FINAL PROJECT ON

CUSTOMER SATISFACTION LEVEL AND

FACTORS

AFFECTING THE CHOICE OF CREDIT CARD

Submitted In partial fulfilment of the requirements

For the Award of the Degree of

Masters of Business Administration (2009-2011)

GUIDED BY: SUBMITTED

BY: Mrs. DIPTI NAME:
PRIYANKA GUPTA (LECTURER)
SHASHIKANT

ROLL NO:
95332239643

953
32239655

SWAMI VIVEKANAND INSTITUTE OF ENGENEERING AND

TECHNOLOGY

(Affiliated to Punjab Technical University)

1
 CERTIFICATE BY THE FACULTY GUIDE

This is to certify that the project report entitled “CUSTOMER

SATISFACTION LEVEL AND FACTORS AFFECTING THE CHOICE OF
CREDIT CARD” is a bonafide record of work done by “PRIYANKA GUPTA
AND SHASHIKANT” and submitted in partial fulfilment of the requirements
of MBA program of SWAMI VIVEKANAND BUSINESS SCHOOL, BANUR.

DATE:

2
 SELF - DECLARATION

I, PRIYANKA GUPTA AND SHASHIKANT hereby state this project report on

“CUSTOMER SATISFACTION LEVEL AND FACTORS AFEECTING THE
CHOICE OF CREDIT CARD” submitted by me in partial fulfilment of requirement of the
MBA is an original research work carried out by me under the guidance and supervision of Mrs.
Dipti Thaman, my faculty guide, also this work or any part of it has not been previously
submitted for a degree of MBA.

PRIYANKA GUPTA

Roll no.95332239643

SHASHIKANT

Roll no.95332239655

3
 ACKNOWLEDGEMENT

Thanks to the ‘Almighty’ for showing his blessing on us. No great endeavour in any field

is possible in solitude. So, we must preface our report by expressing sincere and deep

gratitude towards those who made it possible for us to complete our Project report on

“CONSUMER SATISFACTION LEVEL AND FACTORS AFFECTING THE CHOICE

OF CREDIT CARD”

Our special thanks to Principal Mam Dr. Shashi Jain, HOD Mam Mrs. Monika Saini

for according to us the permission to complete our project in their organization.

We also wish to serve a warm and special note of thanks to our faculty guide Mrs. Dipti

thaman, whose support and guidance helped us to complete this report successfully.

Last but not least we would thanks the to our parents, as it is because of their love and
blessing that we were able to come up to the expectation of this project and make it full
time effort. We also thank to all our friends and other well wishers who provided
constructive help during making of the project report and retained their sense of humour
long after me.

(PRIYANKA
GUPTA)

(SHASHI
KANT)

4
TABLE OF CONTENT

Topic Page
Serial Chapter No. No.
No.
1 CERTIFICATE 2

2 SELF DECLARATION 3

3 ACKNOWDLEGEMENT 4

4 EXECUTIVE SUMMARY

5 I INTRODUCTION 7-8
6 II OBJECTIVE OF THE STUDY 9-10
7 SCOPE OF THE STUDY 11-12
8 III RESEARCH METHODOLOGY 13-15
9 i. RESEARCH DESIGN 13

10 ii. SAMPLING TECHNIQUE USED 13

11 iii. SELECTION OF SAMPLE SIZE 13

12 iv. SOURCE OF DATA COLLECTION 14

13 v. STATISTICAL TOOLS USED 15

5
14 IV THEORATICAL FRAMEWORK 16-65
15 V DATA ANALYSIS AND 66-74
INTERPRETATION
16 CONCLUSIONS,SUGGESTIONS 75
AND LIMITTATIONS

17 BIBLIOGRAPHY 76

18
ANNEXURE 77-80

6
INTRODUCTION

7
INTRODUCTION OF THE PROJECT

In today’s world, even the rational man is in a dilemma –on one hand there is a powerful
appeal by the advertisements to the common man to buy. In contrast is the 11th
commandment ‘Don’t spend, save and shun indulgence’. Credit card is a double edged sword
“Have the cake and eat it too”. You buy on your credit card for which delayed payment is
required. Thus, credit cards have created both consumption and investment culture at the
same time. A credit card to purchase goods or services without parting with immediate cash
and make a onetime payment at the end of the specified period (known as the billing cycle
which is usually a month) with a provision for spreading payment over several easy
instalments.

There is no doubt that more and more middle class Indians are letting plastic rule there day to
lives. India is not the biggest market for credit cards, but it is among the fastest growing
markets. This project is an insight into the findings regarding the acceptability of various
credit services offered in the region of PATIALA & RAJPURA. It is an attempt to study
preferential attributes and influencing factors concerning the usage pattern of different credit
card owners. Five year ago, there were 4.3 million credit cards being used in the country.
That zoomed to 6.5 million in2002. A year later that shoots up once again to around 9 million
credit cards.

8
OBJECTIVES

9
 OBJECTIVES OF THE STUDY

1. To study the satisfaction level of customer regarding various features of a particular

Credit cards.

2. To study the preferential attributes and influencing factors which affect the customer

Buying behaviour of different credit cards.

3. To know the customer view regarding growth of credit card market.

10
 SCOPE

SCOPE OF THE STUDY

11
The survey was targeted on customers of RAJPURA & CHANDIGARH in Punjab through
questionnaire. The sample size of only 40 customers was considered for the survey.

The scope of study was undergone using the primary as well as secondary data.

12
 RESEARCH
METHODOLOGY

RESEARCH METHODOLOGY

Problem Defining: The project relates to “customer satisfaction level and factors affecting
choice of credit cards-A study of credit card holders”.

In it the problem is to be researched is find out; what is the behavior of the customer towards
the credit cards, there satisfaction level and various factors affecting there choice.

13
 Research Design: It is conceptual structure within which research is conducted. It
constitutes the blue print of collection, measurement & sailing of various research operations
thereby making research as efficient as possible yielding maximum information with
minimum time, effort and money. Research design stands for advance planning of methods
to be used for collecting relevant data and techniques to be used in the analysis. The design
helps researcher to analysis of data. Research design is needed because it facilitates the
smooth organize his ideas whereby it will be possible for him to look for flaws and
inadequacies. The research design used by me is of DISCRIPTIVE nature.

A research design is the arrangement of condition for collection of data in a manner that to
research purpose with economy in procedure

Sample unit: Individuals who are availing credit card facility.

Sample size: 40 respondents

Sampling method: Non-Probabilistic convenience sampling.

Sampling area: Patiala and Rajpura

Sources of data: The data was collected from both primary and secondary resources.

• Primary data: primary data collection was done through survey.

• Secondary data: it is collected through following sources:

14
a) Journals b) Brochures c) Internet
d) Magazines e) Banking Reports

15
 THEORETICAL

FRAMEWORK

THEORETICAL

FRAMEWORK

Meaning of the Credit:-

The word credit comes from Latin, meaning “trust”. In 1950, Diners Club and American
Express launched their charge cards in the USA, the first “plastic money”. In 1951, Diners

16
Club issued the first credit card to 200 customers who could use it at 27 restaurants in New
York. But it was only until the establishment of standards for the magnetic strip in 1970 that
the credit card became part of the information age.

The first use of magnetic stripes on cards was in the early 1960’s, when the London transit
authority installed a magnetic stripe system.

Definition-Technical Terms relating to credit cards:-

• Credit card-A credit card is a financial instrument, which can be used more than
once to borrow money or buy products and services on credit. Banks, retail stores and other
businesses generally issue these.

• Credit limit- The maximum amount of charges a cardholder may apply to the
account.
• Annual Fee- A bank charge for use of a credit card levied each year, which ranges
depending upon the types of card one possesses. Banks usually take an initial fixed amount in
the first year and then a lower amount as yearly renewal fees.
• Revolving line of credit-An agreement to lend a specific amount to a borrower
and to allow that amount to be borrowed again once it has been repaid. Most credit cards
offer revolving credit
• Personal identification Number (PIN)-As a security measure, some cards
require a number to be punched into a keypad before a transaction can be completed. The
number can usually be changed by the cardholder.
• Teaser Rate-Often called the introductory rate, it is the below- market interest rate
offered to entice customers to switch credit cards.

17
• Joint Credit- Issued to a couple based on both of their assets, incomes and credit
reports. It generally results in a higher credit limit, but makes both parties responsible for
repaying the debt.

TYPES OF CARDS:

MASTER CARD: master card is a product of master card international and along with
VISA are distributed by financial institutions around theworld.cardholders borrow money
against a line of credit and pay it back with interest if the balance is carried over from
month to month. Its products are issued by 23,000 financial institutions in 220 countries
and territories. In 1998, it had almost 700 million cards in circulation, whose users spent
$650 billion in more than 16.2 million locations.

VISA CARD: VISA cards is a product of VISA USA and along with master card is
distributed by financial institutions around the world VISA cardholder borrows money
against a credit line and repays the money with interest if the balance is carried over from
month to month in a revolving line of credit. Nearly 600 million cards carry one of the
VISA brands and more than 14 million locations accept VISA cards.

AFFINITY CARD: a card offered by two organisations, one a lending institution, the
other a non-financial group. Schools, non-profit groups, pro-wrestlers and airlines are
among those featured on affinity cards.

STANDARD CARD: it is the most basic card (sans all frills) offered by issuers.

18
CLASSIC CARD: brand name for the standard card issued by VISA.

GOLD CARD/EXECUTIVE CARD: a credit card that offers a higher line of credit
than a standard card. Income eligibility is also higher. In addition, issuers provide extra
perks or incentives to cardholders.

PLATINUM CARD: a credit card with a higher limit and additional perks than a gold
card.

TITANIUM CARD: a card with an even higher limit than the platinum card.

SECURED CARD: a credit card that a cardholder secures with a savings deposit to
ensure payment of the outstanding balance if the cardholder defaults on payments. It is
used by people new to credit, or people trying to rebuild their poor credit rating.

SMART CARD: smart cards, sometimes called chip cards, contain a computer chip
embedded in the plastic. Where a typical credit cards magnetic stripe can hold only a few
dozen characters, smart cards are now available with 16k of memory. When read by
special terminals, the cards can perform a number of functions or access data stored in the
chip. These cards can be used as cash cards or as credit cards with a present credit limit,
or used as ID cards with stored-in passwords.

19
CHARGE CARD: falls between a debit and credit card. Works like the latter and you
don’t have to be an account holder. Just pay up in full when the bill arrives with the mail.
No outstanding are allowed, in other words, no revolving credit facility either.american
express and diners are providers.

REBATE CARD: this is a card that allows the customer to accumulate cash,
merchandise or services based on card usage.

CO-BRANDED CARD: this is a marriage of convenience between two service

providers who want a trade-off with the other’s strengths. Specific are made to members

trough these tie-ups.so, time bank and Citibank have a co-branded card that allows
concessional rates for add-on cards or telephone baking.SBI-GE capital has a co-branded
card for retail loans.

CASH CARD: cash cards, similar to pre-paid phone cards, contain a set amount of
value, which can be read by a special cash card reader. Participating retailers will use the
reader to debit the card-they have no built-in security, so if lost or stolen, they can be
used by anyone.

TRAVEL CARD: These works mostly as debit cards for the limited purpose of travel.
Citibank dollar card, American express, bobcard global and hongbank bank Thomas cook
international card are among the players in this section.

20
DEBIT CARD: it is the accountholders mobile ATM.Open an account with a bank that
offers a debit card and payments for purchases are deducted from your bank account. The
retailer swipes the card over an electronic terminal at his outlet, you enter the personal
identification number on a PIN pad ant the money is immediately debit at the bank.
Citibank and few domestic banks like TIMES BANK offer this.

POPULARITY AND EXTENT OF UTILISATION OF CREDIT

CARDS FOR EFFECTING MONEY PAYMENTS

• Visa international has the largest global ATM network in over 113 countries.

• Master card international has over 23,000 member financial institutions serving
consumers in 220 countries and territories and has over 3,50,000 ATM locations
around the globe.

• The first card was issued in India by VISA in 1981.

• The country’s first gold card was also issued from VISA in 1986.

• The first international credit card was issued to restricted number of customers by
andra bank in 1987 through the VISA program, after getting special permission
from the reserve bank of India.

21
BENEFITS/DISADVANTAGES OF USING CREDIT CARDS FOR
PAYMENTS

• Easy and safe to carry compared to currency notes.

• Wide acceptance by several establishments. Thus it is a better means for

settlement of transactions than a cheque on your bank account.

• Another attractive feature of a credit card is the interest free credit period offered
offered to cardholders. The interest free credit period is generally 40-50 days.
When you make a purchase trough your credit card, you have taken a loan. It’s
how you repay the loan i.e. if you maintain enough balance in your account when
the debit is to be raised by the bank in your account; the money is free for 40 to 50
days. But if you carry forward the debit balance, the bank charges usually a higher
rate of interest on the balance overdrawn.

• If the credit card is lost, the card holder is put to severe hardship. If you inform
about the loss of card your liability is restricted to a fixed amount, otherwise it’s
unlimited.

CREDIT CARDS – SAFEGUARDS AND PROTECTION

What is a credit card fraud?

It is an unauthorised use of a credit card to obtain goods of value.

Credit card fraud – safeguards to be observed

• Don’t give out credit card number online unless the site is a secure and reputable
site.

22
• Don’t trust a site just because it claims to be secure.

• Before using the site, check out the security software it uses.

• Make sure you are purchasing merchandise from reputable sources.

• Do your homework on the individual or company to ensure that they are

legitimate.

• Try to obtain a physical address rather than merely a post office box
and a phone number, call the seller to see if the number is correct and
working.

• Consider not purchasing from sellers who won’t provide you with this type of
information.

• Check with the better business bureau from the seller’s area.

• Check out other web sites regarding this person/company.

• Don’t judge a person/company by their web site.

• Be cautious when responding to special offers

• Be cautious when dealing with individuals/companies from outside your own

country.

• The safest way to purchase items via the internet is by credit card because you can
often dispute the charges if something is wrong.

23
STEPS YOU SHOULD TAKE IF YOUR CREDIT CARD IS LOST OR
STOLEN:

Report the loss or theft of your credit card and your ATM or debit cards to the card
issuers as quickly as possible. Many banks/companies have 24-hour e-mail service to
deal with such emergencies. It’s a good idea to follow up your e-mail with a letter.
Include your account number, when you noticed your card was missing, and the date you
first reported the loss.

1. You also check your homeowner’s insurance policy to see if it covers your
liability for card thefts. If not, some insurance companies will allow you to
change your policy to include this protection.

2. After the loss, review your billing statement carefully. If they show any
unauthorised charges, its best to send a letter to the card issuer describing each
questionable charges.

3. It unauthorised transfers show up on your bank statement, report them to the card
issuer as quickly as possible. Once you have reported the loss of your ATM or
debit card, you cannot be held for additional unauthorised transfers that occur
after that time

4. Also follow the rules advised by the issuing banks it cover such eventualities
scrupulously.

PROTECTING YOUR CARD:

The best protections against card fraud are to know where your card is at all times and to
keep them secure. For protection of ATM and debit cards that involve a personal

24
identification number (PIN), keep your PIN a secret.dont use your address, birth-date,
phone or social security number as the PIN and do memorized the number.

The following suggestions may help your credit card and your ATM or debit card
accounts:

FOR CREDIT AND ATM OR DEBIT CARD:

1. Be cautious about disclosing your account number over the phone unless you
know you are with a reputated company.

2. Never put your account number on the outside of an envelope or on a postcard.

3. Draw line trough blank spaces on charge or debit slips above the total so the
amount cannot be charged.

4. Don’t sign a blank charge or debit slip.

5. Tear up carbons and save your receipts to check against your monthly statements.

6. Cut up old cards – cutting through the amount number – before disposing of them.

7. Keep a record – in a safe place separate from your cards – of your account
numbers, expiration dates, and the telephone numbers of each card issuers so you
can report a loss quickly.

8. Carry only those cards r=that you anticipate you will need.

FOR ATM OR DEBIT CARDS:

1. Don’t carry your PIN in your wallet or purse or write it on your at ATM or
debit card.

25
 2. Never write don’t carry your PIN in your wallet or purse or write it on
your at ATM or debit card.

3. Never write your PIN on the outside of a deposit slip, an evelope, or other
papers that could be easily lost or seen.

4. Carefully check ATM or debit card transactions before you enter the PIN
or before you sign the receipt; the funds for this will be fairly quickly
transferred out of your checking or other deposit account.

5. Chances are you have gotten your share of pre-approved credit card offers
in the mail, some with low introductory rates and other perks. Many of
these solicitations urge you to accept “before the offer expires.” “Before
you accept, shop around to get the best deal.

FEATURES AND BENEFITS

It’s convenient. Individual tax payers can e-file or paper file early, make a payment by
credit card and yet delay out-of-pocket expenses. Credit card payments can be made by
phone, on-line or when e-filling.

26
It’s safe and secure- standard, commercial card networks are used. The IRS does not
receive or store credit card numbers.

Credit card options are available through service providers.

There is a fee charged by credit card payment service providers. Fees are based on the
amount of the payments and may vary by service provider.

A confirmation number is provided at the end of the phone or internet transaction.

If enrolled in such a program, taxpayers may earn miles, points, rewards or money back
from the credit card issuer.

PARTICULARS DISPLAYED ON THE CREDIT CARDS:

Every credit card bears the following particulars:

1. NAME OF THE CUSTOMER: every card displays the name of the customer. It should
be spelled correctly. In case, it does not, the customer can contact service cell/helpline
and get the necessary correction done. This facility is provided free of cost by the bank.

2.16-DIGIT CARD NUMBER: a unique 16 digit number is allotted to every

customer/cardholder.

3. VALIDIT DATE: the card mentions the period through which it is valid. The card is
usually valid from the it is received by the customer up to and including the last day of
the month indicated on the card after the card has to be renewed.

27
4. THE VISA HOLOGRAM AND THE VISA LOGO: the hologram and the logo
ensures that all the establishments throughout the world displaying the visa logo will
accept the card.

5. NAME OF THE ISSUING BANK: the card indicates on the top the name of the
issuing bank.

6. SIGNATURE PANEL: the back of the card contains the signature panel. The customer
must put his signature on the signature panel to prevent misuse by any other person. His
identifies the card holder. Signature on the panel would imply that card holder has given
his consent to abide by the terms and conditions governing the use of the credit card. The
card is valid is only if signed.

7. MAGNETIC STRIP: the black magnet strip contains important information in encoded
from and needs special handling. The card should not be kept in an area where there is a
continuous magnetic field. It should not be left on the top the television. Set or near any
electronic appliance. The card should be kept away from heat and direct sun light.

8. PIN (PERSONAL IDENTIFICATION NUMBER): each card holder is issued a

password or pin to enable use of the card for accessing his/her card account on the ATM
and internet and also for availing any privilege, benefit or service that may be offered by
bank on the card. The pin is communicated to the cardholder entirely at his/her risk who
shall not disclose the pin to any person and shall take all possible care to avoid its
discovery by any person. The card holder shall be liable for all transactions made with the
use of the pin whether with or without the knowledge of the cardholder.

DEMERITS OF CREDIT CARDS:

28
The credit card is not risk free and all players associated with it have to face an element
of risk associated with it:

1. CARD HOLDERS:

a) The card holders are burdened with service charge, annual fee, membership
fee etc.A high rate of interest is charged for delayed payment. A minimum of
5-10 % on monthly purchase apart from the additional charges are to be paid
in the case the consumers postpone the payment beyond the stipulated credit
period.

b) Credit cards tempt the holders for more purchases beyond their income and
repaying capacity.

2. ISSUERS:

a) The card involved in the credit card business is high which include cost of plastic
card to be imported. Cost of information, cost of placing and marketing cards,
cost on staff to monitor processing of applications and to carry out credit checks

b) on applicants etc.Unless the number of card holders and the volume of business
are high the credit card business will not be profitable one.

c) The menace of frauds perpetuated by holders of bogus cards and sometimes in

collusion with the member establishments is the major problem for the issuers.

d) The average utilization of credit card is only 20% -30% in India. The
underutilization of this facility erodes the profitability of banks.

29
 2. MEMBER EASTABLISHMENT:

a) The commission to be paid to the issuing banks/credit cards organization is

heavy.

Some banks make delaying payments due to lack of adequate system and
trained personnel which affect the cash flow of the member establishment.

AGE OF CREDIT CARDS.

Banking has evolved a long way from the days of the medieval moneylenders counting
coins on the bench to the present scenario, where it is hard to trace the trail of money
from the beginning to the end.

The trail starts right from the small saver leaving a few rupees in his local bank to the
billions of rupee loans raised by a syndicate banks and financial institutions, capable of
financing projects in any country in the world. Still, these banking majors are heavily
dependent upon their retail home base of savers and borrowers. Most of the bankers
began focusing on this retail market segment as global competition intensified in late
seventies and early eighties.

Credit cards, one of the banking products that cater to the needs of retail segment has
seen its number grow in geometric progression in recent years. This growth has been

30
strongly supported by the development in the field of technology, without which this
could not have been possible.

The history of phenomenal growth in the credit card segment traces way back to in 1950,
the time when ‘Diners Club’ was established. The card provided select members with
credit at 22 restaurants in New York and collected a commission for paying the bills
promptly. The credit card industry got a further boost with the arrival of American
Express in the arena in 1958. American Express began selling their card as a prestige to
hotels, restaurants, shops or airlines in America and slowly expanded the network across
the world.

The success of these two players attracted many other banks to join the credit card
business. The entire breed of new players saw a fresh opportunity of granting unsecured
loans at high interest rates to those credit cardholders who did not pay their bills on time.
These banks were not so concerned with collecting commissions from shops but were
thriving on high interest income from those who did not pay their bills on time.

Starting from ‘Diners Club’, some 50 years ago, the card industry has been growing with
a rapid pace world over and so has been the growth in the domestic card industry. With
only two players in domestic card industry, HSBC and Citibank in the early 80s, the
number swelled to over 25 in the year 2001. Credit cards in India, made their debut in
1981, and are on the verge of an unprecedented boom. Between 1987 and 2001, the
market has virtually grown to over 4 million cards with over 25-30% of compounded
annual growth in new card holder’s base.

It’s not that only the card numbers have increased, but even the types of cards on offer
have seen a surge. Today the domestic card industry is flooded with different types of

31
cards ranging from gold, silver, global, co-branded credit cards, smart to secure, the list is
endless. Foreign banks have shouldered the major responsibility of increasing the card
base and adding value-added services to the card products in the past. This is also evident
from the fact that the market share of these foreign banks is estimated to be well over
70%. But the scenario has changed dramatically in the last of couple of years with the
entry of State Bank of India (SBI), a domestic major in the banking sector. More and
more nationalized banks and private sector banks like ICICI and HDFC Bank are
aggressively launching credit card with value added features.

There is immense growth potential in the domestic card industry. A glance at the Indian
population reveals that India’s middle/upper middle class (target segment) represents a
population of over 10 m. There are only 2 to 3 m cardholders, each possessing an average
of 2 cards. This is a very low figure given India’s huge middle to upper class population.
There is no doubt that the domestic card industry has to yet to mature and offers
significant long-term growth potential.

Given the lack of maturity of the domestic card industry, its growth will depend upon
building core retail business, with more sophisticated products. In the expansion of
domestic credit card market, the existing foreign players, SBI, other nationalized banks
and the new domestic private sector banks are expected to play important role with
complementary strategies.

Foreign banks with the advantage of technology and industry experience are expected to
concentrate on increasing card spending and customer loyalty in the major cities. SBI, on
the other hand is expected to capitalize its superior distribution network to expand card
acceptance in the smaller towns. The new private sector banks would have the

32
opportunity to capture significant market share by combining the strengths of foreign
banks and nationalized bank like SBI.

Although at present the card market is mainly limited to India’s relatively bigger cities
and tourist locations only, there is also a potential in smaller cities. Domestic banks,
owing to their vast network and reach to smaller cities, can easily tap this potential. They
would be better off, penetrating into smaller cities and bringing credit card to the masses
rather than cannibalizing other foreign banks’ existing cardholder base.

The efforts of these banks to increase the card base is going to be wholeheartedly
supported by the residents of these smaller cities with their higher disposable income,
changing lifestyle, increasing travel and the growth in the entertainment sector.

CONSUMER BEHAVIOR AND THE PLASTIC MONEY

33
It was in the 1920s that oil companies and hotel chains first began issuing credit cards to
their customers. After World War II, the use of credit cards rose rapidly. In 1950, Diners
Club became the first credit card company, which allowed its members to charge meals at
27 restaurants in New York

By 2008, there will be approximately ten million credit card holders in India. There are
several reasons for using a credit card: convenience, easy access to credit, wide
acceptance and the privileges offered. For instance, V. Balasubramaniam, Marketing
executive and a frequent traveler, says, "I use my card when I am traveling. It's very
difficult and unsafe to carry cash everywhere."

Buy now, Pay later

Consumer behavior has been radically altered by the power of plastic money. A credit
card has endowed the middle class with the power to purchase their dreams, which are
often beyond their means.

Natarajan, a retired Government employee believes that people use credit cards when
they do not have the money to purchase a product/service at a given time. "For the middle
class, a credit card is a means to buy what they otherwise cannot afford," he says.

The flexibility to pay a small amount every month and pay the balance later with some
interest added has given the cardholder the freedom to spend and not worry about money.
S Sridhar, a Chartered Accountant says, "Banks loans take time and borrowing money
from somebody is a delicate proposition. A credit card is the easiest access to cash."

His wife Veena Sridhar, a lecturer also owns a credit card and uses it only if there is an
emergency.

34
The Sridhars plan to get their daughter Shilpa, a college student, a credit card soon. "She
should know how to handle money and not spend too much," says Veena. Availability of
credit obviously has its ramifications on consumer spending. Despite the downturn and
the apparent drop in spending, the Indian payment industry is growing at the healthy 30
per cent annually.

Says a spokesperson of ICICI, "Card spends which stood at Rs.1900 crore in 1995 are
currently at Rs 8,100 crore."

The biggest gainers in the bargain are retailers and manufacturers of consumer
products/durables. Gone are the times when a retailer put up a "No Credit" sign at his
shop. Today, a retailer welcomes and even encourages transactions made through credit
cards. "Credit cards have definitely increased consumer spending," says B.A. Srinivasa,
Director, Vivek's Ltd, one of the largest retail networks in the country. He says that
consumer durable brands now offer the best deals to lure the customer to make an
immediate purchase. "You have products at the lowest prices offered with freebies and
you also have a credit card to buy it all," he adds. In fact, Viveks' New Year sale even has
one day exclusively for credit card purchases. Hema Narayan, a housewife, purchased a
television at the New Year sale. Short of cash, she used her credit card to make use of the
New Year offer.

Srinivasa points out that credit card have also facilitated hire-purchase transactions. "If
you own a credit card, you can easily avail the finance schemes offered by the finance
companies which have tied-up with the big brands," he adds.

Though consumer durable retailers have only 15 per cent of their monthly sales
transacted through credit cards, they believe that this number is rising steadily. V.G.P.

35
Babudas, Senior Director, VGP group, a prominent retailer in Chennai, explains that it is
the Sec A and B segments which own a credit card." The Sec C segment which drives the
volumes do not own a credit a card as they do not fulfill the eligibility criteria," he adds.

It is not just consumer durables; several people use their cards for even daily purchases.
"It's either for buying clothes or at restaurants that I use my card," says P. Sairam, a
corporate executive. Sheena Martin, a housewife, uses her card to buy groceries and even
medicines. It is reported that around 27 per cent of monthly sales are credit card
purchases at Food world. Petrol is yet another card usage segment that is growing rapidly.
"Last year, it grew by 145 per cent," says a spokesperson of ICICI credit cards.

According to a study on card spending pattern in India, a big chunk of spending goes to
entertainment. "At Music World, credit card purchases account for about 30 to 35 per
cent of the total in value terms," says K Dasaratharaman, CEO, Music World. He says
though the company loses some margin on credit card purchases due to transaction costs;
it is offset by the increasing usage of credit cards by customers. "We try to accept as
many cards as possible. This forms a part of our service provided to our customers," he
adds. However, there are many who are sceptical about the usage of credit cards. "It's a
debt trap," says S Subramaniam, a consultant. "Earlier, people used to earn, save and then
spend their money. Now they spend using their credit card and then think about earning,"
he adds. Ultimately, a credit card is just a payment tool and not a magic wand. Before the
joy of buying a new product subsides. Its payback time, with the interest added too.

36
HDFC BANK

37
CLASSIC CARDS: OUR PRODUCTS TRUSTED BY MANY

Silver Credit Card

Choose our internationally accepted Silver Credit Card and enter a world of privileges
and savings.

SPECIAL BENEFIT CARDS: FOR THOSE WITH SPECIAL NEEDS

Value Plus Credit Card

A true value card that enables you to avail 5% cash back on all your purchases.

Health Plus Credit Card

Cashless Med claim, discounts at participating hospitals, extra protection for your
family. You can rest assured with the Health plus Credit Card

PREMIUM CARDS: MUCH MORE THAN JUST SNOB VALUE

Gold Credit Card

A card to match your lifestyle with features like International Business Travelers' Club
(IBTC) membership, special offers on air tickets and rewards redemption for air miles.

38
Titanium Credit Card

Limited Edition card with 24X7 concierge services, zero surcharge on fuel and
accelerated two-tier rewards programme.

Woman's Gold Card

Enjoy the benefits of the best premium card made specifically for women. Apply for
HDFC Bank Woman's Gold credit card.

Corporate Credit Card

It's not just a card, it’s a designation. HDFC Bank Corporate card comes with a unique
24x7 Expense management solution called SMART DATA ONLINE, powered by
MasterCard International.

FEATURES :

A Credit Card combined with all the A power A Credit A Credit A special
conveniences offered by a bank. packed Card Card Gold card
Credit that which exclusively
card with a takes introduces for Women
host of care of you to a with all the
unmatched your whole powerful
features financial new life benefits of
that health as of HDFC
provides well as privileges. Bank Gold
your your Credit card,
family family's and much
with true health & more.
Value and fitness.
savings.

39
 PUNJAB

NATIONAL BANK

40
The name you can BANK upon

Keeping with its long tradition of sound banking and innovativeness, PNB has entered
the card business. At a time when new payment systems are becoming popular in the
country, PNB has joined the ranks of banks that are offering card-based banking
solutions.PNB International Credit Card is available in two variants, viz. Gold Card and
Classic Card. Our Credit card has much more than just credit facilities.

PNB INTERNATIONAL CREDIT CARD

Punjab National Bank is happy to launch its co-branded international credit card with
Hongkong & Shangai Banking Corporation Ltd. (HSBCL), one of the world's leading
financial instititutions.

PNB International Credit Card is a unique and a world-class payment proposition. It is set
to bring about a revolution in retail banking and offers value to customers.

The PNB Credit Card will be issued in two variants – Gold and Classic Card
(MasterCard/ Visa). The credit Card is being offered to resident Indian Nationals who
have either their residence or office in any of the undernoted 23 cities, in India:

Mumbai Thiruvanthapuram Hyderabad

Ahmedabad Bangalore Pune

41
 New Delhi Vishakhapatnam Kochi/Cochin
Gurgaon Chandigarh Jalandhar
Calcutta Ludhiana Ghaziabad
Chennai Amritsar NOIDA
Jaipur Coimbatore Vadodara/Baroda

Indore(Recently
Faridabad
launched)

Product features of PNB International Credit Card:

Acceptance at over 22 million establishments.

Worldwide ATM access for credit card accountholders at over 6, 00,000

ATMs.

Free credit period of up to 48 days.

At new reduced fee rates, one can have the PNB International Card for Rs.
350/- only. For details one can contact any PNB branch in the 22 cities where
the card can be obtained.

Rewards programme earn points that can be redeemed against renewal fees,
gift vouchers etc.

Free remittance at PNB branches for remittances from cardholder’s savings

bank account up to Rs. 10,000/- once a month

2.5% discount on basic domestic air fares and 3.5% on international air tickets
with specified travel agents.

No surcharge on purchase of petrol ranging Rs 400/- to 2500/- pm from any

petrol pump having EDC terminal accepting credit card.

42
Insurance Benefits

Classic Card Gold Card

Air accident Rs.15 lacs Rs.40 lacs

Other accident Rs.1.5 lacs Rs.4 lacs

Credit Shield Rs.20,000 Rs.40,000

Purchase protection Rs.30,000 Rs.50,000

Baggage insurance USD 600 USD 1,200

Enhanced Travel Insurance

Cover for Delayed baggage - USD 300

Cover for loss of travel documents - USD 500

Cover for hijack insurance - USD 250(>12

hrs<36hrs)

Eligibility

PNB International Credit Card will be issued only to customers who have either their
residence or their office in one of the cities where PNB will provide the service. These
services are initially being provided at 22 cities viz.

43
 Mumbai Thiruvanthapuram Hyderabad
Ahmedabad Bangalore Pune
New Delhi Vishakhapatnam Kochi/Cochin
Gurgaon Chandigarh Jalandhar
Calcutta Ludhiana Ghaziabad
Chennai Amritsar NOIDA
Jaipur Coimbatore Vadodara/Baroda
Faridabad

Pre-approved Credit Card will be issued to customers maintaining a prescribed minimum

balance in their Savings Fund account and availed Housing/Car loan from PNB, without
any proof of income documents, as a special case.Free credit card to Home Loan
Customers for 1st year.
All applicants whose names appear in any blacklist or defaulter list referred to by PNB/
HSBC will not be issued a Card.

ANNUAL INCOME

The minimum annual income requirements for applying under the two categories of the
PNB Credit Card are as under:

PNB Gold Card - Rs.1, 75,000/- p.a.

PNB Classic Card -- Rs.72, 000/- p.a.

44
DOCUMENTS REQUIRED FOR PROOF OF INCOME
various categories of applicants are required to submit documentary proof of their income
for ascertaining their repayment capacity and their credit card limit. The documentary
proof of income may be submitted in any of the under noted forms:

Salaried in MNC/ Public Ltd. Cos. Form 16/Income Tax return/ Salary
Certificate/ Latest salary slip

Salaried in any other organization Form 16/ Income Tax return

Self-employe (including Directors Personal Income Tax return

in Pvt. Ltd. Cos.)

ADDITIONAL DOCUMENTS

The under noted additional documents will help in priority processing of the application
for issue of credit card:
In case applicant is holding any other credit card, last three months credit card statements
indicating regular payments. (Card tenure should be more than 3 months). Photocopy of
the front and back of the card.

OR

Repayment on any other unsecured product (Personal Loans etc.), proof of the loan
account being greater than 6 months.

OR

Repayment schedule of Auto Loans for at least 6 months (Account older than 6 months).

Please note that the above-mentioned documents will be required over and above the

45
standard documentation requirements.

NO "DOCUMENT FOR PROOF OF INCOME" OFFER TO PNB CUSTOMERS PNB

customers, who apply for the card, may be exempted from submission of the
documentary proof of income, in case they fulfill the under noted criteria:

No. Details Savings Account Fixed Deposit

Holders Holders

a) Vintage/ Account more than 1 year + 6 months +

b) Average balance in the account Rs. 25,000 Rs 25,000

(over last 3 months)

All applicants applying under this guideline must be above 18 years old.
Minors cannot apply under this scheme.

There should be no bounced cheques on the account during the

preceding 12 months or other unsatisfactory conduct on the part of
the account holder.

46
47
 ICICI BANK

ICICI Bank credit cards give the facility of cash, convenience and a range of benefits
anywhere in the world. These benefits range from life time free cards, insurance
benefits,global emergency assistance service, discounts, utility payments, travel discounts
and much more.

CREDIT CARDS OFFERED BY ICICI BANK

48
1. PREMIUM CARDS
2. Co-BRANDED CARDS
3. CLASSIC CARDS
4. AFFINITY CARDS
5. CORPORATE CARDS
6. PREFERED CARDS
7. VALUE FOR MONEY CARDS

PREMIUM CARDS:

ICICI Bank Platinum Card

Benefits

• 24 x 7 personal concierge service, offering a host of services, to name a few travel

assistance, gift delivery, restaurant booking assistance
• An exclusive reward earning program and one of a kind redemption offer
• Fuel surcharge waiver across all petrol pumps

• Priority pass provides access to over 480 lounges world wide

• Domestic and international lifestyles offers
• Low interest charge of only 1.99%
• High credit and cash limit
• A specialized customer service desk

ICICI Bank solid gold credit card

Benefits

• Welcomed internationally at over 22 million merchant establishments

49
• High credit and cash limits
• Dial a draft at 2.5% of the draft amount subject to a minimum of Rs.300
• Lifetime balance transfer offer: 0.75% for first 6 months
• Zero lost card liability
• Mobile alerts and statement by e-mail

ICICI Bank Gold American Express Card

This card rewards more. Everything spend on the card earns l-miles which can redeem
towards free air tickets or holidays that benefits discerning lifestyle.

Superlative Benefits

• Earn 5 l-miles for every Rs.100 spent on the card, which can redeem for a range of
exciting rewards such as air-tickets, holidays, shopping vouchers, electronics and more.

• Redeem l-miles for air miles or vouchers from leading domestic and international
airlines frequent flyer programs such as Air Sahara Cosmos, Indian Airlines Flying Returns
and more
• No expiry date for l-miles earned
• Discount of 3 % o basic airfares and 5% on holiday packages from makemytrip.com
• Enjoy overseas emergency assistance and support with global Service hotline
• Free Add-On card
• 0% balance transfer offers for 90 days
• Round the clock customer service hotline

50
 ICICI bank Travel Smart Gold Credit Card

Most powerful travel card- A card which gives the best deals on air travel and holiday
packages, 24x7

Exclusive Benefits

• 10% cash back on any airline ticket booked through makemytrip.com

• 24x7 Personal Travel desk for assistance in booking flights, hotels, holiday packages
• Upto 50% discount on holiday packages booked through makemytrip.com
• Upto 20% discount at over 500 fine restaurants in India
• All the benefits of the ICICI bank solid gold card

ICICI Bank Golf Card

A Card specially designed for the discerning golfer

Benefits

• Free annual membership of the Indian Golf Union

• Access to over 160 golf courses across India

• Upto 25% discount on green fees
• Offers on international luxury golf holiday packages
• Special discount available on Golf line Magazines & Golf Digest
• Invitation to tournaments held by the IGU
• All the benefits of the ICICI Bank Solid Gold Card

2. Co BRANDED CARDS

51
 ICICI Bank-Mega mart credit card

Features of Mega mart credit card

• No finance charges on EMI purchases at Megamart.

• On a purchase of Rs.1500 and above in a single transaction, a customer can pay back the
amount in three equal monthly installments, without incurring any finance charges.
• Get a voucher worth Rs.200 to be redeemed against purchase of Rs.1000 or more at any
mega mart outlet on payment with the ICICI Bank Mega mart credit card
• 6 reward points on every Rs.200 spent at mega mart
• No charges for garment alteration for ICICI Bank mega mart credit card holders
• Exclusive offers for ICICI Bank mega mart credit card holders from time to time
• Regular features of an ICICI Bank Solid Gold Card applicable
• Reward points can be converted into mega mart vouchers

ICICI Bank- XBOX 360 credit card

Features

• Enjoy upto 40% discount on selected products of Microsoft & Xbox 360
• Fabulous offers on premium brands like Samsung, Planet M, Kodak, Espirit, Cox & Kings
And more
• Enjoy 0% interest charges purchasing Xbox 360 using your ICICI Bank Xbox 360 credit
card.

52
 ICICI Bank-Sarovar Hotels credit Card

Features:

• Get a free night stay voucher for a couple after spending Rs.10000/- at Sarovar
Hotels.
• Earn 4 reward points for every Rs.100 spent at Sarovar Hotels.
• 30% discount on room tariffs.
• Discount on food & beverages: Enjoy special discount of Rs.250 on spends of
Rs.1000 & above at any of the Sarovar Restaurants. Get upto 15% discount at Sarovar
Restaurants as a regular discount.

ICICI PRU life Credit Card

Features

• HPCL fuel surcharge waiver: get 2.5% refund of surcharge on fuel purchase at select
HPCL pumps (applicable to maximum spend of Rs.2500/-per transaction)

• Tie-ups with hospitals and medical centers: use ICICI Bank PRU life credit card to
avail benefits reserved.
• Tie-ups with popular lifestyle brands: Get wide deals and discounts on array of
fashion brands and accessories.
• Attractive EMI schemes to pay insurance premiums: Use the EMI payment schemes
to pay for insurance premiums in 6 months with interest rate of just 7%.

ICICI Bank Big Bazaar Silver Credit Card

Exclusive privileges available on your ICICI Bank – Big Bazaar Silver Credit Card

53
• No finance charges on EMI purchases at big bazaar. On a purchase of Rs.1500 and
above in a single transaction, you can pay back the amount in 3 equal monthly installments,
without incurring any financing charges.
• Get voucher worth Rs.250 to be redeemed against purchase of Rs. 500 or more at any
Big Bazaar outlet on payment through the ICICI Bank- big bazaar credit card.
• Special payments counter for card holders.
• Priority entry to cardholders during high traffic.
• Exclusive offers for card holders from time to time.
• Regular features of ICICI Bank sterling Silver Card and facilities of big bazaar.
• All rewards points earned can be converted into Big Bazaar Vouchers

ICICI Bank Big Bazaar Gold Credit Card

The most powerful retail credit card in India

Exclusive privileges available

• No finance charges on EMI purchases at Big Bazaar. On a purchase of Rs.1500 and

above in a single transaction, one can pay back the amount in 3 equal installments without
incurring any financing charges. One can also get 1 reward point per Rs100 of EMI purchase.
• Get voucher worth Rs.250 to be redeemed against purchase of Rs.500 or more at any
Big Bazaar Outlet on payment through the ICICI Bank Big Bazaar Credit Card.

Punjab & Sind- ICICI Bank Blue Card

Unique Benefits

54
• Predefine own spend limits.
• International valid at over 12 million Master card approved merchant’s world over.
• Dial a draft at 2.5% of the draft amount subject to a minimum of Rs.300.
• Lifetime balance transfer offer: 0.75% for first 6 months (9% p.a.) followed by 1.49%
(17.88%p.a.) Thereafter.
• Purchase protection of Rs.10000.
• Most powerful catalogues based rewards program.
• Comprehensive Travel Benefits.
• Access to 24- hour Customer Care Centre and Master Card approved ATMS
• Mobile Alerts and Statement by E-mail.

Spice Punjab co branded card

Exclusive Features

• Option to issue standing instructions against payment of Spice postpaid bills.

• 2 reward points per Rs.100 spent on Spice bills paid through SI on the card.
• Rs.50 credit on each bill for the first 3 months after SI Activation for the 1st year.
• STD Deposit of Rs1000 waived for the share holders on SI.
• Pre-activated ISD with waiver of Rs.7500 deposit to cardholders on SI.
• All regular benefits of the Sterling Silver card.

ICICI Bank- Orchid an Ecotel credit Card

Exclusive features

55
• Exclusive discounts at all Kamat group hotels:
o 30% discount on room tariff.
o 20% discount on F&B.
o 30% discount on health club membership.
• 0%EMI Scheme for 6 months on transaction of value greater than Rs.10000 at any
Kamat group hotel.
• 22.5% discount on flower and gift delivery service.
• All the benefits of the ICICI Bank Solid Gold Card.

Dhirajsons Co-branded card

Exclusive features

• 2 reward points per Rs.100 for all transactions at Dhirajsons Megastores.

• Gift vouchers worth Rs.150 with the welcome kit.
• Discounts on various product categories for cardholders.
• Exclusive “Shopping Areas” for categories at Dhirajsons.
• All regular benefits of the Sterling Silver Card.

Air Deccan Gold card

Exclusive features

• Smart reward points- earn 3 reward points on every Rs.100 spent on card. Reward
points are convertible to I-miles.
• Smart Petro Savings- fuel surcharge waiver of 2.5% at select HPCL petrol pumps.
• Smart Pay- ay for air tickets in EMI’s, attractive rate of interest of just 4% flat for 6
months tenure & flat for 12 months tenure.
• Smart Secure- insurance cover against fraudulent transaction on the purchase of air
tickets at www.airdeccan.net.

56
 ICICI Bank Bajaj Capital Credit Card

Distinctive features

• Life time Free Credit Card

• Most powerful catalogue based rewards Program.
• Refund of surcharge of 2.5% o fuel purchased at any HPCL Petrol Pump in India.
• Lifetime Balance Transfer offer 0.75% for first 6 months followed by 1.49%
thereafter.
• Personal loan on credit facility
• Zero lost credit liability.
• Purchase protection of Rs.40000.
• Mobile Alerts and Statement by E-mail.

ICICI Kingfisher Airlines Credit Cards

“The card that lets you live the good times”-A special card for those who live any fly in
style.

• Get 10% cash back on purchase of Kingfisher Airlines tickets purchased through
Kingfisher Airlines City/Airport Counters. This offer is applicable upto 6 months in a year.
• 5 reward points on every Rs.100 spent at Kingfisher Airlines Tickets
• 2 reward points on every Rs.100 spent at other merchant establishments.

57
 3. CLASSIC CARDS

ICICI Bank Sterling Silver Credit Card

A card that offers special benefits to all members of one family starting with a free
“Bandhan” add-on card.

• Zero lost credit liability.

• Dial a draft at 2.5% of the draft amount subject to a minimum of Rs.300.
• Most powerful catalogue based reward program.
• Comprehensive travel benefits.
• Accepted at over 22 million merchant establishments globally.
• Mobile alerts and Statement by E-mail.

ICICI bank Visa Mini Card

Discover the big difference with the world’s smallest card.

ICICI Bank Visa mini Card-India’s first Mini Card

Special features and benefits

• A set of accessories – namely a Card casing, lanyard and key ring-come absolutely
free with the card fabulous offers on Nike, Provogue, Cupid jewellery from TBZ, Pizza
corner and rediff merchandise.
• Regular features of ICICI Bank Sterling Silver Card.

58
 ICICI Bank Online Credit Card

India’s 1st Credit Card for Internet Shopping

Unbelievably simple. Unbelievably secure

Main product features

Special features

• Lifetime free
• Companion card with fixed credit limit of Rs.10000
• Offers & tie-ups across popular websites.

• Xpress rewards programs 1 reward point on every Rs.200/- additional reward to be

given based on higher spends.

General features

• Revolving credit interest rate of 2.95%.

• No photo card.
• No add on card.
• Non magnetic stripped card.
• No cash withdrawal facility.

59
• No POS transaction facility
• Currently visa variant.

Fee pricing

• Lifetime free card.

• Joining fee nil.
• No add on card.
• Annual fee: Nil.
• Add-on &renewal fee (add-on): not available.
• Renewal fee: Nil.

4. AFFINITY CARDS

. ICICI BANK – PRIDE CREDIT CARD

EXCLUSIVE FEATURES:

a) Special tariff on rooms under exclusive rate plan.

b) Rs.1000 dinner voucher on every check-in

c) Xpress rewards that help you earn up to 10 points for every rs.200 spent.

d) EMI on call facility at no interest with convenient repayment options.

e) 2 rooms upgrade vouchers with the credit card.

f) 20% discount on the health club membership.

g) Flexible check-in/check-out facility.

60
• ICICI BANK- DENTIST’S CREDIT CARD

EXCLUSIVE FEATURES:

a) Special card for member of IDA.

b) All the benefits of the sterling silver credit card.

• ICICI BANK- CONCERN INDIA FOUNDATION CREDIT CARD

EXCLUSIVE FEATURES:

a) Option to contribute your reward points to concern India foundation.

b) All benefits of the sterling silver credit card.

• ICICI BANK- ISB CREDIT CARD

EXCLUSIVE FEATURES:

a) Option to contribute ones reward points to their institute.

b) All benefits of the sterling silver or solid gold credit card.

• ICICI BANK- KARM MITRA CREDIT CARD

61
 EXCLUSIVE FEATURES:

a) Options to contribute their reward points to karm mitra.

b) All the benefits of the solid gold credit card.

CORPORATE CARDS

PRESENTING ICICI BANK CORPORATE CARDS

The corporate card programme is exclusively designed to be an effective tool in

,managing ones company’s ones company’s and employees business expenses. The card
system also gives valuable information, in the form of monthly reports, on individual
card member expenses and also cumulative expenses by various merchants’
establishment categories.

POWERFUL BENEFITS FROM ICICI BANK CORPORATE CARD

• Benefits to the company.

• Benefits to the employees.

BENEFITS TO THE EMPLOYEES

• Corporate identity

• Management MIS

• Cost savings

• Reduced administration burden

BENEFITS TO THE EMPLOYEES

• Convenience

62
 • World class service

• Membership rewards

WORLD CLASS SERVICE

24 hour customer services delivered to international standards from

• WEST: Mumbai, pune,nasik,indore,Bhopal,surat,ahmedabad,baroda,goa,Nagpur.

• NORTH:
Calcutta,delhi,jaipur,Udaipur,Chandigarh,ambala,panipat,Patiala,Ludhiana.

• SOUTH:Chennai,Hyderabad,Madurai,mysore,cochin,Bangalore,mangalore,trichy
,salem.

6. PREFERRED CARDS

• ICICI bank preferred silver credit card.

• ICICI bank preferred gold credit card.

ICICI BANK PREFERRRED SILVER CREDIT CARDS

• Delicious dining treats.

• Fabulous shopping deals.

• Travel privileges

63
 • Earn double rewards point on every rs. 200 spent on hotel stays, airlines ticketing
and dining.

• Life time free credit card for primary and add- on cards.

ICICI BANK PREFERRED GOLD CREDIT CARDS

• Delicious dining treats.

• Fabulous shopping deals.

• Travel privileges.

• 1.49% for gold card for 6 months from the 1st billing cycle date, followed by
2.95% thereafter ( only for retail)

• Life time free credit card for primary and add- on cards.

VALUE FOR MONEY CARDS

ICICI BANK TRUE BLUE CREDIT CARD

INDIAS 1ST VALUE MONEY CARD.

• Predefine one’s own spend limits.

• Visa and MasterCard’s acceptability across 1, 10,000 merchant establishments in

India.

• Dial a draft at 2.5% of the draft amount subject to minimum of rs.300

• Most powerful catalogue based rewards program

64
 • Comprehensive travel benefits.

• Mobile alerts and statement by e-mail.

ICICI BANK TRUE VALUE CREDIT CARD

INDIAS ONLY INTERNATIONAL VALID VALUE FOR MONEY PHOTO

CARD.

• A powerful gold rush lucky draw offer that gives over 400 gms of gold as prize
money every month on spends of over rs.500/per month

• Free add on card for life.

• International validity at over 12 million visa approved merchants.

• Personal loan up to the available credit limit available at just 10% p.a and 1%
processing fee after 6 months of credit usage.

65
 Conclusions, findings and
limitations

QUES1. No of user who have availed the credit card facility of any
bank.

AVAILED THE FACILITY NO.OF USERS

YES 83%

NO 17%

17%

YES
80% NO

66
As the above diagram clearly shows that majority of the people are using the credit card
facility.

QUES2. THE SATISFACTION LEVEL EXPERIENCED BY THE CREDIT

CARD USERS

LEVEL OF SATISFACTION NO. OF USERS IN %

HIGHLY SATISFIED 21%

SATISFIED 69%
INDIFFERENT 10%
DISSATISFACTION -
HIGHLY DISSATISFIED -

67
 10%
21%

highly satisfied
satisfied
indifferent

69%

As all people are highly satisfied with their Cards and services

QUES3.NUMBER OF TIMES IN A MONTH THE USER HAVE CREDIT CARD

LEVEL OF SATISFACTION NO.OF USERS IN %

VERY RARELY 52%

0-5 TIMES 21%

5-10 TIMES 15%

10 ABOVE 12%

12%

very rarely
15%
0-5 times
52% 5-10 times
10 above
21%

68
The usage is highest for the category of frequency very rarely s t increase the usage of the
credit cards banks should adapt various attractive schemes for customers

QUES.4 MEDIA WHICH HAS INFLUENCED USERS TO BUY CREDIT

CARDS

MEDIA NO. OF USERS IN %

ELECTRONICS 42%

PRINT 7%

DIRECT SALES 12%

INTENET 39%
45% 42%
39%
40%
35%
30%
25%
Series1
20%
15% 12%
10% 7%
5%
0% 69
electronic print direct sales internet
In advertisement, electronics is effective media in influencing the credit card customers.

QUES.5 OF YEARS USERS ARE ATTACHED WITH THIS SERVICE

NO.OF YEARS NO. OF USERS

0-2 YEARS 30%

2-4 YEARS 27%

4-6 YEARS 27%

6 ABOVE 16%

16%
30%
0-2 years
2-4 years
4-6 years
27%
6 above

27%
70
 The maximum number of credit card owners attached with this service for the last o-
2 years.

QUES6. MOTIVATION TO BUY CREDIT CARD

MOTIVATORS NO. OF USER

STATUS SYMBOL 3

CREDIT CARD 3

CONVENIENCE 25

INCENTIVES 2

30
25
25

20
15 Series1

10

5 3 3 2
0

71
Most of the people are continuing ownership of the credit card for convenience, so banks
should give knowledge to the customers about the benefits of various other motivational
factors

QUES7. DISSATISFACTION WITH CREDIT CARD FACILITY

DISSATISFACTION NO. OF RESPONDENTS

YES 3

NO 30

yes
no

30
72
As the above diagram shows that the majority of customers are satisfied with the credit
card facility.

QUES8. PERCEIVED GROWTH OF CREDIT CARDS IN INDIA

PERCEIVED GROWTH NO.OF USERS IN %

FAST 54%

STEADY 9%

MODERATE 33%

DECLINE 4%
4%

fast
33%
steady
moderate
54%
decline

9%
73
The credit card market will categorically grow in the near future. But still is lack of
infrastructure and if this infrastructure is developed then the credit card market will rise u
far more rapidly

LIMITATIONS OF THE STUDY

1. Lack of confidential data among customers.

2. Survey was carried out through questionnaire and the questions were based on
perception. Most important is positioning. But there may be certain aspects not
taken into consideration.

74
3. The sample size being very small, that is, only 40 respondents limited the scope of
the research.

4. Time constraints put boundaries to sample area and hence limited the extent of the
study.

BIBLIOGRAPHY

Library Resources

75
 • Davids. Evans, Richard Schmalensec, 2003; Paying with plastic: The Digital
Revolution In Borrowing (Second edition)
• Kothari, Research Methodology: What is research design and step by step guide
to conduct survey.
• Mahanta, Co-operating Brands
• Suroor, credit card generation

Internet Resources

• Credit Cards.com 2008

http:// www.credit cards/ history-of-credit-card.php

• www.onprepaidcard.com/24775/
• http://en.wikipedia.org/wiki/Money
• Ezine Articles.com 2006
http://ezine articles.com/? Online-credit-card-usage

• ICICI Bank.com
http://www.icici bank/various credit cards available

• www.google.co.in
• Punjab National Bank http://www.pnb.com/credit cards available
• HDFC Bank.com http://www.HDFC bank.com/various credit cards facilities

76
 ANNEXURE

QUESTIONNAIRE
Q1. Do you avail the credit card facility of any bank?

77
 Yes No

Q2. How frequently you use your credit card?

Very rarely 0-5times

5-10times 10 above

Q3.You are using the credit card facility of which bank?

PNB SBI

SBP Any other bank

Q4. What is the satisfaction level experienced by you with the

Credit card facility?

Highly satisfied Satisfied

Indifferent Dissatisfied

Highly dissatisfied

Q5. Through which media you got influenced to buy credit card?

Electronic Print

78
 Direct sales Internet

Q6. From how long you are attached with this service?

0-2yrs 2-4yrs

4-6yrs 6 above

Q7. What motivated you to buy credit card?

Status symbol Credit card extension

Convenience Incentives

Q8. According to you what is growth of credit card in India?

Fast Steady

Moderate Decline

79
Q9. Are you dissatisfied with credit card facility?

Yes No

Personal Details:

Name:

Age:

Profession:

80