A

PROJECT ON

CREDIT CARDS WITH REFERENCE TO HDFC BANK

SUBMITTED BY

SHUBHAM .B.THAKUR

(T.Y.B.C.B.I. SEM-V)
PROJECT GUIDE

PROF.KAMALA SRIRAM

SUBMITTED TO

UNIVERSITY OF MUMBAI

RSET’s

GHANSHYAMDAS SARAF COLLEGE

OF ARTS & COMMERCE

Affiliated to University Of Mumbai

Reaccredited by NAAC with ‘A’ Grade

S.V. Road, Malad (West)

Mumbai-400064

A.Y: 2017-2018

1
 RSET’s

GHANSHYAMDAS SARAF COLLEGE

OF ARTS & COMMERCE

Affiliated to University Of Mumbai

Reaccredited by NAAC with ‘A’ Grade

S.V. Road, Malad (West), Mumbai-400064

CERTIFICATE
I, Prof. Kamala Sriram, hereby certify that SHUBHAM B THAKUR a

student of GHANSHYAMDAS SARAF COLLEGE of ARTS & COMMERCE

of T.Y.B.C.B.I (Semester V) has completed project on “Credit Cards With

Reference to HDFC bank” in the academic year 2017-2018.

This information submitted is true and original to the best of my knowledge.

External Examiner: Principle

Date:

Project Coordinator:

Date:

2
ACKNOWLEDGEMENT

I take this opportunity to thank the UNIVERSITY OF MUMBAI for giving me chance to do
this project.

I express my sincere gratitude to the Principle Dr Sujata Karmarkar, Chief Coordinator Dr

Lipi Mukherjee, Course Coordinator Prof. Urvi Jain and Project Guide Prof. Kamala
Sriram.

As well as teaching staff and our library staff for their constant support and helping for
completing the project

My deep sense of gratitude to the staff and employees of HDFC BANK for their support and
guidance.

I am also grateful to my friends and for giving me moral support during the course of my project.
Lastly, I would like to thank each and every person who helped me in completing the project
successfully

Especially My Parents.

3
DECLARATION

I SHUBHAM B THAKUR a student of Ghanshyamdas Saraf College of Arts & Commerce,

T.Y.B.C.B.I. (Semester V) hereby declare that I have completed project on “Credit Cards With
Reference To HDFC Bank” in the Academic year 2017-2018

This information submitted is true and original to the best of my knowledge.

Date: Signature of Student

4
INDEX

SR. NO. CONTENT PAGE NO.

1  EXECUTIVE SUMMARY 6
2  RESEARCH METHODOLOGY 7
 Objective of the study 8
 Scope of the study 9
 Limitation of the study 10
3 Introductions 11
CHAPTER I  Definition and Meaning 12
 Specification 12-13
 Overview 14
 Indian View 15-16
4 Introduction to the topic 17
CHAPTER II  Classification of credit cards 17-19
 Characteristics of credit cards 20-22
 Financial Features of credit cards 23-25
 Features of modern credit card 26-27
 Advantages & Disadvantages 28
 Types of credit cards 29-32
 Types of products of HDFC bank 33-48
 Credit Card payment process and working 49-55
 Security Problem & Solutions 56-57
58-62
 Marketing & Promotional Strategies
62-63
 Credit Card Management System

5 Statistical Analysis And Data Interpretation 64

CHAPTER III  Questionnaire 64-67
 Survey 67-70
 Market share of Credit card in India 71
6 Webliography 72
CHAPTER Bibliography 73
IV Conclusion 74

5
EXECUTIVE SUMMARY
HDFC is an Indian Banking and Finance Service Company headquartered in Mumbai
Maharashtra Incorporated in 1994, it is the fifth largest private bank in India. (Housing
Development and Finance Corporation) a premier housing finance company of India promoted
the bank. HDFC was ranked 45th on the list of top 50 banks in the world in terms of their market
capitalization.

Credit Cards are fundamentally different from the others payment methods in that they involve
extending credit rather than drawing on an existing store funds. Banks in conjunction with credit
card association such as VISA and MASTERCARD , issue general purpose credit cards
department stores also issues credit cards to be used for purchases at that particular store like
Electronic Fund Transfer, payment by credit card is not anonymous. Since paying with credit
card does not involve a store of funds, deposit, insurance and reserve requirements are not
directly relevant. The bank that issues the label and thus merchants paid if the cardholders
default. If the issuing bank fails, the credit cards association guarantees the payment to
merchants with outstanding transaction.

6
RESEARCH METHODOLOGY
The present study, which considered both data primary and secondary data. Research
methodology is a method of collecting all sort of information and data pertaining to the subject in
the question. The primary data has been collected with the help of questionnaire as well as
personal observations, books, magazine, journals etc. It covers the overview of the credit cards
special preference to HDFC bank customers and performance of credit card awareness and usage
policy of plastic money.

RESEARCH METHODOGOGY :
Primary Data

 Interviews
 Questionnaire

Secondary Data

 Books
 Internet
 Newspaper

7
OBJECTIVES

 To study the Classification And features of Credit Cards

 To study the Types Of Credit Cards special preference of HDFC bank
 To study Credit Card Payment Processing and how it works
 To study the problems and prospects of credit cards of HDFC bank
 To understand the Marketing and Promotional Strategies of HDFC bank
 To study Credit Card Management System

8
SCOPE

This project covers one private sector bank HDFC .It focuses on the credit card services
provided by commercial banks and HDFC bank to the customers .

This study is done with the help of questionnaire which contains questions , which probe into the
details to find the reason of their choice .This study will help to know the features of specialized
credit cards. This study helps to understand the usage pattern of the credit card users. This study
helps to find the best possible way to reach to the customers. This study also helps in choosing
the best credit card bank. Al these3 results will help the customers to know the functions amd to
create awareness of using credit cards.

9
LIMITATIONS

 Limited time for acquisition of primary data

 Limited Primary Data
 Co-operation of the personnel in the bank was limited
 The sample space is small due the above specified reasons
 Findings are based on survey through questionnaire

10
 CHAPTER I

INTRODUCTION
HISTORY
In 1994, HDFC was incorporated as a private sector with the approval of RBI with certificate of
commencement of Business was received on 10 October 1994 from RBI. Hereby Credit card
concept was introduced by Edward Bellamy in his utopian novel “Looking Backward”. The early
charge cards were issued by Western Union to its frequent customers in 1921. The charge cards
from this time were printed on paper card stock. In 1938, several companies started to accept
each other’s card. In the 1940’s, oil companies in USA used to sell them fuel and other oils for
growing number of automobile owner. Later there were many types of credit card for different
services. Which are as Follows:

YEAR TYPE OF CARD USES

1928 CHARGA-PLATE PURCHASING GOODS
FROM PARTICULAR
STORE
1934 AIR TRAVEL CARD FOR TRANSPORTATION
1958 MASTER CARD TRANSACTION

In India according to Manas Ratha (1997), the credit card model studied usage of credit card and
its conceptualization of credit card system and stock flow in the credit card. James in 2008 in the
article Growth of Plastic Money had discussed the problems, prospects of economic, and
business, which involved in the plastic money market. In2009,Ram lingam in his paper usage
pattern of credit card holders had analyzed the purpose and use of credit card behavioral changes
of credit card holders. In 2010 Swati Anand in their article they discussed the current I.T tools
applicabilities in the banking such as Electronic Clearing and Clearing system , Credit Clearing ,
Plastic Money. The study has focused the service of credit card throughout the worldwide
history.

11
Meaning

Any card plate or coupon book that may be used to borrow the money or product and service on
credit is called credit card.

Definition of a credit card

Credit is a method of selling goods or services without the buyer having cash in hand. A credit
card is only an automatic way of offering credit to a consumer. Today, every credit card carries
an identifying number that speeds shopping transactions.

SPECIFICATION OF CREDIT CARDS

The size of most credit cards is 3 3⁄8 × 2 1⁄8 in (85.7 × 54.0 mm), conforming to the
ISO/IEC7810 ID-1 standard. Credit cards have a printed] or embossed bank credit card number
complying with the ISO/IEC 7812numbering 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. Many modern credit cards have
a computer chip embedded in them for security reasons.

An example of the front in a typical credit card:

1. Issuing Bank Logo

2. EMV chip (only on "smart cards")

12
 3. Hologram
4. Card number
5. Card Network Logo
6. Expiration Date
7. Card Holder Name
8. Contactless Chip

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

1. Magnetic Stripe
2. Signature Strip
3. Card Security Code

Credit Card Number Structuring

• 1ST – 6 No’s – Bank of Credit Card.

• Next – 9 No’s – Individual A/c No.
• Final Digit – Validity Check Code.
Extra Codes - Will be Issue & Security Codes

13
OVERVIEW

The HDFC bank was incorporated on 30th august 1994. A new private sector bank promoted by
Housing Development Corporation Ltd. HDFC a premier housing finance company. The Bank
has set up 100 new electronic data capture (EDC) terminals in Mumbai-HDFC bank launched its
first B2C payment gateway which allows Visa/Master card .The company has introduced a new
scheme whereby it will provide loans. The foreign Investment Promotion Board has cleared the
proposal of the HDFC Group to enter into a joint venture with Singapore. Telecom’s e-
commerce company for providing a comprehensive range of B2B. As HDFC launched the
Master Card for easy payment for customer. Credit Cardis used not only in India but also in other
country. As the concept of using,Edward Bellamy described a card for purchase in 1887.
Bellamy used the term credit card eleven times in Looking Backward novel; although this
referred to a card for spending a citizen’s dividend from the government, rather than borrowing.

In September 1958, Bank of America launched bankamericard in Fresno, California, which

become the first successful recognizably modern credit card. It is eventually licensed to other
banks around the United States. The MasterCard secure code/ verified by visa is an easy and
secure online payment service from hdfc bank that enhances the security of any online purchase
that you make. With this service, you are protected against any authorized purchases from credit
card. It has to do it confirm identity with a unique password for every online purchase. Also can
be reassured of the authenticity of the online store with the help of a personal assurance message.
As the cards plays vital role in banking sector for online purchases.

14
INDIAN VIEW

The first credit card to enter India was the diner’s club card in the year 1964. The first Indian
banks to launch credit cards were Andhra bank was VISA classic in the year 1981, followed by
central bank of India’s credit card in collaboration with Master Card Corporation in the same
year. Gradually introduced their credit cards in India only later. Apart from these Indian banks,
many foreign banks such as citi bank, standard chartered bank, and ANZ Grind lays bank, bank
of America and American express bank have also introduced their proprietary and other
franchised cards through their Indian branches. The Reserve Bank of India is taking special
measures to promote the use of alternate payment systems like credit cards, debit cards, etc. to
ease the pressure on currency printing and the use of cheques. On the legal front too, the
developments inIndia are becoming favorable to the card industry. Banks can now file summary
suits against defaulters for quicker recovery of credit card dues. This has made an increasing
number of Indian banks realize the credit card potential and spurred them to enter the ever-
expanding card business. Prepaid/stored value cards are also gaining popularity in the Indian
market. For instance, oil companies issue “petrocards” for easier payment at the company’s
petrol stations. Similarly, the Mahanagar Telephone Nigam Limited (MTNL) has already
introduced its “virtual calling card “and has recently launched a co-branded telecom credit card
to facilitate payment of telephone bills. Credit card lending has surged to such an extent that
average loan amounts ($32,400 in2004) made to small businesses with revenues greater than $1
million were actually smaller than average loan amounts ($42,600) made to the smallest
businesses with revenues under $1 million12. The larger small businesses are receiving a greater
portion of credit card loans than the smallest small businesses. Some Indian banks have made an
entry into the smart card business too.Here hdfc bank credit card facility to customers like a app
which would be convenient to customers for credit card transaction the app name “pay app” it
consist pre-loaded wallets which are good alternatives , they may not be the best long term
solution . As Indian customers are happy with the schemes and discounts. The best long-term
solution would be for banks to provide digital wallet services. For 2014-15, hdfc noticed that
63% of all their transactions were conducted. As there various credit cards are been used by
people in India.

15
 RBI - 17.4%(2012 – up to Apr) 16.2 %(2011)

 State Bank of India & Punjab National Bank Contributes More for the Growth.

 Card base of public sector banks expanded 7.4 % to 3.09mn.

 Private and foreign banks declined 1.5 % to 14.7 million.

 New Entrance - IndusInd Bank acquired Deutsche Bank’s Standard Chartered Bank
bought Barclays’ card business in India Credit Cards in India - 17.77 million

 In private sector ICICI bank and HDFC bank contributes more for the growth

16
 CHAPTER II

CLASSIFICATION OF CREDIT CARD

17
1. BASED ON MODE OF CREDIT RECOVERY
 Charge Card

A card that charges no interest but requires the user to pay his/her balance in full upon receipt
of the statement, usually on a monthly basis. While it is similar to a credit card, the major

benefit offered by a charge card is that it has much higher, often unlimited, spending limits.

 Revolving credit card

A line of credit where the customer pays a commitment fee and is then allowed to use the
funds when they are needed. It is usually used for operating purposes, fluctuating each
month depending on the customer's current cash flow needs

2. BASED ON STATUS OF CREDIT CARD

 Standard Card
It is a generally issued credit card

 Business Card
(Executive cards) it is issued to small partnership firms, solicitors, tax- consultants, for
use by executives on their business trips.

 Gold Card
A credit card issued by credit-card companies to favoured clients, entitling them to high
unsecured overdrafts, some insurance cover, etc

18
3. BASED ON GEOGRAPHICAL VALIDITY
 Domestic card
Cards that are valid only in India and Nepal are called domestic cards.
 International Card
Credit Cards that are valid internationally are called international cards.

4. BASED ON FRANCHISE/ TIE-UP

 Proprietary card
A bank issues such cards under its own brands. E.g., SBI card can card of canara bank
 Master Card
This card is issued under the umbrella of “MasterCard International”
 Visa Card
It is issued by any bank having tie up with “VISA international”
 Domestic Tie-up Card
It is issued by any bank having tie up with domestic credit card brands such as Can Card
and IndCard.

5. BASED ON ISSUER CATEGORY

 Individual Cards

Non-corporate cards that are issued to individuals

 Corporate Cards

Issued to corporate and business firms.

19
CHARACTERISTICS OF CREDIT CARD

Credit
Limit

Value Interest
Added Charges
Benefits Characteristics
Of Credit Card

Grace Annual
Period Charges

1. Credit Limit
All banks have different limits set for customers depending upon the types of cards in their
possession. Even within a particular type of card, limits may vary depending upon the credit
worthiness of the individual. This depends on the gross income of the individual and the
period for which the person is using the card. However, some banks have a card, which has
no set credit limit.

2. Interest Charges

This is the biggest source of revenue for the issuing banks. The interest rates generally range
from 1.99% - 3%per month. This is equivalent to around 24% - 35% per year. The interest
charges are also applicable on accrued interest. Therefore, a customer can end paying up heavily
for the credit taken

20
3. Annual Charge

This is a fixed amount, which has to be paid every year irrespective of the extent of usage. Over
the past few years, with increase in competition a general decline in these charges can be
observed

4. Grace Period
This is the extra period, which is offered to the consumer for repaying the credit. In the
Indian scenario, the first warning is given at the end of three months, and a black mark is put
against the customer in case of non-payment for more than seven months. Further grace
period is decided on a case to case basis .

5. Value Added Benefits

These include airline ticket booking and insurance benefits on lost luggage and accidental deaths
for e.g.: offers discounts of 3.5% on domestic airfares and 6.5% on international ones if tickets
are charged to their cards. The latest in line of value added features are the rewards programs.
Here a cardholder earns a certain number of points by spending a particular sum of money from
their credit cards.

21
BENEFITS

Issuers provide some add on benefits to their card members such as:

 Privileged access to airport vip lounges

 Discount at select outfits for purchases or dining bills.
 Discount offer for purchase of exclusive items from big brands
 Reward points for each spending on the card. These points can be cashed for
discounts in select purchases as indicated by the issuer.

22
 FINANCIAL FEATURES OF CREDIT CARDS

Annual Membership

Minimum Payment

Rate Of Interest
Financial Features Of EMI's conversations
Creditcards
Balance Transfer

Personal Loan

Insurance

1. Annual membership

Most members are expected to pay annual membership fee to issuing authority. This is towards
maintenance of the card account by the bank or ‘service charges’. These waived off to some
customers who transact significant value through their credit card. Bankers’ earnings is by
interest income on credit cards. More the usage of card , more the income to the bank .

2. Minimum payment

All the issuers insist upon minimum payment by the cardholder for every billing cycle. This is
usually 5% merchant transaction bills. Full amount is to be paid for EMI’s of the loan. It is
payable within 20 days of billing. This is a tree credit period i.e. no interest is payable. Amount
unpaid and rolled over to the next billing cycle attracts interest rates as decided by bank.

23
 3. Rate of interest ( annual percentage rate)

Rate of interest for the amount rolled over to the next billing cycle is usually high. InIndia, it is
around 2.5% to 3% per month. Hence its very costly to rollover such amount. For the cardholder,
it is much cheaper to pay on time.

4. EMI’s Conversations

When outstanding amount on the card is high or when purchase is for high value ( for e.g. TV set
, laptop etc) then it is not possible to pay full amount within one billing cycle. Carrying forward
is expensive as interest rate is prohibitive. Banks offer to convert such purchase / outstanding to
equated monthly installment (EMIs). Rate of interest to these schemes is relatively lower (around
16% p.a) but still high in absolute terms.

5. Balance transfer

Bankers encourage cardholders to transfer their outstanding dues to other issuers’ cards to their
bankcard. This transfer is again at a concession rate of interest.

6. Personal loan

Issuers extend personal loan facility to the cardholders. it may be noted that EMI or balance
transfer or personal loan are all in the form of loan only . A cheque favoring the cardholder or
nominated beneficiary is issued by the bank in all these cases. EMI payable is charged to the card
in monthly billing statements.

7. Insurance

Most bankers (issuers) insure the life of cardholders at concessional rate and assign insurance
proceeds towards outstanding bills on card. In case of eventuality, insurance proceeds meet
banker’s outstanding dues and remainder amount is paid to the heirs of the cardholders.

BENEFITS

Issuers provide some add on benefits to their card members such as:

24
 Privileged access to airport vip lounges
 Discount at select outfits for purchases or dining bills.
 Discount offer for purchase of exclusive items from big brands
 Reward points for each spending on the card. These points can be cashed for discounts in
select purchases as indicated by the issuer.

25
FEATURES OF MODERN CREDIT CARD

Features Of Modern
Credit Card

Technology Owner
Wide Coverage Credit Limit
Dependent Identification

1. Wide Coverage

• Bank credit is most widely used payment device issued by bank

• It is based on system of revolving credit

• The credit cardholder can use card at merchant establishments to buy goods and
services.

2. Technology dependent
• The dependence on technology is inevitable to keep the operating cost to the minimum.

3. Owner Identification

26
• A credit card identifies its owner and the one who is entitled to purchase goods and
services without the physical money and is eligible for credit from merchant
establishments.

4. Credit Limit
• The issuer for the purpose of convenience and security sets a credit limit for a cardholder
and a floor limit for a merchant establishment

• It is convenient medium of exchange which enables the cardholder to buy goods and
services without using money

• Bank bears the risk of default on the part of the cardholder

• Credit card helps the holder to buy when and pay he can, i.e., bank pays to the seller
immediately but collects from the card holder from 30-45days

27
ADVANTAGES/ DISADVANTAGES OF A CREDIT CARD
Advantages

• Flexible spending limit

• Most features of a debit card such as withdrawal of cash are available on credit cards as
well.

• Wider acceptance and recognition, especially in online transactions.

• Greater security measures and checks than debit card.

• Credit cards allow for cash back and bonus points schemes that a debit card is not
eligible.

• A credit card can be used as a convenient way to check and record your spending.

• There is a fixed credit limit; a cardholder cannot overstretch his purchases.

Disadvantages

• Hidden costs.

• A debt trap for the cardholder.

• Cases of fraud are extremely common today.

• Credit cards can be used at ATM cards, but considerable processing fee required.

• Credit cards provide access to ready money in a more convenient and less invasive form
than cheques, and allow for a faster withdrawal of cash.

• Debit card users who are not qualify for a credit card, the advantage is spent on money
he/she possesses in their accounts.

28
TYPES OF CREDIT CARD

Cash Back
Airline/Fre Points
quent Flier Cards
Miles

Reward Premium
Cards Credit
Cards

Standard Types Of Specialty

Credit Credit Credit
Cards Card Cards

Credit card products come in a wide assortment these days. Some credit card programs will ease
their terms and conditions and offer perks for people with stellar credit, such as travel insurance,
concierge service and free entertainment. Other credit card program may help a person re-
establish their credit.

Not all cards are for everyone. The ability to get a credit card will depend on whether you
qualify. This is determined by whether you have a history of establishing credit and your ability
to pay bills on time. Credit card issuers learn about your credit history by pulling your credit
report from one of the three major credit bureaus - Equifax, Experian and TransUnion. Before
you even begin applying for a credit card, check the status of your credit report and make sure it
does not have any errors that could prevent you from getting the card you want.

29
applying for a credit card, check the status of your credit report and make sure it does not have
any errors that could prevent you from getting the card you want.

Here are the most common types of credit cards:

1. 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 minimum credit criteria. No deposits are needed and the credit limit is
established by the credit card issuer.

2. Reward 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

3. 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.

30
 4. 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.

5. 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.

6. 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.

31
7. Secured Credit Cards
Secured credit cards are known as pay-as-you-go cards. Upon opening the account, the
cardholder deposits a few hundred to a couple of thousand dollars. This determines the
cardholder’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

8. 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.

32
 TYPES OF HDFC CARDS

Types Of Hdfc
Credit Cards
super premiu premiu
Feature
premiu co- professi premiu m regular commerci cashback
d card brand onal m travel m al
m women

1. Featured card
a. Jetprivilege Hdfc Bank World

The best airline co-brand exclusive travel privileges

Benefit of up to 10,000 Bonus JPMiles and one way base fare waived Jet Airways ticket6
JPMiles for every Rs. 150 spent and 18 JPMiles on every flight booked on
www.jetairways.comDedicated Check-in with 10 kg additional baggage allowance

33
 b. Titanium Times Card

Great entertainment card with flat 25% off on movie tickets and up to 15% off on dining, 365
days of the year. 25% off on movies and up to 15% off on dining. (At participating
outlets)Bouquet of discount vouchers as welcome gift 2 Reward Points (RP) on Rs. 150 spent. 5
RP on dining spends on weekdays (Mon-Fri)

c. Platinum Times Card

Great entertainment card with flat 25% off on movie tickets and up to 15% off on dining, 365
days of the year.25% off on movies and up to 15% off on dining. (at participating
outlets)Bouquet of discount vouchers as welcome gift2 Reward Points (RP) on Rs. 150 spent. 5
RP on dining spends on weekdays (Mon-Fri)

34
 d. Diners Club Black

Best International Credit Card with exclusive life style benefits.

Gain access to select Golf Clubs in India as Green Fee player. Earn Rs 750 Travel Vouchers for
every 1000 Reward Points earned. Redeem for Airline Tickets, Hotels at our Travel and
Entertainment portal

2. Super Premium
a. Infinia

Powered by exclusivity. Pampered with exquisiteness. Experience the Infinite now. Infinia Card
with the No Pre Set Spend Limit*five Reward Points for every Rs.150 spends. Complimentary
Priority Pass and Taj Epicure Inner Circle Gold Membership

35
 b. Regalia

Best Super Premium Credit Card with travel and luxury benefits. Welcome Benefit - 2500
Reward Points*4 Reward Points for every Rs.150 spends. Complimentary Priority Pass and Taj
Epicure Inner Circle Gold Membership

c. Diners Club Black

Best International Credit Card with exclusive life style benefits.

Gain access to select Golf Clubs in India as Green Fee player. Earn Rs 750 Travel Vouchers for
every 1000 Reward Points earned. Redeem for Airline Tickets, Hotels at our Travel and
Entertainment portal

36
 d. Jetprivilege Hdfc Bank Diners Club Credit Card

Fly faster to finer experiences

Avail Welcome Benefit of up to 30,000 Bonus JPMiles and 15 Jetprivilege Tier points within
first 90 days*. Earn 8 JPMiles for every Rs. 150 spent and 3X JPMiles on every flight booked on
www.jetairways.com. Unlimited Complimentary Lounge access to over 600+ airport lounges
globally.

3. Co- Brand
a. Jetprivilege Hdfc Bank World

The best airline co-brand offering exclusive travel privileges.Welcome Benefit of up to 10,000
Bonus JPMiles and one way base fare waived Jet Airways ticket. Earn 6 JPMiles for every Rs.

150 spent and 18 JPMiles on every flight booked on www.jetairways.com. Dedicated

Check-in with 10 kg additional baggage allowance.

37
b. Maruti Suzuki Nexa Hdfc Bank AllMiles

One Card. Multiple Destinations. Best in class travel co-brand card with exclusive benefits for
NEXA Car owners. Welcome Benefit of 1000 Reward Points. Earn 6 RP per Rs.150 all spends
made on MyNEXA section of www.nexaexperience.com. 3RP per Rs.150 on retail purchases.
Complimentary priority passes membership.

c. Titanium Times Card

Great entertainment card with flat 25% off on movie tickets and up to 15% off on dining, 365
days of the year.25% off on movies and up to 15% off on dining. (At participating outlets).
Bouquet of discount vouchers as welcome gift. Two Reward Points (RP) on Rs. 150 spent. 5 RP
on dining spends on weekdays (Mon-Fri)

38
 d. Snapdeal HDFC Bank Card

Shop Free Faster with Snapdeal HDFC Bank Card - India's first co-brandCredit Card with an
online partner. Welcome Benefit of 500 Reward Points. Earn 6 RP per Rs.150 on all spends
made on www.snapdeal.com. 4 RP per Rs.150 on any 1 category of your choice. 2 Reward
Points per Rs.150 spent on all purchases.Exciting offers from Cleartrip, Freecharge & Ola

4. Professional
a. Doctor's Superia

 HDFC Bank's doctor's Superia credit card has been exclusively designed for doctors
offering exclusive travel benefits

39
 b. Teacher's Platinum

 HDFC Teachers platinum card is exclusively designed for teachers and proffers. The card
offers 500 bonus reward points on teacher's day each year while giving the users freedom
to fill fuel across any fuel station.

5. Premium Travel
a. Superia

40
 Premium Credit Card that allows you to redeem your reward points as air miles. Welcome
Benefit of 1000 Reward Points.3 Reward Points (RP) on Rs 150 spent. 50% more RP on dining
spends
 Complimentary Priority Pass Membership and VISA/MasterCard Lounge program

a. Allmiles

Premium Card that offers Double reward points on ALLMILES. Welcome Benefit of 1000
Reward Points.3 Reward Points (RP) on Rs 150 spent.Complimentary Priority Pass Membership
and VISA/MasterCard Lounge program

b. Maruti Suzuki Nexa Hdfc Bank All Miles

One Card. Multiple Destinations. Best in class travel co-brand card with exclusive benefits for
NEXA Car owners. Welcome Benefit of 1000 Reward Points Earn 6 RP per Rs.150 all spends
made on MyNEXA section of 3RP per Rs.150 on retail purchases. Complimentary priority
passes membership

41
 6. Women Premium
a. Solitaire

Only exclusive premium Solitaire Credit Card for women rewarding spends with Shoppers Stop
gift vouchers.Get Rs. 1,000/- Shoppers Stop vouchers on Rs. 75,000/- spends every 6
months.50% more Reward Points on dining and grocery spends.3 Reward Points on Rs. 150
spent.

7. Premium
a. World master card

Enjoy the privileges of both worlds, waiver of fuel surcharge at all fuel stations and access to
premium airport lounges.2 Reward Points on Rs. 150 spent . Fuel Surcharge Waiver capped at
Rs. 250 every billing cycle (ST applicable).Get complimentary Airport lounge access under
Master Card lounge program.

42
 b. Diners club premium

Best Premium Lifestyle Card with unlimited domestic lounge access.4 Reward Points for every
Rs. 150 spends. Unlimited Golf Lessons
Earn Rs 600 E Vouchers for every 1000 Reward Points earned. Redeem for Airline Tickets,
Hotels and Movies at our Travel and Entertainment portal

c. Diners Club Rewardz

The card with maximum travel rewards.3 Reward Points for every Rs. 150 spends. Exclusive
24/7 Concierge to make airline reservations, books a hotel room, schedule a dinner reservation or
send a gift.Get double the Reward Points on our Travel and Entertainment portal.

43
 d. Visa Signature

Enjoy the privileges of both worlds, waiver of fuel surcharge at all fuel stations and access to
premium airport lounges.2 Reward Points on Rs. 150 spent. Fuel Surcharge Waiver capped at
Rs. 250 every billing cycle (ST applicable).Get Complimentary airport lounge access under
VISA Lounge program - signature

8. Regular

a. Platinum plus

 HDFC bank Platinum Plus Credit Card is a regular credit card offering 50 day interest
free credit window along on lost card with revolving credit facility and zero liability

44
 9. Commercial
a. Business money back

Your Business spends are now 3 times more rewarding with Business MoneyBack Credit Card. 2
Reward Points (RP) on Rs 150 spent. 3 X Reward Points on business related spends. Redeem
Reward points as CashBack on your Business MoneyBack Credit Card (100 Reward Points = Rs
40). Zero Lost Card liability post reporting of the loss of card

b. Business Regalia

Best Super Premium Business Credit Card with travel & luxury benefits. Now with every Rs.
150 that you spend, you get:8 Reward Points on all purchases. 6 Reward Points on all your
dining spends. 4 Reward Points on all other spends

45
 c. Corporate Platinum

Enjoy the privilege of access to domestic airport lounge and freedom to fillfuel across all fuel
station. 2 Reward Points for every Rs. 150 spends. Petrol surcharge waiver. Lounge access at
select airports across Indi

d. Corporate Card

 A Premium Corporate Card with unparalleled travel and entertainment benefits. 24x7
online MIS availability. Helps integrate with existing accounting systems. Helps
minimize paperwork and simplify reconciliation and compliance tasks.

46
 10.CashBack

a. Platinum Edge

Enjoy CashBack on everyday spends only with Platinum Edge Credit Card.2 Reward Points for
every Rs. 150 spends and 50% additional Reward Points on dining spends. Redeem Reward
Points as CashBack against outstanding amount on your Credit Card. Zero fuel surcharge.

b. Titanium Edge

Enjoy CashBack on everyday spends only with Titanium Edge Credit Card.2 Reward Points for
every Rs. 150 spends and 50% additional Reward Points on dining spends. Redeem Reward
Points as CashBack against outstanding amount on your Credit Card.Zero fuel surcharge

47
 c. MoneyBack

Enjoy CashBack on everyday spends only with MoneyBack Credit Card. 2 Reward Points for
every Rs. 150 spends. 3 X Reward Points on online spends.Redeem Reward points as CashBack
on your MoneyBack Credit Card (100 Reward Points = Rs 40. Zero fuel surcharge

48
Credit Card Payment Processing And How It Works ?

 Credit cards are issued by a credit card issuer, such as a bank or credit union, after an
account has been approved by the credit provider, after which cardholders can use it to
make purchases at merchants accepting that card.

 When a purchase is made, the credit card user agrees to pay the card issuer. The
cardholder indicates consent to pay by signing a receipt with a record of the card details
and indicating the amount to be paid or by entering a personal identification
number (PIN).

 Many merchants now accept verbal authorizations via telephone and electronic
authorization using the Internet, known as a card not presenttransaction (CNP). For card
not presenttransactions where the card is not shown (e.g., e-commerce, mail order, and
telephone sales), merchants additionally verify that the customer is in physical possession
of the card and is the authorized user by asking for additional information such as the
security code printedon the back of the card, date of expiry, and billing address.

49
 Each month, the credit card user is sent a statement indicating the purchases undertaken
with the card, any outstanding fees, and the total amount owed.

 After receiving the statement, the cardholder may dispute any charges that he or she
thinks are incorrect. Otherwise, the cardholder must pay a defined minimum proportion
of the bill by a due date, or may choose to pay a higher amount up to the entire amount
owed.

 The credit issuer charges interest on the amount owed if the balance is not paid in full
(typically at a much higher rate than most other forms of debt).

 In addition, if the credit card user fails to make at least the minimum payment by the due
date, the issuer may impose a "late fee" and/or other penalties on the user.

 To help mitigate this, some financial institutions can arrange for automatic payments to
be deducted from the user's bank accounts, thus avoiding such penalties altogether as
long as the cardholder has sufficient

50
 Cardholder: The holder of the card used to make a purchase; the consumer.

 Card-issuing bank: The financial institution or other organization that issued the
credit card to the cardholder. This bank bills the consumer for repayment and bears the
risk that the card is used fraudulently. American Express and Discover were previously
the only card-issuing banks for their respective brands, but as of 2007, this is no longer
the case. Cards issued by banks to cardholders in a different country are known
as offshore credit cards.

 Merchant: The individual or business accepting credit card payments for products or
services sold to the cardholder.

51
  Acquiring bank: The financial institution accepting payment for the products or
services on behalf of the merchant.

 . Independent sales organization: Resellers (to merchants) of the services of the

acquiring bank.

 Merchant account: This could refer to the acquiring bank or the independent sales
organization, but in general is the organization that the merchant deals with.

 Credit Card association: An association of card-issuing banks such as Discover,

Visa, MasterCard, American Express, etc. that set transaction terms for merchants, card-
issuing banks, and acquiring banks.

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

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 correctly. The following diagram sets out the steps,
numbered from 1 to 8, in a card transaction’s payments cycle for a typical face–to–face or card
present transaction; there are five stakeholders in the process.

52
 1. 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)
himself or herself, 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 authorization code will be given to the merchant for the transaction by the
cardholder’s card issuer that will appear on the terminal receipt that is handed to the cardholder.
The card issuer will debit the transaction to the cardholder’s account.

53
2. 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
transaction’s details are entered into the merchant’s 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 authorization and settlement.

3. 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 merchant’s
terminal, passing these through tothe card issuer (the cardholder’s bank or building society) via
the card scheme for authorization and completing the processing of the transaction. An acquiring
bank will arrange the card transaction’s settlement and will, typically, credit the merchant’s
nominated bank account with the funds within four working days. An acquiring bank will also
deal with any chargeback or requests for information (RFI) that they may receive from card
issuers on any of their merchant’s transaction

4. Card Scheme

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.

54
5. Issuer

The issuer is the bank, building society or financial organization 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.

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.

55
Security Problems and Solutions

• Credit card security relies on the physical security of the plastic card as well as the
privacy of the credit card number.

• Whenever a person other than the card owner has access to the card or its number,
security is potentially compromised.

• Merchants would often accept credit card numbers without additional verification for
mail order purchases.

• Many require the card and also requires signature for security purpose.

• A lost or stolen card can be cancelled, if this is done quickly, will greatly limit the fraud
that can take place in this way.

• Code 10 calls are made when merchants are suspicious about accepting a credit card.

• The operator then asks the merchant a series of YES or NO questions to find out whether
the merchant is suspicious of the card the cardholder.

Problems of Credit Card

Credit cards have changed the way people look at money. Gone are the days when only
the rich sported them at limited counters in select cities. Today, they are a way of life
for the middle class too, even in smaller locations across the country. However, this
boom has brought in a lot of complications like credit card fraud, payment defaulting,
unsolicited card, uncontrolled spending etc. Rapid credit card growth has increased
transaction efficiency. Till recently, the Indian consumer was using the credit card
during the crunch season, but things have changed in the recent past with the consumers
using it for as small a sum as Rs.100 to over one lakh rupees. The most common feature
among the credit card holders is that they carry forward their payment. Postponing

56
payments multiplies bills that too at a whopping rate of 50 to 60 per cent per year,
pushing the card holders into a debt trap. The utility of cards varies from person to
person depending on their profile. In the initial years, the consumers deem it a privilege
to hold credit cards. However, there is a feeling among card holders that the banks are
charging hefty interest and other fees. Credit card issuers charge interest which works
out to roughly 42 per cent per annum. Delays or defaults result in payment of penal
interest on all incremental usage of the card till the payments are made. Once the
outstanding piles up, it can be a serious hazard to one‟s financial security. Today,
competition among credit card players is intense. Offering benefits like reward points is
just another way of luring customers into debt trap. The biggest problems arise when
one gets into what is called revolver mode of repayment.

57
 Marketing and Promotional strategies of CreditCards

"It plans to send personalized mailers about various products to all those HDFC come in contact
with during these mass promotions." The bank has also tied up with Business Today, to sponsor
10,000 copies of the magazine in each metro. The cover of the sponsored copies would be the
December issue of Business Today, which rated HDFC Bank as the best bank in the country. On
the opposite side, would be an advertorial, which would talk about HDFC as a `one-stop
financial supermarket'.Gold Credit card:

For providing the better services to the customers and promoting their business, HDFC has
launched the Gold Credit Cards. It's overloaded with travel benefits - discounts, cash back offers,
air miles redemption.

Gold Credit Card Features & Benefits

Attractive Reward Points

Earn 1 reward point per Rs 150 spent on the Gold Credit Card.

Rewards points redemption

After earning all those reward points on your HDFC Bank Gold Credit Card, redeem them for
exciting gifts and services! You could even convert them to airline miles with India's leading
airlines through the My Rewards programme.

58
 Worldwide acceptance

Accepted at over 23 million Merchant Establishments around the world, including 110,000
Merchant Establishments in India.

Revolving credit facility

Pay a minimum amount, which is 5% (subject to a minimum amount of Rs.200) of your total
bill amount or any higher amount whichever is convenient and carry forward the balance to a
better financial month. For this facility, you pay a nominal charge of just 3.25% per month
(39.0% annually).

Free Add-on card

You can share these wonderful features with your loved ones too - we offer the facility of an
add-on card for your spouse, children or parents. Allow us to offer add-on cards to you FREE
OF COST with our compliments.

Interest free credit facility

Avail of up to 50 days of interest free period from the date of purchase (subject to the
submission of the charge by the Merchant).

Zero liability on lost card

If you happen to lose your Card, report it immediately to our 24-hour call centre. After
reporting the loss, you carry zero liability on any fraudulent transactions on your card.

Platinum Cards Get Additional Benefits

HDFC Bank Platinum Card Customers Get Additional Benefits compared to Gold / silver or
other entry level cards. For instance, consider this; HDFC Cards has a Co-Branded Online Shop
with Surat Diamonds. By virtue of being HDFC Bank Customer, you are already getting big
discount. Now add any item to your cart and enter 558818 [6 Starting Digits of Platinum Card],
you get additional discount. This is just one such instance. You also get Petrol Surcharge Waiver,
IRCTC Charges Waived, etc.
59
Times Hdfc Launched Credit Card

Times Internet, the digital arm of The Times of India Group, has partnered
with HDFC Bank to launch Times Card, a cobranded card that provides special
offers such as 25% discount on movie tickets and 20% off on dining.
"The Times Group has created an entertainment universe through our supplements like Bombay
Times, Delhi Times and times city .com and these are all platforms for fun, food
and films. The Times Card gives a unique opportunity to create a product that
leverages this breadth in the
entertainment space. The card will make entertainment easy on the wallet in the dining and movi
e category," said Vineet Jain, MD, Times Group.
The features of the card include a welcome benefit comprising a bouquet of gift vouchers for sho
pping and dining. In addition, there will be round the year discounts at mo-
vieand dining outlets. Cardholders will not have to pay any surcharge on purchase of fuel for
amounts ranging between Rs 400 and Rs 5,000. Aditya Puri, MD, HDFC
Bank, said, "Our association with the Times Group extends from the time Times
Bank merged with HDFC Bank. The way we see India moving today is that we have
a very young demographic, 50% of population will be below 25 and 60% will be
below 35. According to 'Here's India's first entertainment card'study done by our bank, the youth
segment has a strong work

60
life balance association and they define entertainment as life, friends and fun. So we both want to
catch them young and give them a product that will

help them lead a good life. This card is India's first entertainment credit card." It will
be available in two variants, Platinum and Titanium, which will be offered exclusively
on the MasterCard platform. The Platinum card comes for an annual fee of
Rs 1,500 plus taxes while Titanium card for Rs 500 and taxes.

Balance Transfer and Promotional Rate Marketing

Promotional rate marketing attracts new customers and/or induces new and existing customers to
transfer balances by offering a reduced interest rate for a limited time on certain charges and
transactions. The reduced rate is also often subject to other material limitations. Without
adequate controls, promotional rates may disguise a borrower’s repayment capacity when
qualification is based on the reduced rate rather than the re-set rate. In addition, higher attrition
may occur when promotional rates expire. Like “up to” marketing, promotional rate marketing
in and of itself is not contrary to law, but, if not administered properly, can warrant criticism.
For example, the lack of full and prominent disclosure of material limitations or applicable fees
may be problematic. Examiners should closely review promotional rate marketing programs and
consult with their compliance counterparts if concerns are identified.

Banks often offer a balance transfer option as part of a pre-approved or application strategy and
often in conjunction with promotional rate marketing. With a balance transfer, a consumer
transfers all or a portion of their credit card debt with other entities onto the credit card extended
by the bank. The consumer is often enticed to transfer the balances by receiving a lower interest
rate than what they might have on their existing accounts. The characteristics of the debt
transferred can vary depending on the bank’s program. For example, some banks offer to take
transfers of bad debt. Balance transfer strategies can result in rapid growth of receivables, and as
such, should be carefully monitored and managed. For example, rapid growth could exceed the
level of available funding capacity. Furthermore, the immediate booking of relatively large
balances can distort performance ratios. Profitability can also be easily impacted depending on
consumer behavior. For example, some consumers pay off the balance or move the balance to
yet another card before or at the time the promotional rate on the existing card expires. The

61
cycle may occur over and over, with the consumer able to take advantage of extremely low
interest rates for an extended period of time. Promotional rate and balance transfer marketing are
responsible for some degree of customer loyalty erosion that has occurred in the industry.

Credit Card Management System

HDFC SELECTS NEUTRAL TECHNOLOGY

HDFC bank, one of India's premier banks, today announced that it is using neural predictive
models from Neural Technologies for risk management in its Credit Cards and other Retail
Assets portfolios.

HDFC bank selected Neural Technologies following a comprehensive proof of concept study,
aimed at finding a supplier who could provide them with a superior analytical and scientific
approach to reduce the delinquency rates in their credit card and retail assets portfolio.

Following selection, Neural Technologies worked alongside HDFC bank's personnel to develop
models for Credit Card Collections, Credit Card Recovery and Retail Assets (Personal Loans)
Collections.

The models are proving to be very successful. Rajesh Kumar, Sr Vice President of HDFC bank
said "We selected Neural Technologies based upon the performance of their models and the
predicted return on investment, and we are extremely satisfied with the results achieved so far."

HDFC bank has plans to expand its relationship with Neural Technologies and explore new areas
in their business where they might benefit from NT’s expertise.

Arinjay Jain, Director of Neural Technologies' Indian operation said, "Neutral predictive
analytics is an ideal risk management tool, providing valuable decision-support to businesses
looking to manage and reduce credit risk and fraud losses. A pioneer in this field among the
Indian banks, HDFC bank has enthusiastically embraced the concept and is now starting to reap
the benefits. We look forward to a long and mutually beneficial relationship between our two
companies".

62
 What is strategy used by hdfc bank to promote powerplus business
card?

This is highly effective if it is marketedto consumers, but can also be used business to business.
How about placing them with a graphic artist if you are a sign company or a realtor if you are a
mortgage broker? Keep your eyes open for opportunities to get your business cards in front of
your target audience.The single most important thing you can do as part of your marketing
strategy is add value to your business cards. Augment the typical boilerplate name, title and
contact information with something that your target audience will appreciate, enjoy, and
reference time and again. You can use the back of your mini business cards to make mini
calendars, athletic or event schedules, and handy conversion charts (such as a dining out tip
chart) that align with the interests, hobbies and professions of your targeted prospects. Adding
value in this manner puts your brand in front of customers repeatedly, builds trust and credibility
in your methods, and proves to prospects that you “get them.” The back of your business cards
represents valuable real estate – do not waste it on a simple logo or other graphic. Put it to work
to motivate customers into action.The card, named HDFC bank Powerplus Business Card can be
used to pay for business expenses, and is linked to thecash credit account of the company . Since
the card is used solely for business purposes, any finance charges incurred would be tax –
deductible. The monthly statements will clearly show the businessexpenses and helpcompanies
claim tax exemptions. The creditlimit for the card has been set at Rs. 25 lakh per company. Each
company will get five individual cardsfor their employees. Each individual card has a maximum
limit of Rs.5 lakh and minimum limit Rs. 2 lakh. The anuual fee is Rs. 25000 and joining fee
isrs. 500. The interest rate on the card is 1.5 per cent per month. Other benefits include 50 per
cent discount on 10,000 hotels worldwise, and an insurance cover of up to Rs.1 lakh in the case
oflost or stolen cards . for this card,the bank is looking at spending andpenetration, both absolute
numbers.

63
Statistical Analysis And Data Interpretation
During this project I visited a HDFC bank branch in my locality where I met Mr.Sudhir Saxsena
who is the chief development officer for the Consumer Credit Counseling
Service of HDFC Bank where I interrogated him regarding the common questions raised by
customers. I would really like to appreciate the time and the effort he dedicated for the
completion of my project. They were:

1. What is a credit card and how is it different from a debit card?

>A credit card allows you to borrow money from a credit card company, with the
agreement you will pay a percentage of interest on any outstanding debt at the end of
each billing cycle. A debit card pulls money directly from an associated bank account.
Responsible credit card use helps build your credit history. Generally, debit cards can’t do
that.

2. Why am I applying?
> The card has low or no fees, a lower interest rate or offers a rewards program
that suits your spending habits. "It makes sense, and it fits into your overall
lifestyle

3. How does this card compare to other options?

> "If someone just shows you one car, how do you know if it's the right car for
you?" Every options is best in its comparison.

4. What kind of rate and credit line can I get?

>Some cards will give you a range of rates you could get, but often that window is
pretty wide. If you're operating totally in the dark, you have another option: Apply
by phone and push for an answer on your rate and credit line before the account is
opened.

64
5. What's the regular APR?

>According to the Credit Card Accountability, Responsibility and Disclosure Act

of 2009, if a card offers a lower interest rate during an introductory period, the
promotional rate has to last at least six months. While that introductory offer may
be appealing, the regular rate is what you're really buying.

So find out when the introductory APR expires and what the new rate will be. You
can find this information online in the terms and conditions for the card or you can
ask a service representative

6. How long is that grace period?

>There is 55 days of interest free credit period on Platinum Plus Card but
normally there is 50 days of grace period provided.

7.When do you reduce or revoke rewards?

>Some issuers will revoke rewards if you're late with a payment by even one day
but we provide enough time period for our beloved customers. However interest
may be charged as per terms and condition.

8. How do you protect against credit card fraud?

>We send mails to customer to avoid sharing card information. To avoid
Fake calls who appear to be an employee. We have initiated a helpline
number where the customers can seek the redressal of their grievances.We
organize a video on internet where we guide customers who to use cards
safely while online transaction.We provide Bill to every customer and help
them be an alert customer.

65
 9. What are a few ways to avoid some credit card fees once you have a credit card?

>One simple rule: pay your bill in full and on time every month. Late fees can impact your
pocketbook, and late or missed payments can also have a negative effect on your credit
score. 2

Also pay attention to all mail received from your credit card company. While your card
may not have had an annual fee when you signed up, you may receive communication
that the terms and conditions have changed. You can choose to cancel the card to avoid
the fee, but only if you know it’s coming. Deciding to cancel a credit card is a big decision
and shouldn’t be made lightly.

10. What is cash back?

>Cash back is when the credit card company gives you a certain percentage of what you
put on the card back in the form of rewards. Different programs offer different redemption
options. You may be able to use it as a credit toward your current statement, to shop
online, to purchase gift cards, or simply have it deposited back into a connected bank
account. Discover allows card members to donate their cash back to a wide selection of
non-profit organizations as well.

11. When should I redeem rewards on a credit card?

>Some programs have no expiration dates and you can earn and use rewards whenever
it’s convenient for you. Others have annual programs with “use it or lose it” clauses
requiring that you redeem rewards within a certain time period or else forfeit their value.
Be sure to read your Credit Card Agreement to understand if and when rewards expire.

66
12. How many credit cards should I have in order to build credit?

>There is no “right” number of credit accounts to build a solid credit history. According to
Experian, there are many factors that make up a credit score (and every reporting agency
has many formulas), but late or missed payments, frequency of credit inquiries, and your
credit utilization ratio are all major factors. 1 When you’re starting out with credit, it can be
safer to begin with one or two cards to ensure you can make payments consistently
before adding more.

Survey:

While doing survey of this project I met few customers of HDFC bank who are the
existing cardholder . I received different opinions and answers for the same
questions based on theirs experiences.The questions were:

1. How do you use your card?

 Frequently
 Always
 Never
 In emergency

67
 2. Have you ever had a credit card in the past?

YES 2
NO 1
UNSURE 4

3. In the past 12 months, which of the following have you done

with your credit card?

Made new purchases or cash withdrawals or cash transfers AND made 4

repayments to the credit card company
Made repayments to the credit card company BUT NOT made new 3
purchases or cash withdrawals or cash transfers
Made NO new purchases or cash withdrawals or cash transfers AND NO 0
payments to the credit card company (that is, you have not used the
card at all)

68
 4. If you have made purchases or cash withdrawals or cash transfers in one

month, do you pay off the whole amount in the following month….

ALWAYS 1
USUALLY 5
SOMETIMES 3
RARELY 2
NEVER 1

5. Thinking of the features of your credit card:

Yes No Unsure
1 Does it offer any rewards 1 3 6
or discounts (for
example,
offer cashback, airmiles,
points or discounts)
2 Does or did it offer a 5 2 3
balance transfer
capability
(that is, you can transfer
to it the outstanding
balance from another
credit card)
3 Is it one that is 1 6 3
specifically aimed at
those with no
or a poor credit history,
starting with a low credit
limit that can be
increased over time

69
6. Is there any problems faced during and after transaction of
credit card ?
 Sometimes
 Always
 Never
7. Do you take every measure possible to prevent duplicate
transactions?
 No
 Yes
 Always
 Sometimes

70
Market share of credit cards in India

71
WEBLIOGRAPHY

 http://en.wikipedia.org/wiki/credit_card
 www.capitalmind.in
 “plasticcards–specifications“customplasticcard.com
 http://www.hdfcbank.com
 www.investopedia.com/creditcards
 https://www.fca.org.uk/publication/market-studies/ms14-6-2-ccms-annex-3-1.pdf \
 https://www.discover.com/credit-cards/resources/15-common-credit-card-questions
 http://www.bankrate.com/finance/credit-cards/9-questions-before-choosing-credit-card-1.aspx

72
BIBLOGRAPHY

 Financial Service Management , Author; Dipak Abhyankar (Vipul

Prakashan) Pg No: 175-190
 Know your banking -2 credit cards by indian institute of banking & finance (
author)

73
 CONCLUSION

HDFC develops various plans for credit cards which would be convenient according to
the requirements of its targeted market or customer and is thus beneficial to its customer
in various ways. It provides various technology which increases the satisfaction level of
its customers. Therefore the HDFC is one of the top 300 banks in the world. It is the 3rd
bank amongst 17 banks of india.

74