ROLE OF 7 PS IN CREDIT CARDS MARKETING

OBJECTIVES:

To understand the marketing process for selling credit cards. To study about the role of 7ps in selling
credit cards.

To study the impact of 7ps on credit card consumers.

SCOPE:

This project gives a wider picture on role of 7ps credit card market This project also highlights on the
types of credit cards ie, prepaid credit card

RESEARCH METHODOLOGY

DATA SOURCE:

SECONDARY DATA:

Sources include website, textbook and reference book.

PRIMARY DATA:

Period of primary data between july to september

SUMMARY

Marketing refers to promotion of product in such a way that a customer can easily attract towords
the product. In credit card market the strategy of marketing is similar as it is in another market. Here
the banking companies' offers attractive vouchers, gifts and sometimes cash back scheme to attract
the customers.Marketing is a serious and expensive activity by bank. The modernization in banking
sector has paved a way for effective marketing. A good bank or organization without marketing
wouldn't approach its goals and objective. In brief marketing is essential for the growth and success
of any product of an organization.

CHAPTER 1

INTRODAVATION

A credit card is a payment card ind so users (odded of paymentes fe cardholder to pay for goods and
services based on the wilder's give to pay for them. The inf de card (anually a bank) creates a
revolving count and grants a line of credo the ide from which the cardholder can borrow money for
paytent to anchora acab

A crede card is different from a charge card, where it requires the balance su be paid in full month.
In contrast, credit cards allow the consumers a contiming balance of to being charged. A credit card
also differs from a cat card, which can be and like cumscy by the owner of the card. A credit card
differs from a charge card also in that a cedit card typically involves a third-party entity that pays the
seller and is simbursed by the buyer, when a charge card simply defers payment by the buyer until a
later date

In today's business there are multi-dimensional problems and opponies. The subject of marketing is
drawing more and more attention from companies, institution and Nation Business bas recognized
the main difference between selling and marketing and they are now cominced to give more
attention and importance to marketing. Even soo-geofit making organizations marketing techniques
to establish relation with the people

Pricing, advertising and marketing research are being used win over custos

Marketing is the world's oldest profession. Right from the time of burter to economy till today's

modern complex marketing system, exchange have been taking place. So we say that marketing

is the study of exchanges process.

The most growing sector in today's economy is bunk. As it's the most growing industry, competition
level is very high. Marketing is the only key to acquire the market. One of the major marketing
factors is 7ps. The 7ps of the marketing ensures the products volubility. The 7ps of the marketing
mix influences many consumers as well as the production houses to produce accordingly to demand
place, time and many more.
CHAPTER 2

MEANING OF CREDIT CARD

A credit card is a plastic money enhances the consumers buying behavior. It facilities the consumer
with a credit opportunity of buying. A credit card is a payment card issued to users as a system of
payment. It allows the cardholder to pay for goods and services based on the holder's promise to
pay for them. The issue of the card creates a revolving account and grants line of credit to the
consumers (or the user) from which the user can borrow money for payment to a merchant or as a
to the user.

A credit card is different from a charge card: a charges card requires the balance to be paid in full
cach month. In contrast, credit cards allow the consumers a continuing balance of debt, subject to
interest being charged. A credit card also differs from a cash card, which can be used like currency by
the owners of the card. A credit card differs from a charge card also in that a credit card typically
involves a third-party entity that pays the seller and is reimbursed by the buyer, whereas a charge
card simply defers payment by the buyer until a later date.

A credit card is a payment card issued to users as a system of payment. It allows the cardholder to
pay for goods and services based on the holder's promise to pay for them. The issuer of the card
creates a revolving account and grants a line of credit to the consumer (or the user) from which the
user can borrow money for payment to a merchant or as a cash advance to the user. A credit card is
different from a charge card: a charge card requires the balance to be paid in full each month. In
contrast, credit cards allow the consumers a continuing balance of debt, subject to interest being
charged. A credit card also differs from a cash card, which can be used like currency by the owner of
the card. A credit card differs from a charge card also in that a credit card typically involves a third-
party entity that pays the seller and is reimbursed by the buyer, whereas a charge card simply defers
payment by the buyer until a later date. The size of most credit cards is 3 3/8 x 2 1/8 in (85.60 x53.98
mm), confoming to the ISO/IEC 7810 ID-1 standard. Credit cards have a printed or embossed bank
card number complying with the ISO/IEC 7812 Numbering standard. Both of these standards are
maintained and further developed by ISO/IEC JTC 1/SC 17/ WG 1. Before magnetic stripe readers
came into widespread use, plastic credit cards issued by many department stores were produced on
stock ("princess" or "CR-50") slightly longer and narrower than 7810.
CHAPTER 3

HISTORY OF CREDIT CARDS

Payment cards have changed the way that we pay for goods and services and today, most
consumers pay for at least half their purchases with a payment card. The forerunners of payment
cards are a long way from the sophisticated and widely-accepted cards that we are now accustomed
to b none-the-less, laid the foundations for the convenience and ease-of-use that we now enjoy.

Timeline and milestones

in 1880 First credit voucher product introduced in the UK by Provident Clothing Group, a pre-curser
to credit cards. Customers were issued with vouchers that they could use in shops on an approved
list and payment was made to the Provident Clothing rep who called at the customer's home.

in 1914 the US Western Union provide metal cards giving free deferral payment privileges to

preferred customers, which became known as 'metal money

in 1950 the US Diners Club issues payment payments cards aimed at diners, they operate as charge
cards. Initial membership was 200 with the card being accepted in 27 restaurants. By the end of the
year 20,000 people were using Diners Club.

in1951 When customers of New York's Franklin National Bank submitted an application for a loan

they were screened for credit. Approved customers were given a card they could use to make retail

purchases.

in 1951 First UK charge card available when Donald McCullough launches Finders Services after a trip
to the US

in 1958 American Express introduces its own charge card, and Bank of America introduces a credit
card called Bank Americard.

in 1962 Diners Club becomes the first major charge card company in Britain following the merger of
Finders Services and Credit Card facilities.

in 1963 American Express is launched in the UK with an annual fee of 13 12 (149 in 2005) and a

required income of £2.000 (27,250 in 2005). The card is usable in 3000 UK outlets and 83,000

overseas outlets. The only Bank of England constraint is a £75 limit on a single item for overseas
transactions In 1965 Bank of America develops licensing agreements with other banks enabling them
to issue

BankAmericards, becoming the first 'scheme

In 1966 UK's first credit card issued by Barclays on June 29th 'Barclaycard was based on the

BankAmericard that had been issand a few years earlier in the USA. The cand originally offered very

limited international operability

la 1967 First cash machine in the world installed by Barclays Bank in Enfield, Middlesex and laun…

gains recognition in the UK. This move brings world-wide acceptance to UK-issued cards, Early/mid

80s saw the introduction of electronic point of sale terminals.

CHAPTER 4

FEATURES OF CREDIT CARDS

1) Credit limit:

The credit limit on a credit card reflect the amount of credit extended to the credit card holder by
the lender. Credit limits very widely, some are as low as $300 for the first premier subprime card and
others, such as the express Gold card from American express, are unlimited. Lenders base the
amount of credit a consumer receives on various factors, including income and credit history.
According to fair Isaac, inventors of the FICO scoring model, 35 percent of your FICO score is based
upon how well you pay your bills, Exceeding your established credit limit by maxing out the credit
card will negatively impact your score.

2) Interest Rate

Another feature of credit card is the interest rate. This rate This rate determines how much in
finance charges you'll pay on the card's balance. Some credit cards comes with 0 percent interest,
such as the Platinum prestige card from capital one. That's the good news; the bad news is that's
some credit cards have interest rates that are significantly higher. First premier bank markets a
credit cards that has an interest rate of 79.9 percent. This card is geared towards those with bad
credit. Generally, consumer with higher cardit scores receive batter interest rates.

3) Fess

Credit card lenders charge fees for certain accurrences associate with the use of a credit card.
Lenders charge consumers a fixed fee if a late payment is made. For example, this fee is up to 38
percent for the chase freedom card. Another fee is the annual fee, which the cost of owning the
card. Lenders also once charged an over-the- limit fee to consumers but the credit card
accountability. responsibility and disclosure Act (CARD Act) of 2009 now prohibited credit issuer's
from allowing the consumer to go over there credit limit unless the consumer opts- in. If you do opt-
in and go over the credit limit, the credit issuer's is allowed to charge a fee.

4) Grace period:

The Grace period is the amount of time you have to pay your bill fin full without incurring finance
charges. This is usually measured in terms of based. If you always pay your balance in full each
month, you avoid the finance charge altogether. Some cards, such as the applied bank Visa, don't
have a grace period at all. This is important because it means that interest is applied a right away.
which guarantees that the consumer will incur finance charges even if the balance is paid in full.

5) Rewards:

Depending upon the card, there are various rewards that consumers can enjoy. Some rewards are in
the form of points, which are used to make purchases at certain merchants. Other rewards include
airline miles and merchandise disoffers and cash back offers, which pay consumers in cash a
percentage of the amount they charged on the card within a certain time frame. The discover more
card has a cash back offer of 5 percent.

IMPORTANCE OF CREDIT CARDS

Consumers and merchants benefit from the use of credit cards. From meager beginnings in the
1920s, the credit card market has exploded over the years, thanks in large part to the
computerization of society. Credit cards revolutionized consumer spending habits and changed the
face of business. In today's economy, credit cards represent an important part of household,
business and global activity.

Personal Credit

For individuals, credit cards are an important part of everyday life. Whether purchasing gas and
groceries or reserving a hotel and rental car for an upcoming vacation, credit cards represent a
convenient and secure form of payment for consumers. Benefits ranging from damage protection on
purchases to the ease of disputing suspicious charges or fraudulent activity make credit cards an
attractive form of payment. Beyond the case of use and added security, credit cards can also help
you build a solid credit history. With regular use and prompt payment, responsible consumers will
find that lenders are more willing to offer them additional credit in the form of increased credit lines.
mortgages and consumer loans.

Economic Stimulus

Credit cards are not only important for individuals and businesses; they're an important aspect of
continued economic growth. A February 2013 report by Moody's demonstrates the importance of
electronic payments, including credit cards, in a global economy, saying that electronic payments
increase gross domestic product and consumption, both of which lead to job creation. Credit cards
play an important role in the cycle of increased consumption and production by offering merchants a
guaranteed method of payment and providing consumers with a way to bridge the gap between
paychecks in times of emergency.

Business Creation

Capital for business formation can be hard to come by for entrepreneurs looking to get a new
business off the ground or expand an existing one. For small businesses, credit cards represent an
important financial lifeline when traditional funding sources, such as small-business loans, aren't
available. Credit cards help businesses financially, and they also have a positive impact on small-
business employment growth.

Additional Considerations

Credit cards offer additional benefits for consumers. Based on the type of card you have, you may
qualify for rewards such as cash back or discounts on purchases, trip cancellation insurance, and air
miles. With a little comparison shopping, you can find a credit card that offers rewards to fit your
lifefestyle for a period determined by the issuer, after which the held amount will be returned to the
cardholder's available credit (see authorization hold), some transaction may be.

TYPES OF CREDIT CARD

There are hundreds of credit cards spread across dozens of credit card issuer. If you're looking for a
credit card, start by figuring out the type of credit card you want. The types of credit cards on the
market range from basic or "plain vanilla" with on frills to premium cards with benefits.

Standard Credit Cards:

Standard credit cards are the general purpose cards that have revolving credit lines. They are
marketed to people above the age of 18 who meet or exceed the financial institution's minimums
credit criteria. No deposits are needed and the credit limit is established by the credit card issuer.

Reward credit Cards:

Many credit cards have reward programs that can influence your spending. The perks may come in
the form of cash, points or discounts. Points that accumulate, for instance, can be traded off for free
hotel stays, merchandise, air travel car rentals and certificates. However, these credit cards can
come with complex rules, limits and restrictions. The key is to try to make sure that annual fees don't
end up eliminating all the benefits. Rewards cards are typically best for people who pay their
balances off every month. (To learn more, read 10 Reasons To Use Your Credit Card.)

Airline/Frequent Flier Miles:

Using these cards can earn airline miles. The miles accumulate and can be put toward future flights.
Some programs partner with hotels, car rentals and other travel services. However, you don't want
to hold on to the tickets for too long. You will need to stay aware of the expiration date on the miles
offered. (For related reading, check out Drawbacks Of Travel Reward Programs.)

Cash Back:

Cash back cards literally give some of the money you have spent back to you in cash. Credits range
from 1-5%. However, this is usually capped at $500 of spending in "appropriate" categories,
depending on the card. When you collect a minimum amount of cash or credit, such as $20 to $50,
you can ask to receive it through a check or use the money for a purchase at a designated store.

Some cards give a flat amount of money based on all your purchases regardless of how much you
spend, while other have tiers with different levels of rewards depending on how much you spend
and where the money is spent.

Points Cards:

These cards let you earn reward points that can be redeemed for merchandise, entertainment and
gift cards. These include points that can be put toward gas. hotel stays and home improvement
purchases.

Premium Credit Cards:

These are the "gold" and "platinum cards". They are generally referred to as "upscale". They are
offered to consumers with excellent credit, which means they've retained this standing for few
years, and can afford high credit limits of at least $10,000. These consumers typically have huge
salaries and are heavy spenders and travelers. Some cards are offered by invitation only. The interest
and annual fees, however, tend to be high. The cards' perks may include 24-hour concierge services
or a personal assistant, access to exclusive airline lounges, and worldwide travel and auto assistance.

Secured Credit Cards

Secured credit cards are known as pay-as-you-go cards. Upon opening the account, the card holder
deposits a few hundred to a couple of thousand dollars. This determines the card holder's credit line.
This limit is often based on a percent of the deposit, which is usually 50-100% of what you put into
the account. The cards have an annual fee and higher annual interest rates. Most often, these cards
are used to reestablish credit. A person can use the card to make small purchases that they can
easily repay. Getting a card with a conversion option makes it easier to switch to a standard credit
card, which should be possible after several months of good payment history. (For more on this and
other types of credit cards, read Credit, Debit And Charge: Sizing Up The Cards In Your Wallet.)

Specialty Credit Cards

Specialty cards typically are offered through affiliations, partnerships, major brand retailers or
service providers. Many specialty credit cards share a partnership between organizations that
support a social cause, professional organization or an alumni association. A small portion of the
purchase goes toward the intended organization.

Limited purpose cards:

Limited purpose credit cards can only be used at specific locations. Limited purpose cards are used
like credit cards with a minimum payment and finance charge. Store credit cards and gas credit cards
are examples of limited purpose credit cards.

Retail credit card reviews

Best gas rewards credit cards

Business credit cards:

Business credit cards are designed specifically for business use. They provide business owners with
an easy method of keeping business and personal transaction separate. They are standard business
credit and charge cards available.

Student credit cards:

Student credit cards are those specifically designed for college students with the understanding that
these young adults often have or no credit history. A first time credit card applicant would generally
have an easier time getting approved for a student credit card than another type of credit card.
Student credit cards may come with additional perks like rewards or low interest rate on balance
transfers, but these aren't the most important features for students looking for their first credit card

CHAPTER 5

MARKETING STRATEGIES USED IN CREDIT CARD MARKETING

Like any business, a credit card company's goal is to make a profit. Fees and interest charges are two
well-known profit- building techniques, but they aren't the only tools at a credit card company's
disposal on particularly profitable practice credit card companies employ is to charge merchant a
small fee for each credit transaction. These fees rapidly add up. According to U.S. News & world
report, in 2009, credit card companies earned $35 billion in merchant fees alone. Selling credit-
based products to consumers, such as credit insurance or credit monitoring, helps credit card
companies drive profits up even further.

Marketing Strategies

Credit card companies are always on the lookout for new customers. Each company has marketing
strategies in place designed to get prospective customers' attention and convince them to apply for
the card. Along with traditional advertising, credit card companies often offer special incentives to
new customers, such as a temporary low interest rate, frequent-flyer miles or free balance transfers.
A credit card company may also target you through the mail by using "pre-approved" credit offers to
entice you into filling out a card application.

Customer Retention Strategies

Credit card companies place a strong emphasis on customer retention. The Database Marketing
Institute notes that it costs a credit card company roughly $80 to acquire each new customer. Each
new customer, in turn, brings the company an average of $120 in profits per year. Thus, retaining
existing customers helps mitigate financial losses for the company. If you've ever tried to cancel a
credit card, you've probably had firsthand experience with customer retention practices. If you call
and attempt to cancel your account, the company will likely transfer your call to a member of a "save
team" whose job it is to change your mind. For example, if you're canceling your credit card because
the interest rate is too high, the customer retention representative may offer to lower your interest
rate to a more manageable level if you agree to keep the account open.
Debt Collection Strategies

Not every card holder pays his bills promptly. Credit card companies utilize various debt collection
strategies to recover unpaid balances and limit financial losses. Common collection strategies
include requesting payment by phone, through the mail or via email. Should these efforts fail, the
credit card company may transfer your account to an in-house or third-party collection agency.
Some credit card companies even sue customers for unpaid balances. Each creditor's collection
strategy differs, but the Neighborhood Economic Development Advocacy Project notes that your
creditor is less likely to sue you if the unpaid balance you owe is less 10000

CHAPTER 6

MEANING OF 7P'S IN CREDIT CARD MARKETING

1. Product

2. Price

3. Promotion

4. Place

5. People

6. Process

7. Physical evidence

1) Product:" A product is anything that can be offered to market for attention, acquisition use or
consumption that satisfy a want or need it includes physical object (TV), service (banking), person
(political person), place, (holiday resort), organization (red Cross), and idea (aid awareness)."
2) Price: price it is significant element of the marketing mix because it is the only element that
produce revenue whereas the other elements produce cost. Price reflects the value attached to the
service provider and it must correspond with the customer's perception of value.

3) Promotion: W.R. George and L. Berry have identified six guidelines that can be used for promotion
service they are mostly applicable to all services sector, with the expectation to all sum few due to
the variable nature of services.

4) Place: distribution is the process of transferring goods from one place to another of production to
the place of consumption. In case of tangible goods, the distribution system involves the use of a
network of intermediaries for distribution. In some cases the goods are distributed directly,

5) People: Of all controllable variable marketing executives have at their disposals, the people factor
in the service marketing mix is perhaps the least they can rely on in getting their marketing mix right
and the most important one they have to get 'right'.

6) Process: According to C. Lovelock there are seven operational issues which have to be considered
while designing the services quality process.

7) Physical evidence: Generally a service transaction involves the transaction of service provider with
the customer in the services environment.
IMPLEMENTATION OF 7PS IN SECURED CREDIT CARD

The above given types have well elaborated the concept and types of credit card we will took one of
the types of credit card to explain the strategies of marketing and implementation of 7ps in credit
card market.

Meaning of secured credit card

Secured credit card

A credit card with a credit limit that is at least partially collateralized by funds in a special savings
account. That is, a cardholder places a certain amount of money into an account with the credit card
company, and this is used to protect the company from the cardholder's default. Depending on the
cardholder's credit history, he/she may be required to place anywhere from 50% to 100% of the
credit limit into the savings account. These funds still belong to the cardholder, and he/she may
retrieve it if he/she pays off or cancels the secured card. Because these reduce the risk to the credit
card company, it may charge a lower interest rate. Secured cards are particularly useful for persons
with bad credit or little credit history.

You deposit a sum of money in the account, and you can borrow up to that amount using your card.
If you don't repay what you borrowed, the creditor can access your account to cover your debt. The
creditor may also change substantial fees for a secured card.

Secured credit cards look the same as other credit cards, so no merchant can identify a card as
secured. But if you have trouble qualifying for credit, perhaps because you've just started working.
you can use a secured card as a first step toward establishing a record of using credit responsibly.

7Ps INFLUENCING CREDIT CARD MARKET

As earlier we have studied about 7ps. They have great influence in sales of credit card. The following
are the elaboration for the 7ps with examples relating to credit card sales.

Product: In order to encourage the consumers to buy or sell the things. The banks have provided the
consumers with credit cards. 'a credit card is a plastic money which helps the consumer to buy or
purchase the goods and services on credit."

Example: a bank provides a card to customer to make him use it via various mediums at various
places and at different times for his benefits and enjoyment.

Price: The price of a credit card is fixed by the eligibility and transaction of the customer. The
customer's credit capability should be up-to-date and he should be all clear by civil (a credit rate

agency).

Example:

Names of cards

Gold

80000

SILVER

titanium

Credit limit

50000

40000

Promotion: promotion is like a media how banks are advertising their products. Promotion is a

activity in which banks promoters their credit cards to the customers.

Example: banks provides brushers to the every customers who are eligible to the
Place: place is a particular arena where product actually needs to be distributed.

People: people are the targeted audience or consumers whom the company wants to present their
product for sell.

Process: process is a procedure of a particular product introduced by a company or banks.

Example: the banks follow very strict process in the verification of customer who is applied for credit
card.

Physical evidence: physical evidence is final labeling or packaging of a product of a product to attract
the customers.

Example: The credit cards are packed in a manner so that only the customer can get to now is its 4
digit pin.
CHAPTER 7

HOW CREDIT CARDS WORK?

Have you ever stood behind someone in line at the store and watched him shuffle through a stack of
what must be at least 10 credit cards? Consumers with this many cards are still in the minority, but
experts say that the majority of U.S. citizens have at least one credit card - and usually two or three.
It's true that credit cards have become important sources of identification -- if you want to rent a
car, for example, you really need a major credit card. And used wisely, a credit card can provide
convenience and allow you to make purchases with nearly a month to pay for them before finance
charges kick in.

That sounds good, in theory. But in reality, many consumers are unable to take advantage of these
benefits because they carry a balance on their credit card from month to month, paying finance
charges that can go up to a whopping 23 percent. Many find it hard to resist using the old "plastic"
for impulse purchases or buying things they really can't afford. The numbers are striking: In 1999,
American consumers charged about $1.2 trillion on their general-purpose at the credit card -- how it
works both financially and technically and we'll offer tips on how to shop for a credit card. (Experts
say this should be a project on the scale of shopping for a car loan or mortgage!) We'll also describe
the different credit-card plans available, talk about your credit history and how that might affect
your card options, and discuss how to avoid credit-card fraud - both online and in the real world.

Let's start at the beginning. A credit card is a thin plastic card, usually 3-1/8 inches by 2-1/8 inches in
size, that contains identification information such as a signature or picture, and authorizes the
person named on it to charge purchases or services to his account -- -charges for which he will be
billed periodically. Today, the information on the card is read by automated teller machines (ATMs).
store readers, and bank and Internet computers.

According to Encyclopedia Britannica, the use of credit cards originated in the United States during
the 1920s, when individual companies, such as hotel chains and oil companies, began issuing them
to customers for purchases made at those businesses. This use increased significantly after World

War II.
The first universal credit card one that could be used at a variety of stores and businesses - was
introduced by Diners Club, Inc., in 1950, With this system, the credit-card company charged
cardholders an annual fee and billed them on a monthly or yearly basis. Another major universal
card -- "Don't leave home without it!"--was established in 1958 by the American Express company.

Later came the bank credit-card system. Under this plan, the bank credits the account of the
merchant as sales slips are received (this means merchants are paid quickly--something they love!)
and assembles charges to be billed to the cardholder at the end of the billing period. The cardholder,
in turn, pays the bank either the entire balance or in monthly installments with interest (sometimes
called carrying charges).

The first national bank plan was Bank America, which was started on a statewide basis in 1959 by the
Bank of America in California. This system was licensed in other states starting in 1966, and was
renamed Visa in 1976.

Other major bank cards followed, including MasterCard, formerly Master Charge. In order to offer
expanded services, such as meals and lodging, many smaller banks that earlier offered credit cards
on a local or regional basis formed relationship with large national or international banks.

two through six are the bank number, digits seven through 12 or seven through 15 are Visa Digits
the account number and digit 13 or 16 is a check digit. MasterCard- Digits two and three, two
through four, two through five or two through six are the bank number (depending on whether digit
two is a 1, 2, 3 or other). The digits after the bank number

up through digit 15 are the account number, and digit 16 is a check digit.
INTEREST CHARGES

Credit companies charge a fee in exchange for letting you carry balances. These are called Interest
Charges. You can avoid a Interest Charge on purchases if you pay your balance in full each month.
However, if you pay less than the full balance, a Interest Charge will be added to your account. If you
carry a balance from month to month, Interest Charges will add up.

APR is the interest rate, calculated on a yearly basis, which you pay on balances. If you carry a
balance, the APR is the best indicator of what credit costs. The higher the APR, the more you will
pay. Some credit card companies offer lower introductory rates for a limited period of time.
Afterwards, these rates usually go up. To calculate the rate each month, divide the APR by 12. For
example, if the APR is 18%, the monthly interest rate on carrying a balance is 1.5%.

Your APR may be tied to a specific rate of interest, such as the Prime Rate. This means your interest
rate is "variable"-it could go up or down over time. A non-variable APR doesn't change the way a
variable does. However, with advance notice from the card company or if you default on your
payments, non-variable rates may still change at some point as permitted by law.

Your rate may also change as described in your Card Agreement or upon written notice from the
company.

Where do interest charges come from?

Interest Charges are calculated in different ways. Your account statement describes the method that
applies to you. In general, your balance for Interest Charges is based on one of these methods:

Average Daily Balance:

The card company adds the amount you still owe from your previous statement (if you didn't pay in
full) to all new purchases and cash advances, and then divides the sum by the number of days in the
billing cycle. It is shown on your statement each month you use the card

Adjusted Balance:

The card company takes your balance at the beginning of the Billing Cycle. It subtracts payments you
make during the period. This means your balance is kept lower and you pay less in Interest Charges.
Previous Balance:

This method applies the monthly Interest Charge to your beginning balance for the Billing Cycle.
Purchases and payments during the month that follow aren't included.

Ending Balance:

The card company may use your ending balance for the Billing Cycle. If s…

Other fees;

These include an over-the-limit fee if your balance exceeds your credit limit. You may also be
charged fees for returned checks, cash advance checks or stop-payment requests.

CHAPTER 8

BENEFITS TO CARDHOLDER

The main benefit to the cardholder is convenience. Compared to debit cards and checks, a credit
card allows small short-term loans to be quickly made to a cardholder who need not calculate a
balance remaining before every transaction, provided the total charges do not exceed the maximum
credit line for the card.

Different countries offer different levels of protection. In the UK, for example, the bank is joining
liable with the merchant for purchase of defective products over £100

Many credit cards offer rewards and benefits packages, such as enhanced product warranties at no
cost, free loss/damage coverage on new purchases, various insurance protections, for example,
rental car insurance, common carrier accident protection, and travel medical insurance. Credit cards
can also offer reward points which may be redeemed for cash, products, or airline tickets. Research
has examined whether competition among card networks may potentially make payment rewards
too generous, causing height prices among merchants, thus actually impacting social welfare and its
distribution, a situation potentially warranting public policy interventions.

Comparison of credit card benefits The table below contain a list of benefits offered in the united
States for consumer credit cards. Benefits may vary in other countries or business credit cards.
CHAPTER 9

HIGH INTEREST AND BANKRUPTCY

Low introductory credit card rates are limited to a fixed term, usually between 6 and 12 months,
after which a higher rate is charged. As all credit cards charge fees and interest, some customers
become so indebted to their credit card provider that they are driven to bankruptcy. Some credit
cards often Levy a rate of 20 to 30 percent after a payment is missed. In other Cases a fixed charge is
levied without change to the interest rate. In some cases universal default may apply: the high
default rate is applied to a card in good standing by missing a payment on an unrelated account from
the same provider. This can lead to a snowball effect in which the consumer is drowned by
unexpectedly high interest rate. Further, most card holder agreements enable the issuer to
arbitrarily raise the interest rate for any reason they see fit. First premier

EFFECT OF CREDIT CARDS ON THE SOCIETY

The following are the effects of credit card o the society:

weakens -self regulation of credit card

Several studies have shown that consumers are likely to spend more money when they pay by credit
card. Researchers suggest that when people pay using credit cards, they do not experience the
abstract pain of payment.[15] Furthermore, researchers have found that using credit cards can
increase consumption of unhealthy food.

• Detriments to society

Inflated pricing for all consumers Merchants that accept credit cards must pay interchange fees and
discount fees on all credit-card transactions. In some cases merchants are barred by their credit
agreements from passing these fees directly to credit card customers, or from setting a m
transaction amount (no longer prohibited in the United States, United Kingdom or Australial. The
result is that merchants are induced to charge all customers (including those who do not use credit
cards) higher prices to cover the fees on credit card transactions. The inducement can be strong
because the merchant's fee is a percentage of the sale price, which has a disproportionate effect on
the profitability of businesses that have predominantly credit card transactions, unless compensated
for by raising prices generally. In the United States in 2008 credit card companies collected a total of
$48 billion in interchange fees, or an average of $427 per family, with an average fee rate of about
2% per transaction
costs of merchants

The pricing for transactions or card acceptance that merchants will negotiate with their acquirer is
known as their merchant service charge (MSC) It is not possible to provide facts and figures on
pricing as this will depend on the nature of a merchant's business and how it operates; pricing will
be decided by negotiation between the merchant and its prospective acquirer. However, we can
provide information on the key elements involved in pricing to help merchants understand the basis
on which pricing is determined and how a MSC is calculated. As with all costs to merchants they will
want to negotiate the lowest rates for their card acceptance devices. It is worth reflecting on how
cards could improve a merchant's business when making a judgment as to whether accepting them
represents good value for money.

CHAPTER 10 PARTIES INVOLVED

Cardholder. The owner of the card used to create a purchase, the customer.

Card-issuing bank: The financial organization or other organization that issued the credit card to the
cardholder. This bank bills the consumer for refund and bears the threat that the card is used
dhonestly. American Express and Discover were before the only card issuing banks for their
individual brands, but as of 2007, this is no longer the case.

Merchant: The individual or business accepting credit card payments for products or services sold

to the cardholder

Acquiring bank: The financial institution accepting payment for the products or services onside of the
marchant. Self-governing sales association: Resellers (to merchants) of the services of the acquiring
bank.

Merchant account: This could pass on to the acquiring bank or the self-governing sales

organization, but in common is the association that the merchant deals with

Credit Card association: A relationship of card-issuing banks for example Discover, American
Express, Visa, MasterCard, etc. that put transaction conditions for merchants, card-issuing banks,

and acquiring banks.

Transaction network: The system that equipment the mechanics of the electronic transactions.
Perhaps operated by an self-govering company, and one company might operate many networks.
Transaction processing networks consist of: Nuance, Omaha, NDC Atlanta, Nova, Carnet,
Paymentech, TSYS, Concord Eisner, and Visa Net.

Affinity partner: Some organization provide their names to an issuer to attract customers that have a
tough relationship with that organization, and get paid a fee or a percentage of the balance for each
and issued using their name. Examples of distinctive affinity partners are universities, charities,
sports teams, professional organizations, and major retailers.

Related Discussions:- Parties involved in credit cards, Assignment Help, Ask Question on Parties
involved in credit cards, Get Answer, Expert's Help, Parties involved in credit cards Discussions

Transaction steps,

Authorization: The cardholder requests a purchase from the merchant. The merchant subunits the

request to the acquirer. The acquirer sends a request to the issuer to authorize the transaction. An

authorization code is sent to the acquirer if there is valid credit available. The acquirer authorizes the

transaction. The cardholder receives the product. Batching: The merchant stores all the day's
authorized sales in a butch. The merchant sends the

batch to the acquirer at the end of the day to receive payment.

Clearing and settlement: The batch…

card issuers offer this because they have noticed that delinquencies were notably reduced when the
customer perceives something to lose if the balance is not repaid.
The cardholder of a secured credit card is still expected to make regular payments, as with a regular
credit card, but should they default on a payment, the card issuer has the option of recovering the
cost of the purchases paid to the merchants out of the deposit. The advantage of the secured card
for an individual with negative or no credit history is that most companies report regularly to the
major credit bureaus. This allows building a positive credit history.

Although the deposit is in the hands of the credit card issuer as security in the event of default by
the consumer, the deposit will not be debited simply for missing one or two payments. Usually the
deposit is only used as an offset when the account is closed, either at the request of the customer or
due to severe delinquency (150 to 180 days). This means that an account which is less than 150 days
delinquent will continue to accrue interest and fees, and could result in a balance which is much
higher than the actual credit limit on the card. In these cases the total debt may far exceed the
original deposit and the cardholder not only forfeits their deposit but is left with an additional debt.

Most of these conditions are usually described in a cardholder agreement which the cardholder
signs

when their account is opened.

Secured credit cards are an option to allow a person with a poor credit history or no credit history to
have a credit card which might not otherwise be available. They are often offered as a means of
rebuilding one's credit. Fees and service charges for secured credit cards often exceed those charged
for ordinary non-secured credit cards. For people in certain situations, (for example, after charging
off on other credit cards, or people with a long history of delinquency on various forms of debt),
secured cards are almost always more expensive than unsecured credit cards.

Sometimes a credit card will be secured by the equity in the borrower's home.
CHAPTER 11

COSTS FOR CREDIT CARDS HOLDERS

Credit card issuers (banks) have several types of costs:

Interest expenses: Banks generally borrow the money they then lend to their customers. As they
received very low interest loans from other firms, they may borrow as much as their customers
require, while lending capital to other borrower at higher rate. in the card issuer charged 15% on
money lent to users, and it costs 5% to borrow the money to lend, and the balance sits with the card
holder for a year, the issuer earn 10% on the loan. This 10% difference is the "net interest spread"
and the 5% is the "interest expense".

Operating costs: This is the cost of running the credit card portfolio, including every think from
paying the executive who run the company to printing the plastics, to mailing the statements, to
nunning the computers that keep track of every cardholder's balance, to taking the money home
calls which card holders place to their issuer, to protecting the customers from fraud rings
depending on the issuer, marketing program are also a significant portion of expenses.

Charge offs: when a costumer become severely delinquent on a dept (often at point of six months
without payment), the creditor may declare the dept to be a charge-off, it will then we listed as such
on the debtor's credit bureau reports (Equifax, for instance, lists "R9" in the "status" column to
denote a charge-off.

A charge-off is considered to be "written off as uncollectable." To banks, bad debts and even fraud
are simply part of the cost of doing business.

However, the debts is still legally valid, and the creditor can attempt to collect the full amount for
the time period permitted under state law.
CHAPTER 12

QUESTION ABOUT SECURED CREDIT CARDS

1. What is a secured credit card?

A secured card requires a cash collateral deposit that becomes the credit line for that account. For
example, if you put $500 in the account, you can charge up to $500. You may be able to add to the
deposit to extend your credit, or sometimes a bank will reward you for good payment and add to
your credit line without requesting additional deposits.

2. Where can I get a secured credit card?

Check Bankrate.com's list of secured credit card issuers. If you're a credit union member, ask about a
secured card there. Many credit unions offer secured cards to their members and may offer lower
interest rates and waive annual fees.

3. What kind of charges will there be?

This is where it pays to shop around. Avoid any card that wants you to pay an application fee. Most
secured cards do charge an annual fee, and they vary dramatically. Read the fine print. Some people
have gotten secured cards and have seen their entire deposit (and credit limit) eaten up by fees
before they ever used the card

4. How much money do I have to deposit?

Again, the amount will vary by the card. Most allow minimum deposits of $300 or $500. Your credit
limit will either be the amount of your deposit or some percentage above that amount.

5. Do all banks offer secured credit cards?

No. Linda Sherry, director of national priorities at Consumer Action, says her organization is seeing a
trend in banking away from secured cards and toward unsecured cards with lower limits and higher
interest rates and fees. Still, secured cards are a good choice and sometimes the only option -- for
people who are just starting out or rebuilding after a major life event, such as a divorce, job loss or
serious illness. In addition, some issuers give secured cards only to people who are new to credit--
not those who have already had one crack and blew it.
6. Are there any problems to watch out for?

Yes. Howard Dworkin, chairman of Debt.com, calls secured credit cards a Clint Eastwood movie- the
good, the bad and the ugly. Some are good. They have low fees and treat customers as customers
instead of as cattle. The bad ones take advantage and extort the clients because of their situation
Then there's the ugly, which are completely despicable. They'll give you the card, but you have to
buy this insurance policy for $55 a month."

The Consumer Financial Protection Bureau has taken several enforcement actions against credit card

isers for deceptively marketing add-on products over the past few years, though secured cards,

specifically, have yet to be a focal point.

You should gather plenty of information when you apply for a card. In addition, pay attention to

such important items as interest rates, fees and the required deposit.

7. Does the issuer report to all 3 major credit bureaus? The reason for having a secured card goes far
beyond being able to buy things online. It's a vehicle for building a good credit history. If the issuer
doesn't report, you've lost a major benefit. (Tip: If you sart getting mailers offering you unsecured
cards after you've made several months of payments on time, you'll know that the bank is
reporting.) Ask if the issuer will flag the report to the credit

bureaus as a secured card. Consumer Action points out that such a flag could be a deterrent to

rebuilding credit.

You can also learn for yourself whether your issuer is reporting by checking your credit reports. Do

it for free at my Bank rate.

How long does it take to qualify for an unsecured card?

The card issuer should want to keep you as a customer, so most will qualify you for an unsecured
cand after a period in which you've made all of your payments on time. The average is about a year.

9. Will your deposit earn interest?

Most issuers do not pay interest on a customer's security deposit, though a few do offer rewards on
spending. Also, find out how long the money has to stay on deposit after the account is closed

CHAPTER 13

FEATURES

Global car

SBI DENA BANK SECURED CREDIT CARDS

Honored in 2 million Visa outlets worldwide and 2. 85.000 Visa outlets in lado, your SBI Visa Oodit
Card fulfils your every wish at every turn. No matter where you are, privileges flow from your SBI
Card

Guaranteed peace of mind-SDI Card automatically gives you complete peace of mind with our SBI
Cand Customer Helpline and 24-hr VISA/MasterCard (Please check the logo on the front of your card
before using) Global Castomer Assistance Services available across the world in case of any
emergency,

Convenience of Technology - E-statement. No postal delays, No lost statements. No late payments.

hat the convenience of getting your monthly statement delivered directly to your email inbox. Giving
you global access 24-hr, seven days a week.

SBI Card Alerts

981 Card Alerts enables you to receive information regarding your credit card status, as an SMS on

your mobile phone. These include Mini Statement Alerts, Cheque Alerts, Credit & Cash limit Alerts
& Payment Assistance Alerts. So, no matter where you are, we will keep you informed! To

subscribe to SBI Cand visit us at www.sbicard.com

Benefits

Offers:

Get Rs.100 cash back on your first ATM cash withdrawal within 30 days of receiving the card.

Credit convenience:

Enjoy credit free period of up to 50 days on your SBI Dena bank secured co-branded credit card and
in extended credit facility with very low rate of interest of 1.99% p.m.

53

Convenience application procedure:

SBI Dena bank secured card can be availed on the basis of a fixed deposit with Dena bank for as low

Rs.30,000/-

Enhanced power to your family:

You can share the power of your SBI card with your family, by applying for add-on cards for your
spouse, children, siblings over 18 years and parents.
 INDEX OF PIE DIAGRAM
BANKS PERCENTAGE

HDFC BANK 20%

ICICI BANK 7.5%

UNION BANK 17.5%

SBI BANK 33%

AXIS BANK 15%

OTHER BANK 7.5%

 PIE CHART

7%

15% 33% SBI

UNION
ICICI
HDFC
AXIS
20% OTHERS

17%
7%

Advantages of secured credit cards

1.Cedit cards are powerful financial instruments, but they can also lead to dete. At the same time,
nary people have been unable to qualify for a credit card in the wake of the Great Remain. One
poble solution for both of these problems is a type of credit card called a secured credit card

2 .Secured cardholders can then use their cards much like a standard credit card. They receive hly
statements and must make minimum payments on time or face penalties. cards covered by the
same federal laws that protect users of standard credit
3 .Secured credit a There is a limit to cardholder's liability in the event of theft or fraud, and
cardholders can quest a chargeback in the event that goods or services that were paid for are not
received.

4.Secured credit cards are also an excellent way to build credit as most issuers will report timely
pements to the major credit bureaus.

5. The ideal secured credit card holder will make timely payments for a year or more before
successfully applying for a standard credit card. Finally, some secured cards will offer rental car
insurance as a benefit.

Disadvantages of secured credit cards

1. Many of the secured cards on the market are loaded with fees, Customers should avoid cards that
charge monthly fees that can add up to more than $100 a year. In contrast, major banks such as First
Progress offer a secured credit card for only $29 a year.

2 Another disadvantage is that these cards may have a very low credit limit, so they are not ideal for
larger purchases. 3. Cardbolders should also look out for additional cost programs that are heavily
promoted. For

example, many secured card issuers offer "payment protection" and other quasi-insurance programs

for a large monthly fee.

4. In addition, cardholders can still accumulate fees and interest charges if they are unable to pay
their balance in full and on time each month. This is an important consideration for those who have
had trouble managing their finances in the past.

5. Finally, these cards typically feature few benefits such as travel insurance and purchase protection

that are common to most standard cards.

6. By understanding the advantages and drawbacks of this unique type of credit card, consumers can
choose the right product for their individual needs.

CHAPTER 14

TOP SECURED CREDIT CARDS

We compared a number of secured credit cards to find the best credit cards for people locking so
build and improve their credit history. We've picked these cards because they have low annual fres,
low interest rates, and helpful credit tools such as email and text alerts to ease the transition back to
good credit. Lastly, and most importantly, they report to Equifax, Experian, and Transition, the three
major credit bureaus that are instrumental in building your credit history
State Department EMV Savings Secured Visa Platinum Card: Best Secured Credit Card The State
Department EMV Savings offers the best benefits we've seen among secured cred cands: the lowest
APR, no annual fee, AND a rewards program. You don't need to be a State Department employee,
but there is one step to take for eligibility that's worth the benefits. Here's why we think it's the best:

The best feature of the State Department secured card is its Flex points Rewards program. Most
secured credit cards do not have a rewards program, but with the EMV Savings Secured Visa, you
can build your credit cake and eat it, too. The points you earn can be redeemed for a nice 15%
rewards rate - a sweetener to help the credit improvement process. With an APR of 6.99%, this card
has the lowest variable APR we've seen among secured cards,

and even regular credit cards. For those of us who find it difficult to pay card balances off in fall,

this will be the most lenient cand, since the remaining balance won't incur interest at as steep a

rate as the 16% average we're seeing among secured cards. Additionally, there is no annual fee and
a relatively low deposit of $250 to get you started on rebuilding your credit scores. Once your credit
score is improved enough to qualify you for an unsecured cand, you can keep the State Department
secured cand open at no extra annual fee to extend the good history on your credit report.

Lastly, you don't need to be a US State Department employee to be eligible - there are other easily
available options, such as a $15 lifetime membership to the American Consumer Council, or
employment at select Virginia or DC companies.

No annual fee, extremely low 6.97% variable APR Minimum deposit of $250, deposit is your credit
limit

Flex point Rewards programs with 15% rewards at

Eligibility: State Department employee or family member, American Commer Council membership
Cital One Secured MasterCard Best Secured Credit Card for Financial Flexibility
The Capital One Secured MasterCard is a great all-around credit card for people looking for more
financial flexibility since it has the lowest minimum deposit requirements and low l fees. With these
lower application amounts, you won't need to pay as much upfront to open the

What's special about the Capital One Secured MasterCard is that your security deposit can be
extended towards a higher credit limit. While other secured credit cards set your credit limit to equal
your security deposit, Capital One starts at $49, and can get you a credit limit beginning at 5300 if
approved. Other secured cards typically ask for a minimum deposit beginning at $200 for an
equivalent crodit limit. Capital One Secured MasterCard helps stretch cardholders' dollars further
and provide extra financial flexibility that other cards won't have

Lastly, it has no annual fee, which is cheaper than the average annual fee of about $35 that other

hank secured cards will charge

There's a great set of tools to keep cardholders on top of credit improvement. For example, corolling
your account online lets you monitor your credit score and credit report with Capital One free Credit
Wise service Email and mobile alerts are helpful and necessary reminders ins case you forget to
make a payment - the Capital One Secured MasterCard has a relatively high APR of 24 99% and a
penalty of up to $35 for late payments.

50 annual fee, 24.99% variable APR

• Minimum deposits of 549, 599, or $200 for credit limit of $200

• Eligibility: Checking or savings account anywhere, certain restrictions for existing

and previous Capital One customers

Navy Enteral Rewards Secured Card: Best Secured Credit Card for Military Families If you're affiliated
with the military, and you don't want to or can't qualify for the State Department's card, then the
Navy Federal Secured Card is the best card for military families. With this card, you'll get no annual
fee, a low 8.99% variable APR, and the Rewards programs.

N's a great card to have if you're realistically going to carry a balance - better an 8.99% APR than the
16% secured card average we're seeing. The minimum deposit of $500 is a bit higher than other
secured cards, but allows more breathing room in credit purchases during the mooth On top of this,
the Rewards program amounts to a 0.5% rewards rate- a nice sweetener that most other secured
cards lack. Best of all, when you apply for an unsecured credit card after improving your credit, you
can keep this card open at no annual fee to build upon the longevity

of your accounts. No annual fee, low 8,99% variable APR

Minimum deposit of $500 deposit is your credit limit

Rewards program with 0.5% rewards rate

Eligibility: Personnel of the Army, Marine Corps, Navy, Air Force, Coast Guard, Department

of Defense, and their families

DCU Visa Platinum Secured

This is a strong credit union card with no annual fees, but its variable APR of 11.5% is higher than
both the State Department's EMV Savings Secured Visa Platinum Card and the Navy Federal Rewards
Secured Card. Additionally, you don't get an opportunity to earn rewards through DCU. There are a
large number of organizations that are eligible for membership, or you can donate $10 to Reach Out
for Children instead.

US Bank Secured Vis

With the U.S. Bank Secured Visa, your security deposit is your credit limit- this is the primary reason
it lost out to the Capital One® Secured MasterCard, which doesn't require as much of a deposit for a
higher credit limit. Compared to the Capital One® Secured MasterCard, the US. Bank Secured Visa
has a higher annual fee of $35, a lower variable APR of 20.99%, and a similar credit monitoring tool
called Flex Control.

USA Secured Credit Card

USAA is a fabulous organization, but its secured credit card paled in comparison to the State
Department and the Navy Federal credit union's secured offerings. The USAA card costs $35 a year,
and has a higher variable APR of 9.9% compared to the two no-fee cards (variable APRS of 6.99% and
8.99%, respectively). On top of this, the two other cards have rewards program on their credit card
spending of 1% and 0.5%, respectively, which the USAA card lacks.
MARKETING STRATAGIES EVERY CREDIT CARD MARKET

CHAPTER 15

SHOULD IMPLEMENT

Constructing an effective credit card marketing strategy isn't as simple as throwing a precious metal
into a card's name or casting Alec Baldwin for television spots. That's not to say such tactics cannot
be effective, but rather that real success stems from the creation of an environment in which
marketing is not a separate function, but an integrated part of all credit card operations, ranging
from underwriting to product development and customer retention. In short, the best marketers
engage in activities and institute polices that foster the most efficient use of marketing dollars
possible.

There are, of course, many ways to do this- some innovative, some tried and true - and a lot depends
on your company's corporate philosophy, structure, financials, etc. However, there are 5 tactics in
particular that you would be remiss in not implementing immediately, if you haven't

already done so.

1. Focus each product on a single consumer need

By focusing each credit card offer on a distinct consumer need, you garner both the ability to present
more effective value propositions to consumers and a customer base that behaves as predictably as
possible, thereby making it easier to forecast card profitability as well as adjust marketing strategies
based on early returns. This is obviously difficult to achieve if the same card is trying to address
disparate needs. For example, if a card provides lucrative rewards as well as low introductory
interest rates, you'll wind up with some customers who spend a lot and always pay their bills in full,
some who spend and only pay the minimum, and some who transfer balances with no guarantee
that they will keep their cards following the expiration of intro rates

On the other hand, if you offered three different cards - one high-interest rewards credit card. one
0% credit card for new purchases, and one balance transfer credit card - you'd garner three highly-
predictable customer groups. That, of course, would allow you to target underwriting and marketing
more effectively, better manage risk, and ultimately make more money.

2. Bring together marketing and underwriting

Too often the marketing and underwriting teams at credit card companies are disparate entities that
have effectively little, if anything, to do with one another. You know what this leads to? Applicants
that do not fit the underwriting criteria used to develop offers and underwriting conservatism that
could easily be avoided. A credit card's marketing message significantly affects the type of consumer
that will apply for it. And if the only direction given a marketing team is that each account cannot
cost the company more than $100, for example, they'll likely meet that constraint, but in doing so
may attract riskier, less profitable customers. This would, in turn, necessitate an underwriting
adjustment to the point that each account could no longer cost more than $70, which would push
the marketing team to rely more heavily on the lowest- hanging fruit - even riskier, less profitable
customers than before. The only way to break this vicious cycle is to integrate those two separate
teams.

3. Offer secured cards

All credit card companies should offer secured credit cards for two very simple reasons: 1) They
provide profitable access to a significant consumer segment without adding any risk and

2) Soliciting secured card customers who prove their creditworthiness will become one of your most
efficient marketing channels. It's a can't-lose strategy made even more essential now that the CARD
Act has mitigated both the profitability and popularity of unsecured credit cards for people with bad
credit.

4.Appeal to former debit card users

In the past, consumers have gravitated to debit cards instead of credit cards for three main

reasons:

1) A desire not to have to pay bills;

2) The urban legend that debit cards provide fraud protection superior to that available via credit

cards; and

3) The decreased risk of overspending.

 However, recent overdraft and swipe fee regulations have resulted in a mini-exodus from debit
cards, driven primarily by the near-extinction of debit card rewards. This means a significant
opportunity exists for credit card companies to add valuable new accounts to their rewards
portfolios. The key to addressing the aforementioned consumer concerns is a combination of auto-
pay plans, customizable limits, and education about the relative merits and risks of both credit cards
and debit cards. Marketers can thereby ensure that rewards are the deciding factor in people's
minds

5. Leave no customer empty handed

When a customer comes to a bank in search of a credit card, you're seeing the fruits of a lot of time
and money spent on marketing. The most irresponsible thing you can do at this juncture is turn the
consumer down for whichever card they apply and offer no profitable, attainable alternative. At the
very least, a secured card will be fitting, and by exhausting every opportunity to turn potential
customers into customers, you'll drastically increase the efficiency of marketing dollars.

Ultimately, it's no secret that the credit card company making the most out of every marketing dollar
spent generally wins, as that company can simply outspend the competition. It's therefore key that
marketing executives think not only about their advertisements and value propositions, but also
about product terms, card profitability, and customer experience. In short, mechanisms like those
discussed in this article could significantly increase marketing budget efficiency.

CONCLUSION

A marketing strategy is something that constantly evolves adopting to changing make conditions.
Within enterprise, he outcomes form is May different types of business are contently reviewed and
evaluated. Judgments are hen fed in o he decision making process. His enabled new strategies o be
developed o improve operations.
However, while strategies changes; one aspect of the business has remained in place. His is a
continued focus on high levels of consumes service and employee elations. This strategy has enable
enterprise o enjoy continued growth for more hen 55 yea and the prospect of further growth in the
future.

BIBLIOGRAPHY

www.ASKME.COM

Marketing of service - Romeo Mascarenhas

WWW.SBL.COM

www.CREDITCARD.COM

WWW.UBI.COM