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39785045 Growing Prominance of Credit and Debit Cards...

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  • 7/28/2019 39785045 Growing Prominance of Credit and Debit Cards jdshajhdaskjhjdkasjkhdkjaskjhdkjashjkhjkdbaskjbhdjkbhsjkbhjdkbakjsbjdkhaskjbhdkjhsakjhdjsakjdkjashjdhskjahdkjhas

    http:///reader/full/39785045-growing-prominance-of-credit-and-debit-cards-jdshajhdaskjhjdkasjkhdkjaskjhdkjashjkhjkdbaskjbhdjkbhsjkbhjdkbakjsbjdkhaskjbhdkjhsakjhdjsakjdkja 1/10

    Presentation on Debit cardsand Credit Cards !!!!

  • 7/28/2019 39785045 Growing Prominance of Credit and Debit Cards jdshajhdaskjhjdkasjkhdkjaskjhdkjashjkhjkdbaskjbhdjkbhsjkbhjdkbakjsbjdkhaskjbhdkjhsakjhdjsakjdkjashjdhskjahdkjhas

    http:///reader/full/39785045-growing-prominance-of-credit-and-debit-cards-jdshajhdaskjhjdkasjkhdkjaskjhdkjashjkhjkdbaskjbhdjkbhsjkbhjdkbakjsbjdkhaskjbhdkjhsakjhdjsakjdkja 2/10

    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.

  • 7/28/2019 39785045 Growing Prominance of Credit and Debit Cards jdshajhdaskjhjdkasjkhdkjaskjhdkjashjkhjkdbaskjbhdjkbhsjkbhjdkbakjsbjdkhaskjbhdkjhsakjhdjsakjdkjashjdhskjahdkjhas

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    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.

  • 7/28/2019 39785045 Growing Prominance of Credit and Debit Cards jdshajhdaskjhjdkasjkhdkjaskjhdkjashjkhjkdbaskjbhdjkbhsjkbhjdkbakjsbjdkhaskjbhdkjhsakjhdjsakjdkjashjdhskjahdkjhas

    http:///reader/full/39785045-growing-prominance-of-credit-and-debit-cards-jdshajhdaskjhjdkasjkhdkjaskjhdkjashjkhjkdbaskjbhdjkbhsjkbhjdkbakjsbjdkhaskjbhdkjhsakjhdjsakjdkja 4/10

    Types Of Cards

    1. Debit Card (also known as a bank card orcheck 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    withdrawn directly from either the bank account, or fromthe remaining balance on the card.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 goodsand services based on the holder's promise to pay for

    these goods and services.

  • 7/28/2019 39785045 Growing Prominance of Credit and Debit Cards jdshajhdaskjhjdkasjkhdkjaskjhdkjashjkhjkdbaskjbhdjkbhsjkbhjdkbakjsbjdkhaskjbhdkjhsakjhdjsakjdkjashjdhskjahdkjhas

    http:///reader/full/39785045-growing-prominance-of-credit-and-debit-cards-jdshajhdaskjhjdkasjkhdkjaskjhdkjashjkhjkdbaskjbhdjkbhsjkbhjdkbakjsbjdkhaskjbhdkjhsakjhdjsakjdkja 5/10

    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..

  • 7/28/2019 39785045 Growing Prominance of Credit and Debit Cards jdshajhdaskjhjdkasjkhdkjaskjhdkjashjkhjkdbaskjbhdjkbhsjkbhjdkbakjsbjdkhaskjbhdkjhsakjhdjsakjdkjashjdhskjahdkjhas

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    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 forthe government to reduce usage of these notes and

    shift cash transactions to a card-based system of

    payment.

  • 7/28/2019 39785045 Growing Prominance of Credit and Debit Cards jdshajhdaskjhjdkasjkhdkjaskjhdkjashjkhjkdbaskjbhdjkbhsjkbhjdkbakjsbjdkhaskjbhdkjhsakjhdjsakjdkjashjdhskjahdkjhas

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    Unlike when you write a check, using a debitcard 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.

    Advantages of using a Debit card

  • 7/28/2019 39785045 Growing Prominance of Credit and Debit Cards jdshajhdaskjhjdkasjkhdkjaskjhdkjashjkhjkdbaskjbhdjkbhsjkbhjdkbakjsbjdkhaskjbhdkjhsakjhdjsakjdkjashjdhskjahdkjhas

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    Comparative features of debit andcredit cards in India

    Aspects Debit card Credit card

    Size 2x3 Inches 2x3 Inches

    Mode of use same same

    Bank accountrequirements for card

    holders

    must optional

    Main service-providers Cirrus, visa electron,

    maestro etc.

    Master, visa, Amex

    etc

    Nature of financing Own sources Consumer loan

    Nature of banking

    product

    Liability product Asset product

    Customers/merchantspreference more less

  • 7/28/2019 39785045 Growing Prominance of Credit and Debit Cards jdshajhdaskjhjdkasjkhdkjaskjhdkjashjkhjkdbaskjbhdjkbhsjkbhjdkbakjsbjdkhaskjbhdkjhsakjhdjsakjdkjashjdhskjahdkjhas

    http:///reader/full/39785045-growing-prominance-of-credit-and-debit-cards-jdshajhdaskjhjdkasjkhdkjaskjhdkjashjkhjkdbaskjbhdjkbhsjkbhjdkbakjsbjdkhaskjbhdkjhsakjhdjsakjdkja 9/10

    In India, debit cards are more popular than the

    credit cards mainly due to the fact that Indiansare 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 furthergrowth of debit cards and their usage incommercial transactions.

  • 7/28/2019 39785045 Growing Prominance of Credit and Debit Cards jdshajhdaskjhjdkasjkhdkjaskjhdkjashjkhjkdbaskjbhdjkbhsjkbhjdkbakjsbjdkhaskjbhdkjhsakjhdjsakjdkjashjdhskjahdkjhas

    http:///reader/full/39785045-growing-prominance-of-credit-and-debit-cards-jdshajhdaskjhjdkasjkhdkjaskjhdkjashjkhjkdbaskjbhdjkbhsjkbhjdkbakjsbjdkhaskjbhdkjhsakjhdjsakjdkj 10/10

    Thank You


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