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PART-I
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1.0 Introduction
1.1 Origin of the Report
This project is a requirement of BBA Program and includes
experiences during preparing this project. This report is about the
Credit Card er!ices of tandard Chartered Ban" in Bangladesh.
#ere the project contains di$erent s%stem& program& process& features
and bene'ts of Credit Card.
tandard Chartered Ban" is a multinational ban" and started its
business in Bangladesh in ()*+ ,ith a branch in Chittagong. Toda% it
has (+ branches and AT/s in di$erent important places of this
countr%. tandard Chartered Ban" is the pioneer issuer of Credit Card
in Bangladesh and it is also pioneer acquirer of Credit Card in
Bangladesh. It acquires credit card since ()++ and started issuing
credit cards from the %ear ())0. Toda% it has in total approximatel%
(11&111 credit cards in the mar"et ,ith approximatel% *111
merchants.
1.2 Objectives
The main objecti!es of this project to stud% the customer ser!ices
pro!ided b% the Credit Card er!ices of tandard Chartered Ban" in
this countr%. Along ,ith this the objecti!es of this stud% ,ere as
follo,s2
i3 To stud% the product - Credit Card
ii3 To stud% about the Credit Card customer ser!ice
iii3 To re!eal the limitations of the current Credit Card
i!3 To suggest possible ,a%s to o!ercome the limitations.
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(.(. 7imitations7imitations
7ac" of comprehension of the respondents ,as the major
problem that created man% confusions regarding !eri'cation of
conceptual question.
imitation of time ,as one of the most important factors that
shortened the present stud%. 5ue to time limitation man% aspect
could not b% discussed in the present stud%.
!on'dentialit% of data ,as another important barrier that ,as
confronted during the conduct of this stud%. 8!er% organi9ation
has their o,n secrec% that is not re!ealed to others. :hile
collecting data on tandard Chartered Ban"& personnel did not
disclose enough information for the sa"e of con'dentialit% of the
organi9ation.
R ush hours and business ,as another reason that acts as an
obstacle ,hile gathering data.
"he 'nding of the sur!e% is based on emplo%ee;s response in
di$erent tandard Chartered branches located in 5ha"a Cit%
onl%. The results ma% not re
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:hich card is popular in Bangladesh& its interest rate and the social
impact of Credit Card. 4ifth part is conclusion and recommendation.
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PART-II
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2.0 S"#$%#R% !R"'R'% (#$)
tandard Chartered Ban" >CB3 is an international ban"& ,hichprimaril% focuses its acti!ities in Asia& Africa& and /iddle 8ast. This
ban" pla%s an in!igorating role in lin"ing the ,orld;s de!eloped
economies ,ith emerging mar"ets and pro!ides personal ban"ing&
corporate ba"ing& institutional ban"ing consumer 'nance and
custodial ser!ices. The act of the ban" is to pro!ide the most e$icient&
consistent and timel% ser!ices and to be the ban" of choice in its
principal territories.
CB is a multinational ban" and 'nancial ser!ices group that is
incorporated in the ?.@. ,ith a unique international net,or". It no,
spans in the de!eloped and emerging economies of the ,orld& after
been built o!er (1 %ears.
The group operates through more than =11 o$ices in o!er *+
countries and has o!er &111 people managing assets of o!er *0
billion pounds. In asset si9e the group ,as ran"ed )*th in the ,orld in
())0. The group has its long past histor% sho,ing its huge gro,th
,orld,ide.
2.1 St*nd*rd !h*rtered in (*ngl*desh
The Chartered Ban" opened its operation in Chittagong in ()*0 that
,as& at that time the eastern region of the ne,l% created Pa"istan.
The branch opened mainl% to facilitate the post ,ar re-establishment
and expansion in outh 8ast Asia. The ban" opened its 'rst branch in
5ha"a in ()== and shifted it;s headquarter from Chittagong to 5ha"a
after the birth of the Republic of Bangladesh in ()0( the ban"
increasingl% in!ested in people& technolog% and premises as its
business gre, in relation to the countr%;s thri!ing econom%. 8xtensi!e
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"no,ledge of the mar"et and essential expertise in ,ide 'nancial
ser!ices underline CB;s strength to build business opportunities and
institutional clients at home and abroad. Continuous upgrading of
technolog% and control s%stem has enabled the ban" to o$er ne,
ser!ices& ,hich include unique AT/ and Phone Ban"ing on a *-hour
basis.
PART-III
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3.0 !redit !*rd3.0 !redit !*rd
3.1 +h*t is * !redit !*rd ,3.1 +h*t is * !redit !*rd ,
A plastic card issued b% a ban"& li"e tandard Chartered Ban" or b%
other 'nancial institutions. It is also "no,n as plastic mone%. The
credit cards are personali9ed to the user bear the user name&
photograph and signature and are magneti9ed ,ith unique cardnumber.
Credit card allo,s cardholder mainl% to bu% goods and ser!ices for
the retailers or shops ta"e cash ad!ances from AT/s or branches pa%
their utilit% bills.
6n purchasing goods and ser!ices for the selected shops& called
merchants& retailers are paid directl% b% the ban"& less a ser!ice
charge.
Card holder recei!es monthl% statements from the credit card unit of Card holder recei!es monthl% statements from the credit card unit of
the ban"& ,hich ma% be paid in full ,ithin a certain number of da%sthe ban"& ,hich ma% be paid in full ,ithin a certain number of da%s
,ith no interest charged. Card holders ma% ma"e a speci'ed,ith no interest charged. Card holders ma% ma"e a speci'ed
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minimum pa%ment >t%picall% of the outstanding3 and pa% interestminimum pa%ment >t%picall% of the outstanding3 and pa% interest
on the outstanding balances.on the outstanding balances.
Credit Card allo,s customers to enjo% re!ol!ing credit as repaidCredit Card allo,s customers to enjo% re!ol!ing credit as repaid
amounts can be redra,n up to the allocated limit of the credit card.amounts can be redra,n up to the allocated limit of the credit card.
In modern time in most of the countries Credit Cards are !ie,ed as aIn modern time in most of the countries Credit Cards are !ie,ed as a
prime pa%ment instrument& a safer substitute for cash.prime pa%ment instrument& a safer substitute for cash.
3.2 &istoric*l (*c-ground
In toda%s econom%& the pa%ment s%stem has come a long ,a% since
the da%s of barter. The concept of cards or plastic mone% ,as 'rst
introduced b% :estern ?nion in the ?nited tates in ()(*. The s%stem
,as !er% ,ell appreciated b% e!er%one and began to spread out in
other contexts also. In ()*& eneral Petroleum Corporation of
California introduced their o,n fuel card to be used at their oil
stations all o!er the countr%. This ga!e their customers the pri!ilege of
bu%ing gas from all the general petroleum outlets ,ith this card
instead of using cash mone%.
The popularit% of card encouraged the ban"s to introduce this product
to their customers. Ban" credit card ,as 'rst introduced in the ?Ain () b% the 4ran"lin Dational Ban". But the rising cur!e of the
credit card popularit% started in the later half of the =1s. ()1s
,itnessed introduction of tra!el E entertainment cards such as 5iners
club& American 8xpress and Carte Blanche. The incident that
triggered the constitution of the 5iners Club is quite fascinating. The
founder of 5iner Club Robert /cnmara once experienced
entertaining guests at a De, For" restaurant. This incident ga!e birth
to the idea of charge cards.
Barcla%s Ban" of the ?@ introduced Barcla%card in ()==. This ,as
follo,ed b% Access Credit Card launched jointl% b% 7lo%ds Ban"&
/idland Ban"& Dational :estminster& :illiams E l%ns and the ro%al
ban" of cotland.
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Tra!el and entertainment cards are used as a method of pa%ment onl%
and not considered as credit cards. In ()+& American 8xpress
introduced their corporate cards ,hich has toda% become the most
,idel% used charge card in the ,orld. Consequentl% in ()== /aster
charge E Ban" Amricard >,hich later came to be "no,n as
/asterCard3 and in ()00 GIA ,ere born. Both /asterCard
international and GIA international are scheme operators ,ho
operate all around the ,orld through a ,ide range of established
ban"s li"e Citiban"& #ong @ong hanghai Ban" and ADH rindla%s
Ban"& tandard Chartered Ban" etc.
3.3 "ypes of !*rd
The basic underl%ing h%pothesis of plastic cards is that a cardholder
can use that card as a medium of pa%ment at di$erent points of sales
>P63 in the place of cash currenc%& in a standard situation& e!er%
transaction through cards in!ol!es three parties. The% are
>(3 Cardholder
>3 The card issuing ban"
>3 The merchant. #ere the card issuing ban" acts as an intermediar% bet,een the card
holder and the merchant.
There are se!eral cards being used around the ,orld. The main
Categories ha!e been discussed in the proceeding sectionJ
3.3.1 !redit c*rd
Credit card as a substitute for cash or cheque and ser!ices is
becoming increasingl% popular ,ith public since its introduction in the
mar"et. lobal acceptabilit% is the sign for the success of credit card.
It pro!ides t,o aspects of ban"ing function togetherJ the transmission
of pa%ment and granting of credit. The s%stem is mutuall% attracti!e
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to parties in!ol!ed in credit card operation-card holder& merchant and
ban".
A credit card has a limit on the amount the cardholder can spend on
it2 but at the same time it has the ad!antage of re!ol!ing credit. B%
de'nition& KA Credit Card is a card ,hich allo,s the cardholder to pa%
for goods and ser!ices or dra, cash& up to a predetermined card
spending limit and enables him to pa% o$ the outstanding balance
o!er from one statement to another. This charge co!ers the ban"s
expenses of carr%ing unclear debit balances in the cardholders
accountL.
3.3.2 is* *nd M*ster!*rd !redit c*rds
Gisa and /asterCard are t,o scheme operators ,ho operate all o!er
the ,orld through established ban"s li"e #BC& tandard Chartered
Ban"& Citiban" etc. A ,orld ,ide "no,n brand li"e GIA or /aster
Card is a !er% good example of strategic branding of ser!ices. ?se of a
single brand all o!er the ,orld helps the users or cardholders b%
allo,ing them to deri!e maximum utilit% from their cards.
As a scheme operator GIAM /asterCard ,or"s as a lin"age bet,een the
card issuing ban" and the card ser!icing ban" here the card ser!icing ban"
is a member of the scheme operators curtail and it pro!ides di$erent
establishments in its localit%.
3.3.3 !h*rge c*rds
Charge card is a card ,hich allo,s the card holder to purchase goods
or ser!ices in a st%le similar to credit cards but ,ithout the pro!ision
of deferred pa%ments. The outstanding balance o,ing at the end of
each billing c%cle must be cleared in full b% pa%ment ,ithin due date
,hich is usuall% is da%s from statement date. Charge cards do not
ha!e spending or credit limits but the issuer normall% establishes a
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spending pattern based on the cardholders usage !olumes and
in!estigations abnormall% excessi!e of large transactions. 8xamples of
charge cards include American 8xpress& 5iners club E NCB cards.
3.3.4 %ebit !*rd
A debit card is issued b% a ban" to its account holders against a
minimum le!el of deposit in their account. Then after regular inter!als
>usuall% 1 da%s3 the transaction amount is debited from the
customers account along ,ith the ser!ice charge.
3.4 "he !redit !*rd "r*ns*ction /rocess
:hen a transaction through credit card is initiated& it in!ol!es four parties
and the% areJ
Credit card holder Card issuer Ban"
Acquirer Ban"
/erchant
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igure 1 "r*ns*ction /rocess of !redit !*rd
The merchant is a business establishment ,hich has the facilities to
accept credit card as a form of pa%ment for goods and ser!ices. To
ha!e this facilit% the merchant needs to formali9e an agreement ,ith
a ban" ,hich is called the acquirer ban". 4or scheme operators li"e
GIA or /asterCard& ,ho operate ,orld ,ide through a number of
member ban"s the acquirer ban" and the card issuer ban" are usuall%
t,o di$erent ones.
A credit card transaction is accepted b% a participating merchant on
the basis of either recei!ing a !oice or electronic authori9ation or if the transaction is under a certain !alue >
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This authori9ation also protects the merchant from accepting lost or
stolen card being presented b% an% person other than the cardholders.
In technicall% ad!anced countries& this authori9ation is done
electronicall% ,ith the help of electronic de!ices.
After this transaction bet,een the cardholder and the merchant has
ta"en place& the merchant obtains compensation from the acquirer
ban" amount less a certain ser!ice charge and claims compensation
from the card issuer ban" through the scheme operator.
The issuing of a credit card in!ol!es the creation of a credit
relationship bet,een the issuer and the cardholder. The issuer ,ill
perform a series of in!estigations to establish the reliabilit% of the
customer before pro!iding a credit limit and a card. The cardholder
,ill recei!e a statement of
transactions from the issuer on a regular basis& ,hich ma% include
cash ad!ances& sales and
interest charges and request a minimum pa%ment of the balance
outstanding. A similar process is follo,ed ,hen an acquirer ban" selects an
establishment for becoming a merchant. The establishments past
business records& 'nancial performance& and ban";s recommendation
along& ,ith man% more details are scrutini9ed before choosing it as a
merchant and pro!iding it ,ith the necessar% logistic and bac"up
support to accept cards.
3. -ey benets of St*nd*rd !h*rtered !redit c*rds
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+ide #ccept*nce
tandard Chartered Ban" issues both GIA and /asterCard Credit
Cards& the t,o ,idel% accepted cards. o& the customers can bu%
an%thing from clothes to meals in exclusi!e restaurants to airline
tic"ets to hospital bills. An% outlet that accepts Gisa or /asterCard
,ill entertain our cardholders.
The% ha!e >CB3 at present& agreements ,ith 11 merchants all o!er
Bangladesh. But their cards are accepted in almost *11 outlets. The
number is gro,ing e!er%da%.
Substitute of !*sh
it is the primar% bene't of credit card. Through cards one can bu%
almost an% thing on credit ,ithin the credit-limit. Therefore people
can go for their desired products and ser!ice and not bother ,hether
the% are carr%ing enough cash ,ith them or ha!e enough cash in their
ban" account. It enhances the purchasing po,er of the customer and
gi!es them opportunit% to shop an% time as the% li"e.
S*fety
Customers do not need to carr% cash to purchase goods and ser!ices.
Through credit card customer can settle hisMher dues to obtain credit in
shops& hotels& restaurants& petrol stations& etc.
Supple5ent*ry !*rd
tandard Chartered credit card holder can enjo% the con!enience of
supplementar% card for cardholders spouse& children o!er (+ %ears of
age or an% famil% members or friends. Cardholder can set the
spending limit of cardholder choice& ,hich ,ill be the maximum
amount that the supplementar% cardholder can spend in one billing
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c%cle. A supplementar% cardholder can enjo% all the bene'ts that onl%
cardholder can.
'5ergency $eed
In cases of emergenc%& cardholders can get instant cash ad!ances up
1 of card limit from an% of their AT/s * hours in a da%. ince
non-account holder also can be a credit card holder& so non-account
holder also can use their AT/ through credit card.
!onvenience
Cardholders can pa% their utilit% bills through the Auto Bills Pa%
cheme. Customers no longer ha!e to stand in long queues of the
ban" pa% utilit% bills.
Insur*nce !over*ge
Cardholders enjo% free an% accidental death insurance co!erage.
/oreo!er under the afet% Det insurance scheme& in case of death or
total permanent disabilit%& the ban" ,ai!es the total outstanding on
the card.
Inst*ll5ent o*n f*cility Customers can con!ert speci'c purchases into installment loans
through the InstaBu% scheme. Cardholders can bu% merchandise and
pa% them at a lo,er interest rate than most unsecured loans in the
mar"et. /oreo!er in certain special campaign& customers are o$ered
H8R6 interest rates loan facilit% for certain products.
6ifts *nd Re7*rds
Cards ha!e an ongoing re,ards campaign ,here customers get
di$erent gifts based on the Treasure Points that the% get on their
purchases of di$erent goods. Besides that Cards al,a%s ha!e some
sort of campaign or other going on.
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3.8.!redit i5it
!*rd "ype #5ount/aster M Gisa Card>7ocal3
B5T (1&111 B5T )1&111
old /aster Card >7ocal3 B5T (11&111 B5T *11&111Platinum /aster Card>7ocal3
B5T *11&111 +11&111
Gisa il!er ?Q 11 ?Q *&11 Gisa old ?Q &111 ?Q 1&111
"*ble 3
3.6.6 Debt Burden Ratio0<
3.8.= Secured !*rd >oc*l ? Int@lA
" B0<
3.8.C (usiness 'Distence >for self9e5ployed onlyA
1 :e*r E oc*l
3.8.B Mini5u5 Rep*y5ent >1 d*ys *fter the
st*te5ent d*teA
oc*l E &igher of < ? (%" 00
Intern*tion*l E &igher of < ? ;SF 10.
3.= 6ener*l diGerences bet7een gold H silver c*rd
oc*l *nd Intern*tion*l c*rds
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3.=.1 6old c*rd *nd Silver c*rdsold Cards are for people ,ith a higher le!el of income and ,ith
auent lifest%les. ome of the attribute di$erences of the gold and
sil!er cards are&
!riteri* 6old
!*rd
Silver !*rd
/inimum monthl%
income
B5T &111 B5T (1&111
/inimum Credit 7imit B5T (11&111 B5T (1&111/aximum Credit 7imit B5T 11&111 B5T )1&111
Annual 4ees >Primar%
Card3
B5T 11 B5T (01
Annual 4ees
>upplementar%
Card3
B5T (&111 B5T 11
Card Replacement 4ee&
PID
Replacement 4ee& 6!er-
limit
Charge E 7ate Pa%ment
4ee
>Per c%cle3
B5T (& 11MCard S GAT B5T +11MCard S GAT
"*ble 4
4ees and charges are subject to frequent changes to adjust ,ith
mar"et condition and business priorities.
3.=.2 oc*l *nd Intern*tion*l c*rdsome of the attributable di$erences of the 7ocal and International cards are&
Intern*tion*l !*rds oc*l !*rds
;se Can be used outside
Bangladesh for Purchases
To be used onl% in
Bangladesh for
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other currencies. Purchases onl% in
B5TSecurity Issued against the
deposits of an Account
or an 8xport Retention
Ouota Account.
Issued full%
unsecured
Charge!urrency
Charges are all in ?5. Charges are in B5T
;s*ge If used locall% then
customers are a$ected b%
the currenc% con!ersion
rate. As cards bills aresettled against foreign
currenc% Accounts.Oper*tor GIA onl% GIA and /asterCard
both
"*ble
3.C %iGerent types of St*nd*rd !h*rtered !redit !*rdsJ
3.C.1 oc*l !*rd/asterCard old
/asterCard il!er
Gisa il!er
3.C.2 Intern*tion*l !*rd Gisa il!er
Gisa old
3.C.3 !*rds *lso c*n be used in (*ngl*desh
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/asterCard il!er
/aster Card old
/aster Card Platinum
Gisa il!er
3.C.4 !ric-et !*rd There is no di$erence in Gisa il!er and
/asterCard il!er from tandard Chartered point of !ie,. 6nl% is that
some retailers accept Gisa ,hile some accept /asterCard depending
on the acquiring membership respecti!e retail shops holds. The
merchants of tandard Chartered accept both GIA and /asterCard.
The tandard Chartered Cric"et Card is the latest edition to thetandard Chartered famil% of Cards. This is an exciting !alue-pac"ed
o$er that has the ,hole to,n buKKing. or e!er% Ta"a spend b% the
cardholders CB ,ill donate a portion of that amount to the cric"et
de!elopment fund. :hene!er Bangladesh ,ins a Test or an 65I& CB
,ill double the re,ard points on the purchases made b% the Cric"et
Cardholders in the next ( da%s of the victory. !ric-et cardholders
,ill get discounts at di$erent sports stores. The 'rst fe, successful
applicants ,ill be gi!en a special Cric"et benets. "he abo!e-
mentioned bene'ts are the special bene'ts that are exclusi!e to the
Cric"et Card. Beside that& Cric"et Card holders ,ill get all the usual
bene'ts of a credit card including re,ards program& afet% Det&
InstaBu%& Auto bills Pa% etc.
3.B &o7 do the #uto (ills p*y Syste5 7or-, Auto Bills pa% is a simple method of pa%ing utilit% bills. Cardholders
,ho enroll into the scheme don;t ha!e to stand in line at di$erent
ban"s or other collection o$ices. Currentl% there are ) ser!ice
pro!ides under the scheme.
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3.B.1 e*tures *nd #dv*nt*ge There are some features
and ad!antages of Auto billspa%.The areJ
#assle free transaction
Con!enient
8as% trac"ing
imple and eas% to appl%.
3.B.2 /*rticip*ting Merch*nts
/obile Phone rameen Phone& A"tel&Cit%cell& Blin"
IP Accesstel& Agni& B67Cable TGJ Prisms 5igital?tilit% Compan% 5esa& 5esco
"*ble 8
CB cardholders& ,ho are also customers of these utilit% companies&
can issue a standing order& through ,hich their bills ,ill be
automaticall% paid& in full& at the respecti!e billing date. The pa%ment
of the bill is subject to the a!ailable credit in the credit limit of the
cardholder.
If there is insu$icient credit to meet the bill amount& the billing
compan% informs the cardholder that his Auto Bills pa% has been
declined and he needs to pa% in the bill through other channels.It is
possible for a cardholder to pa% the bills of more than ( utilit% or or
more bills of the same utilit% can be paid through the same card.
/eaning ( person can pa% his and other;s bills as ,ell.
3.B3 I5port*nt /oints
ubscription
5ocumentation
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Acti!ation
5isputes
3.10 Card cheque
CB 'rst introduces cheque against credit cards. A cardholder can
issue a cheque for the total limit of the card if the amount is a!ailable.
The cheque is account pa%ee. The card holder is charged onl% ( of
the amount and can enjo% a max. 6f * da%s and min.( da%s interest
free period >I the pre!ious month is totall% paid3.
3.10.1 e*tures *nd #dv*nt*geJ
:ider Acceptance
4lexible Transaction
/ore Con!enience
afe and ecure
Additional Card Cheque for upplementar% Card holder
Re,ard
3.10.2 ees *nd !h*rgesJ
(. card Cheque Boo" 4ees2
B5T (11 for 7ea!es Cheque Boo"
B5T (1 for (1 7ea!es Cheque Boo"
. Card Cheque Prossing 4ees2
(.11 of the Card Cheque transaction amount.
3.10.3 I5port*nt /ointsJ
?sage Area
?sage 7imit
ubscription
Time 7ine to get the Cheque Boo"
7ost Cheque M Cheque Boo"
Re,ard Point
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3.11 '9S"#"'M'$"
3.11.1 +h*t is '9S"#"'M'$",
The subscriber of e- statement ,ill be able to recei!e their monthl%
statements through e-mail. This is an alternati!e of printed statement.
Through e-statement& Credit Card statement can be recei!ed
an%,here in the ,orld. This program has been launched from (
st
Nune&11.
3.11.2 e*tures *nd #dv*nt*ge
4ast& eas% and hassle free.
Do charge.
/ultiple emailing facilities.
Increases securit% and con'dentialit%.
#assle free enrollment.
3.11.3 '9St*te5ent Subscription /rocedure
The customer ,ill 'll out the application form and it ,ill be
collected b% the sales executi!es.
The sales executi!es ,ill submit the form to the Portfolio o$icer.
The application form ,ill be processed b% the operations
department.
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6nce e-statement is acti!ated& the customer ,ill immediatel%
recei!e a :87C6/8 /essage >email3 con'rming the receipt of
the completed e-statement application form.
The monthl% Credit Card e-statement ,ill be in P54 format&
,hich can be !ie,ed b% Acrobat Reader.
If customer does not ha!e Acrobat Reader& it can be do,nloaded
from ,,,.Adobe.com for free.
3.12 &o7 co5e Inst*buy is such * big hit,
InstaBu% is the ne, scheme of tandard Chartered Credit Cards.This is an
installment plan ,here CB Credit Card #olders can transfer their
purchases to the
installment loan account and repa% in 8qual /onthl% installment
>8/I3.
3.12.1 e*tures *nd (enets Abilit% to ma"e high !olume purchase.Do further credit appro!al or documents require.Do opening fee.Con!enience to pa%bac" in =&(&(+&* or = months onInstallments.Re,ards points earned on all Instabu%.8njo% 1 interest rate for purchase from particular merchants.
3.12.2 I5port*nt /oints Galid onl% in 7ocal cards.Can transfer more than one transaction to Instabu% plan.Transaction amount has to be more than B5T 11.
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3.12.3 Rep*y5ent f*ctor
Months /*y5ent *ctor Monthly Inst*ll5ent
= (.1+*+ B5T (&**= ( (.(=) B5T 0+1 (+ (.* B5T 0 * (.)1 B5T **= 1 (.*+ B5T +1 = (.1+ B5T
"*ble =
3.13 +h*t is S*fety $et ,It is an insurance Co!erage safeguarding tandard Chartered Ta"a
Cardholders against life; uncertainties. In case of 5eath or an%
Permanent Total 5isabilit%& card outstanding ,ill be ,ai!ed b% the
ban". This program has been launched from (st Nune&11.
3.13.1 e*tures *nd #dv*nt*gein*nci*l security in ti5es of need
In case of total permanent disabilit% or death& the total outstanding on
the credit card ,ill be ,ai!ed& ,ithout causing an% incon!enience of
lo!ed ones.
ery no5in*l 5onthly ch*rge
6nl% 1. of the last credit card statement balance. 4or instance&T@.
(111 outstanding ,ill ha!e a charge of onl% T@. ..It ,ill be charged
to the account on the (st da% of each month.
ree cover*ge for tr*ns*ctions on supple5ent*ry c*rd
ince all supplementar% card transactions are charged to the primar%
card holder;s account& afet% net also co!ers supplementar% card
holder transaction.
ree t7o 5onths tri*l period
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4irst t,o months& afet% Det can be enjo%ed absolutel% free of charge.
tatement ,ill sho, Kafet% Det Insurance chargeL.
5uring trial period& there ,ill be another reser!e transaction.
#uto5*tic *nd h*ssle free enroll5ent
Do forms ha!e to be 'lled.
If no call recei!ed ,ithin the 'rst t,o months& card holders ,ill
continue to bene't from afet% Det.
If protection is not preferred& card holders ,ill call them and request
for de-enrollment.
3.13.2 I5port*nt /oints
ree tri*l period
4or existing clientsJ next months.
4or ne, card holdersJ months after hisMher card issued.
Insur*nce !l*i5
After the incident card holder can call them or ,rite to them& and
necessar% papers ,ill be sent to the card holders for claming the
bene'ts.
Restrictions
As ,ith an% other insurance polic%& restrictions and disclaimers ,ill appl%.
uggest reading of terms and conditions.
Insur*nce !o5p*ny
To be disclosed onl% if customer requests. American 7ife Insurance
Compan% >Alico Bangladesh3& a compan% of repute has been operation
since ().
3.13.3 S*fety $et !l*i5 /rocedure
Cardholder;s famil% ,ill contact Customer er!ice-CAs ,illinform the famil% o send an application claming afet% net
Insurance and also inform the famil% that death certi'cate and
other documents ,ill be required for processing the claim. The
ban" ,ill contact them later regarding the documents required.
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P?77U er!iceJ
Through pull ser!ice& the customer ,ill be able to access Credit
CardMAccount;s pre!ious da%;s outstanding b% t%ping a pre-de'ned
@e%,ord >CAR5 for Credit Card and ACC for Account;s.3 ,ith a * digit
PID as a message in the mobile phone and then send the message to
00.
imple and Con!enientJ
:ith / ban"ing& customer does not ha!e to ,ait for the statements
to arri!e through mail or call up at Cards Call Centers. / ban"ing
,ill pro!ide *- hour access to the "e% 'nancial information of Credit
CardMAccount.
3.14.3 SMS (*n-ing Subscription /rocedureJ
To sing up for / ban"ing& the customer needs to 'll-out /
ban"ing form.
The customer ,ill 'll out the application form b% pro!iding a *
digit Pin.
The sales executi!es ,ill collect and submit the form to the
Portfolio 6$icer.
The application form ,ill be processed b% the operations
departments.
CB ,ill require 0 ,or"ing da%s to acti!ate the ser!ice.
3.14.4 I5port*nt /oints of SMS (*n-ing
In case of Ban" Account& CB ,ill accept application forms
signed b% the authori9ed signatories of the account onl%. In case
of Credit Cards ,ill accept application forms signed b% the
PRI/ARF cardholder onl%.
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The accountholderMCardholder is solel% responsible to ensure
the possession of the /obil phoneMConnection assigned to /
ban"ing ser!ice to maintain the con'dentialit% of hisMher
'nancial information.
/ ban"ing er!ice shall remain e$ecti!e until other,ise
ad!ised in ,riting b% the AccountholderMCardholder& ,hich
should reach the Ban" at least one ,ee" the next statement is
due.
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3.1 +h*t is the Re7*rd /rogr*5, #nd ho7
does it 7or-
The Re,ards Program of the Credit at CB is a scheme to ma"e thecredit card experience more exciting for the cardholders.
In this program& Cardholders accumulate Treasure Points for the
Purchase on their credit cards. 4or e!er% T@. 1 of purchaseCardholders ,ill accumulate ( Treasure Point. Through the treasure
points& cardholders ,ill be entitled to exclusi!e gifts or !ouchers from
selected merchant establishments across the countr%.
The Treasure Points necessar% for a speci'c gift is gi!en in the
boo"let that each customer recei!es along ,ith his credit card.
8xisting customers ,ere mailed the boo"let at the start of the
campaign. The boo"lets are also a!ailable& in limited numbers& at the
Branches.
The customers ha!e no fear of an% portion loss here. In other ,ords& if
someone purchases T@. 1 at month;s end& he gets (1 points for the
T@. 11 and the T@. 1 is held and ,ill be added to next month;s
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point;s accumulation. o& customers get points for e!er% Ta"a that
the% purchase on their CB Credit Card.
8ach month;s statement includes the points accumulated b% the
customer till date. o customers can trac" their point;s accumulation.
Customers can redeem their Treasur% Points for pri9es& b% either
'lling in a re,ards cheque or b% calling in at a gi!en number. :ithin a
,ee" the Re,ard release Goucher ,ill be sent to the customers.
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PART I
4.1 Popular Cards in BANGLAD!"#
CB has !arious t%pes of 7ocal as ,ell as International Credit Cards.
Among the Credit Cards& /aster Card is more popular no, a da%&
because of the merchant >P& A@T87& CITFC877& B7& etc3 out let.
Pre!iousl% !isa Card ,as popular. But no, /aster card old& /aster
Card il!er& /aster card Platinum are more popular in Bangladesh.
4.$ %nterest rate in Ban&ladesh#
The interest rate charge for Credit Card is . monthl% and .1+dail%.
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4.3 Custo'er de'and (or Credit Card in Ban&ladesh#
Credit Card has a tremendous demand in Bangladesh2 especiall% CB
Credit Card. CB has (11&111 customers of Primar% Card and(1&111 customers for upplementar% card. 8!er% da% the% are
increasing their customer in a numerous ,a%. 11 to *11 customers
the% are retaining e!er%da%.
4.4 !ocial %'pact o( Credit Card#
6ur countr% has become more de!eloped than before. De,
technologies are using in man% sector. 8arning pro't is not onl%
concern of the business2 the% also thin" about the customer
satisfaction. 7i"e other sector pri!ate ban"s are also concern of
customer satisfaction. o& for the sa"e of the customer pri!ate ban"s
introduced Credit Card in Bangladesh.
/aximum pri!ate ban"s use on-line ban"ing s%stem. Credit Card is
one of part of 6n-line s%stem. There is also another t%pe of card&
,hich is AT/ card. Both the card got the same popularit% in
Bangladesh. B% the Credit Card the card holder can purchase
an%thing form there ,here the Credit Card is allo,ed. Credit Card
holder also can dra, cash but onl% from the Credit Card booth. There
is limit speci'cation that& up to that amount& the card holder can
purchase.
Credit Card is nothing but ta"ing short term loan from ban"s. Thecard holder does not need to go to ban"s to ta"e the loan.
Do, a da%& the Credit Card is so popular in Bangladesh& that
maximum account holders are using it. Customer li"e to use it
because& it reduces the ris" of carr%ing cash all the time. Credit Card
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s%stem is changing the !ie, of ban"ing s%stem. People of Bangladesh
are no, loo"ing for easier and faster ban"ing s%stem for mone%
transaction and for ta"ing loans. afet% is another reason of carr%ing
Credit Card instead of carr%ing cash. The concept of Credit Card
changed the thin"ing pattern of the people.
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PART
.1 Conclusion:
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CB ban" is still regarded as a reliable ban" and the gro,ing
number of its customers indicates its acceptance among clients. It
is !er% common statistical sa%ing that it is times costl% to get ane, customer than retaining the customer. It is also noted that
getting a credit card and closing it is expensi!e. In both cases a
number of time consuming steps ha!e to be ta"en from the ban"
and the customer. ince CB has been able to increase the number
of card holders& it no, should ta"e care on the matter of pro!iding
qualit% of ser!ice.
The !arious s%stems of a Credit Card for customer ser!ice are a
positi!e mo!e to,ards greater qualit% ser!ice. But the ban" needs
to o!ercome the lac" of internal co-ordination bet,een the
departments. To "eep up the ser!ice qualit%& the ser!ice pro!iders
need regular moti!ations. The customers should also be
enlightened regarding the ser!ices of Credit Card and more
ad!ertisement is a must to boost the Ban"s reputation.
It is !er% true that the most of the customers do not hesitate to
expression CB as a better than other ban". But it should be
considered that the customers ha!e !er% fe, choices of ban"s ,ith
,hich the% can actuall% compare the online ser!ice of CB. The
nationali9ed ban"s of Bangladesh alread% ha!e earned a bad
reputation in ser!ing customers. Again among the foreign pri!ate
ban"s li"e #BC& A/8V is the ban"s that ha!e ,idened operation
li"e CB. 6ther pri!ate ban"s ha!e limited operation in limited
locations. The local ban"s ha!e recentl% focused their attention tocustomer ser!ice& satisfaction and also Credit Card er!ice.
/oreo!er there are a good number of pri!ate ban"s that are
coming into the competition soon. Therefore it is better for CB not
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to let the situation be ,orst and should emphasi9e on ser!ing
customers e$ecti!el% and e$icientl% to ensure better ser!ice.
6.1 Recommendation:
The customer should be encouraged b% o$ering ne,
bene'ts to retain the Credit Card holders.
Pro!iding an authori9ation for a card is to sanction an
unsecured loan. There are fraud issues related to it.
ometimes the agent has to ta"e appro!al from the
merchant di!ision to pro!ide authori9ation. ince
authori9ations are a !ital ser!ice pro!ide& t he merchant
di!ision should be more accessible in terms of issuing
Credit Cards.
The customer needs to be encouraged to use the CB
Credit Card. pecial campaigns could be launched for the
purpose. CB should also be moti!ated to encourage for
more customers. The Credit Card needs more ad!ertising
and campaigns to encourage customers.
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7.0 BIBLIOGRAPHY
777.st*nd*rdch*rtered.co5
777.google.co5
in*nci*l Report 03040 of S!(
Md. I5r*n #li /roduct Service OGicer !usto5er Service #ssur*nce %ept. &*di Mension (r*nch S!(.
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