MARKETING OF FINANCIAL SERVICES
CREDIT CARD,DEBIT CARD & SMART CARD
Presented by Group 10:
Deepak Sinha
Monika Gupta
Gayatri Trivedi
Guided by: Abhinav Asthana
Prof. A Suresh Amrita
Karan Sachdev
CREDIT CARD
A plastic card that can be used by the cardholder to make
purchases or obtain cash advances using a line of credit
provided by the financial institution that issued the card.
The card normally contains the cardholder's name and account
number and may contain other information encoded on a
magnetic strip.
FACTS
Credit cards are issued by local banks or credit unions, and are
the shape and size specified by the ISO/IEC 7810 standard as
ID-1. This is defined as 85.60 × 53.98 mm in size.
It is a card entitling its holder to buy goods and services based
on the holder's promise to pay for these goods and services.
In Indian credit card market there are 12 major types of credit
cards being provided by banks and financial institutions. These
cards provide a wide variety of financial benefits to holders.
TYPES OF CREDIT CARD IN INDIA
Premium Credit Cards
Cash Back Credit Cards
Gold Credit Cards
Airline Credit Cards
Silver Credit Cards
Business Credit Cards
Balance Transfer Credit Cards
Co-branded Credit Cards
Low Interest Credit Cards
Lifetime Free Credit Cards
BENEFIT OF CREDIT CARD
Low risk
Eliminate the need to carry large sums of cash
Short term no interest loan
Easy to access
Increase Purchasing power
Credit cards can help coordinate receipts for tax purposes.
Bookkeeping is reduced to one monthly bill as opposed to
checks
DRAWBACKS
Wastage of money
Financial problem
Mental agony
It becomes a loan when the credit becomes due and you do not
pay for it.
Adding monthly interest charges means you pay more for the
goods and services.
Consumers can fall into the habit of using credit cards
DEBIT CARD
A Debit card (also known as a Bank card
or Check card) is a plastic card that
provides an alternative payment method to
cash when making purchases.
It can be called an electronic cheque, as
the funds are withdrawn directly from
either the bank account, or from the
remaining balance on the card
Debit cards can also allow for instant
withdrawal of cash, acting as the ATM
card for withdrawing cash and as a cheque
guarantee card. Merchants can also offer
"cashback"/"cashout" facilities to
customers, where a customer can withdraw
cash along with their purchase.
ADVANTAGE
• Obtaining a debit card is often easier than getting a credit card.
If you qualify to open a bank account, you can usually get a
debit card.
• It frees you from carrying cash or a checkbook.
• It can save you from having to stock up on traveler's checks or
cash when you travel.
• Debit cards may be more readily accepted than checks,
especially in other states or countries.
• Most ATMs will allow you to get a cash Through Debit card
using your debit card and a separate PIN. You do not
necessarily have to have a bank account to do this.
DISADVANTAGE
Using debit cards is that they might not afford you the financial
protection that credit cards do as regards fraud.
Debit card is stolen, Money lost from your bank account in this
manner is not refundable.
Not having the ability to earn interest on your interest-bearing
checking account.
Debit cards have pre-set spending limits. The financial institution
that issues the debit card sets the spending limit.
Debit cards cannot be used for deferred billing purchases
SMART CARD
Developed in 1973 by the Frenchman Roland Marino.
A Smart card is any pocket-sized card with embedded
integrated circuits which can process data.
Plastic card containing a computer chip for identification,
special purpose processing, and data storage.
OVERVIEW
Dimensions are normally credit card size. The ID-1 of ISO/IEC 7810 standard
defines them as 85.60 × 53.98 mm. Another popular size is ID-000 which is
25 × 15 mm (commonly used in SIM cards). Both are 0.76 mm thick.
Contains a security system with tamper-resistant properties (e.g. a secure
crypto processor, secure file system, human-readable features) and is capable
of providing security services (e.g. confidentiality of information in the
memory).
Asset managed by way of a central administration system which interchanges
information and configuration settings with the card through the security
system. The latter includes card hot listing, updates for application data.
Card data is transferred to the central administration system through card
reading devices, such as ticket readers, ATMs etc.
BENEFIT
Smart cards can be used for identification, authentication, and data
storage.
Smart card can provide strong authentication for single sign-on or
enterprise single sign-on to computers, laptops, data with
encryption, enterprise resource planning platforms such as SAP,
etc.
Not only store data, but also process information.
Smart cards have a lot of flexibility. They can store multiple types
of information including identification, credit cards, business and
family contacts
DISADVANTAGE
The biggest problem facing smart cards is security and the
problem is two fold.
The second issue with security involves public perception of the
technology.
A third issue concerns who holds responsibility for the card. If
the cash balance is wiped clean by a memory failure, who is
liable, the person or the bank?
The final problem which smart cards will face in their move to
diffuse extensively involves product complements.
