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Plastic Money business is definitely going big time here in Pakistan. In a country
where two years back people have hardly heard the word plastic money or credit
card, more than 7000 merchants are accepting above 140,000 cards.
It has been estimated that there are likely to be around half million potential card
users in the near future. This forecasting derives credibility from the fact that more
and more local and international financial institutions are exhibiting enthusiasm in
this direction. This in turn reflects prospects in Pakistan market in accommodating
numerous credit card competitors operating on the circuit, ensuring healthy and
competitive card business deals So we have also made our project on this topic our
project includes
History of money
Survey
SWOT analysis
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BARTER:
The first people didn't buy goods from other people with money. They used barter. Barter is the
exchange of personal possessions of value for other goods that you want. This kind of exchange
started at the beginning of humankind and is still used today. From 9,000-6,000 B.C., livestock
was often used as a unit of exchange. Later, as agriculture developed, people used crops for barter.
For example, I could ask another farmer to trade a pound of apples for a pound of bananas.
SHELLS:
At about 1200 B.C. in China, cowry shells became the first medium of
exchange, or money. The cowry has served as money throughout
history even to the middle of this century.
SILVER:
At about 500 B.C., pieces of silver were the earliest coins. Eventually in time they took the
appearance of today and were imprinted with numerous gods and emperors to mark their value.
These coins were first shown in Lydia, or Turkey, during this time, but the methods were used
over and over again, and further improved upon by the Greek, Persian, Macedonian, and Roman
empires. Not like Chinese coins, which relied on base metals, these new coins were composed
from scarce metals such as bronze, gold, and silver, which had a lot of intrinsic value.
LEATHER CURRENCY:
In 118 B.C., banknotes in the form of leather money were used in China. One-foot square pieces of
white deerskin edged in vivid colors were exchanged for goods. This is believed to be the
beginning of a kind of paper money.
NOSES:
During the ninth century A.D., the Danes in Ireland had an expression "To pay through the nose."
It comes from the practice of cutting the noses of those who were careless in paying the Danish
poll tax.
PAPER CURRENCY:
From the ninth century to the fifteenth century A.D., in China, the first actual paper currency was
used as money. Through this period the amount of currency skyrocketed causing severe inflation.
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Unfortunately, in 1455 the use of the currency vanished from China. European civilization still
would not have paper currency for many years.
POTLACH:
In 1500, North American Indians engaged in potlach, a term that describes the exchange of gifts at
banquets, dances, and various rituals. Since the trading of gifts was so important in figuring the
leaders’ community status, potlach went out of control as the gifts became more extravagant in an
effort to surpass others' gifts.
WAMPUM:
In 1535, though likely well before this earliest recorded date, strings of beads made from clam
shells, called wampum, are used by North American Indians as money. Wampum means white, the
color of the clam shells and the beads.
GOLD STANDARD:
In 1816, England made gold a benchmark of value. This meant that the value of currency was
pegged to a certain number of ounces of gold. This would help to prevent inflation of currency.
The U.S. went on the gold standard in 1900.
DEPRESSION:
Because of the depression of the 1930's, the U.S. began a world wide movement to end tying
currency to gold. Today, few nations tie the value of their currency to the price of gold. Other
government and financial institutions now try to control inflation.
TODAY:
At present, nations continue to change their currencies. For example, the U.S. has already changed
its $100 and $20 banknotes. More changes are in the works.
TOMORROW:
Tomorrow is already here. Electronic money (or digital cash) is already being exchanged over the
Internet.
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ATM CARDS
HISTORY OF ATM CARDS:
Don Wetzel has been
credited with developing the first modern ATM. The idea
came to him in 1968 while waiting in line at a Dallas bank,
after which he proposed a project to develop an ATM to
his employer, Docutel.22 A major part of the development
process involved adding a magnetic stripe to a plastic card
and developing standards to encode and encrypt
information on the stripe. A working version of the
Docutel ATM was sold to New York’s Chemical Bank,
which installed it in 1969 at its Rockville Center (Long Island, N.Y.)Office Although the Docutel
ATM did use the modern magnetic stripe access card, the technology remained primitive
compared with today’s. The Docutel ATM only dispensed cash and was an offline machine. To
enable payment processing, the machine printed a transaction record that was MICR encoded.
By the early 1970s, ATM technology advanced to the system we know today. ATMs were first
accessed primarily with credit cards, but in 1972, City National Bank of Cleveland successfully
introduced a card with an ATM but not a credit function.24 ATMs were developed that could take
deposits, transfer money from checking to savings or savings to checking, provide cash advances
from a credit card, and take payments.
ATM CARD:
An ATM card (also known as a bank card, client card, key card or cash card) is an ISO/IEC 7810
card issued by a bank, credit union or building society.
It can be used:
at an ATM for deposits, withdrawals, account information, and other types of transactions,
often through inter bank networks
at a branch, as identification for in-person transactions
at merchants, for EFTPOS (point of sale) purchases
Unlike a debit card, in-store purchases or refunds with an ATM card can generally be made in
person only, as they require authentication through a personal identification number or PIN. In
other words, ATM cards cannot be used at merchants that only accept credit cards.
However, other types of transactions through telephone or online banking may be performed with
an ATM card without in-person authentication. This includes account balance inquiries, electronic
bill payments or in some cases, online purchases.
In some countries, the two functions of ATM cards and debit cards are combined into a single card
called a debit card or also commonly called a bank card. These are able to perform banking tasks at
ATM's and also make point-of-sale transactions, both functions using a PIN. Europe's Maestro are
examples of networks that link bank accounts with point-of-sale equipment.
Magnetic stripe cloning can be detected by the implementation of magnetic card reader heads and
firmware that can read a signature embedded in all magnetic stripes during the card production
process. This signature known as a "MagnePrint" or "BluPrint" can be used in conjunction with
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common two factor authentication schemes utilized in ATM, debit/retail point-of-sale and prepaid
card applications.
ATM Cleaning Cards are the primary means of cleaning ATM machines to ensure that the
machine stays functioning properly.
ATM
An automated teller machine (ATM) is a computerized
telecommunications device that provides the customers of a
financial institution with access to financial transactions in
public space without the need for a human bank teller on
most modern ATMs, the customer is identified by inserting
a plastic ATM card with a magnetic stripe or a plastic
smartcard with a that contains a unique card number and
some security information, such as an expiration date or
Security is provided by the customer entering a
identification number" personal identification number
(PIN).
Using an ATM, customers can access their bank in order to
make withdrawals (or credit card cash advances) and check
their account balances as well as purchasing mobile cell
phone prepaid credit. ATMs are known by various other names including automated transaction
machine, automated banking machine, money machine, bank machine, cash machine, hole-in-the-
wall, cash point etc.
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DEBIT CARDS
HISTORY OF DEBIT CARD:
The history of debit card implies that the concept of debit card is not new. History of debit card
dates back around 20 years ago which highlighted the introduction of e-commerce and alternative
means of payment.
DEBIT CARD:
A debit card (also known as a bank card or check card) is a plastic card which provides an
alternative payment method to cash when making purchases. Functionally, it can be called an
electronic check, as the funds are withdrawn directly from either the bank account, or from the
remaining balance on the card. In some cases, the cards are designed exclusively for use on the
Internet, and so there is no physical card.
The use of debit cards has become widespread in many countries and has overtaken the check and
in some instances cash transactions by volume. Like credit cards, debit cards are used widely for
telephone and Internet purchases, and unlike credit cards the funds are transferred from the bearer's
bank account instead of having the bearer to pay back on a later date.
Debit cards can also allow for instant withdrawal of cash, acting as the ATM card for withdrawing
cash and as a cheque guarantee card. Merchants can also offer "cashback/cashout" facilities to
customers, where a customer can withdraw cash along with their purchase.
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electronic authorization device at the point of sale (POS) and sometimes also a separate PIN
pad to enter the PIN, although this is becoming commonplace for all card transactions in many
countries. Overall, the online debit card is generally viewed as superior to the offline debit card
because of its more secure authentication system and live status, which alleviates problems
with processing lag on transactions that may have been forgotten or not authorized by the
owner of the card.
A consumer who is not credit worthy and may find it difficult or impossible to obtain a
credit card can more easily obtain a debit card, allowing him/her to make plastic
transactions.
Use of a debit card is limited to the existing funds in the account to which it is linked
(except cases of offline payments), thereby preventing the consumer from racking up debt
as a result of its use, or being charged interest, late fees, or fees exclusive to credit cards.
For most transactions, a check card can be used to avoid check writing altogether. Check
cards debit funds from the user's account on the spot, thereby finalizing the transaction at
the time of purchase, and bypassing the requirement to pay a credit card bill at a later date,
or to write an insecure check containing the account holder's personal information.
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Like credit cards, debit cards are accepted by merchants with less identification and
scrutiny than personal checks, thereby making transactions quicker and less intrusive.
Unlike personal checks, merchants generally do not believe that a payment via a debit card
may be later dishonored.
Unlike a credit card, which charges higher fees and interest rates when a cash advance is
obtained, a debit card may be used to obtain cash from an ATM or a PIN-based transaction
at no extra charge, other than a foreign ATM fee.
DISADVANTAGES:
Some banks are now charging over-limit fees or non-sufficient funds fees based upon pre-
authorizations, and even attempted but refused transactions by the merchant (some of
which may not even be known by the client).
Many merchants mistakenly believe that amounts owed can be "taken" from a customer's
account after a debit card (or number) has been presented, without agreement as to date,
payee name, amount and currency, thus causing penalty fees for overdrafts, over-the-limit,
amounts not available causing further rejections or overdrafts, and rejected transactions by
some banks.
In some countries debit cards offer lower levels of security protection than credit cards[6].
Theft of the users PIN using skimming devices can be accomplished much easier with a
PIN input than with a signature-based credit transaction. However, theft of users' PIN
codes using skimming devices can be
equally easily accomplished with a debit
transaction PIN input, as with a credit
transaction PIN input, and theft using a
signature-based credit transaction is
equally easy as theft using a signature- based
debit transaction.
In many places, laws protect the
consumer from fraud a lot less than with
a credit card. While the holder of a credit
card is legally responsible for only a
minimal amount of a fraudulent
transaction made with a credit card,
which is often waived by the bank, the
consumer may be held liable for
hundreds of dollars in fraudulent debit
transactions. The consumer also has a much shorter time (usually just two days) to report
such fraud to the bank in order to be eligible for such a waiver with a debit card [6], whereas
with a credit card, this time may be up to 60 days. A thief who obtains or clones a debit
card along with its PIN may be able to clean out the consumer's bank account, and the
consumer will have no recourse.
In the UK and Ireland, among other countries, a consumer who purchases goods or services
with a credit card can pursue the credit card issuer if the goods or services are not delivered
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or are unmerchantable. While they must generally exhaust the process provided by the
retailer first, this is not necessary if the retailer has gone out of business. This protection is
not provided by legislation when using a debit card but may be offered to a limited extent
as a benefit provided by the card network, e.g. Visa debit cards.
When a transaction is made using a credit card, the bank's money is being spent, and
therefore, the bank has a vested interest in claiming its money where there is fraud or a
dispute. The bank may fight to void the charges of a consumer who is dissatisfied with a
purchase, or who has otherwise been treated unfairly by the merchant. But when a debit
purchase is made, the consumer has spent his/her own money, and the bank has little if any
motivation to collect the funds.
In some countries, and for certain types of purchases, such as gasoline (via a pay at the
pump system), lodging, or car rental, the bank may place a hold on funds much greater than
the actual purchase for a fixed period of time [6]. However, this isn't the case in other
countries, such as Sweden. Until the hold is released, any other transactions presented to
the account, including checks, may be dishonored, or may be paid at the expense of an
overdraft fee if the account lacks any additional funds to pay those items.
While debit cards bearing the logo of a major credit card are accepted for virtually all
transactions where an equivalent credit card is taken, a major exception in some countries
is at car rental facilities. In some countries car rental agencies require an actual credit card
to be used, or at the very least, will verify the creditworthiness of the renter using a debit
card. In these unspecified countries, these companies will deny a rental to anyone who does
not fit the requirements, and such a credit check may actually hurt one's credit score, as
long as there is such a thing as a credit score in the country of purchase and/or the country
of residence of the customer.
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CRDEIT CARDS
HISTORY OF CREDIT CARD:
CREDIT CARD:
A credit card is part of a system of payments named after the small plastic card issued to users of
the system. It is a card entitling its holder to buy goods and services based on the holder's promise
to pay for these goods and services. The issuer of the card grants a line of credit to the consumer
(or the user) from which the user can borrow money for payment to a merchant or as a cash
advance to the user.
A credit card is different from a charge card, where a charge card requires the balance to be paid in
full each month. In contrast, credit cards allow the consumers to 'revolve' their balance, at the cost
of having interest charged. Most credit cards are issued by local banks or credit unions, and are the
shape and size specified by the ISO/IEC 7810 standard as ID-1.
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(typically at a much higher rate than most other forms of debt). Some financial institutions can
arrange for automatic payments to be deducted from the user's bank accounts, thus avoiding late
payment altogether as long as the cardholder has sufficient funds.
INTEREST CHARGES:
Credit card issuers usually waive interest charges if the balance is paid in full each month, but
typically will charge full interest on the entire outstanding balance from the date of each purchase
if the total balance is not paid.
For example, if a user had a $1,000 transaction and repaid it in full within this grace period, there
would be no interest charged. If, however, even $1.00 of the total amount remained unpaid,
interest would be charged on the $1,000 from the date of purchase until the payment is received.
The precise manner in which interest is charged is usually detailed in a cardholder agreement
which may be summarized on the back of the monthly statement.
The credit card may simply serve as a form of revolving credit, or it may become a complicated
financial instrument with multiple balance segments each at a different interest rate, possibly with
a single umbrella credit limit, or with separate credit limits applicable to the various balance
segments. Usually this compartmentalization is the result of special incentive offers from the
issuing bank, to encourage balance transfers from cards of other issuers. In the event that several
interest rates apply to various balance segments, payment allocation is generally at the discretion
of the issuing bank, and payments will therefore usually be allocated towards the lowest rate
balances until paid in full before any money is paid towards higher rate balances. Interest rates can
vary considerably from card to card, and the interest rate on a particular card may jump
dramatically if the card user is late with a payment on that card or any other credit instrument, or
even if the issuing bank decides to raise its revenue.
BENEFITS TO CUSTOMERS:
The main benefit to each customer is convenience. Compared to debit cards and checks, a credit
card allows small short-term loans to be quickly made to a customer who need not calculate a
balance remaining before every transaction, provided the total charges do not exceed the maximum
credit line for the card.
DETRIMENTS TO CUSTOMERS:
Credit cards with low introductory rates are limited to a fixed term, usually between 6 and 12
months after which a higher rate is charged. As all credit cards assess fees and interest, some
customers become so encumbered with their credit debt service that they are driven to bankruptcy.
Credit cards will often stipulate a default rate of 20 to 30 percent in the event a payment is missed.
That is, if a consumer misses a payment, the rate will automatically increase to a very burdensome
level. This can lead to a snowball effect in which the consumer is drowned by unexpectedly high
interest rates. Further most card holder agreements enable the issuer to arbitrarily raise the interest
rate for any reason they see fit.
GRACE PERIOD:
A credit card's grace period is the time the customer has to pay the balance before interest is
charged to the balance. Grace periods vary, but usually range from 20 to 40 days depending on the
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type of credit card and the issuing bank. Some policies allow for reinstatement after certain
conditions are met.
Usually, if a customer is late paying the balance, finance charges will be calculated and the grace
period does not apply. Finance charges incurred depend on the grace period and balance; with
most credit cards there is no grace period if there is any outstanding balance from the previous
billing cycle or statement (i.e. interest is applied on both the previous balance and new
transactions). However, there are some credit cards that will only apply finance charge on the
previous or old balance, excluding new transactions.
BENEFITS TO MERCHANTS:
An example of street markets accepting credit cards. Most simply display the logos (shown in the
upper-left corner of the sign) of all the cards they accept.
For merchants, a credit card transaction is often more secure than other forms of payment, such as
checks, because the issuing bank commits to pay the merchant the moment the transaction is
authorized, regardless of whether the consumer defaults on the credit card payment (except for
legitimate disputes, which are discussed below, and can result in charges back to the merchant). In
most cases, cards are even more secure than cash, because they discourage theft by the merchant's
employees and reduce the amount of cash on the premises. Prior to credit cards, each merchant had
to evaluate each customer's credit history before extending credit. That task is now performed by
the banks which assume the credit risk. Credit cards can also aid in securing a sale, especially if
the customer does not have enough cash on his or her person or checking account.
For each purchase, the bank charges the merchant a commission (discount fee) for this service and
there may be a certain delay before the agreed payment is received by the merchant. The
commission is often a percentage of the transaction amount, plus a fixed fee. In addition, a
merchant may be penalized or have their ability to receive payment using that credit card restricted
if there are too many cancellations or reversals of charges as a result of disputes. Some small
merchants require credit purchases to have a minimum amount (usually between $5 and $10) to
compensate for the transaction costs, though this is strictly prohibited by credit card companies and
credit card companies attempt to get consumers to report such merchants.
In some countries, for example the Nordic countries, banks guarantee payment on stolen cards
only if an ID card is checked and the ID card number/civic registration number is written down on
the receipt together with the signature. In these countries merchants therefore usually ask for ID.
Non-Nordic citizens, who are unlikely to possess a Nordic ID card or driving license, will instead
have to show their passport, and the passport number will be written down on the receipt,
sometimes together with other information. Some shops use the card's PIN for identification, and
in that case showing an ID card is not necessary.
COSTS TO MERCHANTS:
Merchants are charged many fees for the privilege of accepting credit cards. The merchant may be
charged a discount rate of 1%-3%+ of each transaction obtained through a credit card. Usually, the
merchant will also pay a flat per-item charge of $0.05 - $0.50 for each transaction. Thus in some
instances of very low value transactions, use of credit cards may actually cause the merchant to
lose money on the transaction. Merchants choose to pay these costs in exchange for the increased
profitable sales they can create. Thus, they are considering part of the overall cost of marketing.
Merchants with very low average transaction prices or very high average transaction prices are
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more averse to accepting credit cards. But rates are often reduced in an attempt to include more of
these types of merchant.
PARTIES INVOLVED
CARD HOLDER
The holder of the card used to make a purchase; the consumer.
MERCHANT:
The individual or business accepting credit card payments for products or services sold to the
cardholder.
ACQUIRING BANK:
The financial institution accepting payment for the products or services on behalf of the
merchant.
MERCHANT ACCOUNT:
This could refer to the acquiring bank or the independent sales organization, but in general is
the organization that the merchant deals with.
TRANSACTION NETWORK
The system that implements the mechanics of the electronic transactions. May be operated by
an independent company, and one company may operate multiple networks.
AFFINITY PARTNER:
Some institutions lend their names to an issuer to attract customers that have a strong relationship
with that institution, and get paid a fee or a percentage of the balance for each card issued using
their name. Examples of typical affinity partners are sports teams, universities, charities,
professional organizations, and major retailers.
The flow of information and money between these parties — always through the card associations
— is known as the interchange, and it consists of a few steps.
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TRANSACTION STEPS
AUTHORIZATION:
The cardholder pays for the purchase and the merchant submits the transaction to the acquirer
(acquiring bank). The acquirer verifies the credit card number, the transaction type and the
amount with the issuer (Card-issuing bank) and reserves that amount of the cardholder's credit
limit for the merchant. An authorization will generate an approval code, which the merchant
stores with the transaction.
BATCHING:
Authorized transactions are stored in "batches", which are sent to the acquirer. Batches are
typically submitted once per day at the end of the business day. If a transaction is not submitted
in the batch, the authorization will stay valid for a period determined by the issuer, after which
the held amount will be returned back to the cardholder's available credit (see authorization
hold). Some transactions may be submitted in the batch without prior authorizations; these are
either transactions falling under the merchant's floor limit or ones where the authorization was
unsuccessful but the merchant still attempts to force the transaction through. (Such may be the
case when the cardholder is not present but owes the merchant additional money, such as
extending a hotel stay or car rental.)
FUNDING:
Once the acquirer has been paid, the acquirer pays the merchant. The merchant receives the
amount totaling the funds in the batch minus the "discount rate," which is the fee the merchant
pays the acquirer for processing the transactions.
CHARGEBACK:
A chargeback is an event in which money in a merchant account is held due to a dispute
relating to the transaction. Charge backs are typically initiated by the cardholder. In the event
of a chargeback, the issuer returns the transaction to the acquirer for resolution. The acquirer
then forwards the chargeback to the merchant, who must either accept the chargeback or
contest it.
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SECURED CREDIT CARDS:
A secured credit card is a type of credit card secured by a deposit account owned by the
cardholder. Typically, the cardholder must deposit between 100% and 200% of the total amount of
credit desired. Thus if the cardholder puts down $1000, they will be given credit in the range of
$500–$1000. In some cases, credit card issuers will offer incentives even on their secured card
portfolios. In these cases, the deposit required may be significantly less than the required credit
limit, and can be as low as 10% of the desired credit limit. This deposit is held in a special savings
account. Credit card issuers offer this because they have noticed that delinquencies were notably
reduced when the customer perceives something to lose if the balance is not repaid.
The cardholder of a secured credit card is still expected to make regular payments, as with a
regular credit card, but should they default on a payment, the card issuer has the option of
recovering the cost of the purchases paid to the merchants out of the deposit. The advantage of the
secured card for an individual with negative or no credit history is that most companies report
regularly to the major credit bureaus. This allows for building of positive credit history.
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Master card is the product of Master card International and along with visa is distributed by
financial institutions around the world. Card Holder borrow money against a line of credit and pay
it back with interest if balance is carried over for one month .Today 23000 financial institutions in
220 countries issues its product. In 1998there were almost 100 mill cards in circulation whose
users spend $650 billion in more than 16.2 mill localities.
AMERICAN EXPRESS:
The world's favourite card is American express credit card. More than 7 million cards are in
circulation and growing and it is growing further. Around US$ 123 was spent last year through
American express cards and it is poised to world's no. 1 card in near future. In a regressive US
economy the total amount spent last year rose by 4%. American express cards are very popular in
America, Canada, and Asia and are used widely in retail and every day segment.
VISA Card:
VISA card is a product of VISA USA and along with Master card is distributed by
financial institution around the world. A VISA card Cardholder borrows money against a credit
line and repay the money with interest if the balance is carried over from month to month in a
revolving line of credit. Nearly 600 m. cards carry one of the VISA brand and more than 14 m.
locations accept VISA card.
JCB Card:
JCB card has a merchant net work of 10.93 m. in approximately 189 countries. It is
supported by over 320 financial institutions worldwide. The JCB philosophy of identify the
customer need and please the customer with service from the heart and paying rich dividend as
their customer spend $ 43 billion annual on JCB cards.
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It has been estimated that there are likely to be around half million potential card users in the near
future. This forecasting derives credibility from the fact that more and more local and international
financial institutions are exhibiting enthusiasm in this direction. This in turn reflects prospects in
Pakistan market in accommodating numerous credit card competitors operating on the circuit,
ensuring healthy and competitive card business deals.
MARKET SCENARIO:
Although credit card was introduced in Pakistan decades ago when Habib Bank, the largest bank in
Pakistan, launched its gold card, but people had hardly know about this card because of its very
limited issuance. Approximately four years back, Allied Bank of Pakistan had launched its Master
Card. Two years back Citibank had launched its VISA Card and that was the turning point in the
history of Plastic Money in Pakistan.
Citibank had done a tremendous job to educate people of Pakistan, as well as, financial industry
about credit cards and its significance in today's world. Because of very aggressive marketing and
heavy investment in technology, Citibank is well deserved to be called the industry leader of
Pakistan's credit card business.
After successful launch of Citibank card, Muslim Commercial Bank, Bank of America, and
National Bank of Pakistan had launched their credit cards. Very soon we are expecting more local
and international banks on the horizon of Pakistan's credit card business.
Citibank is the industry leader in credit card business here. In short span of time, Citibank
had issued over 125,000 VISA cards and covers most of the potential market segment.
Muslim Commercial Bank had launched its Master Card and it is expected that by the end
of 1997, MCB card users will be over 250,000 (that makes 5% of its total account holders).
Diners Club and AMEX are very selective in credit cards business and so far entertains a
very limited market segment.
Bank of America is the transaction processing hub for most of the local banks, including
Muslim Commercial Bank, Allied Bank and National Bank of Pakistan.
Some departmental stores have also issued their own branded cards; however, these stores are
operating in a very restrictive domain.
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giants. Soon the Automatic Teller Machines (ATMs) will be seen every where in Pakistan and it
will require a very reliable and secure wide area connectivity setup.
PRUDENTIAL REGULATIONS
REGULATION O-1
The banks / DFIs should take reasonable steps to satisfy themselves that cardholders have
received the cards, whether personally or by mail. The banks / DFIs should advise the card holders of the need to take
reasonable steps to keep the card safe and the PIN secret so that frauds are avoided
REGULATION O-2
Banks / DFIs shall provide to the credit card holders, the statement of account at monthly intervals, unless there has
been no transaction or no outstanding balance on the account since last statement.
REGULATION O-3
Banks / DFIs shall be liable for all transactions not authorized by the credit card holders after they have been properly
served with a notice that the card has been lost / stolen. However, the bank’s / DFI’s liability shall be limited to those
amounts wrongly charged to the credit card holder’s account. In order to mitigate the risks in this respect, the banks /
DFIs are encouraged to take insurance cover against wrongly charged amounts, frauds, etc.
The bank/DFI shall, however, not charge the borrowers’ account with any amount under the head of “insurance
premium” (by what so ever name called) without obtaining consent of each existing & prospective customer in
writing. In addition to obtaining consent in writing, the banks/DFIs may also use the following modes for obtaining
prior consent of their customers provided proper record is maintained by banks/DFIs:-
i) Customer’s consent on recorded lines via out bound/in bound call center (after due verification)
ii) ATM screens – screen pop up before conducting transaction and after inputting pin code
iii) Signed consent acquired with credit card application or as separate form
iv) IVR (Integrated Voice Recording)
REGULATION O-4
In case the cardholders make partial payment, the banks / DFIs should take into account the partial payment before
charging service fee / mark-up amount on the outstanding / billed amount so that the possibility of charging excess
amount of mark-up could be avoided.
REGULATION O-5
Due date for payment must be specifically mentioned on the accounts statement. If fine / penalty
is agreed to be charged in case the payment is not made by the due date, it should be clearly mentioned in the
agreement.
REGULATION R-7
MAXIMUM CARD LIMIT
Maximum unsecured limit under credit card to a borrower (supplementary cards shall be considered part of the
principal borrower) shall generally not exceed Rs 500,000/.
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Banks / DFIs may, however, assign a clean limit beyond Rs 500,000 but not in excess of Rs 2 million to their prime
customers who have extraordinary strong repayment capacity, moderate debt burden and a clean track record. But the
aggregate limits in this respect should not exceed 10% of the total credit card portfolio at any point in time. However,
while availing benefit of this provision, banks / DFIs would place on record well defined criteria for terms "Prime
Customers" and "Moderate Debt Burden" approved by their Board of Directors / Chief Executive.
Banks / DFIs may also allow financing under the credit card scheme in excess of Rs 500,000/-
(up to Rs 2 million) to other customers as well, provided the excess amount is appropriately secured according to the
definition given in Part A of these regulations.
The loan secured against liquid securities shall, however, be exempted from the above limit.
The loans against the securities issued by Central Directorate of National Savings (CDNS) shall be subject to such
limits as are prescribed by CDNS / Federal Government / State Bank of Pakistan from time to time. For Charge Cards,
pre-set spending limits generated by the standardized systems, as is the global practice, shall be allowed.
REGULATION R-8
CLASSIFICATION AND PROVISIONING
The credit card advances shall be classified and provided for in the following manner
It is clarified that the lenders are allowed to follow more conservative policies. Further, provisioning may be
created and maintained by the bank / DFI on a portfolio basis provided that the provision maintained by the bank / DFI
shall not be less than the level required under this
Regulation
SBP issues operational guidelines for credit card business
The State Bank of Pakistan today issued comprehensive operational guidelines for credit
card business of commercial banks/DFIs, outlining code of conduct for various aspects of
credit card operations including their marketing, interest rate charges, recovery of dues,
billing processes etc.
According to the guidelines, banks/DFIs are advised to quote interest rate and service
charges on annual basis. Although, they are free to set the aforesaid rates, banks/DFIs are
required to set well defined service level for each of the product/service; whether charged
or free. Banks/DFIs should also inform the credit card holder on the interest rate or services
charges through advertisement and/or sending information to card holders on their
addresses.
Banks/DFIs should not levy any charge that was not explicitly mentioned either in the User
Guide or Application Form or Schedule of Charges provided to the customer at the time of
selling credit card, without the prior consent of the card holder. However, this would not be
applicable to excise duty or other charges which may be levied by the Provincial or Federal
Government or any other statutory authority from time to time. Banks/DFIs should,
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however, timely update the customers on the imposition of such levies. Banks are also
advised that interest amount should be charged on net credit i.e. after deducting the amount
paid by the card holder. The outstanding amount due to rounding‐off of paisas, should not
be considered as partial payment and interest amount should not be charged on it.
According to the guidelines, banks/DFIs must ensure that their recovery/collection officers
should not resort to any verbal or physical harassment of the delinquent credit card holder,
their family members, referees and friends during recovery/collection efforts.
Recovery/collection officers should also not humiliate publicly or in private or intrude the
privacy of the credit card holder’s family members, referees and friends. Telephone calls
and visits to credit card holders for recovery of unpaid dues should be restricted to a
convenient time and the same may be defined in the
Bank/DFIs public policy and should be properly communicated to customers at the time of
issuance of credit card. In addition, recovery should only be made from principal card
holder and in no case supplementary card holders shall be resorted to any sort of pressure
to pay the unpaid amount.
However, supplementary card holders may be contacted only to enquire about the
whereabouts of the principal card holder. Moreover, banks/DFIs should not start recovery
process for reported disputed transactions until the investigation carried out by card‐issuing
Bank/DFI/Banking Ombudsman/State Bank of Pakistan is completed. In case of wrong/
inappropriate basis of rejection of customer claim, bank/DFI would be liable for penalty.
With regard to marketing of credit cards, banks/DFIs should discourage aggressive and
hard selling & marketing practices during working/office hours; except with prior
appointment of the prospective customer. In case a customer is called during office hours
for seeking appointment, he/she should be first asked for the option to continue with the
call or not.
Banks/DFIs should seek prior consent of their customers/account holders for informing
them on new products and services on telephone as and when introduced. In this regard,
banks should maintain a “Don’t call list” comprising the contact details of those customers
who do not want to be contacted. The list should be accessible to all marketing staff and
they should be advised not to contact such customers /account holders for introducing or
offering new banking products. In this connection, banks should update the database of
existing customers within three months from the date of issue of these guidelines.
Banks/DFIs should follow the Code of Conduct for marketing of credit cards which will be
issued by Pakistan Banks’ Association (PBA) in consultation with SBP.
Guidelines stipulate that credit card may only be issued by the banks/DFIs, pursuant to a
written application duly filled and signed by the prospective customer. However, in order
to reward and retain high‐end existing customers, pre‐embossed cards may be issued after a
proper acceptance by the customer, which may be in the form of any verifiable mode such
as recorded phone call. Nevertheless, these pre‐embossed Credit Cards should be activated
only after receiving complete application form from high‐end customers and criteria for
selecting high end customers must be defined in the bank policy.
Keeping in view the complex nature of credit cards, the banks/DFIS are advised to simplify
the credit card terms and conditions, and keep them clear and understandable both in
English and Urdu languages. In order to mitigate fraudulent use of credit cards, banks/DFIs
should have built in functionality in their systems to monitor the usage of credit card.
Additionally, it should also promptly identify unusual or out of pattern transactions. In this
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connection, banks/DFIs may introduce checks or limits on certain category of transactions,
customers, merchants etc. Under the SBP guidelines banks/DFIs are required to dispatch
monthly Statement of Account to credit card holders at least 15 days before the due date.
Towards this end, banks/DFIs may offer online, email or IVR billing facility, with
appropriate security measures. If the customer lodges complaint regarding non‐receipt of
monthly Statement of Account, the statement should be dispatched to him/her free of cost,
within two working days from the date of complaint.
Banks/DFIs are also advised that they should have an appropriate complaint resolution
structure in place commensurate with the volume of complaints and better service
consideration. Credit card complaints resolution mechanism must be prominently disclosed
on the official website of the Bank/DFI. The Bank/DFI may also arrange online complaint
registration on their websites. Complaint number should be provided to each complaint
submitted to bank/DFI and same should be communicated to the Credit card holder.
Banks/DFIs must resolve the disputed transactions/complaint of the credit card holder
promptly and as per the franchise rules of VISA, MasterCard, AMEX or any other
international card association, taking into account nature of the transaction, distances, time
zones, etc. However, in no case complaint resolution time should exceed 45 days from the
date of complaint for the transaction(s) under dispute originated within Pakistan.
In addition, interest amount should not be charged to customer during investigation period.
Bank/DFI will recover interest amount accumulated during investigation period only when
the dispute is settled in favour of bank/DFI. If decision turns in favour of the customer, the
bank/DFI needs to refund the amount of disputed transactions, even to those customers
who had made the payment of disputed transaction and cancelled the card after lodging
complaint.
Under the guidelines, banks/DFIs are advised to develop sound risk evaluation procedures
for enlisting /registration of merchants keeping in view the franchise rules of their
respective franchiser.
The enlistment/registration process may inter‐alia include proper identification, verification
and good credit history, clean track record in Visa’s National Merchant Alert Service and /
or Master Card’s Member Alert to Control High Risk Merchants etc. Banks/DFIs providing
‘acquiring services’ need to educate their merchants about the use of Point of Sale (POS)
Machine, genuineness of credit cards, signature verification, their rights and responsibilities
under the agreement.
Acquirer banks/DFIs are required to facilitate merchants by providing prompt payments
and timely maintenance/service of POS machines. Acquirer Banks/DFIs should maintain
track record of merchant’s performance and categorize them, based on risks, involvement
in frauds & disputed transactions etc. and develop a data base or negative list of merchants
involved in fraudulent activities. The merchants involved in credit card related frauds
should be delisted and their particulars should be shared with other banks/DFIs through
PBA.
BANK ALFALH
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D
R
C
I
B
E
K
N
A
B T
I
A
F
L
D
R
A
C H
A
DEBIT CARD
In our endeavor to
provide you versatile
banking options to fulfill
your financial needs,
Bank Alfalah Limited
presents the Alfalah
HilalCard, a Debit Card
which gives you unlimited access to your current / savings account with a simple swipe at millions
of retail shops and ATMs worldwide. The Alfalah HilalCard comes with a host of conveniences
and benefits combined with the wide reach of Visa Network, enabling it to be accepted at more
than 1.2 million ATMs and 29 million retail outlets around the world, making it the most
acceptable Debit Card available in Pakistan.
What's more, it is easy to operate and can be used on any electronic self-printing POS machine
where VISA is accepted, locally and internationally. No more hassle of remembering your PIN for
retail transactions and no need to go to the ATM for cash withdrawal! one swipe and your
transaction is complete.
CREDIT CARD
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Your Bank Alfalah Credit Cards is your partner everywhere and is globally accepted and
welcomed at locations displaying the VISA logo. It is accepted at nearly 29 million locations in
more than 150 countries around the globe and over 27,000 Bank Alfalah’s establishments in
Pakistan. The credit cards offered by Bank Alfalah are as follows:
VISA CARDS
PLATINUM CARD
SUPPLEMENTARY CARD
Now you can give Supplementary Cards to anyone you care for. Gift your family
members with exclusive Alfalah VISA supplementary cards and let them also enjoy the privileges
of Alfalah VISA. Only Alfalah VISA gives you the unique feature of having up to six free
supplementary cards for anyone you care for. All supplementary Card members share your credit
limit. All charges incurred on the supplementary cards will be reported on your monthly statement
FEATURES
The features of all the VISA credit cards are the same.
No Joining Fee
Join Alfalah VISA without paying any joining fee. Start enjoying your free card from the moment
you get hold of it.
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As an Alfalah VISA Card member you can avail balance transfer facility at a low rate of only 2%
(24% APR) per month (for initial six months), which is the lowest in Pakistan. The balance
transfer facility can only be availed if the total outstanding balance does not exceed beyond the
credit limit assigned by Bank Alfalah for Alfalah VISA card.
Global Acceptability
Your Bank Alfalah VISA card is your partner everywhere and is globally accepted and welcomed
at locations displaying the VISA logo. It is accepted at nearly 29 million locations in more than
150 countries around the globe and at over 27,000 establishments in Pakistan.
Revolving Credit
With Alfalah VISA you have the option of paying only 5% of your outstanding balance by the
payment due date. Service charges will be levied on the balance unpaid spending and carried
forward. These charges are calculated on a daily basis from the transaction date for all cash and
retail transactions. The following month you have the option of either the full amount payment or
if you wish, pay only the minimum amount due and revolve again.
Statement of Account
For your convenience we give you a single glance, easy to manage monthly statement which
contains the following:
1. Card Account Number.
2. Statement Date.
3. Page Count.
4. Transaction Description Indicating: The date of transactions made, Transaction
reference, Name of merchant establishment, Amount charged and Currency type (If the
transaction is made in any currency other than Pak Rupees).
5. Credit Limit indicating: The total credit limit assigned to you for all your card accounts
(principal and supplementary).
6. Payment Due Date: Indicating the date by which your payment should reach Bank Alfalah
to avoid any late payment charges.
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7. Current Balance: Indicating the total outstanding amount on your card account on the
statement date.
8. Payment coupon: To be used for making payments.
SPECIAL FEATURES
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below.
Death: 100%
Special Exclusion: This policy will not cover any claim due to death or permanent
injury unless the same is caused due to any accident of the
carrying vessel/vehicle.
Geographical Limit: World Wide
Permanent Disablement
Permanent total loss of both eyes or two limbs: 100%
Permanent total loss of one eye and one limb: 75%
Permanent total loss of one eye or one limb: 50%
Permanent total loss of one finger or thumb or toe: 10%
Fortunes
For every Rs. 50 you spend on your Alfalah VISA card, you will earn one fortune point. Your
accumulated fortune points can be exchanged for a whole range of items displayed in our Fortunes
Catalogue.. It offers a wide range of lifestyle categories always catering to you and your family's
taste. Once you have accumulated enough points to redeem the gift of your choice, fill out a simple
form available at all Bank Alfalah branches or call our 24 hour phone banking service and order
the item of your choice. The fortune items will be delivered at your doorstep.
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Alfalah Credit on Phone
Alfalah cardholders can call the Call Center and get credit up to 75% of their available credit limit
assigned by Bank Alfalah or available credit limit whichever is lower at just 2.0% per month (24%
APR). Payment of credit amount can be made to them through a cheque at the doorstep or directly
into the account in Bank Alfalah.
MASTER CARDS
TITANIUM
Titanium MasterCard is your partner everywhere and is globally accepted and welcomed at
locations displaying the MasterCard logo
FEATURES
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v) Fortune Reward Points
Foreign Transactions
Transactions made outside Pakistan will be converted from the transaction currency to US Dollars,
based on international exchange rate prevailing on that date (Currency Conversion rate is a rate
selected by MasterCard Worldwide from the range of rates available in wholesale currency
markets for the applicable processing date, which may vary from the rate MasterCard Worldwide
itself receives, or the government-mandated rate in effect for the applicable processing date in each
instance, plus or minus any adjustment determined by the issuer). In order to assist card members,
all transactions will be converted to Pak Rupees for payment. This conversion will be based on the
market exchange rate quoted by authorized money changers and in accordance with the Bank’s
Procedures applicable from time to time.
Priority Pass – The world’s largest independent airport VIP lounge program
Access to over 500 airport VIP lounges in 90 countries and over 275 cities so you can treat
yourself like a VIP no matter where you travel, or which airline and class you fly.
Auto Debit
This facility is specially designed for our account holders. It gives you the option of making your
minimum or full payments due as specified in your Alfalah VISA monthly statement through your
Bank Alfalah Account. If you are not a Bank Alfalah Account holder and wish to avail this facility,
kindly contact your nearest Bank Alfalah branch.
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30 months 0.05083 35.66% 304.98 0.0432 21.21% 259.2
36 months 0.04528 35.07% 271.68 0.0377 21.01% 226.2
CREDIT COVER
• Low Rates - High Protection
• Protection against Uncertainties
• While You Recover - We will cover
• Convenient and Hassle – Free
SPECIAL FEATURES
The special features of Master card are the same as of VISA card's.
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PREVILEGES IN PAKISTAN
The Alfalah card holders have privileges in the following outlets.
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SERVICES
Credit Cover -Protection when you need it!
Bank Alfalah offers card members a new and powerful protection against the uncertainties of life.
In the unfortunate event of prolonged illness, disability or death, it’s reassuring to know that with
Alfalah Credit Cover you have no cause to worry about your monthly credit card repayments.
Alfalah Credit Cover has a range of features designed to protect you from the setbacks of life, at
rates that are affordable.
Low Rates - High Protection
As an Alfalah Credit Card member (Basic card member up to the age of 65), you can protect
yourself with Alfalah’s Credit Cover that offers you an unbelievable low rate of 0.55% of your
outstanding amount in each monthly credit card statement as “Credit Cover Premium” to insure
your credit balance.
Protection against Uncertainties
In the unfortunate event of terminal illness, permanent disability or death, your entire outstanding
balance amount on your Alfalah Credit Card account will be waived without causing any
inconvenience to your dear ones. Additionally, all supplementary credit card balances will also be
waived. No worry-just peace of mind.
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Bank Alfalah Limited / VISA & SHELL “Free- Fuel Voucher Scheme"
Special introductory Offer By PC Muzaffarabad For Bank Alfalah Cardholders
Arena Family Recreational Sports Complex
Exclusive Dining Privileges
Special Membership Offer for Dream world Resort
Alfalah Credit On Phone
Convert Your Current Mobile Operator to Warid
Prepaid Air Time
Call & Pay
Consumer Durables on Easy Monthly Installments (SBS)
Registration for utility bills
Alfalah Cards SMS Facility
Special Offer of Warid connections
Instant SBS on POS
Cash Withdrawal at 1 Link
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Standard Chartered
The Debit and Credit cards of standards Chartered can be shown in a simple hierarchy given below
Easy Cr Card
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Visa Debit Card
Convenience of Visa Debit, using your own money
With the Standard Chartered ‘Visa debit Card’ you get
the convenience of making purchases or withdrawing
cash wherever Visa is accepted.
Features at Glance
Use your own money at 27 million outlets and 160 countries worldwide wherever Visa is
accepted
Each withdrawal taken directly from your Standard Chartered Bank Account
Enjoy peace of mind by not having to carry cash
You can call support 24 hours a day, 7 days a week with any queries
All POS transactions on your card are signature based. Simply swipe and sign!
The validity period of the card is 5 years from the date of issue.
Platinum cardholders:
ATM Withdrawal: Up to Rs. 60,000
POS Spending: Up to Rs. 300,000 (or equivalent in other currency)
Special Features
Exclusive benefits available on Visa Debit Card:
Shopping:
Use your debit card for all your shopping, at home and abroad
Petrol:
Use your debit card to pay for petrol at any filling stations
Restaurant:
Use your debit card to pay for dinner at your favorite restaurants
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Cash:
Use your debit card to withdraw cash at any Standard Chartered Bank ATM or any ATM
worldwide that displays the Visa symbol
E-Statement Service:
With our E-Statement service, you can relax and enjoy the convenience of receiving the
summary of your debit card transactions on a monthly basis in your email inbox. Subscribe
for this service, free of charge by filling out a form at your parent branch
35
within a range of wholesale rates in effect plus the
percentage that Standard Chartered Bank charges
for the Foreign Currency Conversion Fee above.
Credit Card
Standard Chartered Credit Card can be used in Pakistan and as well as globally for any
transaction at any merchant outlet accepting MasterCard and/or VISA Credit. It provides you
following facilities
However Card Cash withdrawal is limited to 30% of your available credit limit.
For cash withdrawals through ATM's or over the counter transactions, a nominal fee will be
charged as per the Schedule of Charges.
You also can transfer your other Credit Card's outstanding balance to your Standard
Chartered Credit Card at a nominal financial charge of 3.25 % per month (MasterCard) and
3.25 % per month (VISA). When you transfer balances on to your Standard Chartered Credit
Card, you will also earn Treasure points, which you can redeem for exciting gifts from our
Treasures Catalogue.
You have the option of paying back the entire availed amount or paying as little as 5 %
of your outstanding balance at competitive financial charges. Your remaining outstanding
amount will be carried forward to your next monthly statement, where you will again have
the choice of paying as little as 5 % of the outstanding amount or the entire amount.
36
With Standard Chartered's VISA and MasterCard, you have the opportunity to avail
51 and 45 free credit days respectively. That means no service fee will be charged if you pay
back your entire amount within the due date. However, you can also choose to make
minimum payment of only 5 % of your outstanding balance at a highly competitive financial
charge of 2.75 % per month on VISA and 2.50 % per month on MasterCard
6. Discrepancy In statements
If you notice any discrepancy in your monthly statement, report the matter to our Customer
Services Team on 111-002-002 within 7 days. In order to check statement entries, retain all
your sales slips and printed receipts. This will help you keep a record of all your transactions .
7. Monthly Payments
Paying cash over the counter at any of the Standard Chartered branches in Pakistan.
Sending a cheque / pay order / draft in the name of Standard Chartered Bank, Credit
Cards' by mail or through the drop box at all Standard Chartered branches. Please indicate
your name and card number on the reverse of the cheque.
Through Auto Debit for Standard Chartered customers (5 % of the outstanding balance or
the total amount)
By Telegraphic Transfer. Your payment will be credited to your Card account after funds
are received by Standard Chartered, Consumer Banking, and Cards – Pakistan.
8. Stolen and Lost Cards
In the event that your card is lost or stolen, please report it to a member of our
Customer Services Team immediately on 111-002-002
If at any time you face any problem regarding your Credit Card or Credit Card account, call our
24-hour Customer Service on 111-002-002 or you can email your queries directly to
ask.us@pk.standardchartered.com
1. Visa Cards
2. Masters Cards
3. American Express Card
37
Cards Standard Chartered Visa Cards
Standard Chartered VISA Card is a globally renowned brand
that has world wide acceptance. You can avail of exciting features
and benefits attached with this Card. Get ready to bring ultimate
indulgence to your lifestyle.
How it Works
Saadiq VISA Credit Cards give you the option of either paying the entire outstanding
amount or pay only a minimum amount of the outstanding balance by the payment due
date.
Incase, you opt to pay any amount less than the total outstanding balance, the
remaining balance gets transferred to the Service Account which is a non-interest and
non-profit bearing account, linked to your Saadiq Credit Card.
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A fixed monthly maintenance fee will be levied only for the month the Service Account
is used and reflects an outstanding balance.
Service Account
Service Account is a non-interest and non-profit bearing account which is maintained by the
Bank for the Saadiq VISA Credit Card members.
Any amount of the current balance which is due and unpaid after the relevant payment due
date, is transferred from the Card Account into Service Account.
A fixed monthly maintenance fee will be levied when the customer has balance on his Service
Account irrespective of the outstanding balance
Charges
A fixed fee is charged for maintenance of the Service Account and continued usage of the
Card. The fee would vary for different card types (Classic, Classic Blue, Gold and Gold Plus),
however, would remain the same for a particular card type. Maintenance fee will be charged only
if the Service Account is utilized and/or reflects a balance for that specific month. The fee is not
dependent on duration of the Service Account maintained and/or the amount of the outstanding
balance. No fee will be charged for the months when the Service Account is not utilized
39
Standard Chartered Easy Credit (EC) combines the
power of a Credit Card with the convenience of a
Cheque book. As an EC card member you will be
entitled to a host of benefits that no other facility offers. EC provides you with the lowest
financial charge and access to Standard Chartered services around the globe. This means that
Easy Credit is the best facility offering more and more across the country.
Eligibility Criteria
For being eligible for easy card you just need to meet the Easy Credit criteria. You have to apply
for the cheque book, through the request form, which is part of the Easy Credit Application Form.
You will be required to pay a fee to have an Easy Credit cheque book issued. This service is valid
for both Basic and Supplementary Card member
40
Features and benefits of Easy Credit Card that make your life easier:
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prevailing on that date. In order to assist card members, all transactions will be converted
into Pak Rupees for payment.
Enjoy exclusive 15% discount on purchase of your PIA tickets both domestic and
international through your PIA CoBrand Credit Card from all PIA Booking Offices or PIA
Reservation Counters at airports within Pakistan.
PIA CoBrand Card members both primary and supplementary can avail discounts on their
personal tickets (not in the name of any other person or family members)
Discount will be given on all domestic and international tickets issued from Pakistan
No discount will be applicable on taxes.
No discount will be applicable on already discounted classes
And you earn this privilege by flying on PIA’s network of 52 destinations around the globe.
The PIA Awards +Plus Program offers you an Emerald Membership, a Sapphire Membership,
or a Diamond Membership. The more you travel, the more you get to enjoy the benefits of
PIA Awards +Plus Program.
PIA CoBrand Credit Card members will get an Awards +Plus card within 4 weeks of
activation of PIA CoBrand Credit Card
1,000 bonus Airmiles upon becoming an Awards +Plus Member
Sapphire Awards Plus Card is valid for a period of 3 years
42
Emerald Awards Plus Card has no validity period
PIA Awards +Plus Terms and Conditions will apply
The Emerald Awards +Plus Card is issued with PIA CoBrand Classic Credit Card. As an Emerald
Member, you are entitled to the following benefits:
The Sapphire Awards +Plus Card is issued with PIA CoBrand Gold Credit Card. As a Sapphire
Member, you will enjoy the following value added benefits:
Your PIA CoBrand Credit Card helps you accumulate Air miles at an incredible rate; every time
you shop, and every time you fly. Here’s how:
You will earn 1 Air mile on every Rs. 50 spend on your PIA CoBrand Credit Card which is
automatically transferred to your PIA Awards +Plus Card once in a month
Whenever you purchase your ticket from PIA booking office, you will get Air miles on your
PIA Awards +Plus Card by presenting your PIA Awards +Plus Card / Frequent Flyer Number
when booking your ticket. For More details, please log onto
www.piaawards.com/pia/CalcAccrual.aspx
Upgrade Check-In:
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What's more, as an Emerald Card member, you may check in at Awards +Plus counter where
available and as a Sapphire Card member, you may check in at Awards +Plus counter and
Business Class counter in the absence of Awards +Plus counter
As a PIA Gold Credit Card member, you can enjoy access to designated Business Class lounges
in Karachi, Lahore and Islamabad Airports by presenting your PIA CoBrand Gold Credit Card
along with Sapphire Awards +Plus Card even if you are traveling economy class. If, for any
reason, the Business Lounge is not available, you may avail the CIP Lounge. These lounges
grant you complimentary access to secretarial services, a buffet, and comfortable couches to
help you unwind before the journey ahead.
Redeeming Air miles is as easy as earning them. When you are ready to reward yourself or
your family, you can redeem your Air miles for any of the following:
Free Tickets
Excess Baggage
Class Upgrade
Standard Chartered
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Master Cards
Standard Chartered Master Card is a card with worldwide
acceptance. A card which is reliable and has a low mark up, it
forwards you the financial freedom you deserve. Enjoy the exclusive
promotions and rewards awarded to you on this offering from
Standard Chartered Bank. Standard Chartered Master Card includes
Standard Chartered Bank introduces Pakistan’s first and only Cricket Credit CardAt Standard
Chartered, we believe in offering our customers the best value. The Standard Chartered
Cricket Credit Card is your key to enjoy cricket up, close and personal with original
memorabilia, coaching camps, discounts, free match tickets, talk shows and much more.Use
your Standard Chartered Cricket Card to score runs and redeem them in order to get cricket
memorabilia autographed by famous Pakistani cricketers. Remember …. 1 Run equals to 1
Treasure Point
Special Privileges
1) Global Acceptability:
Standard Chartered Credit Cards can be used at 24 million establishments across the
globe in 210 countries including 10,000 in Pakistan displaying the Credit Cards logo.
45
2) Cash Advance Facility:
You can withdraw cash up to 30% of your available credit limit at any VISA/MasterCard
ATM across the globe. Cash can also be withdrawn ‘Over-the-Counter’ at financial
institutions worldwide or at any of the Standard Chartered branches and all other
VISA/MasterCard member banks in Pakistan.
3) Supplementary Cards:
Gift your family members, friends, employees or absolutely anyone, with exclusive
Standard Chartered VISA/MasterCard Supplementary Cards and let them enjoy the
privileges these Cards have to offer. You can have up to 5 Supplementary Cards made for
anyone who is more than 18 years of age.
4) Foreign Transactions:
When you use your Credit Card abroad, the transaction amount will be converted from
the transaction currency to US Dollars, based on the international exchange rate
prevailing on that date. In order to assist Card members, all transactions will be converted
into Pak Rupees for payment.
5) 24hr Phone Banking:
Quick and easy access to your credit details is just a phone call away! Just dial 111-002-
002 and start making online transactions 24 hours a day, 7 days a week. Our online
Customer Service Team is equally accessible via e-mail, so simply e-mail us at:
ask.us@pk.standardchartered.com.
6) E-Statements:
Now you can receive your Credit Card statements through email anywhere in the world -
absolutely free. And if you do not have an email address then till such time that you do,
you will continue to receive your Credit Card statements by courier.
7) Dial -a- Draft:
Make payments to places where cards are not accepted such as clubs, schools or utility
bills. Just call our Customer Services and order a Draft/Pay Order to be made. It will be
delivered to you within 2 working days.
8) Revolve Your Credit:
Standard Chartered gives you the option of paying the minimum amount, which would
only be 5% of your outstanding balance or Rs 500 (which ever is greater) by the payment
due date. Service charges are levied on the balance unpaid and balance amount is carried
forward. The following month either pays the full amount or if you wish pay only the
minimum amount due and revolve again
9) Auto Debit:
You have the convenience of making minimum or 100% payment as specified on the
monthly statement, through your Standard Chartered Bank account. If you wish to use
this facility, please contact our Customer Services Staff at least 2 days before your
statement date.
10) Balance Transfer Facility:
Transfer any other credit cards outstanding balance to Standard Chartered Credit Cards at
an extremely low rate of 2.50 % (per month on MasterCard) and 2.75 % (per month on
46
VISA card). Additionally, every time you transfer your balance onto your VISA/MasterCard
Credit Card you earn Treasure Points too. These points can be redeemed for exciting gifts
that you will find in our Treasures Catalogue.
11) Treasures:
The most comprehensive rewards program for VISA/MasterCard Credit Card members
packed with more style, variety and unbeatable value than ever before. For every Rs. 50
you spend on your Credit Card, earn 1 Treasure Point. So the more you spend, the more
points you gain. Then simply exchange the accumulated Treasure Points from a range of
exciting gifts present in our Treasures Catalogue.
12) Travel Privileges:
You also have the opportunity to avail some of the best travel packages, offered from
time-to-time by Akbar Group-one of the largest airline reservation networks, representing
most prestigious international airlines
13) CIP Lounge:
As a Standard Chartered Gold Card member, you can enjoy complimentary lounging
facilities at the Quaid-e-Azam International Airport Karachi, with privileges like free
secretarial services, free buffet, 24-hour porter service and so much more.
14) Zero Loss Liability:
Isn't it comforting to know that if you lose your Card you would have nothing to worry
about? You are covered for all fraudulent charges made on your Credit Card as soon as it
has been reported lost to Standard Chartered. So make sure you report the loss
immediately upon discovery.
15) Credit Cover:
In the unfortunate event of an illness, injury or death Standard Chartered will always be
there to cover your payments. The entire outstanding amount on your Standard
Chartered Credit Card will be waived without causing any inconvenience to your near and
dear ones. These waivers also include any Supplementary Credit Card transactions made
on your Credit Card.
16) Travel Accident Cover
You have a comprehensive cover of up to Rs. 3.5 million on your Standard Chartered
VISA/MasterCard (Classic) and Rs. 7 million on Standard Chartered VISA/MasterCard
(Gold) in case of an accident while travelling around the globe on any common carrier.
The transaction however, must be made on a Standard Chartered Credit Card if the above
is to apply.
17) Travel Inconvenience Cover:
While travelling outside Pakistan, you are covered up to Rs. 10,000 on flight delays
(exceeding 6 hours) for restaurant meals, refreshments, etc. and Rs. 10,000 on baggage
delays. Also in the case of lost baggage in transit, you are covered for up to Rs. 20,000
(exclusive of the amount by the airline). All amounts are reimbursed on placing your claim
provided the ticket was bought on your Standard Chartered VISA Card.
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Standard Chartered American Express SELECTS SM
Standard Chartered
American Express SELECTSSM brings you a world of privileges with an exciting selection of year
round offers and savings. Wherever you find yourself, from New York to London to Sydney, you'll
enjoy exceptional value and privileges in travel, leisure, dining and shopping. So use your card
now and discover an array of attractive benefits in key destinations worldwide.
Special Privileges
Host of special benefits offered on American Express Credit Card:
1) Instant Recognition:
The American Express Credit Card is warmly
welcomed at thousands of merchant
establishments in Pakistan and millions
worldwide. You can rely on it as your
trustworthy partner while dining, shopping, and
traveling or simply spending on a daily basis.
2) Revolving Facility:
American Express Credit Card offers you the option of paying your monthly outstanding
balance in full or over a period of time. A service charge of only 3% per month gives you
an added comfort in managing your finances every month.
3) Balance Transfer:
You can conveniently transfer the balances from your other credit or charge cards to the
American Express Credit Card. With a balance transfer rate of only 1.67% per month, you
may enjoy substantial savings on the service charges.
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4) Express Cash:
You can use the American Express Credit Card to avail instant cash advance facility from
168 designated ATMs of Standard Chartered Bank in Pakistan and over 550,000 ATMs
worldwide
5) Travel Service Locations:
American Express Credit Card has the power to redefine traveling, whether within the
country or across the globe. The dedicated staff in more than 1700 American Express
Travel Service Offices in over 130 countries is readily available to assist Card members
with their travel-related needs. Invaluable assistance can be provided for travel
arrangements, car rentals, local area/culture information and hotel bookings etc.
6) CIP Lounge:
In Pakistan, the American Express Credit Card can become your gateway to the CIP Lounge
(International Departures) at Jinnah International Airport, Karachi. Just present The Card
and enjoy enviable royal treatment at absolutely no charge.
7) Marhaba - Meet and Greet Service:
You can avail complimentary Marhaba - Meet and Greet Service on international travels at
the Quaid-e-Azam International Airport Karachi. Trained staff of Marhaba will escort you
through all check-ins to minimise the hassle of standing in long queues at the airport. The
service is available at special rates and accompanying family members and friends, on
both domestic and international flights.
8) Free Travel Accident Insurance:
Every time you use the American Express Credit Card to purchase airline or railway tickets,
you and your spouse along with any dependent children under 23 years of age are
automatically covered through Travel Accident Insurance. The cover amount is Rs.
60,00,000 on the Green Card and Rs. 1,20,00,000 on the Gold Card.
9) Global Assist:
If you are traveling outside Pakistan, you can depend on the American Express Credit Card
in the event of any medical or legal emergency. American Express' attentive staff can
promptly get you in touch with a doctor or lawyer in your locality through a simple phone
call, anytime of the day.
10) Membership Rewards:
The American Express Credit Card earns you 1 Membership Reward point for every Rs. 50
spent on the Card (excluding cash advance and balance transfers). These points can easily
be translated into exciting gifts from a wide range of categories including travel, retail,
fashion, and dining to name a few.
11) Supplementary Cards:
You can also share the power, prestige and benefits of the Card with up to five family
members, in the form of Supplementary Credit Cards. And the good news is that the
spending on your supplementary cards will be added on to your Membership Reward
points, bringing that coveted gift of your choice even closer to you.
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12) 24 - Hour Toll-Free Customer Service:
As an American Express Card member you can enjoy round-the-clock access to customer
service from virtually anywhere in the world
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11) Replacement of lost/stolen cards
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facilities at the Quaid-e-Azam International Airport Karachi, with privileges like free
secretarial services, free buffet, 24-hour porter service and so much more.
Topic of Survey:
To study Consumer perception towards credit
cards.
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Sample size:
50
Sampling technique:
Convenient sampling
Objective:
Our main objective of survey to find out the positive and
negative features of credit cards that affects consumer’s
behavior towards credit cards.
On the basis of our result suggest such measure that will
help banks to design their product according to consumer
needs.
a) 20-30
b) 30-40
a
c) 40-50
b
c
d) 50-60
d
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Comment: from this proportion we conclude that among 20 to 40 age group credit card is
most popular. The reasons can be frequently availability of financial resources and more
awareness about the credit card.
Comment: from the high rating of standard chartered bank, Askari and Allflah we have perceived
that features and packages of above three banks are better than the other and that’s why people
prefer them.
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a
c 24%
38%
a
b
b c
38%
Comments: major reasons for preferring credit cards are its quality services and good packages.
a
59% a
b
c
d
e e
33% b f
8%
Comments: 59% purchase credit cards because it is convenient with respect to cash and safety.
And 30% people said that it is their need.
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c) 10000 – 15000 Rs.
d) 15000 – so on
a
b
c
d
Comments: normally people transact from credit card within the range of 500 to 10000.
Q#6: from which channel you heard about it that induced you to purchase it?
friends college
Comments: 50% people rely on their internal resources before purchasing decision.
a) Yes
b) No
c) Neither satisfied nor dissatisfied
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no yes
17% nethier
satisfied
ni no
yes dissatisf
ied nethier satisfied ni
75% dissatisfied
8%
Comments: 75% people are satisfied with the services of credit cards and its fulfill their need.
Q#8: do you want some extra features to be added in your card? If yes then
specify.
other
8%
no
no other
92%
Comments: 92% people don’t want any feature to be added in their credit card but they want
annual charges should be eliminated and interest rate should be decreased.
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a
15%
a
b b
c 20%
c
65%
Comments: 65% people want their credit card limit should be extended and rest of the people
have complaint against fine structure and terms and conditions.
Q#11: do you think credit card has created a habit of over spending?
a) Agreed
b) Disagreed
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Strengths
1. The most important strength of Plastic cards is that they are convenient with respect to
safety and there is no need to carry cash.
2. The greatest strength of the banks is their sales force. The more the qualified the sales force
more that bank will have competitive edge over other.
3. Our survey has told that the customer prefer those banks which provide quality services so
the quality services are the basic strength for bank.
4. The easy procedure for obtaining a debit or credit card is also strength of plastic card.
5. Inflation is a positive point for banks as due to increased inflation is purchasing power is
decreasing and people are more inclined towards use of credit card.
Weaknesses
1. The greatest weakness is that people have a very bad perception and they think that it is a
very bad product and once a person used it and he will be a prey to the veracious of
interest.
2. The banks don’t provide complete information about terms and conditions that give rise to
much confusion in the mind of people.
3. High service charges and annual fee charged by banks are that are a point of worry for
consumers.
4. People have severs complaints against fine structure.
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Opportunities
1. There is a large room for banks in the fields and they can capture the market by providing
new features like standard chartered bank.
2. Use of insurance cover provides the bank facilities to take exposure easily.
3. Banks can capture the market by providing the cheaper services.
4. Trained and well groomed sales force will prove useful in creating opportunities for bank.
5. The people can be attracted towards plastic money by creating awareness about these
products and decreasing the bad perceptions prevailing in our society
Threats
1. Unethical practices of sales force of banks are the greatest threat for banks.
2. The image of these cards of being an interest based product is a threat to its success.
3. The frauds due to lower security arrangements are a major threat for plastic money
products.
4. Strict SBP rules and regulations are a threat for banks in carrying out plastic money
business.
5. The perception of people that use of plastic money leads towards over spending.
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