A REPORT ON
PLASTIC MONEY
The general criteria applied is a person’s spending capacity and not merely
his income or wealth. The other criteria is the worthiness of the client and
his average monthly balance. Most of the banks have clear out norms for
giving credit cards.
1. A person who earns a salary of rs. 600000\= per annum is eligible for
a card.
2. A reference from a banker and the employers of the applicant is
insisted upon.
According to the purpose for which the credit cards are used, they can be
classified into three main categories:
1. Credit card
3. In-store card
The in-store cards are issued by retailer or companies. These cards have
currency only at the issuer outlets for purchasing products of the issuer
company. Payment can be monthly or extended credit basis. In India such
cards are normally issued by five star hotels, resorts and big hotels.
Corporate credit cards are issued to private and public limited companies
and public sector units. Depending upon the requirements of each
company, operative add-on cards will be issued to persons authorized by
the company ie., directors, secretary of the company. The name of the
company will be embossed on add-on cards along with the name of the
add-on holder. The main card is only a dummy card number in the name
of the company for the purpose of billing all the charges of the add-on
cards.
2. Business cards
this card helps to avail of certain facilities for reimbursement and makes
their business trips convenient.
3. Smart cards
4. Debit cards
credit cards have proliferated during the last couple of years in all
countries and have become an acceptable alternative to paper currency. The
developed countries like USA has moved a step further. Debit card, an
electronic product has become more and more popular in these days.
5. ATM cards
India’s bank card business has entered a period of rapid development with a
compounded annualised growth rate (CAGR) of 55% to an estimated 44
million credit and debit cards in 2004. Debit and credit card volumes also
increased from $23 billion in 2004.
Debit cards are still largely used for cash withdrawals at ATMs. This is a
natural consequence of an astronomical growth in ATMs to 14,000 across
the country by December 2004, against 1,100 ATMs in select pockets of
metros, three years ago.
Given the cost savings for banks from debit card transactions, increase in
merchant acceptance locations and greater consumer familiarity, it is
expected that most ATM cards would be converted to debit cards with added
functionality for point-of-sale usage over the next two years.
Electronic payments can help reduce the size of the informal economy.
When cash remains outside the banking system, the possibilities of
supplying productive capital to the economy are diminished. Bringing cash
into the banking system produces an equal increase in bank reserves,
enabling banks to facilitate more consumer and commercial loans, thereby
stimulating business growth and consumption.
Credit Card
Credit 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.
To Do:
MasterCard
VISA Card
American Express
The world's favorite card is American Express Credit Card. More than
57 million cards are in circulation and growing and it is still growing
further. Around US $ 123 billion was spent last year through American
Express Cards and it is poised to be the world's No. 1 card in the
near future. In a regressive US economy last year, the total amount
spent on American Express cards rose by 4 percent. American
Express cards are very popular in the U.S., Canada, Europe and Asia
and are used widely in the retail and everyday expenses segment.
JCB Cards
The number of days you have on a card before a card issuer starts
charging you interest is called grace period. Usually this period is the
number of days between the statement date and the due date of
payment. Grace periods on credit cards are usually 2-3 weeks.
However, there is likely to be no grace for balances carried forward
from previous month and fresh purchases thereafter if any.
• ANZ - Gold
• ANZ - Silver
• Bank Of India - Indiacard
• Bol - Taj Premium
• Bol - Gold
• BoB - Exclusive
• BoB - Premium
• Canara Bank - Cancard
• Citibank - Gold
• Citibank - Silver
• Citibank WWF Card
• Citibank Visa Card for Women
• Citibank Cry Card
• Citibank Silver International Credit Card
• Citibank Women's International Credit Card
• Citibank Gold International Credit Card
• Citibank Electronic Credit Card
• Citibank Maruti International Credit Card
• Citibank Times Card
• Citibank Indian Oil International Credit Card
• Citibank Citi Diners Club Card
• HSBC - Gold
• HSBC - Classic
• ICICI Sterling Silver Credit Card
• ICICI Solid Gold Credit Card
• ICICI True Blue Credit Card
• SBI Card
• Stanchart - Gold
• Stanchart - Executive
• Stanchart - Classic
• Thomas Cook Standard Chartered Global Credit Card
• Standard Card - It is the most basic card (sans all frills) offered
by issuers.
• Hotel discounts
• Travel fare discounts
• Free global calling card
• Lost baggage insurance
• Accident insurance
• Insurance on goods purchased
• Waiver of payment in case of accidental death
• Household insurance
• The country's first Gold Card was also issued from Visa in
1986.
• The credit cards are shape and size, as specified by the ISO
7810 standard. It is generally of plastic quality. It is also
sometimes known as Plastic Money.
Debit Card
Debit cards, also known as check cards look like credit cards or
ATM cards (automated teller machine card). It operate like cash
or a personal check. Debit cards are different from credit cards.
Credit card is a way to "pay later," whereas debit card is a way
to "pay now." When we use a debit card, our money is quickly
deducted from the bank account.
With debit card, we use our own money and not the issuer's
money.
In India almost all the banks issue debit card to its account
holders.