9. External Value Chain Industry Value Chain Advertising Branding Sales Multi Channel sales Opportunity identification Credit Card Tie ups with 3 rd parties Payment Clearing Settlement Technology Development HR IT Infrastructure Risk Management Guidelines
10. Process model Card Issuing Services Merchant Services Cardholder makes $50 purchase VISA Merchant sends the transaction to its merchant service FI The Processor sends the transaction to the VISA network The network sends the transaction to the card issuing institution The card issuing institution bills the cardholder $50 The merchant services FI reimburses the merchant the transaction less discount of about 2.2% VISA reimburses the merchant services FI for the transaction less fees The card issuing bank reimburses the network less interchange fee Cardholder makes $50 payment on outstanding balance $48.65 $0.25 $0.05 $1.05 -$50 VISA Citi CitiCard US Bank Amazon
Affinity credit cards have a charity logo as well as the issuer’s logo; each time the card is used to make a payment, balance transfer or withdraw cash from an ATM, the bank donates a percentage of the amount of the transaction to the charity.
Global Financial crisis is a major challenge for Credit card companies, as most of them are Banks which had lost billions of dollar in crisis. And there is complete credit confidence loss as bank are not even lending to banks. Sub Prime crisis has adversely impact credit card customer, thereby increasing defaulter list. Increase identity theft and online fraud, because of recession and more tech savvy thieves Integration of credit history or individual risk monitoring institute across globe.
Integrate multi payment system convergence –such as EzLink card in Singapore using EDI MDM of customer and product profile to provide better and faster services to customer. Companies can provide additional services such as Loan and add-on cards based on individual customer profile. RFID and USB enabled credit cards can speed card processing time Business Intelligence – DW and Reporting analysis can be used to track top exposure and defaulters Web Services – For B2B and B2C Near Real Time - MQ Series to monitor transaction at almost real time , and provide real time customer service support
