Presentation on Debit cards and Credit Cards !!!!

Evolution of Credit card

Year 1958, the American Express Company entered the credit card business with their version of the universal credit card, having the marketing tagline as "Don't leave home without it". In 1966, Barclaycard in the UK introduced the first credit card outside the US. Credit cards came to India in 1979.

Evolution of Debit card

The debit card was launched almost two decades later in 1988. But as of now, there are more active debit cards than credit cards.

Types Of Cards
1.

Debit Card (also known as a bank card or check card) is a plastic card that provides an alternative payment method to cash when making purchases. Functionally, it can be called an electronic cheque, as the funds are withdrawn directly from either the bank account, or from the remaining balance on the card. A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services.

Market for credit cards in India is made up of 18 major banks and financial institutions providing credit card products and services. There are 11 major types of credit cards available in India.

Following are a few major credit card providers in India:

ABN Amro HDFC American Express ICICI Bank Axis Bank SBI Bank of Baroda Canara Bank etc..

Advantages of using a Debit card

It cost the government nearly Rs 2,800 crore to print currency notes in 2009-10. Cash/currency notes are the preferred mode of payment for most customers, but with printing cost on the rise, it makes sense for the government to reduce usage of these notes and shift cash transactions to a card-based system of payment.

Advantages of using a Debit card

Unlike when you write a check, using a debit card saves you from having to show identification or give out personal information at the time of the transaction.

It frees you from carrying cash or a checkbook. It can save you from having to stock up on traveler's checks or cash when you travel.
Debit cards may be more readily accepted than checks, especially in other states or countries.

Comparative features of debit and credit cards in India

Aspects
Size Mode of use Bank account requirements for card holders Main service-providers Nature of financing Nature of banking product

Debit card
2x3 Inches same must

Credit card
2x3 Inches same optional

Cirrus, visa electron, maestro etc. Own sources Liability product

Master, visa, Amex etc Consumer loan Asset product

Customers/merchants preference

more

less

In India, debit cards are more popular than the credit cards mainly due to the fact that Indians are not comfortable with debt. India has a huge customer base that can afford a debit card but not a credit card. There is thus tremendous scope for further growth of debit cards and their usage in commercial transactions.

Thank You