and [b] undeniable proof, which provides full non-repudiation.

M2 Proof of Transaction Authorization by Customer

Even before the merchant receives the transaction authorization from the
acquirer, the merchant might need an unforgettable proof that the customer
has authenticated it can gain we distinguish between [a] Weak Proof and [b]
Undeniable Proof. This requirement is necessary to provide for online
authorization.

Customer Requirements

C1 Unauthorized Payment is Impossible

It must not be possible to charge something to a customer's credit card
without possession of the credit card number; this must remain the case
even if the customer has engaged in many prior legitimate transactions. In
other words, Smart Billing {a Family of Secure Electronic Payment Protocols
information sent in one (legitimate) transaction must not enable a later
spurious transaction. So in particular the PIN must not be sent in the clear,
and not even subject to guessing attacks! Similar to the two types of proofs
of transactions, we distinguish between:

Impossibility, which means that unauthorized payments are impossible

provided the acquirer's secret key is not available to the adversary, and

Disputability, which means that even if the acquirer's secret key is available
to the adversary (e.g., because the adversary co-operates with an insider),
the customer can prove that he/she did not authorize the payment. In fact,
C1.a and C1.b are consequences of A1.a and A1.b, respectively.

C2 Proof of Transaction Authorization by Acquirer

The customer would like to be in possession of proof that the acquirer
authorized the transaction. This receipt" from the acquirer is not of
paramount importance, but is convenient to have. Again, we distinguish
between

[A] Weak Proof

[B] Undeniable Proof (full non repudiation).

C3 Certification and Authentication of Merchant
The customer needs a proof that the merchant is accredited at an acquirer
(which could be considered as some guarantee for the trustworthiness of the
merchant).

C4 Receipt from Merchant

The customer wants a proof that the merchant who has made the order has
received payment and promised to deliver the goods. This takes the form of
an undeniable receipt.

The values used in the protocols are defined as follows:

OFFER
• order description,
• amount, currency, date, ID of merchant

ORDER
• order description,
• amount, currency, date, ID of merchant,
• delivery address (electronic or physical)

SLIP
• amount, currency, date, ID of merchant
• credit card number, expiration date, PIN

AUTH
• `approved'/`rejected'
• H(amount, currency, date, ID of merchant)
• H(ORDER)

When the customer places an order, the merchant responds with the full
information: OFFER and a certification CERTA for A's public key. The
customer checks the validity of CERTA. He then forms SLIP and encrypts it
under A's public key, via the function EA, to get a ciphertext y = EA (SLIP).
He transmits y and ORDER to the merchant. The merchant checks that
ORDER matches his order. He then computes h = H (ORDER), and forwards
h; y to the acquirer gateway. The acquirer gateway decrypts y. If the
decryption fails, then the alteration of y is detected and the transaction is
invalid. If not, A gets SLIP. Now A extracts H (ORDER) and ID of merchant
from SLIP and checks that these match the value h and the ID sent by the
merchant. Using amount, currency, date, credit card number, expiration
date, and PIN from SLIP, A uses today's existing clearing and authorization
system to on-line authorize the payment.

Upon receipt of a response from the authorization system, A computes a

signature, using the function SA, on AUTH and y = EA (SLIP). If the payment
is authorized, AUTH includes the value `approved', otherwise the value
`rejected'. The signature is then transmitted to the merchant. The merchant
checks the validity of the signature, based on the already known data
amount, currency, date, ID of merchant, h, and y. If the signature is valid and
contains the `approved' value, M forwards the signed authorization to the
customer.

Since the merchant knows AUTH in advance, the signature would indicate
any tampering in the information sent from merchant to acquirer, and any
disagreement between customer and merchant on the payment data.

Process of Smart Billing at front End

Step # 1:
Swap Your Card

Step # 2:
Enter Your Pin Code

Step # 3:
Select The Billing Option

Step # 4:
Enter The Client / Customer Number

Step # 5:
Enter the Billing Month

Step # 6:
Approve Your Bill Amount

Step # 7:
Press “Enter” For the Payment.
Process of Smart Billing at Back End
SWAP
• Bank takes data

• Confirms account holder information

• Verify with cards information

• Visa/Master card company verify card and account holder info

• This process takes place with help of software designed by One-Link or

M-Net who responsible for all the linkages and communication

PIN
• Validity of accounts

• Retrieval of data to machine

• Visa/Master gives verification and clearance for credit payments

BILLING OPTION
• Machine will give option on screen to select the company for which the
bill is to be paid

• On the selection, Info/data will be given to the NADRA(central

authority), to give access to client information

ENTER CLIENT NUMBER

• Data is processed to NADRA

• NADRA will look into data base of company

• Relative information is sent to the client

ENTERING BILLING MONTH

• Data is sent to NADRA to get current/to-date bill for the month

• Company data base matches the date with bill amount

• Relative information is given to the client

APPROVAL
• Customer selects the input from company or NADRA
 • Clients selects the approved bill amount

FINAL BILL PAYMENT

DEBIT CARD: Data is sent to the bank through one-link. Banks deducts
relative amount from account (Plus extra charges that is Rs.20-25/).
One Link transfers funds from Bank to Bank (NBP, BOP Or Allied Bank)
containing automated company accounts. The transfer report is sent to
NADRA, NADRA updates the Company records for payments.

CREDIT CARD: VISA takes input of transaction from the client. Visa/Master
accepts credit transfer to Banks. Bank approved the transaction and charges
extra for its services.

• Process in case 1 (DEBIT CARD) continues.

• During the process of transaction One-Link/ M-Net charge Rs.15/ from

the client for its services.

• Bill payment Confirmation report sent to the customer/client which

results in the generation of bill payment receipt.

Payment Gateway Architecture

 • After customer provides their credit card information to merchant,
merchant will send the credit card payment order to be authorized
through Internet/smart billing Payment Gateway.

• Payment Gateway will do initial screening all payment orders from

merchants for possibility of fraud through several defined rules. Valid
payment order will then sent to the Card Processor Bank to be
authorized.

• Processor bank will pass the payment order through Credit Card
Interchange (CCI i.e. VISA or MasterCard) to be authorized by
Customer Credit Card Issuer.

• Credit Card Issuer will validate the CVV code, billing address (AVS),
check the card balance, call customer to confirm (if required as per
their authorization policy for transactions above certain limits), then
authorize or reject the payment order.

• CCI passes the authorization or rejects confirmation to processor bank.

• Processor Bank passes the authorized or rejects confirmation to

Payments Gateway

• Payment Gateway passes the authorized or rejects confirmation to

Merchant which then processes the order if the payment authorized.

• Later on CCI will settle the transaction with Merchant's Banks to be

credited to Merchant's account.

The current traditional practice is that the Processor Bank usually is the
same as Merchant's Bank who act as acquiring Bank. However, currently
there are some cases that the Payment Gateway also acts as Acquiring
entity and Merchant may receive their fund on their Bank Account, which
their bank may not act as their acquiring bank. Seems that the processor
bank role in this scheme is only for providing infrastructure to interface the
Payment Gateway to CCI.
There are 2 types of credit card transaction: Card Present (CP) and Non Card
Present (Non CP).
Transactions that categorized as CP are:
1. Fixed Point of Sale (POS) using EDC (Device for swiping Credit Card).
2. Mobile EDC
3. Virtual POS using Credit Card Swappers

Transactions that categorized as Non CP are:

1. Internet Credit Card Payment
2. Mobile Order/Telephone Order (MOTO)

CP transactions are more secured since the Card is physically presented

during transactions, in which the merchant may check the physical card
along with the signature during the transaction.
Non-CP card increase the possibility for fraud, since the card is not physically
presented during the transaction.

To prevent Fraud for CP transactions, currently merchants must check the

Card appearance and customer signature in the receipt against the signature
in the card. This verification cannot be done for Non CP transactions
Plus there is CVV code which is the 3/4 digits additional code to be verified to
prevent fraudster that know the algorithm to generate the Card Numbers.

To prevent Fraud for Non CP transactions, the Credit Card industry currently
define the AVS (Address Verification System) that verifies the Billing Address
of card holder (customer) provided to the merchant, with the customer
billing address stored in the Card Issuer Database. Since it would be difficult
for fraudster to know Card Holder billing address unless they use
sophisticated social engineering to the card holder, the fraud risks can be
significantly reduced.

Off course all connections should be secured. Connection through Internet

must be secured using SSL with 128bit key at minimum. The connection
between card entities usually using ISO8583 messaging standard, secured in
network level using HSM (Hardware Security Module).

Currently there are lots of companies offering Payment Gateway services on

the Internet today, but mostly based in US. They usually charge more for
International merchants, thus the fee become too high and not cost effective
for local online business. In Indonesia, there have been several tries to
provide online payment services, but seems not successful either because
by too many fraud lost and/or the market has not picking up.
OUR Proposed Smart Card
Smart Cards
The "smart" credit card is an innovative application that involves all
aspects of cryptography (secret codes), not just the authentication we
described in the last section. A smart card has a microprocessor built into
the card itself. Cryptography is essential to the functioning of these cards in
several ways:
 • The user must corroborate his identity to the card each time a
transaction is made, in much the same way that a PIN is used with an
ATM.

• The card and the card reader execute a sequence of encrypted

sign/countersign-like exchanges to verify that each is dealing with a
legitimate counterpart.

• Once this has been established, the transaction itself is carried out in
encrypted form to prevent anyone, including the cardholder or the
merchant whose card reader is involved, from "eavesdropping" on the
exchange and later impersonating either party to defraud the system.

This elaborate protocol is conducted in such a way that it is invisible to the

user, except for the necessity of entering a PIN to begin the transaction.

They are now hot commodities that are expected to replace the simple
plastic cards most of us use now. Visa and MasterCard are leading the way in
the United States with their smart card technologies.

The chips in these cards are capable of many kinds of transactions. For
example, you could make purchases from your credit account, debit account
or from a stored account value that's reloadable. The enhanced memory
and processing capacity of the smart card is many times that of traditional
magnetic-stripe cards and can accommodate several different applications
on a single card. It can also hold identification information, keep track of
your participation in an affinity (loyalty) program or provide access to your
office. This means no more shuffling through cards in your wallet to find the
right one -- the smart card will be the only one you need!

Experts say that internationally accepted smart cards will be increasingly

available over the next several years. Many parts of the world already use
them, but their reach is limited. The smart card will eventually be available
to anyone who wants one, but for now, it's available mostly to those
participating in special programs.

Research Statement
 The research statement covers two main aspects of our study.

• The first aspect will cover the willingness of consumer to buy our idea or demand of our
service
• The second aspect will cover the merchant end which includes visa / Master Card
Company, merchant bank, central authority and state bank of Pakistan.

Variables at consumer end

• Willingness to buy smart billing option or

• Willingness to stick to traditional option.

Variables at merchant end

• applicability
• return on investment

PROBLEM STATEMENT

 Will the smart billing be effective for households?

 Is smart billing a profit oriented opportunity for merchant banks?
 Is smart billing feasible and applicable considering government and state bank
regulations?

Research Need
This research is conducted for the purpose making payment of utility bills easier for
consumers.
Research is a real life situation, the process of locating and evaluating information.
We use these skills when we buy a car, consider a prospective job opportunity, or
decide upon a doctor. In all cases we need to find relevant information, organize it so
that we can see what is most relevant to our needs, and come to a conclusion as to
how we should proceed. Research skills, therefore, help us to better our thinking
skills, and the clear expression of our thoughts leads to better writing skills.

Writing a research report allows you to explore a particular topic in considerable

depth and to organize and clearly express what you have learned. Writing a term
paper allows you to present information you have researched to support and defend
an idea. The clarification of this central idea in your mind and the organization of its
defense develop thinking skills that will benefit you during your entire life.

Decision-Makers in Need

Because decisions about community design are made continually, policy

makers need timely and accurate information about how their design and
construction choices can affect the physical activity levels and health of
residents. Research will provide policy makers with evidence about how to
create more activity-friendly communities.

Market Research

Market research is an essential part of any business that wants to offer

products or services that are focused and well targeted. Business
decisions that are based on good intelligence and good market research
can minimize risk and pay dividends and by making market research part
and parcel of the business process and conducting market research
throughout the lifecycle of a product or service market research will bring
the following benefits
 • Market research will help you better communicate - Your current
customers experiences are a valuable information source, not only will
they allow you to gauge how well you currently meet their expectations
they can also tell you where you are getting things right and more
importantly where you are getting things wrong.
• By asking the customer you not only show them that you care but you
also take the guess work out of customer services.
• Market research helps you identify opportunities – If you are planning to
operate a new service and want to know the preconceived attitudes
people have then market research can help, not only in evaluating the
potential for a new idea, but also by identify the areas where a
marketing message needs to honed.
• Market research will minimize risk - Market research can help shape a
new product or service, identifying what is needed and ensure that the
development of a product is highly focused towards demand
• Market research creates benchmarks and helps you measure your
progress - Unless you measure you may not be able to gauge how well
your business is performing. Early research may highlight glaring holes
in your service or short falls in your product, regular market research
will show if improvements are being made and, if positive, will help
motivate a team.

SMART BILLING: A NEW APPROACH

The purpose of SMART BILLING to be introduced is to give a hand to people

of new full of activity era in which they are busy in making money to save
time and extra money spent on paying utility bills. The customers will get
benefit from this parcel as they have their desire satisfied at their home. We
conduct this research to make the life of our customers easier because it is
very intricate to find a time for your daily utility bills.
PLASTIC MONEY: A MODERN TREND

It provides the customers with easiness .So that customers will avoid the
rush and jostle commotion .The rushes of the road will be minimize and
hence the time wastage on road will also be reduced and the lives of the
people will be easier. It will reduce the fuel utilization which is beneficent of
our country.

FLOAT ON PASTIC MONEY: YOU MUST KNOW IT!

One of the big advantages of using the card is 'the float' that is given to you
by the banks. The float basically means that you can make payment on the
expenses being incurred once the bill is issued by the credit card company
and within the stipulated grace period. This is generally 15 days. And during
this period you are not charged any interest.

Let us see how this system works. Say purchases a washing machine on April
15 worth Rs 28,000 and pays through his credit card. Since A's billing date
was 14th of every month, A would get nearly 45 days of credit. That is, 30
days since the next bill would be issued and another 15 days as grace period
to make the payment for the same.

So we can see that if a purchased washing machine on 15th of the month

then he can enjoy free credit float for 44 days. However, if the purchase is
made even two days before the 15th, that is, on the 13th of the month, then
he can enjoy a free credit float for only 16 days. So by just purchasing the
washing machine 2 days later, he can enjoy credit for an additional 28 days.

The situation gets more interesting when one has more than one credit card
and with a 15-day difference in payment cycles. This will help one to take the
advantage of two different cycles of the month.
Of course, there are certain expenses, which we cannot hold over like an
urgent air travel or medical expenses, here with the help of 2 credit cards
with different billing cycles, one can get the maximum benefits.

Moreover, there are other ways you can enhance your benefits from credit
cards. Today there is a wide variety of cards that are available in the market.
But you need to benchmark them on key features such as wide acceptability,
zero annual fees, no fuel surcharge, good 24-hour helpline, Internet access
for account viewing, SMS updates and a truly rewarding loyalty programme.

Accordingly select the top two cards and make them your 'first' and 'second'
preferred card for use. Further, besides enjoying the maximum possible
credit period, try to get the billing cycles of preferred cards fixed in such a
way that their due dates fall 15 days apart. There are certain banks that
offer up to 21 days of grace period as well.

In the recent years, the development of reward and discount programmes for
credit card users has become a big thing as banks are in competitive mode.
Therefore, the discounts and rewards have become more and more
attractive. For example, office supplies, travel, software and phone services.
You can take advantage of them as well by using the credit card to lower
your expenses.

The float is of good convenience, but don't use it greedily. If you have the
discipline to pay off your balance at the end of each month and not spend
more than you have (just like a checking account). You will basically get the
credit card service for free - paid for by people who don't have enough
discipline to pay off their balance each month.

DONOT BOTHER TO CARRY CASH

Imagine going anywhere and no botheration of payments! A Credit Card:
You go anywhere and you do not bother carrying cash. Not used on a wide
scale in Pakistan but the US and the UK completely work on the plastic
money. In fact it’s worth noting the fact that around a trillion dollar
transaction is made by cards in the US. The fact that it’s not doing
immensely good in Pakistan even after this concept being in the country
since almost a decade now, its catching pace because the methods of
business are now diverting and a few of them perhaps matching the western
world.

In the modern competitive world, it is of utmost importance to keep pace

with the developed nations which would not only improve the standard of
living but would also help invent new ways to doing things better. A credit
card in Pakistan is not used at many places and it would take a long time
before it could be used in the grocery markets on a regular basis as
compared to the western world where the entire grocery shopping too is
done by cards – rest aside all major listed shopping items. If we also keep an
eye on the standard of living of the people in Pakistan and at their interests,
we could come across some hard facts.

Lets just take the following case: I was marketing a credit card and being too
hot outside, I just entered one of the not-known banks (a branch) located in
one of the small gullys (small lane). It was cool inside and as I thought not
doing anything entering into a bank, I would only find the guard coming to
me and throwing me out. I would rather market the card and have a chat to
a few people. To my surprise, I managed to chat with a gentleman who (I
believe) did not possess much knowledge about how the bank was running
and who drew a salary of Rs.1, 8000/- per month but also the most anxious
person to have the first deal in the bank. He also managed to observe the
word ‘global’ associated with the card and the name of the company and
requested an explanation about the same. He finally wanted to go for a
‘global card.’ It’s just amazing at times when we find that the system or the
technology just would not work because of the people around. Although it
can change the economy structure absolutely, but do you think it’s really
good to be influenced by the entire system? Even such smart cards
according to our project can help people to even don’t bother to stay in
queue and waste time on paying regular bills.
You just know when you use it and being easy to carry and use, you do not
think twice before spending. Wow! Wonderful again to find that you have to
make the payment after almost 20 days after the arrival of the same and if
you spend in the beginning of the month, you end up making payments after
almost 50 days. Great::::: isn’t it? I would say it would rather be cruel to take
money through credit cards from the person who does not even earn the
amount, which he is now spending. If he goes bankrupt or does not get a
monthly salary, imagine the level of mental disorder the person could go
through especially when he has the entire family to handle too. It’s difficult
to change a habit and using a card would then be a habit for the one who
starts using it regularly. Again in a habit you always raise the level of wrong
consumption, which is the same when you start using a card. Using a credit
card could be as dangerous as probably commencing to smoke or falling for
one single female who does not even want to know you. As compared to a
credit card, the better option would be to go for a Debit Card, where you
just need to take care of the fact that you have enough amounts in your
bank account to use it. Whenever you use it you are assured that the
payment has already been made once you get your card swiped and that
you do not have any burdens at the end of the month.

A debit card could be perfect also considering the fact that you end up not
carrying large amount of cash. If there is not enough cash in your bank
account the card would not be accepted by the machine. It’s the perfect
system to bring about a change in the payment mode, making it easier and
calculative too. I guess, with the rapid use of debit cards, it would be
essential for all the stores and businesses in all the industries to start having
the swiping machines, which is one of the biggest problems in the
development of the said industry.

Credit cards are a boon - they give us so much financial freedom and help us
keep our options open. But they can also work as a double-edged sword.
Credit card debt can bring you to ruin - even as you lead an affluent lifestyle.
Rolling credit - if you get entangled in it - it can pull you down under. If you're
already caught in the mesh - get out of it as soon as possible - even if you
have to deny yourself every single luxury for the next few months. If you're
on the verge of getting into a credit card debt trap - avoid it at all costs.

• Keep an account of all your bills. Do they tally with the statement send
by the credit card company? You'll be amazed at how many
indiscretions and mistakes can take place at this level. Always check
and double-check your statement.
• Take a good look at your bills. Where is it that you're overspending?
What are the items you would have resisted from buying if you would
have had to pay cash? Give it serious thought - should you be
indulging in them when you can't afford them?
• Resorting to pay the minimum amount due is okay at a time of need -
but certainly not something to be done regularly. The interest you will
need to be pay is exorbitant - and by the time you're done settling
your debt you would have paid twenty to twenty five times more than
if you had paid cash in the first place.
• Inculcate a financial discipline. Make a budget, and stick to it. Keep a
watch over your bank account. What is the income as compared to the
outgoing money? Be your own accountant - and be a good one.
• Why not stop impulsive buying? Unless you have an accommodating
bank balance - you're really throwing away your precious money on
things you don't really want or need. Resist from online shopping - it
has a tendency to rob you of control over your impulses or your money.
 Credit card - credits yourself with sense - and uses them to your advantage.

ROBUST FOR FALLING BANKING STRUCTURE

Banks as issuers of credit cards can open a new gateway of revenue, so this
research is also useful considering down crunch in banking sector.

RESEARCH IMPACT
CONSUMER ORIENTED

SMART Billing aims to make it easy for consumers to pay their utility bills. Its main
impact will be on consumers even we would call it revolutionary change for them to
pay their bills sitting at home. It will also create awareness among consumers to use
plastic money and prefer it over liquid cash.
SOCIETAL AND ECONOMIC IMPACTS
Smart Billing will reduce use of cars for billing purposes. It will
have an impact on consumption of fuel. People won’t have to stay
in lines for hours.

Advantage for the Upper Middle & Elite class

This smart billing will make them easy to pay bills at breakfast table. It will
be fully according to their needs, tastes and preferences. The Upper Middle
& Elite class will get benefits from this service as they won’t have to go to
post offices. The cost advantage would attract the lower middle class to
come and buy the service too.

Incremental Revenue
Our designed service will help banks to increase its sale. People will be more
attracted to buy a service covering all the items they use resulting a mark
increase in sale of banks.

Customer Satisfaction
To satisfy the consumers is the core aim of our study. The convenient
accessibility of payment of bills will satisfy the customers.

Smart cards have many advantages over currency. Firstly, it takes away the
chore of trudging to the bank to draw some cash. Moreover you will never
have the problem of receiving torn and soiled notes.

If you are a businesswoman who deals with large amounts of cash every day,
then you could save yourself the hassle of juggling with tones of money at
the end of each day. With Smart Card, the cash at the end of the day will get
credited to your account directly.

Look at the advantages of Smart Card from the viewpoint of Reserve Bank of
India (RBI). It can save huge amounts of money by reducing its costs on
printing, storing and distributing large sums of cash across the country. From
1992-93 to 1996-97, the cost of printing notes and minting coins has gone
up by 30%. Add to this the cost of storage, distribution and the amount of
security needed at the various points where cash is stored.

With banks having to reduce their cash outflow they could use this money to
create further credit, which will provide a boost to the economy. That is
because electronic money allows you to transact without taking money out
of the banking system. Banks benefit because till you actually spend it they
can create credit by lending the money.

But I already have some credit cards. Why one more headache?

Credit cards are based on magnetic stripe technology, which does not permit
the storage of a large amount of data. Therefore, a credit card or a debit
card needs to have high-cost online billing systems. This makes low-value
transactions unattractive.

An average credit card transaction in India is worth Rs.1, 000 -1,200. The
cost of conducting one such transaction is Rs.15-20. Naturally, buying a cup
of coffee worth Rs. 5 using a credit card wouldn't be worthwhile.

But Smart cards contain a microprocessor, which allows large amounts of

data to be stored on the card. This storing capacity makes the card
worthwhile even to pay for your petrol, shopping and even your bus tickets
for travel within the city through a smart card.
State of Art
There are about 22 million credit cards in India (as on January 2007). And the total
value of such transactions almost doubled between 2003-04 and 2005-06, to
around Rs 33,900 crore.
The latest available data, which covers the first 10 months of 2006-07, indicates
continued robust growth, in the number of credit cards increasing at 28% year-on-
year. Over the same period, the value of credit card transactions grew by 20%.
But, the number of credit cards in India - 22 million - is tiny for a country with a
population exceeding 1.1 billion.
Since many people have multiple cards, the number of cardholders is much
smaller than the number of cards in circulation.
Credit card issuers in Pakistan too have plenty of room to expand their customer
bases aggressively over the next few years.

With change in lifestyle, consumers are gradually shifting to using credit

cards for purchasing products and services against the traditional forms of
payment such as cash or cheque. Growth of internet usage has also helped
credit card industry.

Different banks are offering payment of utility bills through ATM card for e.g.;
standard chartered

Now you can pay your Utility and Mobile bills 24x7 through any of Standard
Charterer’s 200+ ATMs. Just visit your nearest SCB ATM, select the bill
payments option and pay your utility/mobile bills instantly! This service is
free of cost.

• Utility Bills
enter the consumer/account number of the utility and your bill will be
presented to you. The billed amount will be instantly debited from your
account and you will get a receipt as a payment confirmation.
 • Mobile Bills
Enter your mobile number and pay your bill instantly from your bank
account, both post-paid and pre-paid customers can use this service

Currently you can pay for:

Electricity: KESC, LESCO

Gas: SSGC, SNGPL
Mobile phone companies: Ufone, Warid

But still you have to go for the payment of bill even Bank al falah offered
payment of bill through credit card but smart billing is next level of banking.
It will make every home a mini bank which can make transaction sitting at
home using proposed process
Literature Review
Contrary to the belief that the current economic meltdown is affecting the
credit card business in India, Venture Infotek, India’s leading Transaction
Processing and Knowledge Management Company, has reasons to believe
that this downturn has not dampened the use of plastic money across the
country. Commenting on the card spend trend, Mr. Piyush Khaitan, Managing
Director, Venture Infotek said, “There has been a growth of 55% in the
number of card transactions across the country during October this year as
compared to the same period last year, indicating that consumers have
increased their spending through plastic money. It’s not only the volume of
transactions, but even the value of transactions has risen by around 69%
over the same period.” This analysis derived by Venture Infotek is based on
the data of 14 banks to which the company offers highly robust and scalable
end-to-end Acquiring Managed Services.

Daily card transaction volumes hit new highs at Venture Infotek during the
festive season in October, with Ramzan Eid, Dussehra and Diwali being
celebrated across the country. “Last month saw a stupendous increase of
around 25% in the number of transactions and around 35% in terms of value
of spends as compared to the month of September. The recently upgraded
infrastructure at Venture Infotek has significantly aided in handling these
record-high volumes. The new enhancements have resulted in scaling up the
company’s infrastructure capability to handle 1 million transactions per day
and also in achieving transaction response time to as low as 3-5 seconds
during peak time”, added Mr. Khaitan.

Incorporated in 1997, Venture Infotek pioneered the introduction of e-

Payments in India, and since then has continued to be instrumental in
shaping this industry. The company offers end-to-end card payment
processing solutions for both issuing and acquiring banks.

Rise in point of sale terminals, especially in the major metros is changing the
mode of spending in India. There has been an approximate growth of 41% in
the number of terminals deployed by Venture Infotek across the country,
from 89,082 in October ’07 to 125,831 this October, indicating more
opportunities for consumers to spend through cards.

“From the Venture Infotek installed base, Delhi leads with the highest
number of terminals (21,137) followed by Chennai (19,687), Mumbai
(15,919) & Kolkata (12,534), indicating that consumers in Delhi and Chennai
use more of plastic money than any other metro in the country” said Mr.
Khaitan. “Delhi has registered a 41% growth in terminals this October versus
last year, followed by Mumbai (40%), Chennai (37%) and Kolkata (29%)...”

The underlying cause for this surge is increased usage of Debit Cards.
Consumers find that use of Debit Cards relieves them from the additional
chore of drawing cash from the ATM. Now they can spend from the money
parked in their bank account directly at the store. Not only that, many banks
offer their customers reward points and benefits like cash back, discounts
and other inducements for such transactions.
Venture Infotek carries out extensive research on card payment trends in
India and has been publishing the Annual Payment Card Industry Research
Report since 2002. This is the only definitive independent study available
and is used extensively by banks, educational institutions and marketing
companies. In addition, Venture Infotek has published white papers on
various Technology and Security related aspects of the Card Industry.

There are many different types of credit, such as retail store credit, auto
loans, and mortgages. An important type of credit that most of you can’t live
without is utility credit. Sim to retail credit, your credit allows us to get a
service (or go now and pay for it later. Utility companies maintain a record of
your payment history that makes up your utility credit. This record becomes
a part of your overall credit history. Therefore, it is important to treat utility
credit in the same manner as other types of credit.

What is Credit Reporting?

Credit reporting agencies collect and maintain consumer credit information
and use this information to develop a credit report on individuals.
Information in a report can include bill payment histories, identification and
employment information, and whether an individual has been sued, arrested,
or has filed for bankruptcy. Credit reporting agencies provide an individual’s
credit report upon request to lending institutions, insurers, potential
employers and other businesses with a legitimate need for this information.
Credit reports are used to evaluate a consumer’s creditworthiness and to
predict an individual’s ability and willingness to pay back debt. Credit
reporting is a federally regulated business activity. The Federal Trade
Commission (FTC), the nation's consumer protection agency, has the
responsibility for administering rules and regulations related to credit
reporting and enforces laws that have been enacted to protect consumers.

Do utilities report on customer utility bill payments?

Utility bills cover charges for goods and services after they have been
consumed by the customer. Thus, a utility company is a creditor eligible
under federal guidelines to report bill payment histories of its customers to
credit reporting agencies. A utility company’s primary purpose in reporting
this information to credit reporting agencies is to reduce bad debt by
encouraging timely bill payments. Uncollectible debt is generally considered
a cost of doing business and is typically recovered through costs assigned to
all customers’ bills. By reducing its bad debt, a company may be able to
keep costs down.
Utilities have different practices on how often and how much information
they provide to credit reporting agencies. Some utilities report utility credit
history for only those customers with delinquent accounts. Other utilities
report customer bill payment history for all of their customers—providing
both positive and negative histories. Under the second approach, called “full
file reporting,” customers with a history of making payments on time may
benefit through improved credit scores, while customers that have a history
of untimely or unpaid payments may see a drop in their credit scores.

What if I’m having difficulties paying my bills? How can I

protect my credit?
Customers should contact their utility company immediately when they
foresee bill payment. Most payments researchers today would agree that the
question of whether credit cards are "overused" is not a simple one. Wells
(1996), for example, argues that checks may not be overused in the United
States even though they are very expensive to process because Consumers
value some of their features very highly. Credit cards appear to be an even
more expensive retail payment instrument than checks (Humphrey and
Berger, 1990), yet they too have passed a market test of acceptance in the
United States and, increasingly, abroad. Thus, we need to understand why
and how credit-card usage has turned out to be not a "temporary retreat"
but a full-scale assault on the retail payment practices that existed
previously. Credit cards serve not only as a source of revolving credit but also
as a popular payment instrument among those who routinely pay off their
balances in full each month. This is somewhat surprising because credit
cards require an expensive supporting infrastructure. Do those who pay off
their balances regularly pay for the services they receive? If they don't, who
does? There is a research project, which studies the credit card industry
especial VISA and the effects. This paper uses secondary data to analyze the
credit card industry along five constructs:

(1) Competitive analysis: Porter's Five Forces and PEST analysis,

(2) Monopoly vs. perfect competition,

(3) Standardization vs. localization,

(4) Competition vs. collaboration and

(5) Revolutionary vs. evolutionary change.

The author points out that the existing credit card industry is a mature
market, but it still has room to grow as more people become familiar with the
allied financial services their credit and debit cards can provide. The paper
relates that VISA enjoys the most powerful credit/debit card position in
consumer cards especially in business credit cards, with it has extensive and
integrated work in payments processing; however, the founders of First
Data/Concord EFS were particularly aggressive business people.

India has come out of self-binding shackles to look "young" again and the
enthusiasm shared by the young work force of the country is driving the
economy like never-before. In the present day world, no one wants to be
bothered by the presence of huge cash in his or her wallet and the Indians
are no exceptions. The unprecedented growth in the number of credit card
users has stimulated the Indian economy by a significant extent. The arrival
of malls, multiplexes, online shopping stores and shopping complexes have
contributed to the growth of the use of plastic cards.

It will not be wrong to say that such a scenario in context of the Indian
market is not driven by style statement and is driven more by needs. The
benefits of plastic money have offered unmatched ways to create
equilibrium and offer an amicable solution when it comes to purchases and
the inability to possess or carry cash. The modern day Indian customers find
it easier to make physical payment (credit card payments) rather than
carrying too much cash. The introduction of credit card facilities to pay for
mobile, electricity, movie tickets and other related transactions have also
contributed to the growth of plastic money in the country.
In context of the Indian market, the leading credit card service providers are
ICICI, HDFC, HSBC and Standard Chartered to name a few. These financial
institutions have tried their hands on ensuring value-addition while offering
customer-friendly credit card deals. The Best credit cards in India are usually
meant for specific user group such as women, students and small business
owners. These cards are offered to the prospective customers with appealing
deals. Statistics have clearly revealed that the number of credit card holders
in India is close to 22 million as of January, 2007.

It has been also revealed that the increasing consumerism in the country has
led to a two-fold increase in the number of credit card transactions from FY
2003-04 to 2005-06. The trends were as favorable as ever in the financial
years, FY 2006-07 and 2007-08 and the same is likely to continue in the
coming financial years. With high and industry-favorable figures as above,
there is no doubt that the rise in number of credit card providers and users
have come of age. With these positively-influencing trends expected to
continue in the near and far-future, the writing is on the wall. The credit card
industry is likely to soar more than any industry segment. To add to that,
easy and continuous payments' structures with each passing day and with
every Bank poised to expand its network, the Indian credit card user
community is the biggest beneficiary. The intensifying competition prevalent
in the present day Indian credit card market has further fuelled the usage of
credit cards in the country like never-before. In an aim to overpower the
peers and to sustain and prosper themselves, the Banks and financial
institutions have started cutting down the interest rates and offering
lucrative deals.
A prospective or existing credit card holder must observe carefulness while
applying or owning a credit card. The terms and conditions of the credit card
agreement must be carefully viewed and understood so that a clear insight
can be achieved. This will help a credit card holder to make the best use of
the plastic money. The credit card repayments must be made before the due
date to avoid attraction of late fee, penalty and surcharge. This can also be
done to maintain a smooth flow of business transactions and ensuring one's
credit stability and visibility in the plastic money market.

Plastic Money business is definitely going big time here in Pakistan. In a

country where two years back people have hardly heard the word plastic
money or credit card, more than 7000 merchants are accepting above
140,000 cards.

It has been estimated that there are likely to be around half million potential
card users in the near future. This forecasting derives credibility from the
fact that more and more local and international financial institutions are
exhibiting enthusiasm in this direction. This in turn reflects prospects in
Pakistan market in accommodating numerous credit card competitors
operating on the circuit, ensuring healthy and competitive card business
deals.

Although credit card was introduced in Pakistan decades ago when Habit
Bank, the largest bank in Pakistan, launched its gold card, but people had
hardly know about this card because of its very limited issuance.
Approximately four years back, Allied Bank of Pakistan had launched its
Master Card. Two years back Citibank had launched its VISA Card and that
was the turning point in the history of Plastic Money in Pakistan.
Citibank had done a tremendous job to educate people of Pakistan, as well
as, financial industry about credit cards and its significance in today's world.
Because of very aggressive marketing and heavy investment in technology,
Citibank is well deserved to be called the industry leader of Pakistan's credit
card business.

After successful launch of Citibank card, Muslim Commercial Bank, Bank of

America, and National Bank of Pakistan had launched their credit cards. Very
soon we are expecting more local and international banks on the horizon of
Pakistan's credit card business.

Allied Bank of Pakistan Master Card

American Express AMEX Card

Bank Of America Visa

Master Card
Card

Citibank N.A. Visa Card

Diners Club
Diners Club Card
International

Habib Bank Ltd. Habib Bank Card

Muslim Commercial
Master Card
Bank

National Bank of Visa Card -- Master

Pakistan Card

• Citibank is the industry leader in credit card business here. In short

span of time, Citibank had issued over 125,000 VISA cards and covers
most of the potential market segment.

• Muslim Commercial Bank had launched its Master Card and it is

expected that by the end of 1997, MCB card users will be over 250,000
(that makes 5% of its total account holders).

• Diners Club and AMEX are very selective in credit cards business and
so far entertain a very limited market segment.
 • Bank of America is the transaction processing hub for most of the local
banks, including Muslim Commercial Bank, Allied Bank and National
Bank of Pakistan.

Some departmental stores have also issued their own branded cards;
however, these stores are operating in a very restrictive domain.

• Citibank will launch its Master Card.

• ANZ Grindlays will be in card business with their VISA card.

• Few other local and international banks are also interested to come
into credit card business.

• In short, the credit card business in Pakistan is so lucrative that it can

accommodate many local and foreign banks.

One of the most important features that Plastic Money offers is the
technology associated with this business. Credit card business relies on very
reliable and secure technology and demands very strong connectivity
backbone. Although a third world country, with lot of insecurities and almost
no infrastructure, Pakistan has no exception when it comes to credit card
business. There is approximately 3000 Point of Sale Terminals (POST) present
on merchant's sites connected with bank host system. Inter-city connectivity
is accomplished through X.25 networks.

Perhaps, it is the most important time in the history of Pakistan as the

parameters of its infrastructure are coming into existence. There is an
immense need of reliable wide area connectivity and this market is so huge
and lucrative that it can accommodate many more industry giants. Soon the
Automatic Teller Machines (ATMs) will be seen everywhere in Pakistan and it
will require a very reliable and secure wide area connectivity setup.

IN THE past few months, central bankers and currency

traders have spent many hours contemplating the
resilience of the dollar. To technologists at the
American Treasury Department's Bureau of Engraving
and Printing, this has a more literal meaning. They are
testing—as they have been, off and on, for the better
part of a decade—various plastic (technically,
“polymer”) banknotes, comparing their qualities with
those of America's traditional paper money.
 Several countries have already switched from paper
to plastic, at least in part. Last week, having had
plastic 20-peso notes since 2002, Mexico decided to
issue its 50-peso note in plastic too. In all, 23
countries, including Kuwait, Indonesia, Chile and
Zambia, have issued plastic notes. Some of these
countries have used polymer only for commemorative
bills: these include China, where paper money was
first used in the seventh century, and Brazil, where an
experiment with plastic in 2000 proved unpopular.
However, Australia, New Zealand and Romania have
changed all their notes to plastic.

A smart card looks like a credit card but contains a microprocessor and
memory. It is most commonly used as a 'wallet'. It can be 'loaded' with the
desired value. When the smart card is used to buy something, the amount is
siphoned off to the seller's smart card through a reader, by simply swiping
the card at the merchant's store.

With smart cards, you could, in theory, be walking around with your entire
net worth in a small plastic card 2.5 inches long, one and a half inches wide.
Just imagine, the time wasted by almost 100 million people trying to pay for
electricity, LPG or fuel could be eliminated if they could electronically deposit
the money into a gas or electricity company's account.
Very soon we could be paying utility bills, buying bus tickets using smart
cards instead of cash. And we will owe it all to an experiment which has just
got over at IIT Mumbai which was sponsored by the Reserve Bank of India
(RBI) and a host of banks keen to get into smart payment mechanisms and
e-commerce. There were two reasons why IIT Mumbai was chosen. One- it is
a self-contained community, two- if the smart kids on campus couldn't
tamper with the cards, they could be deemed safe enough for general use.

Slowly but surely India's currency notes are being replaced by smart cards.
Smart cards have already begun to be used for specific functions. Like
paying for your tickets on the bus service of the city of Mumbai, the Braham
Mumbai Electric Supply & Transport Electric Supply and Transport (BEST).
Already 50% of its customers travelling in the bus route where smart card
was introduced have converted to Smart cards.

A Petro Card is a credit card-size plastic card that allows you to pay for fuel
with a card. The Petro Card is a variation of the Smart Card. It has an
embedded microprocessor chip, which keeps track of the money you load on
your card and the balance available on the card.

How it works?

You can get your Petro Card after you enroll into the Petro Bonus program of
company selling petrol and other fuel. To initialize this card, you have to first
take it to a participating Petro Bonus dealer. You will pay a sum of money to
the dealer who will issue you a Petro Card. Then the card will be placed on a
'reader'. You have to enter the pin code given and lo and behold! Loaded
onto the card will be the sum of money that you want.
Once the card is loaded, you can use it to buy petrol, diesel, lubricants or
any other product or service available at the pump. Usually the initial loading
has to be for a minimum amount of Rs.500 and in multiples of Rs.100
thereof. You will also be given a receipt for the amount loaded.

Each time you buy petrol, the guy at the petrol bunk will swipe your card. By
doing so the amount of credit on the card is reduced. At any point in time,
not only will you know how much money you have left in your Petro Card, but
you will also know how many Petro miles you have accumulated as of that
instant. In case you run out of the credit on the Petro Card, you can once
again load it. Petro miles keep accumulating and they can be exchanged for
gifts and rewards whenever you want.

Making Life Easier (at a price) Credit cards, or plastic money, have come to
stay. The general credit cards available in India are Visa and Master card.
They are associated with the country's leading banks.

They have several advantages. The most obvious is that they obviate the
need to carry around wads of cash, and eliminate the associated risks. The
cards offer around eight weeks of free credit. They are flexible - they do not
need cumbersome paperwork each time they are used, unlike bank loans.
They are accepted at major supermarkets and all kinds of showrooms,
stores, hotels and travel organizations. They provide insurance cover and
lucrative discounts on many purchases.

A product of the electronic revolution, each credit card carries a unique

number and a magnetic strip in which is encoded all information relevant to
that card. The cards are available to anyone with minimal accreditation.
They are available to the salaried, the self-employed and even to pensioners.
They also carry the hologram of either VISA or Master card, which means
that they are accepted at all establishments displaying the respective logos.

To use the card, present it against the bill, and the concerned establishment
will prepare a sales slip with the details of the card and the bill amount.
Verify these before signing the slip. A copy of the sales slip and the bill will
be returned along with the card to the holder, and the amount will be
included in the next bill.

They come in various options. The Charge Card enables credit to be availed
till the next billing while revolving cards allow payment in installments. The
Smart Card is an electronic purse cum passbook, which does not necessitate
deposit or withdrawal from any particular branch of the bank which issues it.

The ATM or Any Time Money cards offer "money when you need it". With
these cards you need not depend on banking hours or even banking days.
You can withdraw up to a certain limit if the ATM outlet is on-line with the
bank's system and a lesser amount if it is off-line. One can make deposits
using special envelopes provided at the outlet, transfer funds, view the
balance and also get mini-statements at ATMs.

In India, plastic money was first introduced by Diners Club. Vijay Bank was
the first public sector bank to offer the credit card cum ATM facility. Citibank
and other foreign banks are now the key players in this segment.

The cards come in handy when major white goods items like the refrigerator
or washing machine packs in. No longer does one have to wait to save up to
buy a replacement. Just present the card and take home one. The plastic
money has "taken the waiting out of wanting" as one advertisement puts it.

But all this comes at a price. The "free" credit is free only if the card holder
ensures that purchases made at the beginning of one month are paid for in
full by the end of the next. The holder is given the attractive option of paying
just 5% of the monthly outstanding dues. The rest can be carried forward.
But the catch is that this extended credit attracts a financial charge or
interest, ranging usually between 2.5% and 3%. So, if you are planning to
make a major purchase on the strength of your credit card, and defer
payment, first calculate and see if the advantage of immediate purchase is
worth the additional money involved.

Transactions are a simple affair. At the end of the day, the seller connects to
a bank through a dial-up connection and drains out the money from the
purchaser into his own account. This way the consumer keeps his money
safe and the merchants make do with low infrastructure costs.

We are just going to reverse this process using the above already done work
on our credit and smart cards and their uses.

RESEARCH MEHODOLOGY
Research Planning

When we were assigned with projects we had developed a strategy which we

have to follow during our projects.

First of all we will go to the market to find the brands of machines and credit
cards which is available in the market of Lahore. When we will have the
knowhow regarding our service and machine, we will design the questioner
in which we will focus two social classes’ i.e. upper middle class and elite
class. Our sample size should be a minimum of 50 household and 10
professionals.

In order to access information about the topic of our study, we were to

choose a method which would have been convenient gather quicker and
authentic information and through that method we could gather as much
information as possible to meet requirements of our sample size. Keeping
these key points in our mind, we selected the survey method. We choose it
because of its merits especially from student’s point of view. The most
important were its lower cost, more information gathering in less time,
simplicity, objectivity and convenience, of course.

In the two weeks we planned to conduct a survey to gather information. We

have selected basically two markets which are targeting on elite class and
three markets whose target is upper middle class. For elite class we
selected Defense, Lahore cantonment and model town, and for
upper middle class we selected Liberty market, Fortress and Pace
(Main Boulevard, Link Road).

We face so many problems in accessing information from customers. People

were somehow not willing to respond, or some of them hesitated to provide
proper answer. While wandering in the markets we tolerated the unfavorable
climate and customer’s reactions.

After getting information (Primary), we conducted another survey to collect

post survey responses whether they still want to opt for our service or not.

It was a much successful survey than the previous survey and we gathered
much more relevant data.
Prototype Design

Sampling Design

We shall use purposive sampling for professionals and rendom sampling for
househols.

RESEARCH STUDY DESIGN

• Tools for Data collection

In this study we have used a globally accepted and renowned method, called as
“Survey Research Method”. This method is, from the student’s point of view a low
cost, convenient and easy method. For these merits and benefits we have selected
this method. Beside these merits this method carries much importance because of
another prominent merit which is its objectivity. Survey research method is an
objective method, and objectivity in this kind of projects and studies is a vital
element.

Another method which was followed is “In-Depth Interview” with Professionals in the
concerned field.

Normal Likert scale from scale of 1 to 5 will be used. Some questions will ask range
and YES/NO which will be coded in accordance with Likert scale coding.

Editing and Coding Strategies

As the five point Likert scale is used for the questionnaire so each option is
assigned a particular number i.e.

Strongly Disagree Uncertain Agree Strongly

Disagree Agree

1 2 3 4 5

All the statements are arranged in an order where if any respondent strongly
agrees then it will be coded as he/she favors our proposal.

Some questions will require response in YES OR NO and in few questions we

shall give range from which consumer have to select suitable option.

For e.g.; CODING for our questionnaire would be

CODING
1. You are satisfied with traditional system of payment of bills (Likert
scale)

Strongly Disagree Neutral Agree Strongly Agree

Disagree

1 2 3 4 5

2. Who is responsible for payment of bills at your home?

o Head of family = 5 (CODING)
 o Member of the family = 4
o Servant =2
o Any other =1
3. what is annual range of your overall bills (400,000 Rs=strongly
disagree, 800000=strongly agree)
o less than 400,000 = 1
o 400,000 – 600,000 =2
o 600,000 – 800,000 = 4
o More Than 800,000 = 5

4. How many landline connections do you have? (1=strongly disagree,

4=strongly agree)
o 1 =1
o 2=2
o 3=4
o more than 3 = 5
5. How many cell phones do you have at your home? (less than
3=strongly disagree, more than 6=strongly agree)
o 3=1
o 4 =2
o 5=4
o more than 5 =5
6. How many credit/debit/ATM cards do you have? (0=strongly disagree,
more than 2=strongly agree)
o 0=1
o 1=2
o 2=4
o more than 2 = 5
7. Do you use alternate methods of payment like through ATM/credit
card/Internet? (NO=Strongly disagree, YES=Strongly agree)
o Yes = 1
o No = 5
8. Will you opt for payment of bills through card at home if offered?
(Likert scale)

Strongly Disagree Neutral Agree Strongly Agree

Disagree

1 2 3 4 5

9. How much are you willing to pay for the procurement of machine?
(5000Rs=strongly disagree, 15000=strongly agree)
o Less than 5,000 = 1
o 5,000 – 8,000 = 3
 o more than 8,000 = 5

QUESTIONS FOR PROFESSIONALS

1. This proposal is quite applicable considering your bank (Likert scale)

Strongly Disagree Neutral Agree Strongly Agree
Disagree

1 2 3 4 5

2. You will like to opt this idea in future (Likert scale)

Strongly Disagree Neutral Agree Strongly Agree
Disagree

1 2 3 4 5

3. Our Cost/benefit analysis is appropriate (Likert scale)

Strongly Disagree Neutral Agree Strongly Agree
Disagree

1 2 3 4 5

4. Net profit after implementation will cover your bank cost (Likert scale)
Strongly Disagree Neutral Agree Strongly Agree
Disagree

1 2 3 4 5

5. Bank finally gain substantial net income (Likert scale)

Strongly Disagree Neutral Agree Strongly Agree
Disagree

1 2 3 4 5
 6. Bank will retain customers loyalty (Likert scale)
Strongly Disagree Neutral Agree Strongly Agree
Disagree

1 2 3 4 5

7. Bank will achieve customers satisfaction (Likert scale)

Strongly Disagree Neutral Agree Strongly Agree
Disagree

1 2 3 4 5

QUESTIONS FOR UTILITY COMPANIES (PEPCO, PTCL, SUI GAS AND

CELL PHONE COMPANIES)
1. Our proposal is applicable considering your company (Likert scale)

Strongly Disagree Neutral Agree Strongly Agree

Disagree

1 2 3 4 5

QUESTIONS FOR NADRA

1. You are willing head this all proposal as central authority and
platform (Likert scale)

Strongly Disagree Neutral Agree Strongly Agree

Disagree

1 2 3 4 5
 2. Give some recommendations (less than 5 recommendations = 5,5-
10 recommendations= 3 and more than 10 = 1)

If the questionnaire is not filled more than 50% then that questionnaire will
be discarded.

If the respondent does not give answer of any particular question then for
coding and analysis the answer would be considered uncertain.

(For Questionnaire, please see Appendix).

With the list of answers we will enter the data in MS ACCESS and apply
queries so that we will come out with percentage of responses in our favor.
On these responses, we will apply different statistical tests i.e. inferences of
two Πs.

On the basis of this research, conclusion can be drawn with the help of
calculations, tables and graphs. The study was bi-variate in nature because it
involves two variables. So for this purpose, first uni-variate analysis is done.
For convenience we just focused on the opinion of our respected
respondents (no statistical calculations are included).

After all these tests we will design a detailed plan to implement “SMART
BILLING” which will enter our target customers into future.

We shall also design an animated presentation to create awareness and

convince banks.

After all these we will write a detailed report of our project in which we will
mention each and every step that we will take for this purpose and
submitted to our honorable and dedicated Instructor Mr.OZAIR SHAH.

Finally we were able to say that our service was acceptable or not for
consumers of large scale household and whether its implement able or not
considering merchant bank and state bank.
RESULTS OF THE STUDY
DATA MANUPILATION
We have entered whole data into excel sheet with coding mentioned above.
Detailed excel sheets are attached with appendix

Consumers
Individual's Mean µ Standard Variance
Score Deviation
32.00 3.56 1.79 3.20

37.00 4.11 1.88 3.53

36.00 4.00 1.85 3.44

35.00 3.89 1.88 3.53

34.00 3.78 1.81 3.26

28.00 3.11 1.57 2.46

31.00 3.44 1.69 2.87

19.00 2.11 1.27 1.61

23.00 2.56 1.33 1.76

20.00 2.22 1.27 1.61

28.00 3.11 1.64 2.69

28.00 3.11 1.55 2.40

28.00 3.11 1.61 2.58

27.00 3.00 1.52 2.30

26.00 2.89 1.44 2.08

32.00 3.56 1.76 3.08

31.00 3.44 1.69 2.87

26.00 2.89 1.44 2.08

33.00 3.67 1.76 3.11

20.00 2.22 1.22 1.49

28.00 3.11 1.51 2.28

40.00 4.44 2.00 4.01

21.00 2.33 1.26 1.60

26.00 2.89 1.48 2.20

27.00 3.00 1.57 2.48

32.00 3.56 1.79 3.20

25.00 2.78 1.49 2.21

23.00 2.56 1.35 1.82

34.00 3.78 1.79 3.21

32.00 3.56 1.72 2.96

29.00 3.22 1.56 2.44

23.00 2.56 1.41 2.00

34.00 3.78 1.76 3.09

20.00 2.22 1.20 1.43

24.00 2.67 1.43 2.05

30.00 3.33 1.70 2.89

35.00 3.89 1.85 3.41

27.00 3.00 1.57 2.48

34.00 3.78 1.72 2.97

28.00 3.11 1.55 2.40

25.00 2.78 1.49 2.21

35.00 3.89 1.86 3.47

31.00 3.44 1.73 2.99

32.00 3.56 1.76 3.08

22.00 2.44 1.40 1.95

21.00 2.33 1.22 1.48

26.00 2.89 1.52 2.31

32.00 3.56 1.58 2.49

37.00 4.11 1.91 3.64

 33.00 3.67 1.80 3.23

Mean calculated for consumers was 28.80 or 3.20 which show that mean of
consumers are willing to buy our service.

Professionals

Individual's Mean Standa Varian

Score µ rd ce
Deviati
on
14 1.56 1.01 1.01
21 2.33 1.31 1.72
21 2.33 1.26 1.60
24 2.67 1.59 2.52
30 3.33 1.77 3.13
25 2.78 1.56 2.45
27 3.00 1.63 2.65
24 2.67 1.45 2.10
23 2.56 1.41 2.00
24 2.67 1.51 2.28

We calculated mean for professionals, and it was 3.33. Which shows that
more than average professionals see our idea as applicable and effective?
ANALYSIS OF RESULT

Test 1: Mean of Sample

Mean for consumer appears to be 3.88 and for professional 3.33 which
shows that our idea has demand and it is applicable and effective
considering price, profitability and other factors.

Test 2: Inferences of Mean

FOR CONSUMER’s

µ = 28.80

S = 5.23

µo = 26

Step 1
Ha: µ > µ 0 = 26

Step 2
H0: µ ≤ µ0 = 26

Step 3
Hypothesis Testing

Z = 3.79

Step 4
Reject H0 if Z > Za

3.79 > 1.645

REJECT H0

Step 5

There appears to be sufficient evidence to REJECT H0 at 95% confidence

Interval.
Logical Conclusion will be discussed later.

For Professionals

µ = 23.30

µ0 = 22

S = 4.22

Step 1

Ha: µ > µ0 = 22

Step 2

H0: µ ≤ µ0 = 22

Step 3

Hypothesis Testing

t = 1.95

Step 4

Reject H0 if t> ta

1.95 > 1.833

REJECT H0

Step 5

There appears to be sufficient evidence to REJECT H0 at 95% confidence

Interval.

Logical Conclusion will be discussed later.

Test 3: Confidence Interval around Mean

Standard error of mean comes around to be 0.526 which shows that our data
was less biased.

95 % confidence interval comes out to be 3.2 – 1.05 and confidence interval

range appears to be 2.14 – 4.22 which shows that we are 95 % confident
that our respondents comes between 2 and 4.22 which implies that people
are more agree to our idea than people who are hesitant.

INFERENCES OF ANALYSIS (LOGICAL CONCLUSION)

STEP 5
FOR CONSUMERS
Mean number of consumers who are willing to buy our idea appears to be
more than 26.

FOR PROFESSIONALS
Mean number of professionals who thinks that our idea is applicable,
effective and profitable appears to be more than 22.

So from logical conclusion, it’s quite clear that our project demand and
effectiveness are appropriate considering all factors.
Pricing Strategy

Original Price of machine on retail $ 100 per unit

$60-$65 per unit

Wholesale Price
(excluding the freight &depending on the
quantity)

Freight Cost and other Expense $5 per unit

Sale price for the Bank $ 80 per unit

Retail price for Consumer $ 100 per unit

Retail Price for consumer in $ 12.5 per month

installments (for one year installments per unit)

Service charges (payable to the Rs 100 per month (Hidden

bank) Cost)

Rs. 30 per bill/transaction

Bill Service Charges
(Credit Card billed – ATM/Debit Card
deduction)

Per Annum Charges $ 6.25 (Hidden Cost)

Opportunities

The existing customer of the banks who have credit cards and are using
them, are potential customer because they are already using the card facility
and in a way this Smart Billing option is providing them and extra incentive
over their current holding, minimized fatigue, relaxed time and cost
effectiveness.
This is an opportunity for the banks to expand their business and increase
their return on Credit card industry. This is because the transaction on the
credit card will increase substantially and as credit card has option of
minimum and relaxed payment as it will increase the interest on the amount
that is being due and adding up more and more interest.

TERMINAL

The Hypercom T7Plus is designed for merchants requiring a compact

countertop POS terminal which accepts all magnetic stripe cards and
delivers fast, online transaction authorizations.

The T7Plus delivers more - with peripheral acceptance of contactless RF

cards and fobs. The compact terminal is also EMV4.0 certified. With its 35 or
19-key configuration, it initiates daily functions and transactions with one
simple step.

The T7Plus utilizes the SureLoad® printer which allows simple paper roll
replacement - paper rolls can be dropped in place without time-consuming
feeding through slots and rollers. The printer also supports longer paper rolls
for fewer paper changes and its see-through paper holder alerts cashiers to
low paper conditions.

The T7Plus is customizable. It's the first of its kind to offer bi-lingual screen
displays. Big 5 Chinese and English can be shown simultaneously, meeting
the needs of Chinese-speaking merchants and cashiers.

Certifications

• PED Certified
• EMV approved
• All major certifications - please see our website for the complete listing

Applications

• General Retail
• Multi-merchant
• Restaurants
• Pharmacies
• Grocery stores
• C-stores

High Performance. Low Cost.

• Compact design — Available in 35 and 19-key configurations

• "One-touch" feature — Allows common functions at the push of a
button
• Multi-merchant feature — Up to 20 unique merchant IDs in one
terminal
• Value-added application support — Check, loyalty, EBT and prepaid
applications
• Large paper roll — 2” and 3”, 80mm paper roll for more transactions
• Trusted & stable — Low failure rates
• Modem — Up to 56K
 • Contactless payment — External readers support for cards and fobs
• Security — Boot lock feature protects against unauthorized reloading
• Visa PED — Optional, integrated PIN pad model available

Convenience at the Point of Service Simple, Easy to Use Features

• One-touch capability initiates all daily functions with one

straightforward step, which makes for easy operation and reduced
training times
• SureLoad thermal printer design alerts cashiers to low paper conditions
and allows paper to be simply dropped into place, which eliminates
paper jams
• Full-featured, secure terminal management system including local or
web-based options
• Industry-leading software includes the functionality necessary to
introduce value-added opportunities to the merchant in an integrated
application.

Fast, Time-Saving Performance

 • Fastest dial transactions in the business
• Download remotely in a fraction of the time to load other terminals
with an optional 56K modem
• For deployment, use the terminal “cloning” feature with a fast-load
cable to download terminals even faster. Use a multi-loader to
download up to 12 terminals simultaneously!
• Graphics-capable thermal printer produces receipts in half the time of
previous generation printers, which allows merchants to print logos
and coupons directly at the POS.

Reliable Results

• For challenging installations that have limited phone lines to spare, the
integrated RS-485 capability enables multiple units to utilize one
phone line through the addition of a Hypercom dial concentrator
 • Backwards compatible with existing T7 family software for an
extensive software library, which reduces training time and
certification requirements
• Connect devices such as check imagers, PIN pads and check readers
using the additional peripheral port to provide more payment choices
• Low cost of ownership due to one of the lowest failure rates ever for a
device of its kind. Combined with its secure design and certifications
from all major processors, the T7Plus is a complete, cost effective
solution for any implementation.

Optional Accessories Paper Rolls

• The huge 80mm paper roll is available in 2” and 3” rolls.

Fast Load Cable

• The terminal “cloning” feature allows downloads to up to 12 terminals

simultaneously
Specifications
Keypad Elastomeric: 35 keys; water splash-resistant;
19 key,3 soft key (optional)
Display Backlit: 2 lines x 20 characters (standard)
Backlit: 4 lines x 20 characters (optional)
Card Reader Magnetic stripe: Tracks 1,2 standard, Tracks 1,2,3
(optional)
Chip card: Non-captive, ISO7816, EMV compliant; 4 SAM
sockets
Communications Modem: 2400bps (standard), 56K (optional); synchronous
(SDLC) and asynchronous
PIN pad port: Singular
Ethernet: Optional, without SSL
Printer SureLoad clamshell design, drop-in loading, thermal
technology, 384 dots per line
Paper roll: 2.25”(standard), 3”(optional); 57mm x 80mm
Memory RAM: 512KB (standard); 1MB (optional)
RAM backup: 5-year battery
EPROM: 82KB
Power AC: 100-240V, 50/60 Hz
DC: 12V, 1mA
Security Physical: Intrusion detection
Key management: 12 master/session keys 0r 1 DUKPT;
Visa PED approved
Footprint 10.0 in x 5.18 in x 2.5 in/25.4 cm x 13.2 cm x 6.35 cm
Weight 1.5 lbs/0.68 kg approximate
Environment Temperature: 0-45°C/32-113°F
Humidity: max 85%, non-condensing
ESD: 12,000 volts

The Hypercom T7Plus is our recommended terminal. It builds on the

heritage of Hypercom's popular T7 family of terminals selling more than 3
million units. This latest model is designed for merchants requiring a
compact countertop POS terminal accepting all magnetic stripe cards and
delivering fast online transaction authorizations.

The T7Plus features the completely new SureLoad™ printer with significantly
faster receipts delivery. It allows paper rolls to simply be dropped in place
without feeding through slots and rollers and supports longer paper rolls at
the request of the merchant community. The T7Plus uses thermal paper and
silently prints graphic logos directly on receipts; its quiet operation is
welcomed by both merchants and customers. An external PIN pad can be
attached where required. Support for new smart cards and EMV-compliant
software are both available, along with improved peripheral connectivity.
Secondary power supplies are often no longer needed.

The 35-key keyboard allows one-step initiation of all daily functions and
transaction types. Full compatibility with previous T7 software reduces
certification requirements and training issues. The T7Plus delivers a powerful
feature set in an attractive, compact design. It offers low overall cost of
ownership thanks to its high reliability, communications capabilities, easy
operation and advanced remote software management. The Hypercom
T7Plus is a safe choice for merchants wanting a new credit/debit card POS
terminal.
Just like its predecessor, the T7P, you'll find several new features in the T7
Plus. Most notably, the new Sure Load thermal printer that loads quickly and
prints quietly and fast. There's no need to feed the paper through slots and
rollers, just drop the paper in and that's it. The thermal printer allows you to
print graphic logos right onto the receipts.

To accept debit cards, simply purchase our Hypercom S8 PIN pad. Support for
smart cards and EMV-compliant software is also available.

Its 35-key keyboard will make for easy one-step functions. If you're
upgrading form the T7P you'll notice that it operates exactly the same. This
will reduce clerk training time.

Measurement Specifications

• Height: 2.5 in
• Width: 5.18 in
• Depth: 10 in
• Weight: N/A lbs
CONCLUSION
When was the last time you used hard cash in a shopping mall or a grocery
store? If you have tickled your grey cells enough, let me prove Pakistan's
renewed passion for the plastic.

Today’s consumers have moved away from using cards only for big ticket
purchases such as travel and entertainment. They are now shifting daily
expenditure such as groceries and other types of household spending from
cash to electronic payments.

A study by Visa International and National Council of Applied Economic

Research (NCAER) reveals segments such as handicrafts (56%), consumer
durables (54%), telecom (53%), departmental stores (52%), petrol (52%),
jeweler (49%) and supermarkets (49%) have shown highest year on year
growth in card usage.

Pakistan's bank card business has entered a period of rapid development

with a compounded annualized growth rate (CAGR) of 55% to an estimated
44 million credit and debit cards in 2004. Debit and credit card volumes also
increased from $23 billion in 2004.
However, 80% of card volumes from ATM cash withdrawals, predominantly
with debit cards, said the study.

Debit cards are still largely used for cash withdrawals at ATMs. This is a
natural consequence of an astronomical growth in ATMs to 14,000 across the
country by December 2004, against 1,100 ATMs in select pockets of metros,
three years ago.

Given the cost savings for banks from debit card transactions, increase in
merchant acceptance locations and greater consumer familiarity, it is
expected that most ATM cards would be converted to debit cards with added
functionality for point-of-sale usage over the next two years.

Electronic payments can help reduce the size of the informal economy. When
cash remains outside the banking system, the possibilities of supplying
productive capital to the economy are diminished. Bringing cash into the
banking system produces an equal increase in bank reserves, enabling banks
to facilitate more consumer and commercial loans, thereby stimulating
business growth and consumption.

Governments can utilize electronic payments as a channel to modernizing

and boosting efficiencies in their respective economies. Electronic payments
can be used to minimize leakage of government funds, which could
otherwise be utilized to maximize returns through effective resource
allocation within the economy.

Even if it is 10% of the total government expenditure, it amounts to Rs

47,425.5 crore, in 2002-03, which may be saved through electronic
payments.

The introduction of a payment mechanism and electronic payment system

into government expenditure, for procurement and purchasing as well as for
activities like tax collection

and other administrative processes may facilitate more effective use of

public funds.

However, the total spend in India on a payment card is still less than 1% of
the country’s percentile.

This indicates that the growth potential of the payment card industry is
enormous.
The Credit Card and Debit/ATM cards have emerged as a standard in our
society after increase in crime rates. These cards are commonly known as
plastic money which either lost or stolen the amount would be saved. The
State Bank of Pakistan (SBP) regularly issues recommendation for improving
safety for customers and effective luxury for consumers.

There are several banks which are associated with state bank of Pakistan for
dealing with consumer for plastic money. The state bank has given the terms
and conditions regarding the issue and use of the credit cards that is
properly documented in the form of a written contract between the banks
and the credit card holders. These conditions clearly highlight the
cardholders liabilities and obligations, eligibility conditions, fees, charges,
service fee rate and their method of calculation etc. Although no charge can
be recoverable from the credit card holders other than agreed to as per the
contract, but the customers claim to the agent or public most of the time.
That said that banks shall be liable for all transactions not authorised by the
credit card holders after it has been properly served with a notice that the
card has been lost or stolen. However, the bank's liability shall be limited to
those amounts wrongly charged to the credit card holder's account.

An agent, employee of the bank, offers a new or regular credit card to

consumer without informing the terms and condition of the state bank of
Pakistan as well as of the particular bank in which he is employed. He just
makes easy way to get lustful luxury on consumer's mind.

In credit cards we can categorise different broad services and tariff according
to banks policies. Let you know the bank AlFaleh, offering visa and master
cards. It is accepted at nearly 27 million locations in more than 150 countries
around the globe and over 22, 000 Bank Alfalah's establishments in Pakistan.

Alfalah VISA lets you pay for shopping, travel, entertainment, meals and
much more. Card members are facilitated through a number of promotions
from time to time. In addition, there are a number of strategic business
partnerships with leading local and international brands for purchase of
home appliances at exciting Step-BY-Step (SBS) monthly installment plan
with free home delivery. Salient features are No Joining / Annual / Renewal
fee, Electricity, Sui Gas, PTCL and Warid bills payment through 24 hour Call
Center and Auto Debit instructions, SMS for card usage, mini statement,
payment receipt confirmation, etc., Cash withdrawal at all 1LINK ATMs,
Special offer on Warid post paid connections.
Alfalah is offering platinum card, titanium, Gold & Silver, young professional,
women exclusive, student card, visa mini & supplementary card.

Standard Chartered Bank offers wide variety of visa/master cards. Saadiq

VISA Credit Cards, Mastercard, Visacard, Easy credit card, American express
card, Pakistan International Airline (PIA) Co brand Credit Card & Cricket
Credit Card.

Standard Chartered Credit Cards can be used at 24 million establishments

across the globe in 210 countries including 10,000 in Pakistan displaying the
Credit Cards logo.
The silent features are CIP Lounge, Credit cover, travel accident cover, Travel
accident cover, travel inconvenience cover.

SCB have Easy Credit card in which customer can pay through given
checkbook along with credit card. PIA Co brand and Cricket credit card are
unique offers.

MCB credit card has different feature. It facilitates all features of other credit
cards but also given you some special facilities. i-revolve, i-shop, i-plan, i-
party, i-switch, i-dial, i-ensure, i-cash and i-secure.

Cash Money is free for spending. There is no need of any services charges,
markup, restriction and difficulties for buying. But cash amount is not safe
during travel. No return if you forget it. In credit card you can be refund if
you forget it in any place or it would be stolen. But credit card has some
restriction of acceptability because there are certain places where you
cannot use plastic money.

The card through which you spend your own money is known as debit card.
The card through which you spend the amount of bank as loan is called
credit card.

In developing country, that is our history we accept not only required but
also waste, what comes from west. Because of this, the plastic money
becomes status. Either it is need to use or not but it would be in the pocket.

The companies are offering credit cards through their agents. An agent daily
offers 10 to fifteen credit cards to different profile employees or employers
by using particular way of communication. This communication has been
very common to make headache for consumers. The banks hired women to
call, men forget the form. Most of time, due to women's voices, consumers
buy the credit card even some time they do not need of it.
After purchasing the cards people once use it and become victim as
markups, hidden service charges, internet thief, miss used and joining &
annual charges. Their desire of purchasing luxury becomes prominent when
they go toward minimum payment. At least 30% of markup except actual
amount is charged.

If you think the credit cards are only swamp than you are wrong. There are
several benefits are available if you need to get credit cards. But judge first
either the markup, annual fees, joining, fees, services charges and other
hidden charges is less valued than your object. If you use credit cards it
means you have some discounts package, higher status, easy usage of
money, comfortable services, online purchasing, internet shopping, on the
spot loan and emergency backup.

With so many credit card offers on the market today, it's very easy to find
yourself with a card that may not only end up costing you a lot more in
interest than you anticipated but may not be such a good deal after all. This
is why it's so important to compare offers and do a comparison before
applying or activating a credit card.

Comparing is important when you're looking for a new card. Whether you're
looking to make important purchases, holiday shopping or for minor
occasional spending, you can't underestimate the importance of comparison.
When you compare offers, it gives you the chance to compare the important
features so you know which card has the most to offer depending on your
spending needs. An offer that's perfect for your neighbor may not be the
perfect solution for your needs. Before applying, determine what your
spending needs dictate. For instance, if you travel frequently and purchase a
lot of fuel a gas card that gives cash back on your purchases will give you a
chance to save a little more at the gas pump.

When you compare offers you'll find that there are many different types. If
you fly frequently, either for personal or business reasons, a frequent flyer
card may give you many benefits that will help save you money on travel
expenses. A comparison of all airline credit cards will help you decide which
is best for you. Comparison is also great for finding an offer with the best
interest rate. What may appear as a low interest offer may turn out not being
so low if certain terms and conditions are not met. When you compare offers
with different companies, you can also learn a lot about their customer
service and how helpful they'll be when you need them for information. A
card is designed to help consumers with many of their financial needs as
well as making money for the issuing company. Without a proper credit card
comparison, you can find yourself with a credit card that is only making
money for the company and costing you a lot of extra money.

When it comes to saving on gas, did you know that you can save money no
matter where you fill up? I know, it sounds like a joke but it's actually true
and all it takes is a little homework and research and you'll be saving in a
few a weeks.

How does it work?

By now, you're probably reading this and wondering how the heck it works.
Well, if you have heard of a rewards credit card before, I'm going to tell you a
little bit about a gas credit card. These cards are just like a rewards card but
give you sole discounts on gasoline. The discounts usually vary anywhere
from 1% to as much as 10% per gallon. This is a great discount when you're
looking at $3 per gallon.

A gas card as I mentioned works just like any other reward card. You're going
to want to use it every time you purchase gas. Most cards will also give you
rewards on other purchases but not as much as gas. As long as you make it a
habit to use it when you fill up, you will see big savings year after year.

The last thing that you'll need to remember is that you'll want to pay this
card off in full each month. When you pay a card off in full, you're going to
avoid paying the interest rates. This in turn is going to allow you to capitalize
off the card rewards. There are so many gas cards on the market. It's your
duty to go out there and find the one that works for you.

In today's age of cutting-edge technology, credit card payments are very

common and their popularity is growing day by day. A credit card payment
not only gives a professional look to your business but also allows
transactions to proceed easily, no matter where you are, whenever you need
it-without depending on the availability of phone lines.

Conventionally, card processing worked by dialing up your merchant account

to approve the card, which caused potential delays, due to the sub normality
of the connection. Wireless payment processing, on the other hand increases
the affectivity of accepting payments at your important location as well as
point of sale dealings on the road.
Some wireless credit card payment working units are small enough to fit in
your pocket. These little payment processing units can be connected to small
thermal printers, so you can even give your customers a receipt. The best
thing about wireless service is that, it is uncomplicated and relatively easy to
set up. The benefits of long-range wireless processing are many, as you can
process payments anywhere due to the presence of your mobile provider of
wireless provider.

Not only will your cost basis be lighter, but you can also clear dealings more
quickly than hand-operated or hand entered transactions. You can eradicate
any latent delays, speed up checkout times and keep your checkout lines
moving more swimmingly. By swiping credit cards you get lower rates. This
one feature alone can save hundreds of dollars per month. Apparently, there
is increased security because wireless processing reduces the amount of
cash you and your staff handle.

So, what are you waiting for? If you are a merchant, you no longer need to
handle cash or take the risk of accepting cheques. Wireless card processing
is very fast, offers flexible opportunity and makes payments to your business
both simple and flexible.

Whether you're a student or a person with not-so-good credit, filling out that
credit card application can be a daunting task. So today we're going to go
over the application itself and see if we can't take some of the mystery out
of it.

The first part of the application seems like a no-brainer. Your personal
information is actually very important and you would be surprised how many
people get this part wrong. Women especially need to be careful with this
area. Sometimes you fill out an application with your married name, but
forget to add your maiden name as well. If you haven't been married more
than three years, chances are the credit reporting agencies don't have your
new information. This could look like deception to a person reviewing the
application. A co-applicant is sometimes necessary for beginners and those
who need a little boost. The co-applicant is also responsible for your debt if
you don't pay, so it's important to find someone you trust, who also trusts
you. Another aspect of this is when couples get joint credit cards. If you split
up in a few months and they run up the balance, you will be responsible for
covering it.

Once everything has been filled out correctly, you must sign the application.
Online applications have e-signatures which are just as secure. This is a
declaration that all information is true and valid. Once you sign away, you
can be sure that your information will be kept safe and secure.

Smart card also provides you all these advantages which you are having with
credit card and smart billing will surely enter you into a new age.

Our logical conclusion also suggests that mean number of consumers is

more than 25 which shows that people are hesitant but at the same time
willing to buy an idea.

PROBLEMS AND
RECOMMENDATIONS
If your credit card bills are piling up and paying them off is becoming a
problem, one way to reduce repayments is to transfer the balance to a
cheaper credit card, i.e. one with a much lower rate of interest. It's time to
take to the floor for the credit card shuffle...

What is a balance transfer?

Simply put, a balance transfer is transferring debt from one credit card to
another. If you're paying any kind of interest on your existing credit card,
switching the balance to a new card offering 0% Annual Percentage Rate
(APR) will reduce your monthly repayments.

Transfer fees and discount periods

In general, zero percent APR credit cards with no balance transfer fee have a
shorter discount period (typically six months or less), after which the balance
is repaid at the card's standard APR. If you're happy to switch your balance
transfer from card to card regularly (a practice known as 'tarting'), or plan to
repay in full before the standard interest rate kicks in, this could be the best
card for you.

Longer-term 0% credit cards usually charge a fee (often around 3% of the

balance), but if you're paying back over a longer period, you could save
more than the fee thanks to the reduced repayments. This type of deal could
also be suitable if don't want to switch credit card every few months.

How to apply for a balance transfer

When you apply for a new card, there's usually a section on the application
form where you tell the new provider if you want to transfer a balance (and
how much). Some cards will ask for details of your old card when you apply
for the new one, but most will set up your new card first and then allow you
to transfer balances to it.

How much money can be saved?

This depends on the amount you transfer, your current Annual Percentage
Rate (APR) and how much you plan to pay each month.

If you only pay the minimum amount, your monthly payments should drop
slightly, as you're no longer paying interest on the balance - for the term of
the deal. However, if you can afford to pay off more than the minimum
payment, you'll repay the debt quicker.

As you're not paying any interest on a 0% deal, all of the repayment you
make each month goes towards the balance, rather than part of it paying
interest, so you'll clear your debt faster.

How much should you pay each month?

Try and pay off as much as you can afford every month. However, if you
have other debt that is attracting a higher APR, it's best to pay that off first.
If you don't think you'll be able to pay off the whole balance on your credit
card before any 0% deal runs out, you could switch again to avoid paying
high interest rates.

Alternatively, you could transfer your balance to a card that charges a low
rate on balance transfers for the life of the balance (rather than a 0% deal
for 10 months which then reverts to 17.9%, a card may charge, say, 5.9%
until the balance is repaid in full, even if this takes a couple of years or
more).

The credit limit

If the credit limit you're being offered isn't high enough, it may be worth
transferring just part of your existing balance to the new card. Even if you
can't reduce your total interest charges to nil, paying less interest is still
better than paying more.
More than one balance transfer
The number of times you can transfer a balance is unlimited, in theory at
least. However, you may have to pay balance transfer fees each time and it
may damage your credit score if you constantly transfer balances without
actually paying off any of the total amount owing.

It's also important to remember that, as a rule, credit card providers won't
let you transfer a balance from one of its cards to another, even if they are
differently branded.

Spend, spend, spend

Some balance transfer credit cards also offer a 0% period on purchases,
though the deal period usually lasts for a much shorter period than the
balance transfer deal.

One thing to be aware of is that most credit card providers allocate

repayments to the cheapest debt first, i.e. money you pay goes against your
0% balance transfer balance first, meaning you could end up paying interest
at the full APR on your new purchases.

Fees
Ideally, look for a credit card with no balance transfer fee, but as these are
becoming scarce, fees are usually between 2.5% and 3% of the balance
you're transferring.

The trick is to always make sure you include any charges in your calculations
when working out if it's worth switching cards.

Credit Card Billing Errors

One way to avoid billing errors and unjustified fees is to carefully go through
your monthly credit-card statement, making sure all the transactions are
legitimate and that other charges -- finance charges, late or over-the-limit
charges -- are justified.

The Fair Credit Billing Act applies to credit card and charge accounts and to
overdraft checking (but not to checks or debit cards). You can use this act to
defend against billing errors, unauthorized use of your account, goods or
services charged to your account but not received or not provided as
promised, and charges for which you request an explanation or written proof
of purchase. Here are some important steps to take when you encounter one
of these problems:
• Write to your card issuer or creditor within 60 days after the first bill
containing the disputed charge is mailed to you. (Even if more than 60
days has passed since you were billed for the item, you still might be able
to dispute the charge if you only recently learned about the problem.)

• In the letter, give your name, account number, the date and amount of
the disputed charge and a complete explanation of why you are disputing
the charge.

• Send your letter to the address provided on the bill -- do not send the
letter with your payment. (To be sure that your letter is received and that
you will have a record of its delivery, you might want to send it by
certified mail, with a return receipt requested.)

• If you follow these steps, the creditor or card issuer must acknowledge
your letter in writing within 30 days after receipt and must conduct an
investigation within 90 days. While the bill is being investigated, you don't
have to pay the amount in dispute. (The creditor or card issuer is not
allowed to take action to collect the disputed amount, report the amount
as delinquent or close or restrict your account during this time.)

• If it is determined that there was an error or that you don't owe the
amount you're being held responsible for, the card issuer must credit your
account and remove any finance charges or late fees relating to the
amount not owed. For any amount still owed, you have the right to an
explanation and to copies of documents that prove you owe the money. If
the bill is correct, you must be told in writing what you owe and why. You
will owe the amount disputed plus any finance charges.

So, now that you know all this, let's find out what it takes to qualify for a
credit card in the first place.

There's no way to know if you'll qualify for a credit card without doing some
research. Some of the basic things that lenders look for include:

• Good payment record - If you pay your bills on time, you'll score major
points with lenders. If you have a lot of late payments, this can hurt
your chances of getting a card, and, if the lender decides to issue you
a card, it's probably going to have a higher interest rate.

• Control of debt load - Lenders generally want to see that you are a
good credit risk and that you aren't living beyond your means. Experts
 say that non-mortgage credit payments each month should not exceed
more than 10 percent to 15 percent of your take-home pay.

• Signs of stability, responsibility - Lenders perceive things such as

longevity in your home and job (at least two years) as signs of stability.
Having a respected profession doesn't hurt either.

• Lack of credit inquiries - This one is a little strange. Whenever you

apply for a credit card, the lender pulls your credit report from one or
more of the major bureaus as part of the approval process. Each time a
report is pulled, it's marked as an inquiry and stays on your credit
bureau report for two years. Lenders perceive several inquiries on your
report as indications that you're scrambling for loans and may consider
you a poor credit risk. So, in order to beat this system, don't allow
every credit-card issuer you speak with to pull your report.

• Lack of available or unused credit - Did you know that having credit
cards that you don't use -- and have a zero balance on -- can hurt your
credit? The rationale here, experts say, is that if you have all this
available credit lying around, you could run it up at any time (even if
you never have). Get rid of the cards you don't use. Be sure to ask the
credit-reporting bureaus to remove the discarded cards from your
report, noting that you -- not the creditor -- closed the account.

Once you qualify for a card, or several cards, there's always the chance that
you'll end up spending more than you've got. A pretty good chance, actually.
The next section discusses what you can do if you find yourself in credit-card
debt.

Getting Rid of Debt

If your credit-card balance has crept up to uncomfortable levels, you're not
alone. Millions of Americans have learned -- the hard way -- how easy it is to
use and abuse their credit cards and how difficult it can be to pay them off.

Myvesta (formerly Debt Counselors of America) and the National Consumer

Law Center offer these credit-card debt elimination tips:

• Always be aware of all of the fees that may be associated with your
credit card. (That means not tossing out the fine-print leaflets that
come in your bill periodically!) Know the annual fees, current interest
rates, finance charges, cash-advance fees and any other fees tied in
 with your card. This knowledge can help you make better decisions on
how to manage your card.

• Cash advances can be trouble! You should only get cash advances
when it is absolutely necessary. Higher interest rates (than you're
paying for card purchases) are usually charged, and most banks also
charge a service fee related to how much cash you're withdrawing.
(The same applies to those handy, personalized "checks" the credit-
card company sends you!)

• Always be on the look-out for cards that offer lower interest rates.
Transferring balances from one card to another to take advantage of
low introductory rates is a common practice among U.S. cardholders.
Low introductory rates can be very helpful in your quest to become
free of credit-card debt. You should look for credit cards that offer a low
intro rate (usually for six months), and transfer the balance from your
previous credit card to that credit card. Before you take this step,
however, make sure that, after the intro rate has expired, the new card
offers the same (or lower) interest rate as your current card.

• Experts say that making minimum payments is one of the most

common mistakes consumers make. You will save lots of money on
interest and get to debt-free goals sooner if you pay more than what is
required each month.

It's true that it's really easy to fall into the credit-card trap, and not so easy
to get out. But don't give up -- there are non-profit centers across the
country that will provide counseling to you and will even (at no or low
charge) contact your credit-card company and try to get your rate lowered or
a different payment plan worked out

Credit-card acceptance varies around the world. For example, in some

countries (including France), Visa and MasterCard networks have been
merged so that all merchants who take one, take them both. On the other
hand, the cash-advance networks have not been merged. So, if you are in
France, for example, almost any bank or ATM (if you have a four-digit PIN)
can give you a cash advance on Visa, but only a few banks and cash
machines (and all post offices) can give you a MasterCard cash advance.

In other countries (such as Italy), Visa and MasterCard networks have not
merged. So, if you're going there, you might need both.
American Express and other T&E cards were originally aimed at an upscale
market, catering to this group by offering check cashing, mail-holding and
cash-advance services to traveling cardholders. (Now, Visa, MasterCard and
others offer some of the same services.) AmEx and Diners Club are widely
accepted in the United States, although not as widely as Visa and
MasterCard.

In Europe, there are increasingly fewer places that accept only Diners Club or
only American Express. In France, you can use American Express at more
places than in the United States; in Italy, Germany, England and Greece, you
can use it less, in general, except in shops with special appeal to tourists. Be
sure to check out the credit-card situation before you travel.
Although the numbers are increasing, consumers are still not using their
credit cards on the Internet nearly as much as e-tailers (electronic retailers)
would like. That's why many cyber-merchants continue to offer a toll-free
order number so that shoppers have the choice of calling their order in.
Cyber-shopping may be convenient -- and some people do all of their
shopping online -- but credit-card fraud is always a threat, both on the
Internet and out in the real world. Hackers have found ways to steal credit-
card numbers from Web sites.

To illustrate the importance of tight security, a network TV reporter, tipped

off about loose security on an Internet Web-hosting site, was able to gain
access to about 1,500 customer records, which included everything from
credit-card numbers and payment records to comments about particular
customers.

These are the kinds of stories that deflate consumer confidence. Some e-
tailers blame consumer reluctance on the inability in cyberspace to make the
kind of personal contact that a shopper gets when he looks into the eyes of a
store merchant. Experts say that this kind of comfort level will be boosted
when online payment methods and security measures are standardized --
much as they are in the retail and mail-order industries.

While Internet companies have taken responsibility for security breaches and
resulting losses to credit-card users, there remains the growing problem of
identity thieves who use stolen credit cards to make purchases on the
Internet. And while unfair or fraudulent practices by credit-card companies
are not commonplace, they do happen. The good news is that consumers are
protected by law -- in case of credit-card fraud online or off, you are only
liable for a maximum of $50 of the amount stolen.

And fortunately, the Federal Trade Commission (FTC) and the media are
watching closely. In 1994, the FTC ordered Trans Union credit-reporting
bureau to stop selling "sensitive" consumer data -- data on 160 million
Americans -- to junk-mail producers. The FTC charged that Trans Union
violated the Fair Credit Reporting Act by selling consumer information to
target marketers who lack any of the allowable purposes listed under the
act. Trans Union denies that it sold information that could affect customers'
appealed the FTC's ruling, but lost.
If the mailing-list issue bothers you -- and it bothers most of us -- pay
attention when you're completing that credit-card application. Some
application forms now provide a box that you can check to allow or disallow
the selling of your information to mailing lists. You can also protect yourself
by taking your name off the credit bureaus' mailing lists.

One way to do this is to visit The Consumer Credit Reporting Industry Opt-
Out Prescreen Web site. On this site you can fill out a form and opt-out of
recieving pre-approved credit or insurance offers in the mail. You can also
call 888-5-OPT-OUT (888-567-8688). Alternatively, you can write to the major
credit card bureaus and request that your named be removed from their
mailing lists.

These tips are important and universal:

• Sign your card -- as soon as you receive it! (Obviously, this is only as
effective as the clerk who's checking it.)

• When you use your card at an ATM, enter your PIN in such a way that
no one can easily memorize your keystrokes.

• Don't leave your receipt behind at the ATM.

• Your PIN and account number from a discarded receipt could make you
vulnerable to credit-card fraud. Also, don't throw out your credit-card
statement, receipts or carbons without first shredding them!

• Never give your credit-card number over the telephone unless you
initiated the call.
Even when you place the call to a legitimate merchant (such as a mail-
order company), never give your card number out over a cordless
phone. Radio scanners that eavesdrop on these conversations are
available for a few hundred dollars at any electronics store, and your
voice can be received by one from a far greater distance than the
maximum useful range of your cordless phone. One common scam is
when someone calls you "back" right after you place an order, claims
to be from the merchant and tells you that there was a problem with
your card number -- would you mind giving it to them again? The best
thing to do is ask for a contact name and call the merchant back at the
number you used originally.
 • Ignore any credit-card offer that requires you to spend money up-front
or fails to disclose the identity of the card issuer.

• Make certain you get your card back after you make a purchase (one
habit to observe is to leave your wallet open in your hand until you
have the card back). Also, make sure that you personally rip up any
voided or cancelled sales slips.

• Always keep a list of your credit cards, credit-card numbers and toll-
free numbers in case your card is stolen or lost.

• Check your monthly statement to make certain all charges are your
own, and immediately notify the card issuer of any errors or
unauthorized charges. (More on this later!)

Before we get into shopping for a card, let's go over some important terms
you'll encounter in credit-card brochures or discussions with potential
lenders:

• Annual fee - A flat, yearly charge similar to a membership fee

• Many companies offer "no annual fee" cards today, and lenders who do
charge annual fees are often willing to waive them to keep your
business.

• Finance charge - The dollar amount you pay to use credit

• Besides interest costs, this may include other charges such as cash-
advance fees, which are charged against your card when you borrow
cash from the lender. (You generally pay higher interest on cash
advances than on purchases -- check your latest bill to find out what
you're paying for this service!)

• Grace period - A time period, usually about 25 days, during which

you can pay your credit-card bill without paying a finance charge

• Under almost all credit-card plans, the grace period only applies if you
pay your balance in full each month. It does not apply if you carry a
balance forward. Also, the grace period does not apply to cash
advances.

• Annual percentage rate (APR) - The yearly percentage rate of the

finance charge
 • Interest rates on credit-card plans change over time. Some of these
adjustments are tied to changes in other interest rates, such as the
prime rate or the Treasury Bill rate, and are called variable-rate
plans. Others are not explicitly tied to changes in other interest rates
and are called fixed-rate plans.

• Fixed rate - A fixed annual percentage rate of the finance charge

• Variable rate - Prime rate (which varies) plus an added percentage

(For example, your rate may be PR + 3.9 percent.)

• Introductory rate - A temporary, lower APR that usually lasts for

about six months before converting to the normal fixed or variable rate
(This is a hot topic -- more about it later.)

Experts say that if you're smart, you'll do the same kind of comparison
shopping for a credit card that you do when you're looking for a mortgage or
a car loan. This is a good idea because the choices you make can save you
money. The process is not a simple one -- here are some tips that should
help you get started:

• Do some research - There are plenty of places, both online and offline,
where you can read about credit-card offerings and even get credit-
card ratings, but since rates and plans change so often, it's a good
idea to call the institutions you're interested in to confirm the
information and to see if there are other plans that might work for you.

• A reliable and non-commercial resource is the Federal Reserve Board.

Also, the non-profit consumer credit organization U.S. Citizens for Fair
Credit Card Terms offers credit-card ratings from its research (and so
do a lot of commercial organizations -- many of whom are also credit-
card issuers).

• Make a list - Make a list of credit-card features that fit your financial
needs and rank the features according to how you plan to use the card
and pay your monthly bill.

• Review the plans - Review all of the information you've gathered on

different plans. Pay special attention to the APR - - you want a low rate,
but not necessarily the lowest. This is because, depending on your
lifestyle and payment habits, you might benefit more from a card that
offers cash rebates, discounts or frequent-flier miles.
 • Check out credit unions - Look into the possibility of joining a credit
union. Credit unions are non-profit, and they have lower overhead so
they can charge lower interest rates. Credit unions are newer to the
credit industry so they are eager to generate credit-card loans.
However, you'll probably be required to open a share account or
savings account to join.

• Credit unions typically are limited to a particular employer and its

employees, but that's changing. Due to industry consolidations, credit
unions are rapidly expanding their fields of membership. To find out
which credit union you may be eligible to join, contact the Credit Union
National Association (CUNA).

• Compare plans - If you already have a credit card, be sure that you're
making a good move before you swap cards. If you are a current
cardholder and have a good credit rating, see if the institution that
issued your card will lower your current rate. Don't be afraid to
negotiate!

APPENDIX A1

PROFESSIONAL SURVEY RESULTS

S. Professionals
N Question No. Question No. Question No. Question No. Question No. Question No. Question No.
o 1 2 3 4 5 6 7
1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5
1 0 0 0 0 1 0 0 0 0 1 0 0 0 1 0 0 1 0 0 0 1 0 0 0 0 1 0 0 0 0 1 0 0 0 0
2 0 0 0 1 0 0 0 0 0 1 0 1 0 0 0 0 0 0 1 0 0 1 0 0 0 0 0 0 0 1 0 1 0 0 0
3 0 0 0 0 1 0 0 0 0 1 0 0 0 1 0 0 0 1 0 0 0 0 1 0 0 0 0 1 0 0 0 1 0 0 0
4 0 0 0 1 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 1 0 1 0 0 0 0 0 0 1 0 0 0 0 1 0
5 0 0 0 0 1 0 0 0 1 0 0 0 0 0 1 0 0 0 1 0 0 0 0 1 0 0 0 1 0 0 0 0 0 0 1
6 0 0 0 1 0 0 0 1 0 0 0 0 0 1 0 0 0 1 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 0 1
7 0 0 0 1 0 0 0 0 1 0 0 0 1 0 0 0 0 0 1 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 1
8 0 0 0 0 1 0 0 1 0 0 0 0 0 1 0 0 0 1 0 0 0 0 1 0 0 0 0 1 0 0 0 0 0 1 0
9 0 0 1 0 0 0 0 0 1 0 0 0 0 0 1 0 1 0 0 0 0 0 0 1 0 0 1 0 0 0 0 0 1 0 0
1 0 0 0 1 0 0 0 0 1 0 0 0 1 0 0 0 0 0 0 1 0 0 0 0 1 1 0 0 0 0 0 0 1 0 0
0
0 0 1 5 4 0 0 2 5 3 0 1 2 4 3 0 2 3 3 2 1 2 2 3 2 2 1 3 2 2 1 2 2 2 3
S. No 1 2 3 4 5 6 7 8 9 10
 Q No. 1
1 0 0 0 0 0 0 0 0 0 0

Professionals
2 0 0 0 0 0 0 0 0 0 0
3 0 0 0 0 0 0 0 0 3 0
4 0 4 0 4 0 4 4 0 0 4
5 5 0 5 0 5 0 0 5 0 0

Q No. 2
1 0 0 0 0 0 0 0 0 0 0
2 0 0 0 0 0 0 0 0 0 0
3 0 0 0 0 0 3 0 3 0 0
4 0 0 0 4 4 0 4 0 4 4
5 5 5 5 0 0 0 0 0 0 0
Q No. 3
1 0 0 0 0 0 0 0 0 0 0
2 0 2 0 0 0 0 0 0 0 0
3 0 0 0 0 0 0 3 0 0 3
4 4 0 4 0 0 4 0 4 0 0
5 0 0 0 5 5 0 0 0 5 0
Q No. 4

1 0 0 0 0 0 0 0 0 0 0
2 2 0 0 0 0 0 0 0 2 0
3 0 0 3 0 0 3 0 3 0 0
4 0 4 0 0 4 0 4 0 0 0
5 0 0 0 5 0 0 0 0 0 5
Q No. 5

1 1 0 0 0 0 0 0 0 0 0
2 0 2 0 2 0 0 0 0 0 0
3 0 0 3 0 0 0 0 3 0 0
4 0 0 0 0 4 0 4 0 4 0
5 0 0 0 0 0 5 0 0 0 5
Q No. 6

1 1 0 0 0 0 0 0 0 0 1
2 0 0 0 0 0 0 0 0 2 0
3 0 0 3 0 3 0 0 3 0 0
4 0 0 0 4 0 4 0 0 0 0
5 0 5 0 0 0 0 5 0 0 0
Q No. 7

1 1 0 0 0 0 0 0 0 0 0
2 0 2 2 0 0 0 0 0 0 0
3 0 0 0 0 0 0 0 0 3 3
4 0 0 0 4 0 0 0 4 0 0
5 0 0 0 0 5 5 5 0 0 0
Individual's 19 24 25 28 30 28 29 25 23 25
Score
Mean µ 2 2 2 3 3 3 3 2 2 2
.11 .67 .78 .11 .33 .11 .22 .78 .56 .78
Standard 1 1 1 1 1 1 1 1 1 1
Deviation .36 .51 .53 .68 .77 .66 .71 .49 .41 .56
Variance 1 2 2 2 3 2 2 2 2 2
.84 .28 .33 .81 .13 .75 .91 .21 .45

APPENDIX B1
CONSUMER SURVEY CHARTS
Question No. 1

You are satisfied with traditional system of payment of bills (Likert

scale)

Strongly Disagree Neutral Agree Strongly

Disagree Agree

5 4 3 2 1
Question No. 2

Who is responsible for payment of bills at your home.

o Head of family

o Member of the family

o Servant

o Any other
Question No. 3

What is annual range of your overall bills?

o less than 400,000

o 400,000 – 600,000

o 600,000 – 800,000

o More Than 800,000

Question No. 4

How many landline connections do you have?

o 1

o 2

o 3

o more than 3
Question No. 5

How many cell phones do you have at your home?

o 3

o 4

o 5

o more than 5
Question No. 6

How many credit/debit/ATM cards do you have?

o 0

o 1

o 2

o more than 2
Question No. 7

Do you use alternate methods of payment like through ATM or credit

card?

o Yes

o No
Question No. 8

You will opt for payment of bills through card at home if offered?
(Likert scale)

Strongly Disagree Neutral Agree Strongly

Disagree Agree

1 2 3 4 5
Question No. 9

How much are you willing to pay for the procurement of machine?

o Less than 5,000

o 5,000 – 8,000

o more than 8,000

APPENDIX B2

PROFESSIONAL SURVEY CHARTS

Question No. 1

This proposal is quite applicable considering your bank (Likert scale)

Strongly Disagree Neutral Agree Strongly

Disagree Agree

1 2 3 4 5
Question No. 2

You will like to opt this idea in future (Likert scale)

Strongly Disagree Neutral Agree Strongly

Disagree Agree

1 2 3 4 5
Question No. 3

Our Cost/benefit analysis is appropriate (Likert scale)

Strongly Disagree Neutral Agree Strongly

Disagree Agree

1 2 3 4 5
Question No. 4

Net profit after implementation will cover your bank cost (Likert scale)

Strongly Disagree Neutral Agree Strongly

Disagree Agree

1 2 3 4 5

Question No. 5
 Bank finally gain substantial net income (Likert scale)

Strongly Disagree Neutral Agree Strongly

Disagree Agree

1 2 3 4 5

Question No. 6

Bank will retain customers loyalty (Likert scale)

 Strongly Disagree Neutral Agree Strongly
Disagree Agree

1 2 3 4 5

Question No. 7

Bank will achieve customers satisfaction (Likert scale)

 Strongly Disagree Neutral Agree Strongly
Disagree Agree

1 2 3 4 5

APPENDIX B2

UTILITY COMPANIES’ SURVEY CHARTS

Question

Our proposal is applicable considering your company (Likert scale)

Strongly Disagree Neutral Agree Strongly

Disagree Agree

1 2 3 4 5