Personal Identification Number (PIN)Purchase protectionService FeeSupplementary CardAnnual feeThe annual fee is payable in advance, at the start of every year and could be as low as Rs400 for a Cancard or could go as high as Rs 1,500 for an HSBC Gold Card. The annualfee is not paid for in cash, but is billed into the first billing statement received by thecard member.Air accident insuranceEvery credit card holder is insured for a certain sum of money, which is paid upon thedeath of the individual. The insurance cover varies between bank to bank and dependsupon the type of card owned. For example, each member of ANZ Grindlays Gold Cardis insured for a sum of Rs 500,000 (in case of a general accident) and for 1,000,000 (incase of an air accident).Add-on CardAn add-on card is usually for the dependents of the credit card holder like spouse,parents or children. Any additional cards under this head come at a fee, which variesbetween Rs 125 to Rs 1,000. All expenses on the card are billed to the primarycardholder. Also called a supplementary card.Baggage coverA feature largely available on Gold cards and International Credit cards, the baggagecover provides the safety of insurance in the event of losing ones baggage whiletravelling. This feature is not standard on every credit card and frequent travellers maylike to check out whether this feature is available before choosing their credit cards.Charge CardA charge card works on similar lines as the credit card with one difference. With acharge card you have to pay the entire dues within the credit period. You cannot carryover any balances like a credit card.Credit shield
The credit shield is a feature allowed by credit card banks which provides a waiver ofpayments of outstandings on your card up to a certain limit (Rs 20,000 in the case ofHon Kong Bank) in the event of an accidental death.Credit CardA plastic card issued by a bank that allows you to pay for service or product over aperiod of time is a credit card. The first 45 to 50 days of credit (calculated from the dayof billing and not from date of purchase) come interest free. You can chose to pay yourentire dues at one go, or staggered them after paying the minimum amount due everymonth.Cash advance facilityCash advance (withdrawal) fees are payable when you withdraw cash from an automaticteller machine using your credit card. Cash advance fees are very high and are mostly inthe range of 2.5% per transaction of fixed at a minimum of Rs 50 or 100. This facilityshould be used prudently, as the interest rate is very high, usually around 38%.Debit CardA debit card enables you to access your bank deposits for payment. When you make anypurchases using a debit card, then your bank account is automatically andinstantaneously depleted to the extent of the purchase amount.Entrance feeThe entrance fee is payable on acceptance of your application for a new credit card. Thisfee varies between Rs 100 to Rs 400 depending upon the issuing bank and the type ofcard requested. More often than not, this fee is waived.EligibilityEligibility refers to the minimum age and income levels necessary to own a credit card.An individual needs to be at least 21 years of age and should have an income of at leastRs. 75,000 per annum for an ordinary card and Rs. 1,75,000 per annum for a gold card.Free credit periodCredit card issuing banks offer members an interest-free period of 40-50 days, afterwhich the payment has to be made on purchases made against the credit card.General InsuranceEvery credit card holder is insured for a certain sum of money, which is paid upon the
death of the individual. The insurance cover varies between bank to bank and dependsupon the type of card owned. For example, each member of ANZ Grindlays Gold Cardis insured for a sum of Rs 500,000 (in case of a general accident) and for 1,000,000 (incase of an air accident).Global CardA Global Card enables you to use your credit card when you are overseas. You canspend in dollars or any other foreign currency and settle the dues in your local currency.Your credit limit is based on the basic travel quota (BTQ) entitlement, and if this morethan your assessed credit limit, you could buy travelers cheques.Gold Card, Silver Card, Executive CardGold, Silver and Classic/Executive are the terms used by issuing banks to differentiatebetween the levels of services offered on each. Naturally the gold card offers betterfeatures, higher insurance covers and more facilities. There is also an element of esteemassociate with gold cards. However, all these features do not come cheap. Gold cardshave the highest fees and service charges associated with them.InterestThe charge payable to the card issuing bank for funds withdrawn from ATMs or on thefunds carried forward beyond the free credit period.Issuing BankThe issuing bank, as the term goes, refers to the banks that issue credit cards. Theseinclude both Indian Banks (Bank of Baroda, Canara Bank) and Foreign Banks (Citibank,Standard Chartered Bank).Joining FeeFee that is to be paid to the credit card issuer when your application form for a creditcard is accepted. The fee varies from bank to bank and on the type of card applied for.Typically joining fees vary between Rs 100 and Rs 1,000. Also see Entrance FeeLate payment feeLate payment fees, as the term indicates are payable in the event of any delay inrepayment of the out standings on your credit card after the stipulated interest-freeperiod. These charges are very steep and card members are well advised to pay off atleast the minimum amount due on out standings every month.
Lost card liabilityIn the event that you lose your credit card or it is stolen, then you must inform the bankimmediately. The bank then deactivates your credit card to prevent any fraud. The lostcard liability fee is payable on the expenses incurred during the period between the lossof your card and your having reported it to the bank. The lost liability fee is restricted toa maximum sum of Rs 1,000 in the case of most credit cards issuing banks.Personal Identification Number (PIN)The PIN or the Personal Identification Number is unique to every card and isacombination of numbers. The PIN serves as a key, which allows you to avail certainservices like cash withdrawal from automatic teller machines. This number is veryimportant and must be stored carefully. Most credit card issuing banks instruct theirclients to write the PIN in a very safe place or better still, to simply memorise the digits.Purchase protectionThe purchase protection feature automatically insures all items bought on the credit cardfrom damage or loss due to fire or theft up to a certain sum of money.Service FeeFees levied by the credit card issuer on services offered like cash advance, tele draft.Supplementary CardA supplementary card is usually for the dependents of the credit card holder like spouse,parents or children. Any additional cards under this head come at a fee, which variesbetween Rs 125 to Rs 1,000. All expenses on the card are billed to the primarycardholder. Also called an add-on card.