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INTRODUCTION

A credit card is part of a system of payments named after the smallplastic

card issued to users of the system. It is a card entitling its holder to buy goods and

services based on the holders promise to pay for these goods and services. A credit

card is different from a charge card, where a charge card requires the balance to be

paid in full each month.

Credit cards provide convenience and safety to the buying process. It enables an

individual to purchase certain products/services without paying immediately.

Credit card can, therefore, be considered as a good substitute for cash and

cheques.

What are Credit Cards and some details about them?

A credit card is a way of payment by using the plastic cards which are issued to

customers for their payment. Credit cards are different than the debit cards.

Credit card works differently from the debit card. It is issued after a

credit card application has been made to the issuer. The issuer then lends money to the

credit card holder generally on different rates of interest. And if a consumer is using

credit cards then it means he can reconcile his balance at the cost of charging interest

and it would make his payment period longer than before. Most credit cards are having

almost the same shape and size around the globe.

Credit cards work in a very simple way, a consumer is issued

a credit card after his application for credit card has been approved by concerning

authorities and a credit company shows its consent to issue the applicant a credit card.

Now the customer who has purchased the credit card will be able to buy things on

credit up to the limit of credit which was agreed upon by both parties in terms and

conditions.

A consumer can also used credit card online facilities to get benefit from his credit

card. This online credit card facility is easy to use and it is faster than the actual

procedures of cash transactions.

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Every credit card is supported by a credit card companies. Some of credit cards

companies are best and they offer very user-friendly credit cards. This kind of credit

card is one of the best credit card and their characteristics have no comparison with

any other type of credit cards.

In these cards the widely known cards are Visa Credit Cards & Master Credit

Cards they are used all over the world. You can apply for credit card in any credit

card company, or in a bank or you can also apply online for getting a credit card.

Different credit card companies and credit banks also maintain a system of credit

check to get their credit in times. So a consumer will not be able to deceive them by

using their credit cards.

This credit check is maintained regularly and if a credit card holder is not able to pay

his payments in the assigned time of payment then he will be given a grace period and

in a case he would not be able to pay his credit. His credit card would be blocked. And

he will not be able to make any further purchases from his credit card.

The rewards and points which person gets from using a credit card can be emerged

together and that would the credit card consolidation.

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History of Credit card :

Selling goods on credit, relying upon the credibility of the consumer has been

the practice of the merchants from time immemorial. Such a system helped both the

consumer and the merchant. In this context, credit cards were introduced as a viable

means of selling goods on credit with an aim of expanding sales and building a strong

customer base.

The credit card was the successor of a variety of merchant credit schemes. It

was first used in the 1920s, in the United States, specifically to sell fuel to a growing

number of automobile owners. In 1938 several companies started to accept eachother's cards.

The concept of using a card for purchases was invented in 1887 by Edward

Bellamy and described in his utopian novel Looking Backward. Bellamy uses the

explicit term "Credit Card" eleven times in his novel.

The concept of paying merchants using a card was invented in 1950 by Ralph

Schneider and Frank X. McNamara in order to consolidate multiple cards. The Diners

Club, which was created partially through a merger with Dine and Sign, produced the

first "general purpose" charge card, which is similar but required the entire bill to be

paid with each statement; it was followed shortly thereafter by American Express and

Carte Blanche. Western Union had begun issuing charge cards to its frequent

customers in 1914.

Bank of America created the BankAmericard in 1958, a product which

eventually evolved into the Visa system ("Chargex" also became Visa). MasterCard

came to being in 1966 when a group of credit-issuing banks established MasterCharge.

The fractured nature of the US banking system meant that credit cards became

an effective way for those who were travelling around the country to move their credit

to places where they could not directly use their banking facilities. In 1966

Barclaycard in the UK launched the first credit card outside of the US.

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There are now countless variations on the basic concept of revolving credit for

individuals (as issued by banks and honored by a network of financial institutions),

including organization-branded credit cards, corporate-user credit cards, store cards

and so on.

In contrast, although having reached very high adoption levels in the US,

Canada and the UK, it is important to note that many cultures were much more cash-

oriented in the latter half of the twentieth century, or had developed alternative forms

of cash-less payments, like Carte bleue, or the EC-card (Germany, France,

Switzerland, among many others).

In contrast, because of the legislative framework surrounding banking system

overdrafts, some countries, France in particular, were much faster to develop and

adopt chip-based credit cards which are now seen as major anti-fraud credit devices.

The design of the credit card itself has become a major selling point in recent

years. The value of the card to the issuer being related to the Customer's usage of the

card. This has led to the rise of Co-Brand and Affinity cards - where the card design is

related to the "affinity" (a university, for example) leading to higher card usage. In

most cases a percentage of the value of the card is returned to the affinity group.

Apnaloan.com' s credit cards section will give you tips on how to get your

card, use your credit cards wisely, what to do AND what not to do where you credit

cards are concerned.

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FEATURES OF MODERN CREDIT CARD

Any card that is used as a payment device to access a customer's financial

resources is referred to as a credit card.The card may be used during travel,home,for

purchases or at the Automated Teller Machines(ATMs) for credit or debit transactions.

It is also known as "plastic money",and it can be used for the purchase of all

kinds of goods and services.

Following are the salient features of the modern credit card:

Fees and Charges

The saying "there's no such thing as a free lunch" is particularly true when it

comes to credit cards. So work out exactly what fees you're likely to be paying, and if

it's possible to avoid them. For example, you may avoid paying interest if you pay the

balance off in full each month.

Annual Fee

When the credit card companies realised that some people really could be

disciplined and pay off their balance each month, they discovered they didn't make any

money. So in came the annual fee - basically to make sure you pay them something for

the use of their card. The good news is that with the credit card market being so

competitive, you can often negotiate to have this fee removed.

Cash Advance Fee

Nearly every credit card company will charge you a cash advance fee. Be

warned - some of them charge some very hefty cash advance fees.

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Wide Usage:

Bank credit is the most widely used payment device issued by banks.It is based

on the system of revolving credit whereby a credit limit is sanctioned to the customer

and can be availed in part or in full.Once the outstanding balance is paid,the credit

limit is restored for further use.The credit card holders can use the credit cards at

merchant locations to buy goods or services.Special credit cards can also be used to

obtain cash through ATM's.Going by their popularity all over the world,credit cards

have been a runaway sucess.

Owner Identification:

A credit card identifies its owner as the one who is entitled to purchase goods andservices without physical money and is eligible for credit from establishments.

Credit Limit:

The issuer, for the pupose of convenience and scrutiny,sets up a credit limit for its

cardholders and a floor limit for its merchants establishments.The convenience and

safety factors add value to these cards.

Technology Dependent:

The credit card business is typically a high volume low value business,with the

potential to break-even only beyond a certain volume of cards issued.the dependence

on technology is inevitable to keep the operating cost to the minimum

Other Fees

Credit companies are very good at coming up with fees for almost everything, socheck the fine print and make sure you know what they are. Some things to look out

for include over-the-limit fees, late-payment fees, return-item fees and set-up fees.

Mostly these can be avoided by careful management, but it's still handy to be prepared

if you ever get charged one.

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FACILITIES AND SERVICES :

Besides providing credit, the credit card organisations extend some additional

facilities to attract customers.Some of these facilities offered by banks are explained

below:

Risk Coverage

Depending on the type of card issued,some banks insure the cardholder free of

cost for a particular sum.For example,citibank offers a complimentary personal

accident insurance upto Rs.10lakhs in case of an air accident and upto Rs.2 lakhs in

case of any other accident.Similarly,the BOB card issued by the bank of Baroda

extends insurance protection to the cardholder's spouse also.It not only insures the

cardholder against personal accident to the tune of Rs.10lakhs in case of air travel,or

Rs.5lakhs in case of any other accident,but also gives the benefit of personal accident

cover even to a non-card holding spouse to the tune of Rs.2lakhs.

Twenty four hour service

The revolutionary phone banking service ensures that the banks extend 24 hour

customer service to assist the cardholder,all seven days a week.For example,SBI card

help line available for SBI cardholders,is of great help to cardholders and provides a

variety of information required by customers.

Supplementary cards

Supplementary cards are issued to the family members of cardholders. A

cardholder of any bank can obtain a maximum of two supplementary cards at the

prevailing card fee for the immediate family members.

Photocard Option

Credit cards are now being issued with the photograph and signature of the

cardholder digitally imprinted on the front of the card. These cards offer easier

recognition and extra security.

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Travel privileges

Banks provide travel assistance to their cardholders by offering a wide range of

services linked to airline and hotel bookings,discounted holiday packages, car rentals

and more. For example,Bank of Baroda has entered into a tie-up with I.T.C.

Similarly,Hong Kong bank has a tie-up with SITA World Travels to provide a package

of exclusive travel services such as tele-ticketing,special holiday and conference

packages,international and domestic tickets,car rental services,etc.

Service over phone

Credit cardholders of selected banks can use thier cards to pay for personal

expenses where credit cards are not yet accepted.This is posssible by instructing the

bank over the phone to make payments for mutual funds,public issues, HP down

payments, and paying telephone and electricity bills,besides issue of drafts.

Purchase protection

This facility protects the purchaser against damage or loss caused due to fire

and theft at no extra cost. the cardholder can claim the value of the product damaged

or lost from the New India Assurance Company. This protection is available for a

period of ninety days from the date of purchase of the product using the card.

Emergency cash withdrawal

Citibank cardholders can withdraw emergency cash of upto 60 percent of the

credit limit from ATMs in all leading metropolitan cities. The Indian Bank, however

does not restrict cash withdrawing power only to a few automated and/or metropolitan

locations,but allows cash withdrawals from all notified branches of the indian Bank

across the country.

Medical advance facility

Cardholders can draw upto Rs.15000 in case of medical emergencies for

meeting expenses on treatment at locations other than their home town.This facility is

available with all Indian and Foreign banks,depending on the type of card issued by

the bank.For instance,standard chartered bank offers 10 to 20 percent discount on

services at hospitals in leading cities across the country. This facility covers special

rates on medical facilities,diagnostic tests,checks-ups, lab tests,nursing charges, and

professional fees.

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COMPANY PROFILE

ICICI Bank: ICICI Bank is India's second-largest bank. The Bank has a network of

about 573 branches and extension counters and over 2,000 ATMs. ICICI Bank was

originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was

its wholly-owned subsidiary.

"ICICI Bank is India's second largest Bank with consolidated total assets of

over Rs. 470,000 crores and networth of over Rs. 50,000 crores. The Bank's capital

adequacy ratio of 15.6% is among the highest levels of capital adequacy in large

Indian banks and much higher than the regulatory requirement of 9.0%. ICICI Bank

made a profit after tax of Rs. 4,158 crore (over US$ 850 million) in FY2008 and Rs.

3,014 crore (US$ 619 million) in the nine months ended December 31, 2008."

ICICI was formed in 1955 at the initiative of the World Bank, the Government

of India and representatives of Indian industry. The objective was to create a

development financial institution for providing medium-term and long-term project

financing to Indian businesses.

ICICI Bank set up its international banking group in fiscal 2002 to cater to the

cross border needs of clients and leverage on its domestic banking strengths to offer

products internationally. ICICI Bank currently has subsidiaries in the United

Kingdom, Canada and Russia, branches in Singapore and Bahrain and representative

offices in the United States, China, United Arab Emirates, Bangladesh and South

Africa.

Today, ICICI Bank offers a wide range of banking products and financial

services to corporate and retail customers through a variety of delivery channels and

through its specialised subsidiaries and affiliates in the areas of investment banking,

life and non-life insurance, venture capital and asset management.

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ICICI BANK

Capital strength and Net profit :

Chart showing the ICICI bank capital strength with other banks and

increase in net profit by year by year. As below;

Net profit :

Net profit has been increased to more than 4000 crores in the financial year

2008.

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Origin of ICICI Bank :

ICICI Bank started as a wholly owned subsidiary of ICICI Limited, an Indian financial

institution, in 1994. Four years later, when the company offered ICICI Bank's shares to

the public, ICICI's shareholding was reduced to 46%. In the year 2000, ICICI Bank

offered made an equity offering in the form of ADRs on the New York Stock

Exchange (NYSE), thereby becoming the first Indian company and the first bank or

financial institution from non-Japan Asia to be listed on the NYSE. In the next year, it

acquired the Bank of Madura Limited in an all-stock amalgamation. Later in the year

and the next fiscal year, the bank made secondary market sales to institutional

investors.

With a change in the corporate structure and the budding competition

in the Indian Banking industry, the management of both ICICI and ICICI Bank were

of the opinion that a merger between the two entities would prove to be an essential

step. It was in 2001 that the Boards of Directors of ICICI and ICICI Bank sanctioned

the amalgamation of ICICI and two of its wholly-owned retail finance subsidiaries,

ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with

ICICI Bank. In the following year, the merger was approved by its shareholders, the

High Court of Gujarat at Ahmedabad as well as the High Court of Judicature at

Mumbai and the Reserve Bank of India.

Branches

ICICI Bank has a wide network both in Indian and abroad. In India alone, the bank has

1,420 branches and about 4,644 ATMs. Talking about foreign countries, ICICI Bank

has made its presence felt in 18 countries - United States, Singapore, Bahrain, Hong

Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative

offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia

and Indonesia. The Bank proudly holds its subsidiaries in the United Kingdom, Russia

and Canada out of which, the UK subsidiary has established branches in Belgium and

Germany.

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AWARDS & RECOGNITIONS

ICICI bank in 2008

The Asset Triple A Country Awards for Best Domestic Bank in India.

ICICI Bank wins the "Best Bank in India" Award from NDTV Profit-Outlook

Money

ICICI Bank wins the 'Excellence in Remittance Business 2008' award by The

Asian Banker

ICICI Bank wins Finance Asia Country Awards for Achievement 2008 for

Best Trade Finance Bank Best Foreign Exchange Bank

Best Private Bank

ICICI Bank wins the 'Excellence in Remittance Business 2007' award by The

Asian Banker

EuroWeek award for Most Improved Market Profile

The Asset Triple A Transaction Banking Awards, 2008

Best Trade Finance Bank in India Best Transaction Bank in India

Best Cash Management Bank in India Best Domestic Custodian in India

Global Finance Award for:

Best "Trade Finance Bank and Provider" in India

Best "Consumer Internet Bank" in India

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Present Scenario

ICICI Bank has its equity shares listed in India on Bombay Stock Exchange and the

National Stock Exchange of India Limited. Overseas, its American Depositary

Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). As of De

cember 31, 2008, ICICI is India's second-largest bank, boasting an asset value of Rs.

3,744.10 billion and profit after tax Rs. 30.14 billion, for the nine months, that ended

on December 31, 2008.

ICICI Bank concluded India's largest ever securitization transaction

of a pool of retail loan assets aggregating to Rs. 48.96 billion (equivalent of USD 1.21

billion) in a multi-tranche issue backed by four different asset categories. It is also the

largest deal in Asia (ex-Japan) in 2008 till date and the second largest deal in Asia (ex-

Japan & Australia) since the beginning of 2007.

Success story

Today, ICICI Bank,India has the largest market share and value among all banks in

retail or consumer financing. ICICI Bank is the largest issuer of credit cards in India. It

was the first bank to offer a wide network of ATM's and had the largest network of

ATM's till 2005, before SBI caught up with it.

ICICI bank now is widely seen as a sophisticated bank able to take on many global

banks in the Indian market. The bank is expanding in overseas markets. It has

operations in the UK, Hong Kong, Singapore and Canada. It acquired a small bank in

Russia

recently. It has tie-ups with major banks in the US and China. The bank is aggressively

targeting the NRI (Non Resident Indian) population for expanding its business.

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CLASSIFICATION OF CREDIT CARD

Based on mode of credit recovery:

Revolving credit card:

This type of credit cards follows the revolving credit principle. A limit is set on the

amount of money one can spend on the card for a particular period. The cardholder has

to pay a minimum percentage of the outstanding credit which may vary from 5 to 10

percent at the end of a particular period. Interest varying from 30 to 36 percent per

annum is charged on the outstanding amount.

Charge card : a charge card is not a credit instrument .It is a convenient mode of

making payment. This facility gives a consolidated bill for a specific period and bills

are payable in full on presentation. There is no interest liability and no pre-set

spending limits either.

Based on status of credit card:

Standard card : Credit cards that are regularly issued by all card issuing banks are

called Standard cards. With thesecards, it is possible for a cardholder to make

purchases withput having to pay cash immediately. Its however, offers only limited

privileges to cardholders. Some banks issue standard cards under the brand name

Classic cards. These cards are generally issued to salarised people.

Business card : Business cards,also known as executive cards,are issued to small

partnership firms,solicitors,firms of chartered accountants, tax-consultants and others,

for use by executives on their business trips. The card enjoys higher credit limits and

more privileges than the standard cards.These cards are issued in the names of the

executives of the firms.

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Gold card : The gold card offers high value credit for the elite. It offers many

additional benefits and facilities such as higher credit limits, more cash advance limits

etc that are not available with standard or executive cards.

Based on geographical validity:

Domestic card : Cards that are valid only in India and Nepal are called domestic

cards. All transactions will be in rupees.These cards are issued by most of the banks

in India.

International card : Credit cards that have international validity are called

international cards.They are issued to people who travel abroad frequently. These

cards are honored in every part of the world except India and Nepal. The cardholder

can make purchases in foreign currencies subject to RBI sanction and FEMA rules and

regulations.

Based on franchise/tie-up :

Proprietary card : Cards that are issued by the banks themselves,without any tie-

up,are called proprietary cards.. A bank issues such cards under its own brand.

Examples include SBI card, cancard of canara bank, etc.,

Master card :This is a type of credit card issued under the umbrella of mastercard

international. The issuing bank has to obtain a franchise from the Mastercard

Corporation of USA. The franchised cards will be honored in the Mastercard network.

Visa card : This is a type of credit card, which can be issued by any bank having tie-

up with VISA international corporation,USA. The banks that issue Visa cards are said

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to have a franchise is that one can avail the facility of the VISA network for

transactions.

Domestic tie-up card :

These are cards issued by a bank having a tie-up with domestic credit card brands such

as cancard and indcard,etc.for example, Indian Overseas Bank has tie-up with cancard.

These banks issue cards to users through the original banks. However,they can have

their bank name engraved on the card. Credit is available on similar lines to the

original card.

Based on the issuer category:

Individual cards :

These are the non-corporate credit cards that are issued to individuals. Generally all

brands of credit cards issue individual cards.

Corporate cards :

These are credit cards issued to corporate and business firms. The executives and top

officials of the firms use these cards. The card bears the name of the firm, and the bills

are paid by the firm

Card Transaction process

When paying for purchases with a card, the transaction appears to happen almost

instantaneously after the PIN is entered. However, there is a complex payments

infrastructure behind the scenes making sure that the transaction is processed

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correctly. The following diagram sets out the steps, numbered from 1 to 8, in a card

transactions payments cycle for a typical facetoface or card present transaction;

there are five stakeholders in the process.

Cardholder

This is a person with a debit, credit or charge card issued to them by a financial

institution.

The cardholder may be asked to place their card into the chip and PIN reader (PIN pad

or terminal) themselves, or hand the card to the merchant who will do this for them.

Alternatively, if the card does not have a chip (only a magnetic stripe) or the merchant

does not have a chip and PIN terminal, the merchant will swipe the card through the

terminal or use a paper voucher.

The customer will then key in their PIN, or sign, to indicate their agreement to proceed

with the transaction. An authorisation code will be given to the merchant for the

transaction by the cardholders card issuer that will appear on the terminal receipt that

is handed to the cardholder. The card issuer will debit the transaction to the

cardholders account.

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Retailer / Merchant

A merchant sells goods or services to their customer (the cardholder). This can be

face-to-face in a shop on the high street, where both the cardholder and their card are

present, or when taking orders remotely e.g. over the phone for a restaurant take away,

a mail order from a catalogue, or a purchase over the internet. In this example, it is a

card not present transaction.

The card transactions details are entered into the merchants terminal, usually, sent

via the telephone line to their acquiring bank who will process the transaction and send

it on to the relevant card issuer for authorisation and settlement.

Acquirer

A merchant, will have negotiated a Merchant Service Agreement with their acquiring

bank to process payment card transactions on their behalf. Typically, this agreement

will also include the acquiring bank providing one of its own terminals, known as a

bank owned terminal.

An acquiring bank is responsible for receiving the card transaction details from the

merchants terminal, passing these through to the card issuer (the cardholders bank or

building society) via the card scheme for authorisation and completing the processing

of the transaction.

An acquiring bank will arrange the card transactions settlement and will, typically,

credit the merchants nominated bank account with the funds within four working

days.

An acquiring bank will also deal with any chargebacks or requests for information

(RFI) that they may receive from card issuers on any of their merchants transaction

Card Scheme

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Card Schemes are organisations who manage and control the operation and clearing of

card payment transactions according to card scheme rules.

The Card Schemes are responsible for passing card transaction details from the

acquiring bank to the issuer and for passing payment back to the acquiring bank who

in turn pays this to the merchant.

American Express, Diners Club, JCB, Maestro, MasterCard and Visa (including

Electron or Debit) are the card schemes that operate in the UK.

Issuer

The issuer is the bank, building society or financial organisation that provides a

payment card (debit, credit, pre-paid or charge card) to their customer or cardholder.

The issuer has responsibility for transactions made on cards that they have issued, and

will be responsible for debiting funds from the relevant cardholder's account.

Note: For American Express and Diners Club - the transaction process is slightly

different as they act as card scheme, issuer and acquiring bank at the same time. An

acquiring bank will be able to explain more about accepting these card types.

BENEFITS OF CREDIT CARDS

Credit cards offer enormous benefits to users and bankers alike.

Benefits to Cardholders

Shopping convenience :

Credit cards are convenient to use . They dispense with the need to carry large

amount of cash or issue cheques. Shopping is made comfortable as purchasing poses

no difficulty, since cards have wide acceptance.

Credit facility :

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Credit cards offer a convenient mode of credit to customers.The customer need

not go to the bank to apply for a loan that requires repayment in fixed installments.

The credit card enables the cardholder to avail the credit facility sanctioned by the card

issuing company.

The customer can either repay the amount of credit in full, or can opt for repaying

it in flexible montly installments.

Safety :

Credit cards allow for a safe means of conducting transactions. Credit

cardholders need not want to take a large amount of cash with them.

Meticulous record : Credit cards facilitate meticulous and easy record keeping. The

transactions are printed on a monthly statement that can be reconcilied with the sales

receipts issued by merchants. Thus, the accumulated interactions are easily accounted

for every month.

Acceptability : Merchant establishment widely accept VISA and Mastercard. This

makes it very convenient for holding a credit card.

Benefits to Merchants :

Enhanced Sales :

The credit card mechanism makes the buying process convenient

and easy. This in turn helps boost up the sales of business concerns as it increases

purchasing power.

Easy validation :

The electronic system, which is the backbone of credit card

operation, allows for easy verification of details about the customer. This greatly

facilitates sale transactions by merchants.

No risk :

As there is no direct contact of the merchant establishment with collection

of payments on credit cards,there is no risk to the merchant in accepting credit facility.

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Benefits to issuer Banks :

Source of income : Credit cards provide an easy way to extend credit to customers.

The credit, once granted, keeps revolving which results in the bank earning incomethrough interest.

Market expansion : Credit cards do not require the physical presence of a bank

branch. Credit cards can be used by banks to increase their market presence. For

instance, an ATM, which can be established in a place like supermarket, is accessible

to the consumer directly for financial transactions.

Cross - selling : Credit cards provide ample opportunity to banks for generation of

additional revenue. This is possible by cross selling other banking products and

services to its existing and potential cardholders.

SPECIMEN OF CREDIT CARD

An example of the front in a typical credit card:

1. Issuing bank logo

2. EMV chip

3. Hologram

4. Credit card number

5. Card brand logo

6. Expiry Date

7. Cardholder's name

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An example of the reverse side of a typical credit card:

1. Magnetic Stripe2. Signature Strip

3. Card Security Code

NEEDS OF CREDIT CARD - ADVANTAGES AND DISADVANTAGES

A credit card from VISA, MasterCard, or any other network allows you to pay for

purchases or services by borrowing from the credit card company. You then repay by

making monthly payments towards the amount borrowed. That is, you do not have to

repay the whole borrowed amount in full at one go.

Then there are charge cards, such as the American Express card, that require full

payment of the borrowed amount each month.

Either way, the credit card is a very convenient alternative to paying by cash.

Essentially a credit card allows you to:

Purchase products or services whenever and wherever you want, without ready

cash and paying for them at a later date.

Have the option of paying only a part of the total expenses. The balance

amount can be carried forward, with an interest charged.

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Withdraw cash whenever, wherever you are, through ATMs and other

withdrawal centers.

Enjoy a revolving credit limit without any charges for a limited period (mostly

20 to 50 days) Transact money of more than one currency, from one country to another.

Other facilities afforded on a credit card include reward points on card usage,

insurance cover against air and road accidents, loss of baggage, and so on. All credit

cards have built-in safety features like signatures and personal identification numbers.

International credit cards you financial flexibility when you travel abroad.

Advantages:

They allow you to make purchases on credit without carrying around a lot of

cash. This allows you a lot of flexibility.

They allow accurate record-keeping by consolidating purchases into a single

statement.

They allow convenient remote purchasing - ordering/shopping online or by

phone. They allow you to pay for large purchases in small, monthly

installments.

They are cheaper for short-term borrowing - interest is only paid on the

remaining debt, not the full loan amount.

Many cards offer additional benefits such as additional insurance cover on

purchases, cash back, air miles and discounts on holidays.

Disadvantages:

You may become an impulsive buyer and tend to overspend because of the

ease of using credit cards. Cards can encourage the purchasing of goods and

services you cannot really afford.

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Credit cards are a relatively expensive way of obtaining credit if you don't use

them carefully, especially because of the high interest rates and other costs.

Lost or stolen cards may result in some unwanted expense and inconvenience.

The use of a large number of credit cards can get you even further into debt.

Using a credit card, especially remotely, introduces an element of risk as the

card details may fall into the wrong hands resulting in fraudulent purchases on

the card. Fraudulent or unauthorized charges may take months to dispute,investigate, and resolve.

CREDIT RATING AGENCY

A credit rating agency (CRA) is a company that assigns credit ratings for issuers of

certain types of debt obligations as well as the debt instruments themselves. In some

cases, the servicers of the underlying debt are also given ratings. In most cases, the

issuers of securities are companies, special purpose entities, state and local

governments, non-profit organizations, or national governments issuing debt-like

securities (i.e., bonds) that can be traded on a secondary market. A credit rating for an

issuer takes into consideration the issuer's credit worthiness (i.e., its ability to pay back

a loan), and affects the interest rate applied to the particular security being issued. (In

contrast to CRAs, a company that issues credit scores for individual credit-worthiness

is generally called a credit bureau or consumer credit reporting agency.)

Credit Rating Agencies for Corporations & Government Entities

Agencies that assign credit ratings for corporations include:

M. Best (U.S.)

Baycorp Advantage (Australia)

Dominion Bond Rating Service (Canada)

Fitch Ratings (U.S.)

Japan Credit Rating Agency (Japan)

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Malaysian Rating Corporation (Malaysia)

Moody's (U.S.)

Standard & Poor's (U.S.)

Pacific Credit Rating (Peru)

Rating Agency Malaysia (Malaysia)

Egan-Jones Ratings Company (U.S.)

Capital Intelligence Ltd (Cyprus)

CRISIL (India)

ICRA (INDIA]

CREDIT CARDS AND THERE INTEREST RATES:

Credit card Interest Interest BalanceName rate(%) free days trans.rate

35.40 50 1.50

HDFC Woman's Gold Credit Card

ICICI Titanium Credit Card 45.O9 52 1.50

HDFC Silver Credit Card 35.40 50 1.50

Barclays Premier League 37.20 50 1.00

Credit Cards

Barclays Yatra Credit Cards 35.40 50 1.00

HDFC Visa Signature Credit Cards 34.48 50 1.50

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HDFC Corporate Credit Card 35.40 50 1.50

ICICI Hpcl Gold Credit Cards 49.36 52 1.50

ICICI Gold Business Credit Card 49.36 45 1.50

CREDIT CARD FRAUDS

The rapid growth of the payment card industry worldwide has lead to a dramatic rise

in credit card frauds. A significant amount of money is lost because of frauds.

Major sources

Some of the major sources of fraud loss include the following ;

Fraudulent application that result in cards being issued to imposters who have

adopted the identity of a real person or conceived a bogus identity.

Lost, stolen and never received cards are among the major causes for fraud.

Counterfeit and altered cards.

Collusive merchants.

True cardholder fraud where the true cardholder perpetrates fraud.

Employee fraud.

In a recent exposure of credit cards frauds, an international

network was unearthed where duplicate credit cards were created abroad andsmuggled into India. The foreign passport and other relevant documents were

fabricated locally with material sent from abroad. Such fake cards prepared in

Canada and Malaysia were sold for rates ranging from rupees one to two lakhs.

The information for these cards, had been clandestinely

recorded at shopping malls while billing genuine cards.The shopkeepers who were

involved in the racket had installed programs in their billing system which would

secretly record details such as name, secret code and other personal information

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remain the same, the photographs were swapped with that of the thief. Supporting

bogus travel documents including passports were made to avoid suspicion.

Credit card fraud is a major issue in the west, but many countries limit the owners

liability for fraud and theft with insurance. However, users of cards in India have

no such cover, despite the aggressive promotion of cards by various companies and

banks.

DRAWBACKS OF CREDIT CARDS

Credit card has many drawbacks for the user, issuer, and the merchant establishments

alike. Some of these are :

Waste of money : It would be a waste of money to subscribe to a credit card if the

card was not utilized.

Thoughtless buying : Credit cards invariably encourage impulsive purchases. Since

the user need not pay instantly, it may tempt the purchase of products/services that are

not genuinely required.

Financial problem : These happens where repayment on the credit card account is not

done promptly.

Mental agency : The pressure tactics used by recovery agents appointed by some card

issuers to collect outstanding dues may cause mental agony to the user.

PREVENTION:

Considerable time and money are spent in controlling credit card frauds. Some

of the methods used in prevention of frauds are:

Maintaining details of fraudulent application files,preferably in an automated

environment.

Establishment of credit Information Bureaus(CIB) which provide the credit

history of individual borrowers through credit reports.

Designing systems to moniters cardholder activity and identify unusual

spending behaviour

Educating cardholders on card frauds and creating awareness about measures

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to prevent frauds

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OBJECTIVES OF THE STUDY

Primary Objectives :

1. To study the Customer satisfaction regarding the credit cards provided by

ICICI and other banks.

2. To study the rate of preference for using ICICI bank credit card in

comparison to other banks credit card.

Secondary objectives :

To find the frequency of usage of their Credit card for daily purpose.

To find the satisfaction levelof the Credit Card.

To find out who prompted the customer to apply for a particular

Credit Card.

To find out the range of the age where the largest number of users fallin.

To find the percentage of multi credit card users.

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SCOPE OF THE STUDY

The study undertaken for usage of credit card by the customer and to know

the preference regarding the ICICI Bank credit card and also the preference for various

other bank credit card and aims to find the reason of choice for selecting a particular

Credit card and relative preference of customers for various credit.

This study was largely conducted at Patiala Market. Including 100

respondents who already use the credit card provided by ICICI Bank. Age of

respondents 8% were below 30 years, 24% were between 30-35 years, 48%

respondents were between 35-40 years and 20% were above 40 years. Income of

respondents were 4% below 10,000/-, 24% were between 10,000-20,000/-, 52% were

20,000-30,000 and 20% of respondents getting above 30,000. Types of Bank 54% of

respondents are the credit cardholder of ICICI Bank and 20% of respondents are the

credit cardholder of HDFC Bank and 18% of respondents are comes under SBI Bank

and 8% of CITI Bank.

This study is done with the help of a questionnaire which contains

questions probing into the details so as to find the reason of their choice. The study

will help to know the features which attracted the customers. The study helps to know

about the usage pattern of credit card users. The study also helps to find the best

possible way of reaching the customers. The study will also helps in choosing a best

credit card bank. All these results will help the consumer to know the features,

functions and to create awareness of using credit card. This study will also help the

bank to create a product which suits the high profile customers and helps to adopt a

particular method to reach the customers.

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RESEARCH METHODOLOGY

Research Design

A research design is a detailed blue print used to guide a

research study toward its objective. The process of designing a research study involves

many interrelated decisions. The most significant decision is the choice of research

approach, because it determines how the information will be obtained. The choice of

the research approach depends on the nature of the research that one wants to do.

A research design is the arrangement of conditions for collecting and

analyzing of data in a manner that aims to combine return to the research purpose with

economy in procedure.

The research design adopted for this study is Descriptive Research.

Descriptive method was adopted because it deals with description of the state of

affairs as it exist at present. Determine the frequency with which something acquire or

its association with something else. It is to formulate based on the objective of the

study.

Sampling Size

The selected sampling size 100 respondents.

Sampling Technique

Simple random sampling technique is used for collection data from 100 respondents

from the total population of credit card users.

Simple Randon sampling

The unrestricted, simple random sampling is the simplest form of probability

sampling. Since all the probability samples must provide a known nonzero chance of

selection for each population element, the simple random sampling is considered a

special case in which each population element has a known and equal chance of

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selection. In this section, we use the simple random sample to build a foundation for

understanding sampling procedures and choosing probability samples.

Simple random sampling is often impractical. It requires a population list that

is often not available. The design may also be wasteful because it fails to use all the

information about a population. In addition, simple random design may be expensive

in time and money.

Sample unit

The sampling unit has taken by the researcher for selecting the samples with

different credit card customer from ICICI bank and various other banks.

Sample size

100 samples have chosen to find the objective of the study.

Method of Data Collection

Questionnaire method of data collection is the most common instruments of

data collection it contains a set of questions logically related to a problem of study.

The respondents were required to answer the question by themselves, the questions areexplained to the respondents because all of them are uneducated. The researcher

believed that, the questionnaire framed might lead to gather the relevant datas in a

successful manner. The researcher framed the questionnaire in English.

The questionnaire was based on different data namely.

Personal data

Personal expenses

Usage of credit card

Security

Customer care

Risk coverage

Interest charges

Discount facilities

Drawbacks and

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Quick process

Source of data collection

Data can be obtained from various sources.1) Primary data

2) Secondary data

Primary data

The researcher with the help of questionnaire collects the primary data. The

questionnaire was described specially for employees. The primary data was collectedfrom the employer through personal interview method. The questionnaire consists of

both closed and open-end questions. Were used to significant the unit of the

employees with lesser time of answering to the questions.

Secondary data

Secondary data has been collect by the researcher from the details of welfare

schemes offered, company profile, organization structure, books like banking &

financial system, research mythology, origin of the banking financial system and

Websites www.icicibank.com, www.credit.com.

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2. Income level of selected respondents.

TABLE - 2

S.No Income No.of Respondents Percentage1 Below 10,000 4 4%

2 10,000 - 20,000 24 24%

3 20,000 - 30,000 52 52%

4 Above 30,000 20 20%

Total 100 100%

Inference:

From the above table it clear that income of respondents.4% respondents were

below 10,000, 24% of respondents were 10,000 20,000, 52% of respondents were

20,000 30,000, and 20% of respondents getting above 30,000.

So majority of the respondents were getting income of 20000 30000 per month.

CHART - 1.2

INCOME OF THE RESPONDENTS

Income of the Respondents

4

24

52

20

0

10

20

30

40

50

60

Below 10000 10000 - 20000 20000 - 30000 Above 30000

Salary

Below 10000

10000 - 20000

20000 - 30000

Above 30000

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3. Types of banks selected by the respondents.

TABLE 3

S. No: Banks No. of.

Respondents

Percentage

1 ICICI Bank 54 54%

2 HDFC Bank 20 20%

3 SBI Bank 18 18%

4 CITI Bank 8 8%

Total 100 100

Inference:

From the above table inferred that 54% of respondents are the credit cardholder

of ICICI Bank and 20% of respondents are the credit cardholder of HDFC Bank and

18% of respondents are comes under SBI Bank and 8% of CITI Bank.

The highest no of respondents are from ICICI Bank and the lowest no of

respondents are from CITI Bank.

From these Table 1 we can clearly understand that most no. of consumer prefer ICICI

Bank credit cards only.

CHART - 3

Type of Bank

0

10

20

30

40

50

60

ICICI Bank HDFC Bank SBI Bank CITI Bank

Banks

No.of Respondents

Percentage

4. Types of credit card has been used by respondents.

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TABLE 4S. No: Response No. of.

Respondents

Percentage

1 Less than one year 12 12%

2 One to two year 28 28%3 Two to three year 42 42%

4 More than three year 18 18%

Total 100 100

Inference:

From the above table inferred that 12% of respondents are using the credit card

for less than one year, 28% of respondents are using for one to two year, 42% are

using for Two to three year and 18% of them are using for More than three years.

The highest no of respondents are using the credit card for two to three year

and lowest no. of respondents are using for less than one years.

CHART - 4

6

1214

28

21

42

9

18

0

5

10

15

20

25

3035

40

45

Less than

One Year

One to Two

Year

Two to

Three year

More than

three year

Response

Usage of Credit Card

No.of Respondents

Percentage

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6. Number of respondents know about this bank credit card.

TABLE 6

S. No: Response No. of.

Respondents

Percentage

1 Self mode 20 20%

2 Bankers approach 32 32%

3 Relatives 20 20%

4 Advertisements 28 28%

Total 100 100

Inference:

From the above table inferred that 20% of respondents are came to know

about their bank credit card by self mode, 32% of respondents are by Bankers

approach, 20% by relatives and 28% of them are by advertisements.

The highest no of respondents are came to know by Bankers approach and

lowest no. of respondents are by self mode and relatives. From this Table 6 we can

understand that credit card issuing banks are playing a vital role in increasing the

customers.

CHART 6

0

5

10

15

20

25

30

35

40

45

50

Self mode Bankers

Approach

Relatives Advertisement

No.of Respondents

Percentage

7. Number of respondents want to be a credit card holder for life long.

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TABLE 7


Respondents

Percentage

1 Yes 68 68%

2 No 32 32%

Total 100 100

Inference:

From the above table inferred that 68% of respondents are want to be a credit

cardholder for a life long, 32% of respondents are not willing to be a credit cardholder

for life long.

From this Table - 7 we can understand that credit cardholders are satisfied

with all its benefits, facilities and services made by the bankers to the credit card

customer.

CHART - 7

Usage of Credit card - life long

68%

32%

Yes

No

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8. Number of Respondents prefer banks credit card.

TABLE 8


Respondents

Percentage

1 Low interest rate 16 16%

2 Easy to handle 40 40%

3 Facilities and services 24 24%

4 More benefits 20 20%

Total 100 100

Inference:

From the above table inferred that 16% of respondents are prefer their bank

credit card for low interest rate, 40% of respondents are by easy to handle, 24% by

facilities and services and 20% of responents are by getting more benefits by using the

credit cards.

The highest no of respondents are prefer their bank credit card for easy to

handle and lowest no. of respondents are by low interest rate. From this Table-8 we

can understand that credit cards are mainly used by the customer for easy to handle.

CHART - 8

0

5

10

15

20

25

30

35

40

Low interest

rate

Easy to handle Facilities and

Services

More Benefits

Features of Credit Card

Percentage

9. Importance of Credit Card.

TABLE 9

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Respondents

Percentage

1 Strongly Agree 36 36%

2 Agree 44 44%3 Disagree 16 16%

4 Strongly Disagree 04 04%

Total 100 100

Inference:

From the above table inferred that 36% of respondents are strongly agree that

the usage of the credit card is more important, 44% are agree, 8% are disagree and 4%

are strongly disagree .

The highest no of respondents are agreed the usage of credit card is more

important and lowest no. of respondents are strongly disagreed.

CHART 9

Importance of Credit Card

18

22

16

4

Strongly Agree

Agree

Disagree

Strongly Disagree

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10. Does credit card issued by bank gives more security .

TABLE 10


Respondents

Percentage


2 Agree 44 44%

3 Disagree 20 20%


Total 100 100

Inference:

From the above table inferred that 32% of respondents are Strongly Agree that

the credit card issued by their bank gives more security, 44% of respondents are

Agree, 20% are Disagree and 4% of respondents are Strongly Disagree.

The highest no of respondents are Agree and lowest no. of respondents are

Strongly Disagree. From this Table 10 we can understand that credit card issuing

banks gives more security to the credit cardholders and their cards.

CHART 10

Credit Card - Security

0 10 20 30 40 50

Strongly Agree

Agree

Disagree

Strongly Disagree

Percentage

No.of.Respondents

11. Does the customer care personally respond at all times .

TABLE 11

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Respondents

Percentage


2 Agree 36 36%

3 Disagree 28 28%4 Strongly Disagree 08 08%

Total 100 100

Inference:

From the above table inferred that 28% of respondents are Strongly agree that

their banks cutomer care are personally respond at all time, 36% of respondents are

agree, 28% are disagree and 8% are Strongly Disagree.

The highest no of respondents are Agree that their banks are personally

respond at all time and lowest no. of respondents are Strongly Disagree. From this

Table - 11 we can understand that credit card issued banks are personally responding

their customer at all time to fulfill their satisfaction regarding their bank.

CHART 11

Strongly

AgreeAgree

Disagree Strongly

disagree

28

36

28

8

0

5

10

15

20

25

30

35

40

Respond of Customer care

Percentage

12. Will credit card covers the risk .

TABLE 12

S. No: Response No. of.Respondents

Percentage

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2 Agree 56 56%

3 Disagree 12 12%


Total 100 100

Inference:

From the above table inferred that 32% of respondents are strongly Agree that

credit cards will covers the risk,56% of respondents are agreed and 12% of

respondents are Disagree.

The highest no of respondents are agree and lowest no. of respondents are

Strangly Disagree.

CHART 12

Risk Coverage

32%

56%

12% 0%

Strongly Agree

Agree

Disagree

Strongly Disagree

13. Is it your bank offers the credit holders an exiting range of prizes, special

discounts and privileges .

TABLE 13


Respondents

Percentage

1 Strongly Agree 12 12%2 Agree 40 40%

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3 Disagree 36 36%


Total 100 100

Inference:

From the above table inferred that 12% of respondents are Strongly Agree thattheir bank offer the credit cardholder an existing range of prizes, special range of

discounts and privileges, 40% of respondents are agree,36% of respondents are

Disagree and 8% of respondents are Strongly Disagree.


Strongly Disagree. From this Table 13 we can understand that credit card issuing

banks are mostly offer an existing prizes to stable in the market and to lead between

the competitors.

CHART - 13

Offers to Credit Cardholders

12

40

36

8

0 10 20 30 40 50

Respon

se

Percentage

Strongly Disagree

DisagreeAgree

Strongly Agree

14. Is your bank credit cards are accepted to pay for personal expenses .

TABLE 14


Respondents

Percentage


2 Agree 48 48%

3 Disagree 24 24%


Total 100 100

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Inference:


their banks are accepted to pay for personal expenses, 48% of respondents are Agree,

24% are Disagree that most of the bank will not pay their personal expenses upto

certain limits of cash and 8% of respondents are Strongly Disagree.


Strongly Disagree. From this Table - 14 we can understand that credit card banks are

accepting to pay for personal expenses and they deeply enters into the customers

preference on credit card and make them satisfaction.

CHART 14

0 10 20 30 40 50

percentage

Strongly Agree

Agree

Disagree

Strongly disagree

Rs

ponse

Credit card - Accepted to pay for Personal Expenses

Percentage

15. Does your bank gives the proper records of the credit card, credit rate

calculations that are made .

TABLE 15


Respondents

Percentage


2 Agree 44 44%

3 Disagree 32 32%


Total 100 100

Inference:

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the banks gives the proper records of the credit card, credit rate calculations that are

made, 44% of respondents are Agree, 32% are Disagree and 8% of them are Strongly

Disagree.


Strongly Disagree. From this Table-15 we can understand that credit card banks are

issuing proper records of calculations to the cardholders.

CHART 15

Proper Records

0

10

20

30

40

50

60

70

Strongly Agree Agree Disagree Strongly

Disagree

No. of Respondents

Percentage

16. Are Discount facilities provided in more no. of expenses than other bank .

TABLE -16


Respondents

Percentage


2 Agree 40 40%

3 Disagree 36 36%


Total 100 100

Inference:


their bank credit card are issuing discount facilities for more no. of expenses,40% of

respondent are Agree, 36% are Disagree that their banks are not issuing discountfacilities, and 4% of them are Strongly Disagree.

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Strongly Disagree. From this Table -16 we can understand that credit card issuing

banks are playing a vital role in issuing discount facilities for more no.of expenses.

CHART 16

Discount Facilities

20%

40%

36%

4%

Strongly Agree

Agree

Disagree

Strongly Disagree

17. Is Interest charges provide by your bank credit card more higher than

other bank ?

TABLE 17


Respondents

Percentage


2 Agree 28 28%

3 Disagree 44 44%


Total 100 100

Inference:


their bank credit card charges more interest than other banks, 28% of respondent are

Agree, 44% are Disagree that their banks are not charging more interest than other

banks, and 16% of them are Strongly Disagree.

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The highest no of respondents are Disagree and lowest no. of respondents are

Strongly Agree. From this Table 17 we can clearly understand that their credit card

issuing banks are not charging more interest than other bank.

CHART 17

0

5

10

1520

25

30

35

40

45

Strongly

Agree

Agree Disagree Strongly

Disagree

Interest Charges

Percentage

No. of Respondents

18. Is your credit card is more useful for your business than other bank

credit card .

TABLE 18


Respondents

Percentage


2 Agree 52 52%

3 Disagree 16 16%


Total 100 100

Inference:


their bank credit cards are more useful for their business than other banks, 52% of

respondent are Agree, 16% are Disagree that their banks are not more useful for their

business and 4% of them are Strongly Disagree.


Strongly Disagree. From this Table 18 we can clearly understand that their credit

card issuing banks are more useful for their business transactions.

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CHART 18

Credit card - In Business

28%

52%

16%

4%

Strongly Agree

Agree

Disagree

Strongly Disagree

19. Are there more drawbacks in other bank credit card than your bank

credit card .

TABLE 19


Respondents

Percentage


2 Agree 32 32%

3 Disagree 16 16%


Total 100 100

Inference:

From the above table inferred that 44% of respondents are Strongly Agree that there

are more drawbacks in other bank credit cards, 32% of respondent are Agree, 16% are

Disagree that there are not more drawbacks in their bank credit card and 4% of them

are Strongly Disagree.

The highest no of respondents are Strongly Agree and lowest no. of

respondents are Strongly Disagree. From this Table 19 we can clearly understand

that their bank credit cards are less drawbacks than other bank credit cards.

CHART - 19

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Quick Process

0 10 20 30 40 50 60

Strongly Agree

Agree

Disagree

Strongly Disagree

Percentage

No.of Respondents

21. Will you change if the advance facilities are offered by other bank .

TABLE 21


Respondents

Percentage

1 Yes 72 72%

2 No 28 28%

Total 100 100

Inference:

From the above table inferred that 72% of respondents will change their

credit card if other banks offers adavance facilities,28% of respondents will not change

their bank credit card due to satisfied and their bank brand name.

CHART 21

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Advance Facilities

72%

28%

Yes

No

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22. How would you rate your bank credit card .

TABLE -22


Respondents

Percentage

1 Highly satisfied 28 28%

2 Satisfied 58 58%

3 Dissatisfied 12 12%

4 Highly Dissatisfied 04 04%

Total 100 100

Inference:

From the above table inferred that 28% of respondents are rate Highly satisfied

to their bank credit card with the bank performance, process and facilities provided by

their bank, 58% of respondents are rate Satisfied, 12% of respondents are Dissatisfied

on their facilities, features and process of their bank credit card, 4% of them rate

Highly Dissatisfied.

The highest no of respondents rate Satisfied and lowest no. of respondents rate

Highly Dissatisfied.

CHART 22

Rate of Credit card

27%

57%

12%4%

Highly Satisfied

SatisfiedDissatisfied

Highly Dissatisfied

LIMITATIONS OF THE STUDY

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The limitations of the study are as follows

The study is applicable only to the credit cardholder. It is not be fully

applicable to other cardholders.

In some cases the cardholder is not fully aware about their bank credit card.

The area of study is limited to cities and towns only ,because most of the

village people do not have a credit card.

During the collection of data, respondents are not responding with their full

interest.

As it is a sensitive topic, the respondents have not given clear information. So

researcher was unable to conduct in depth study.

In some cases the respondents does not remember the exact usage pattern

which creates a bias.

Sample size of the project is very small, so we cant come to an clear idea

about the project.

Some customers where not available.

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FINDING & SUGGESTION

FINDINGS

From the above project, we have find the following ;

We find that 48% of respondents age were 35-40 years.

We find that 52% of respondents were getting income of 20000-30000 per

month.

54% of respondents are offer the credit card of ICICI Bank.

42% are have been using the credit card for a period of two to three years.

40% of respondents were using only one credit card.

32% have came to know about their bank credit card by Bankers Approach.

68% of respondents are want to be a credit cardholder for life long.

40% are prefer their bank credit card for the reason of Easy to Handle.

44% of respondents agreed that the usage of credit card is more important.

44% of respondents are agreed that their bank credit card gives more security

to the credit cardholders.

36% are agreed that their bank customer care personally respond at all times.

56% of respondents are strongly agreed that their credit card will covers the

risk.

40% of bank offers the credit cardholders an exiting range of prizes, special

discounts and privileges.

48% are agreed that their bank credit cards are accepted to pay for personal

expenses.

44% of respondents are agreed that their banks gives the proper records of thecredit card, credit rate calculations that are made.

40% of respondents are agreed their bank provides Discount facilities for more

no of expenses than other bank.

44% are disagreed that their bank credit cards are not charges more interest to

their credit cards.

52% of their bank credit card is more useful for their business than other bank.

44% are Strongly Agree their bank has less drawbacks than other bank.

48% are agreed that they process of their credit card can be done very quickly.

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72% will change their credit card if other banks offers adavance facilities.

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SUGGESTIONS

A credit card is an amazing financial product that can provide you with a lot of

benefits if you use it properly. Unfortunately if used wrongly it can also produce much

harm and damages. As you can see, as any other financial product, these are only an

instrument for achieving certain goals. It is the actual use that you give to that

instrument what will eventually produce benefits or damages to your credit and

financial life.

Most of the best tips for using a credit card wisely are just common sense. Even

though, its surely easier to pay the balance or minimum or some amount in between

and move on to more interesting things.

But keep in mind that errors are fairly common on credit card statements. Even if you

dont have all of your credit card receipts handy, compare as many as you have to the

items listed in your statement to make sure the dates and amounts are right.

Also, credit card issuers are heavily regulated. They have to publish the changes

theyre making to your account and they do this in the fine print at the bottom or on

the back of the monthly statement. Most count on people not reading these notices.

Following are some tips on how to use them smartly to avoid the drawbacks while

taking advantage of the benefits they provide.

Shop around before signing anything

Keep your balance within reasonable levels

Control your purchases

Protect your personal info

Try not to pay only the minimum payment

Do not keep too many credit cards

Read your statement every month

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CONCLUSION

From this study, I conclude the following ;

Technology has played and shall continue to play a crucial role in the payment card

industry. For the last thirty years, the card industry has been successfully using their

technology to satisfy their customer.

The credit card plays a vital role in this modern world. Credit card are

convenient to use and provide an easy way to extend credit to customers.

It helps their customer in many way and provide facilities to them.

ICICI Bank provides their customer to satisfy regarding the usage of credit

card.

So, more of the consumers prefer to get ICICI Bank credit card than other bank

credit card.They satisfy the customer regarding the following;

o Quick Process

o Gives more security

o Risk coverage

o Discount facilities

o Less interest charges

o Provides advance facilities

ICICI Bank are mostly satisfied their customer than other banks.

Most of the cosumers are rated satisfied on the functions provided by the ICICI

Bank.

They mainly focus on the fulfillment of their customer satisfactions and

reduce their burden.

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BIBLIOGRAPHY

Books :

Mithani D.M. Banking and financial systems Edition 6, Himalaya

Publisher.

Panneerselvam R Research methodology Edition -1, Phi Learning (2009)

Publisher.

Davis McFarland Andrew Origin of the banking financial system Ayer Co

Pub (June 1981) Publisher.

Websites:

http://www.icicibank.com/Personal-Banking/cards/personal-banking-

cards.html

http://www.credit.com/credit-cards/

http://en.wikipedia.org/wiki/Credit_card

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QUESTIONNAIRE ON CREDIT CARD USAGE

NAME : Harmander Singh INCOME : 12,000/- per monthAGE : 25 Years OCCUPATION : Private Job

MOBILE : 95921-56033

1. Name the bank of credit card which you are using? ( a )

a) ICICI bank b) HDFC bank c) SBI bank d) CITI bank

2. How long have you been using the credit card? ( c )

a)Less than one year b)One to two year c)Two to three year d) More than

three year

3. How many credit cards are u having? ( a )

a)One b)Two c)Three d)More than three

4. How did you came to know about this bank credit card ? ( b )

a)Self mode b)Bankers approach c)Relatives d)Advertisement

5. Do you want to be a credit card holder for life long ? ( a )

a)Yes b)No

6. Why do you prefer this bank credit card ? ( b )

a) Low interest rate b)Easy to handle c)More facilities and services

are provided d)More benefits to customer

7. The usage of credit card is more important ( b )

a)Strongly Agree b)Agree c)Disagree d)Strongly Disagree

8. Does credit card issued by your bank gives more security? ( b )

a) Strongly Agree b) Agree c)Disagree d)Strongly Disagree

9. Does the customer care personally respond you at all times? ( b )a) Strongly Agree b) Agree c) Disagree d) Strongly Disagree

10. Credit cards will covers the risk ( b )

a) Strongly Agree b) Agree c) Disagree d) Strongly Disagree

11. Is it your bank offers the credit holders an exiting range of prizes , special

discounts and privileges? ( b )

a)Strongly Agree b)Agree c)Disagree d) Strongly Disagree

12. Is your bank credit cards are accepted to pay for personal expenses? (b )


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13. Does your bank gives the proper records of the credit card, credit ratecalculations that are made? (b)

a)Strongly Agree b) Agree c) Disagree d) Strongly Disagree

14. Discount facilities are provided in more no. of expenses than other bank (b )


15. Interest charges provide by your bank credit card is more higher than other

bank. ( c )


16. Is your credit card is more useful for your business than other bank credit

card? (b )

a)Strongly Agree b) Agree c) Disagree d) Strongly Disagree

17. There are more drawbacks in other bank credit card than your bank credit

card. (b )


18. Is the process of your credit card can be done very quickly than other bank?

( b )


19. Will u change if the advance facilities are offered by other bank ( a )

a) Yes b) No

20. How would you rate your bank credit card? (b )

a) Highly satisfied b) Satisfied c) Dissatisfied d) Highly Dissatisfied

mukkessshhh 23

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