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Credit cards ppt

credit cards

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Credit cards ppt

  1. 1. Presentation on : Credit Cards Presented to : Prof. MS Thuran Presented by : Sahil 14104002 Anuj 14104009 Jyoti 14104014 Sumit 14104024 Preety 14104030
  2. 2. Credit Card Also known as plastic money, it is a means of deferred payment. 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.
  3. 3. Brief History Franz Nesbitum Mc Namara, as American businessman founded Diner’s Card in 1950. Barclays Bank in UK introduced in 1966. Central Bank of India introduced in 1980. Now many banks issued credit cards.
  4. 4. Working Mechanism  Three Parties : 1. Issuing organization or bank-agreements with merchant establishments, makes payments after deducing commission. 2. Card Holders: Buys goods/services from establishments without immediate cash payment. 3. Member Establishment: Sends bills to issuing organization/bank.
  5. 5. Eligibility: different card are issued depending on income of person. • Standard Card is basic without any frills. • Gold card/executive card offers higher line of credit. • Platinum Card: higher credit limit and additional perks. • Titanium Card provides higher credit limit.
  6. 6. Credit Card Changes Different banks charge differently, depending on type of card. Main charges are- • Entry charge- ranging from Rs 100 to 400 • Annual fee- generally from Rs 400 to 1500 and added in bill. • Supplementary/ add on fee for additional card from Rs 125 to Rs 1000. • Cash advance (from ATM) fee- 2.5% per transaction, with minimum Rs 50 to 100. • Late payment fee- generally interest.
  7. 7. Types of Cards 1) Debit Card 2) Smart Card 3) Charge Card 4) Secured Credit 5) Cash Card 6) Travel Card 7) Supplementary or Add-on Card 8) International Credit Card 9) Co-branded Card 10) Affinity Cards
  8. 8. Offers of Credit Cards
  9. 9. Advantages of credit cards For card holders :  Purchase without immediate payment  Overdraft/ credit facility  Security as less cash carried  Freebies and discount facility  Status symbol
  10. 10. For issuing bank :  Source of income  New customers attracted  Reduces number of cheque transactions  Relationship with member establishments
  11. 11. For member establishments :  Payments guaranteed, when charge slip sent to member establishment.  Speedy settlement of bills by banks  Burden of credit facility taken by bank.  Increase in volume of business transactions.
  12. 12. Disadvantages of Credit Cards
  13. 13. Legal Frameworks (Acts related to Credit Cards)