onJAIPURIA INSTITUTE OF MANAGEMENT LUCKNOW

WORKING OF CARD SEGMENT OF A BANK

SUBMITTED BY:

SUBMITTED TO:

Tulika Narayan (JIML-10-164) Vinod Kumar (JIML-10-168)

Dr. Saima Rizvi

ACKNOWLEDGEMENT
We express our deep gratitude to Dr. Saima Rizvi for her constant support, guidance and motivation that helped us immensely in completing this project. The project provided us with an opportunity to understand in brief the card segment of a bank. In addition we thank every individual who are directly or indirectly associated with the successful completion of this project.

Introduction
Card segments in India is gaining ground. A number of banks in India are encouraging people to use credit card. The concept of credit card was used in 1950 with the launch of charge cards in USA by Diners Club and American Express. Credit card however became more popular with use of magnetic strip in 1970. Cards in India became popular with the introduction of foreign banks in the country. Cards are financial instruments, which can be used more than once to borrow money or buy products and services on credit. Basically banks, retail stores and other businesses issue these. Major Banks issuing Credit Card in India

State Bank of India credit card (SBI credit card) Bank of Baroda credit card or BoB credit card ICICI credit card HDFC credit card IDBI credit card ABN AMRO credit card Standard Chartered credit card HSBC credit card Citibank Credit Card

Precautions taken after receiving credit card To Avoid:

Bending the Card. Exposure to electronic devices and gadgets. Direct exposure to sunlight. Be cautious about disclosing your account number over the phone unless you know you're dealing with a reputable company. Never put your account number on the outside of an envelope or on a postcard. Draw a line through blank spaces on charge or debit slips above the total so the amount cannot be changed. Don't sign a blank charge or debit slip.

Tear up carbons and save your receipts to check against your monthly statements. Cut up old cards - cutting through the account number - before disposing of them. Open monthly statements promptly and compare them with your receipts. Report mistakes or discrepancies as soon as possible to the special address listed on your statement for inquiries. Under the FCBA (credit cards) and the EFTA (ATM or debit cards), the card issuer must investigate errors reported to them within 60 days of the date your statement was mailed to you. Keep a record - in a safe place separate from your cards - of your account numbers, expiration dates, and the telephone numbers of each card issuer so you can report a loss quickly. Carry only those cards that you anticipate you'll need.

To Do:

Please sign on the signature panel on the reverse of the Card immediately with a non-erasable ball-point pen (preferably in black ink). This will ensure that the benefits of membership are yours and yours alone. Keep the Card in a prominent place in your wallet. You will notice if it is missing.

Reasons credit card being rejected at retail outlet:

One may have exceeded the borrowing limit or defaulted (constantly) on minimum payment due. The Card is hotlisted. The card has crossed its expiration date. Non-receipt of dues of one-card blocks future transactions on any other card(s) held of the same card-issuing bank. The magnetic stripe on the reverse of the card is damaged i.e. has been scratched or exposed to continuous heat/direct sunlight or magnetic fieldlike card kept near a TV set / other electronic appliances. Systems or technology failures have in rare instances also led to non acceptance of cards when swiped through an Electronic Terminal.

CREDIT CARD

The fastest, easier and most cost-effective payment system is the credit card. This system is very popular all over the world and will be developed further in the future. Banks are offering new and spectacular features yearly. The future credit card owner has only the dilemma of choice. The customer must carefully study every offer and revise his payment possibilities to suit. Among all the bankcards, we have probably heard the most about credit cards. Unlike debit cards and ATM cards, credit cards do not require one to have a bank account. One can still make purchases even without the presence of a savings account. A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services. The issuer of the card creates a revolving account and grants a line of credit to the consumer (or the user) from which the user can borrow money for payment to a merchant or as a cash advance to the user. Most credit cards are issued by banks or credit unions, and are the shape and size specified by the ISO/IEC 7810 standard as ID-1. This is defined as 85.60 53.98 mm (3.370 2.125 in) (33/8 21/8 in) in size. If the amount of the purchases isnt automatically deducted from the bank account, how will the customer pay for what theyve bought? All the purchases are bought on credit. This means that the customer is practically borrowing the money from the bank to buy products. The bank is loaning its customers money with the use of the credit card. Credit cards allow spending before saving, which is precisely why owning one entails a lot of responsibility. Many people tend to go on a purchasing spree without having means to pay for them in the end. This results in credit card debt. Credit cards apply for people who need initial financing for their online business. Bank cards like these allow to buy domain and hosting for your business website, among other things that will get your business started. The customer should carefully choose the type of credit card that suits their need the most.

Advantages
1. Credit cards eliminate the need to carry large sums of cash. 2. If anyone is away from home without cash, they often can receive a cash advance or have the option of buying traveler's checks with a credit card 3. Places that are suspicious of personal checks often take credit cards. 4. Credit cards act as a short-term loan if one find something that is a bargain and haven't the cash or balance in his checking account to pay for it. 5. If one moves to a new place, credit cards give the purchasing power until they establish themselves as a good risk in a new community. 6. They allow you to make purchases on credit without carrying around a lot of cash. This allows you a lot of flexibility. 7. They allow accurate record-keeping by consolidating purchases into a single statement. 8. They allow convenient remote purchasing - ordering/shopping online or by phone. They allow you to pay for large purchases in small, monthly installments. 9. Under certain circumstances, they allow you to withhold payment for merchandise which proves defective. 10. They are cheaper for short-term borrowing - interest is only paid on the remaining debt, not the full loan amount. 11. Many cards offer additional benefits such as additional insurance cover on purchases, cash back, air miles and discounts on holidays.

Disadvantages
1. The customer may become an impulsive buyer and tend to overspend because of the ease of using credit cards. Cards can encourage the purchasing of goods and services the customer cannot really afford.

2. Credit cards are a relatively expensive way of obtaining credit if a person does not use them carefully, especially because of the high interest rates and other costs. 3. Lost or stolen cards may result in some unwanted expense and inconvenience. 4. The use of a large number of credit cards can get the customer even further into debt. 5. Using a credit card, especially remotely, introduces an element of risk as the card details may fall into the wrong hands resulting in fraudulent purchase. To avoid any problems, there are several measures to take to prevent credit card fraud, such as: 1. Don't loan the credit card to anyone 2. Give the credit card information only to trusted web sites or companies. 3. If someone loses the card, report immediately this fact to the credit card company. 4. Check the statement with attention; make sure that the charges belong to you. 5. The credit card can be his owner's best friend in the emergency. Used wisely and sparingly, the credit card can really help you out a tight spot. How credit card companies make money? Credit card companies earn high profits in several ways. Some of the ways are as follows:1. High rates of interest -> Interest on credit cards accounts for the bulk of the profits earned by banks that issue credit cards. 2. Annual fees 3. Late fees, over-the-limit fees, and other miscellaneous charges 4. Charging merchants and service providers a fee each time a customer uses the company's credit card in the merchant's establishment.

DEBIT CARD

A debit card (also known as a bank card or check card) is a plastic card that provides the cardholder electronic access to his or her bank account/s at a financial institution. Some cards have a stored value with which a payment is made, while most relay a message to the cardholder's bank to withdraw funds from a designated account in favor of the payee's designated bank account. The card can be used as an alternative payment method to cash when making purchases. In some cases, the cards are designed exclusively for use on the Internet, and so there is no physical card.

Debit card at a glance

Money is deducted directly from checking account. PIN-based cards provide protection against identity theft. Liability if it's stolen: $50 if you notify bank within two days; $500 if you notify bank after two days. Fees: Some banks charge for use of debit cards. Returns can be tricky, because retailers treat transactions like cash. It is better to buy online with credit than debit. Be careful not to overdraw your checking account.

Advantages
1. Obtaining a debit card is often easier than getting a credit card. If a person qualifies to open a bank account, he/she usually get a debit card. 2. Unlike when you write a check, using a debit card saves you from having to show identification or give out personal information at the time of the transaction. 3. It frees you from carrying cash or a checkbook. 4. It can save you from having to stock up on traveler's checks or cash when you travel. 5. Debit cards may be more readily accepted than checks, especially in other states or countries. 6. If you return merchandise or cancel services paid for with a debit card, the transaction will be treated as if it were made with cash or a check. Customers usually get cash back for on-line purchases; for off-line transactions, the amount is credited to your account. 7. Most ATMs will allow you to get a cash advance against the line of credit on your credit card, using your credit card and a separate PIN. You do not necessarily have to have a bank account to do this.

Disadvantages
1. Unlike a credit card, debit card transactions give you no grace period. They are a quick, pay-now deal. 2. They can make balancing your account tricky if you are not fastidious about keeping receipts and recording transactions in a timely fashion. It is easy to forget, for example, when you pay at the gas pump with a debit card and drive off without your receipt. 3. Using a debit card may mean you have less protection than you would with a credit card for goods that are never delivered, are defective or were misrepresented. But, as with credit cards, you can dispute unauthorized charges or other mistakes within 60 days. Contact your bank if a problem with a merchant cannot be resolved. 4. Fees -- The convenience can be costly, especially when using an ATM that is not affiliated with your bank.

HDFC BANK
HDFC bank has been a leader when it comes to private sector banking identities. The bank that is known for its undying dedication towards its clients is also hailed for offering range of banking facilities. Operating with state-of-art-banking techniques, the bank has been fantastic whenever it comes down to rendering banking solutions in the most convenient and affordable fashion. Like all its services, the bank also has a magnificent credit cards portfolio. Credit card, as many of the people might know, is a sort of pecuniary instrument that serves people by offering credit at the time when they need the most. Also known as plastic money, credit cards rose to fame in early 2000s when it was known as a financial instrument intended exclusively for business class people and for those who are from rich and wellto-do family class. However exactly speaking the idea of credit cards were conceptualized to cater to the business needs of enterprises and sole-proprietors. However, as competition grew, numerous changes saw credit cards becoming suitable for upper middle class and sections other than that. However, with emergence of debit cards, the somewhat popularity levels start dropping and soon they went out of trend and got confined back to the same class for which they were meant for. Later when liquidity crisis surfaced, scenario became worse from bad for credit card issuance authorities. Almost every credit card provider be it Axis Bank, ICICI or any other country bank, they all took thrashing at the hands of the crisis, leading to a complete whitewash of it. When crisis was going great guns, it was HDFC credit cards segment that continued to churn profits. HDFC gold credit card specially fared better than all its competitors. The card, even in the time when maintaining liquidity levels for banks was proving to be a tough ask, provided customers 5 percent cash back on booking of air-tickets. The card also proved to be a blessing in disguise for people who had expensive hotel bills to their name and was provided with discounts on total expense. The 5 percent cash back scheme was also applicable on the train ticketing. With its worldwide acceptableness trait, carrying this card to any part of the world is always useful. In addition to it, the user of this HDFC gold credit card also becomes suitable for exceptional offers from HDFC bank. There is also a rewards point redemption scheme on this card. Beside it the card-owner also get a chance to get prizes through this scheme. What more the user gets an additional exactly-same add-on card just in case if he/she misplaces it. Meanwhile there is one more credit card product that has been doing great business for the bank. It is the HDFC silver credit card. This card is a useful weapon that can provide for all kinds of expenses for its users. Its excellent earn while you spend scheme lets user become entitled gifts and other prizes at the same time when he or she uses it. However if the card-user has a habit of suffering from getting lost woes then the HDFC silver credit card comes with 3 more extra cards which help him in battling with such

situations. Even if the card-user misplaces it, he holds zero financial obligations for the card. Last but not the least the cards global acceptance feature makes it a worthwhile item to carry whenever the card-owner pay visits abroad.

The range of Cards of HDFC bank helps its customers to meet their financial objectives. So, whether the customer are looking to add to their buying power, conducting cashless shopping, or budgeting their expenditure, the bank will find a card that suits its customers.

CREDIT CARDS
Premium Travel Credit Cards 1. Regalia Credit Card One of the best premium travel cards on offer, the Regalia Credit Card takes care of your all your travel needs with great rewards and amazing services that will indulge you even when you are away from home. 2. Superia Credit Card Travel with a card that gives you back more when you spend, each time. Enjoy benefits on travel and dining including Priority Pass memberships, superior Reward Points program and zero fuel surcharge at fuel stations across India. 3. Platinum Edge Credit Card The Platinum Edge Credit Card is simply perfect who fly frequently and enjoy dining out. So, be it a dinner with your family or your business associates, your card is all you need. Apply now to live the platinum lifestyle. 4. Titanium Edge Credit Card Travelling and dining are never the same when you do it with the Titanium Edge Credit Card. A highly rewarding card with superior benefits and offers, it allows you to redeem your Reward Points against the outstanding balance on your card. Premium Credit Cards: Access world-class privileges and benefits 1. Visa Signature Credit Card A card for the rarest of the rare A card with unique and exclusive privileges that complement your refinement and style. Come experience the world of many contended moments. 2. Visa Signature Chip Credit Card The 'chip' in the Visa Signature Chip Credit Card is as much a feature as a security requirement for a Credit Card loaded with so many exclusive benefits. It's not a card. It's a status symbol. 3. World MasterCard HDFC Bank presents India's First World MasterCard Credit Card - A very premium offering for the truly elite, a card with tailor-made premium privileges that complement a discerning lifestyle. 4. Platinum Plus Credit Card India's only Platinum Credit Card with exclusive travel and preferential benefits - a recognition of those who have "arrived in life". Enjoy a world of exclusive privileges on your HDFC Bank Platinum Plus Credit Card.

5. Platinum Plus Chip Credit Card India's only Platinum Credit Card with Chip Technology for enhanced security which makes all your Credit Card transactions more secure, convenient and rewarding! Titanium Card: A card to match your premium lifestyle 1. Titanium Credit Card Titanium Credit Card is quite simply the most exclusive Credit card you could ask for with benefits like zero surcharge on fuel, travel offers and accelerated two-tier rewards programme. Gold Credit Cards: Our products trusted by many 1. Gold Credit Card A card to match your premium lifestyle with features like special offers on air and train ticketing and rewards redemption against air miles. 2. 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. Commercial Cards 1. Corporate Platinum Credit Card It's not just a card, It's a designation. Experience the exclusivity of HDFC Bank Corporate Platinum Card, which comes with a unique 24x7 Expense management solution, called SMART DATA ONLINE, powered by MasterCard International. 2. Corporate Credit Card HDFC Bank Corporate card comes with a unique 24x7 Expense management solution called SMART DATA ONLINE, powered by MasterCard International. 3. Business Platinum Credit Card It makes Perfect Business Sense -The HDFC Bank Business Platinum Card is a premium card for Self Employed professionals that helps you SAVE on your Business expenses, while keeping in mind your affluent lifestyle. 4. Business Gold Credit Card Are you a Self-Employed person ? It makes perfect Business sense - Better Business with HDFC Bank International Business Gold card, which is designed to add value to your business, while keeping in mind the

conveniences and lifestyle benefits for business owners and the self-employed community specifically. 5. Purchase Card The HDFC Bank Purchase Card is a credit card solution given to corporates by HDFC Bank to facilitate quick payments for business expenses for corporates and their employees. It helps the corporate manage business expenses and makes purchase transactions smoother by eliminating the hassles of cash and cheques payments. 6. Distributor Card The Distributor card is a credit card given by HDFC Bank to corporates to give to specific distributors to facilitate easy and convenient payments to the corporate. It eliminates the use of cheques and cash and speeds up the turnaround time of transactions. Other Cards 1. Silver Credit Card With the help of Silver Credit Card, the customers can enter a world of privileges and savings.

DEBIT CARDS
1. EasyShop International Debit Card Upgrade your ATM card to a Visa/ Master or Maestro Debit Card. Use it to shop at thousands of establishments and earn fabulous discounts. 2. EasyShop Platinum Debit Card EasyShop Platinum Debit Card opens a world of privileges that match your status and lifestyle. 3. EasyShop International Gold Debit Card Enjoy the power of Gold. Enjoy Cash Back, Zero Surcharge at Petrol Pumps, Increased Insurance cover, and Special Offers at Premium Outlets. 4. EasyShop Titanium Debit Card Your EasyShop Titanium Debit Card brings to you a world of convenience. Now you can shop, dine, pay bills, and do much more using your EasyShop Titanium Debit Card. 5. EasyShop International Business Debit Card A Debit Card specially designed keeping in mind your needs and the needs of your business. This Card combines business benefits with shopping delight. 6. EasyShop Woman's Advantage Debit Card HDFC Bank EasyShop Woman's Advantage Debit Card is India's first Woman's Debit Card of its kind. Not only does it replace your ATM card, it also opens a world of privileges that match your status and lifestyle. 7. EasyShop NRO Debit Card Your HDFC Bank EasyShop NRO Debit Card brings to you a world of convenience.

PREPAID CARDS
Its smarter to pay first and spend later. Therefore HDFC bank presents prepaid cards. Like the name suggests, a prepaid card requires you to pay first and use later. And you'll never have to worry about over-spending again. 1. ForexPlus Card A pre-paid traveller's card designed to give you a secure and hassle-free travel experience. 2. ForexPlus Chip Card A pre-paid traveller's card designed to give you greater security and increased protection 3. GiftPlus Card A pre-paid gift card designed to give your loved ones the freedom to buy the gift of their choice. 4. FoodPlus Card Prepaid FoodPlus Card - Freedom from cumbersome meal vouchers. 5. MoneyPlus Card The Corporate Payment Card - Freedom from cash disbursement / administrative hassles.