Comparison of Comparison of Payment CardsPayment Cards

Laura Baruch

Shannon Johnson

Jindra Předotová

AgendaAgenda HistoryHistory Profiles of USBank Corp. and HVB BankProfiles of USBank Corp. and HVB Bank Debit CardsDebit Cards Credit CardsCredit Cards Lost Card ProcedureLost Card Procedure Payment Card UsagePayment Card Usage Incentive ProgramsIncentive Programs

United States Banking HistoryUnited States Banking History First Bank of the United States

Chartered by Congress February 25, 1791

Alexander Hamilton

Handled financial needs and requirements

Established an excise tax

Established financial order for the newly formed United States.

Established credit—both in country and overseas

United States Banking HistoryUnited States Banking History Second Bank of the U.S.

1816, chartered 5 years after expiration of First Bank

U.S. President James Madison

Goal: Stabalize currency

Philedelphia, Pennsylvania

Political Corruption and fraud

United States Banking History

Free Banking Era 1837-1862

National Banks 1863-1913

1913 Creation of the Federal Reserve System

Czech Republic Banking HistoryCzech Republic Banking History Under communism

centrally planed, under a control of state

Privatization Banks were sold to private companies

Present banking runs on the market principals currently 36 banks supervision is provided by the Czech National Bank

Profile of the USBank Corp.Profile of the USBank Corp. Assets in excess of $221 billion

6th largest commercial bank in the U.S.

Operates 2,498 banking offices

4,837 ATMs

Service products: banking, brokerage, insurance, investment, mortgage, trust and payment

Customers: personal consumers, businesses and institutions

Free internet Banking, live telephone bankers 24 hours a day

Profile of the HVB BankProfile of the HVB Bank Entered into the Czech market on October 1, 2001

Focus: corporate and private clients

4th in the Czech market

Market share of 6%

In 2005, HVB became a member of the Unicredit group Unicredit group has more than 28 million clients

Assists its customers in financing their projects using EU Structural Funds

Specializes in enterpreneurs and small business

Unicredit Worldwide OperationsCountries where the Group operates via its own branches

Countries where the Group operates via local banks controlled

Mumbai

New York

Rio de Janeiro

São Paulo

Seoul

Singapore

Shanghai

Sydney

Teheran

Tel Aviv

Tokyo

Abu Dhabi

Bahrain

Beijing

Boston

Buenos Aires

Cairo

Guangzhou

Hanoi

Hong Kong

Johannesburg

Mexico City

Miami

Debit CardsDebit Cards USBank Corp.

Debit card can only be opened with a Checking Account Account requirements for “Free Checking with Interest”

Minimum Opening Deposit - $100.00 Minimum daily Balance – None Monthly Maintenance Fee – None

Free ATM Transactions at U.S. Bank ATMs $3.00 transaction fee at other non-U.S. Bank ATMs

Additional Fees Insufficient fund fee – Variable

For each withdrawal transaction that exceeds your available balance on a given day. (e.g. in-person, ATM, automatic payment, or other paper or electronic withdrawal transaction)

Overdraft fee - $30.00 For every transaction that causes the available balance to become negative

Availability of ATMs: 4943 U.S. Bank ATMs 1,000,000 Visa ATMs*

*U.S. Bank only partners with VISA credit card company

Debit CardsDebit Cards HVB Bank

Account requirements: bank account (0-399 Kč)

ATM fees: normally 30 Kč, product packages have no fee

1,540 cashpoints and 28,000 acceptance places

Mastercard, Visa and Diners club Standard cards, business cards,

Gold cards and Diners club Automaticaly blocked for paying

on the internet

Debit cards 87%

Credit cards

8%

Charge cards

5%

Charge Cards 5% Credit Cards 8%

Debit Cards 87%

Credit CardsCredit Cards USBank Corp.

APR: 0% for the first 6 months, then 14.24% to 23.24% Annual Fee: $0 the first year and every year that you charge at least one purchase

to the Account. Otherwise $20 Available card companies – VISA sponsored by multiple companies from NWA to

GYMBOREE Grace Period – 20-25 days for purchases only Minimum Finance Charge - $2.00 Account management fee: $2.50 per month Fraud Protection: Zero Liability Program Conditions for getting Credit card:

Age: 18 years or older Completed Application Active Checking Account Proof of residency

Credit CardsCredit Cards HVB Bank

Interest rates: 0.5% – 1.99% Fees for bank account: 0-30 Kč Fees for withrawals: 60 Kč Up to 45 days without interest Conditions for getting Credit card:

Age: 18 years or older Monthly income greater than 9,500 Kč Proofs (ID, pass port, confirmatin of income, bills for

phone...)

Lost Card ProcedureLost Card Procedure USBank Corp.Lost Card

U.S. Bank Zero Liability Policy Check Cards: cannot use without pin number Fraudulent purchase: report, reimbursed next business day after

verification of claim

Issuance of new card 7-10 business days, 2 days rushed Expiration date: 4 years both debit card and credit card

Lost Card ProcedureLost Card Procedure HVB BankLost card

Stoplist 1500 Kč Blocation 300 Kč It is the customer’s

responsibility, same day, until midnight.

Issuing new card 10 working days Expiration dates: 1 year for

credit cards, 3 years for debit card

Use of Payment CardsUse of Payment Cards USBank Corp.

There were 278 million debit cards in U.S. hands in 2004, with 22.2 billion transactions amounting to more than $1 trillion.

56% of all American Families use credit cards as first choice of payment method.

Use of Payment CardsUse of Payment Cards HVB Bank

80% withdrawals

Increasing trend in terms of payment by card

Paying is free

7 ATM´s

Credit cards – in case of paying is noninterest period

Czech Republic Payment CardsProgress of payment cards - Czech market

0

1000000

2000000

3000000

4000000

5000000

6000000

7000000

8000000

2001 2002 2003 2004 2005

Number of debitcards

Number of creditcards

Whole number ofcards

Incentive ProgramsIncentive Programs USBank Corp.

Cash Rewards Travel Rewards Merchandise Rewards Earn Rewards for an

Affiliation Do Not Earn Rewards

Incentive ProgramsIncentive Programs HVB Bank

Insurance against the Loss of a Payment Card 

Travel insurance

Credit card: For inability for paying

Questions?Questions?