Credit Card

Credit Card
• A credit card is a payment card issued to users
as a system of payment.
• It allows the cardholder to pay for goods and
services based on the holder's promise to pay
for them.
 Credit Card
• The issuer of the card creates a revolving
account and grants a line of credit to the
cardholder, from which the user can borrow
money for payment to a merchant or as a cash
advance.
 History
• According to Encyclopedia Britannica,
• "the use of credit cards originated in the United
States during the 1920s, when individual firms,
such as oil companies and hotel chains, began
issuing them to customers.“
• However, references to credit cards have been
made as far back as 1890 in Europe. Early credit
cards involved sales directly between the
merchant offering the credit and credit card, and
that merchant's customer.
• Around 1938, companies started to accept
each other's cards. Today, credit cards allow
you to make purchases with countless third
parties.
• The Shape of Credit Cards ==
• Credit cards were not always been made of
plastic. There have been credit tokens made
from metal coins, metal plates, and celluloid,
metal, fiber, paper, and now mostly plastic
cards.
• First Bank Credit Card ==
• The inventor of the first bank issued credit
card was John Biggins of the Flatbush National
Bank of Brooklyn in New York.

• In 1946, Biggins invented the "Charge-It"

program between bank customers and local
merchants.
• Diners Club Credit Card =
• In 1950, the Diners Club issued their credit
card in the United States. The Diners Club
credit card was invented by Diners' Club
founder Frank McNamara and it was intended
to pay restaurant bills
• Diners Club Credit Card =

• A customer could eat without cash at any

restaurant that would accept Diners' Club credit
cards. Diners' Club would pay the restaurant and
the credit card holder would repay Diners' Club.

• American Express issued their first credit card in

1958. Bank of America issued the
BankAmericard (now Visa) bank credit card later
in 1958.
The Popularity of Credit Cards = =
• Credit cards were first promoted to traveling
salesmen (more common in that era) for use on
the road.
• By the early 1960s, more companies offered
credit cards, advertising them as a time-saving
device rather than a form of credit.
• American Express and MasterCard became huge
successes overnight.
Features of the Modern Credit card
Platinum Chip Credit Card - ICICI Bank
Feature and Benefits
1. Rewards Powered by PAYBACK

• Earn 2 PAYBACK points on every ₹ 100 spent

for all retail purchases except fuel. Your points
are easily redeemable for attractive products
through PAYBACK, India's largest multi-partner
coalition loyalty programme.
• Security of Chip and Pin Card

• Our Credit Cards come with an embedded

microchip which provides additional security
against counterfeiting and duplication of
cards.
 2. Security of Chip and Pin Card

• The new chip cards have an extra layer of

security in the form of a Personal Identification
Number (PIN)
• You will be required to enter your PIN on the
terminal for transactions at merchant outlets
• This PIN is not required for online transactions.
Please register your card for 3D Secure (Verified
by VISA/MasterCard SecureCode) on our website
for online transactions
 3. ₹ 99 Annual Fee Savings

• Here's the smart way to enjoy maximum

benefits without having to pay for it! Just
ensure that you spend ₹ 50,000 or more
annually on your Card and the Annual Fee for
the subsequent year shall be reversed.
4. Fuel Surcharge Waiver

• 2.5% fuel surcharge waiver can be

availed on fuel transactions of
maximum ₹ 4,000 at HPCL pumps
when the Card is swiped on ICICI
Merchant Services swipe machines.
• 5.

Save a minimum of 15% on your

dining bill at participating restaurants
through the ICICI Bank Culinary Treats
programme.
You can also download the ICICI Bank
Culinary Treats mobile app from
Apple iStore or Google Play.
• Wine, dine and unwind with great offers
from luxury hotels, restaurants, lifestyle
stores, spas. Moreover, when you travel
abroad there is a dedicated Global
Emergency Assistance
 Facilities and Services
• Risk Coverage
• Emergency Cash Withdrawal
• Twenty Four Hour Service
• Photo card Option
• Travel Priveleges
• Credit Line Increase
• Service over Phone
 Facilities and Services
• Purchase Protection
• Fuel Facility
• Medical Advance Facility
• Supplementary Cards
• Hotels Discount Facility
• News Letters
• Joint Card & ATM Facility
 Classification Of Credit Card

• Based on Mode of Credit Recovery

1. Revolving Credit Card

2. Charge Card
 Classification …
• Based on Status of Credit card

• Standard Card
• Business Card
• Gold Card
• Based on Geographical Validity
• Domestic card
• International card
• Based on Franchise/Tie-up
1. Proprietary Cards Ex SBI Card, CanCard of
Canara Bank etc.
2. Master card
3. Visa Card
 Classification of credit cards
• Based on the Issuer category
1. Individual Cards
2. Corporate Cards
 Innovative Cards

• ATM Cards
• Debit Cards
• Prepaid Cards
• Private Label Cards
• Affinity Group cards
 Innovative Cards

• Smart cards
• Chip Card
• Co Branded Card
 Credit Card Operating Cycle

• Credit Purchase
• Credit Card Processing
• Bill Raising
• Payment
• Bill to Card Holder
• Card Payment
 Credit Card Frauds

1. Fraudulent Applications
2. Lost stolen and never received cards are
among the major causes for fraud
3. Counterfeit and altered cards.
 Credit Card Frauds
• 4. Collusive merchants
• 5. True Card holder fraud where true card
holder perpetrates fraud
• 6. Employee Fraud
 5 Best credit cards of 2015
• #1 Indian Oil Titanium Citibank Credit Card- It can
run your car!
• So every time you purchase fuel from Indian Oil,
points can be gained! Indian Oil Titanium Citibank
Credit Card offers 4 points on purchase of fuel
worth INR 150. These points can be redeemed at
Indian Oil for purchasing more fuel. Apart from
fuel, the same is also applicable on purchases
from Amazon, bookmyshow, jabong and many
more. If you spend up to INR 30,000 on this card,
an annual fee of INR 1000 is waived off.
 5 Best credit cards of 2015
• 2 ICICI banks Coral Credit Card- Your company for movie,
shopping and dinner!
• Grocery shopping is an unavoidable weekend task! ICICI
banks Coral Credit Card offers 4 payback points on every
INR 100 spent on this mandatory expense is like an offer
which walks up to you. Additionally, the card also adds up 2
payback points per INR 100 for money spent elsewhere.
You also get 2 free movie tickets per month at
www.bookmyshow.com! There is also a minimum discount
of 15% applicable if you are dining through the culinary
treats program. This card promises all the fun for just INR
500 as the annual fee second year onward and INR 1000 as
the joining fee.
•
 5 Best credit cards of 2015
• #3 RBL Bank Platinum Maxima Card - Spend and have
more fun!
• RBL Bank Platinum Maxima Card offers 5 reward points
per INR 100 spent on dining, entertainment, utility bills
and fuel and 2 points per INR 100 spent elsewhere.
Points accumulated can be redeemed for shopping,
dining, entertainment and travel. It’s raining bonus
points with this card since it also offers an annual
bonus on spending INR 2 lacs. For an annual fee of INR
2000 you indeed end up saving a lot while spending.
 5 Best credit cards of 2015
• #4 ICICI Bank Sapphiro card - Sign up and fly for
free!
• A complimentary Jet Airways ticket and 10,000
JPMilesis how Jet Airways ICICI Bank Sapphiro
card welcomes you! And if you fly often this is a
good choice. What’s more? A complimentary
ticket and 5000 points on renewal. Apart from
this miles can be earned every time you fly. Get
set and fly with this card which has a joining fee
and an annual fee of INR 5000 respectively.
 5 Best credit cards of 2015
• #5 SBI Student Plus Advantage Card- Students
need this!
• SBI Student Plus Advantage Card offers great
flexibility of payment. This extended credit period
at a very low charge is of great help to students.
The minimum amount due can be paid off and
the outstanding can be paid in installments. Apart
from this, 2.5% value back is assured on grocery
and departmental store spends. And if you do
end up spending atleast INR 35,000 for the year,
the annual charge of INR 500 is waived off.
 Credit Card Frauds - Prevention
1. Maintaining details of Fraudulent application
files.
2. Establishment of Credit Information bureaus
3. Designing system to monitor Card holders
Activity
4. Educating card Holders on card frauds
 Credit Card Frauds - Prevention
5. Merchant education in recognizing &
intercepting counterfeit cards.
6. Strict & Comprehensive Controls at the
Manufacturing level
7. Merchants monitoring procedures to monitor
both authorizations & deposits.
 Credit Information Bureau (India)
Limited
• It is India’s first Credit Information Company
(CIC) founded in August 2000. CIBIL collects
and maintains records of an individual’s
payments pertaining to loans and credit cards.

• These records are submitted to CIBIL by

member banks and credit institutions, on a
monthly basis.
 Credit Information Bureau (India)
Limited
• This information is then used to create Credit
Information Reports (CIR) and credit scores
which are provided to credit institutions in
order to help evaluate and approve loan
applications.
• CIBIL was created to play a critical role in
India’s financial system, helping loan providers
manage their business and helping consumers
secure credit quicker and on better terms.
 Benefits of Credit card

• Benefits to card Holders

• Benefits to merchants
• Benefits to issuer bank
 Benefits of Credit card

• Benefits to card Holders

• 1. Shopping Convenience
• 2. Credit Facility
• 3. Safety
• 4. Meticulous Record
• 5. Acceptability
• Benefits to merchants
• 1. Enhanced sales
• 2. Easy Validation
• 3. No Risk
• Benefits to Issuer bank
• 1. Source of Income
• 2. Market Expansion
• 3. Cross Selling
 Drawbacks of Credit card

• Waste of Money
• Thoughtless Buying
• Financial Problem
• Mental Agony
• Costly