PROJECT REPORT

ON

PLASTIC MONEY

BACHELOR OF BANKING AND INSURANCE

SEMESTER V

SUBMITTED TO

In partial fulfullment of the requirment for the award of

DEGREE Of BACHELOR OF BANKING AND INSURANCE

SUBMITTED BY

SANKET KADAM

ROLL NO. 171514

VEDANTA COLLEGE OF MANAGEMENT AND INFROMATION

TECHNOLOGY ULHASNAGAR 03.
 VEDANTA COLLEGE OF
MANAGEMENT AND INFROMATION
TECHNOLOGY ULHASNAGAR 03.

CERTIFICATE

This is to certify that MRs. SANKET KADAM, ROLL NO.171514 of

Bachelor of Banking and InsuranceSemester-V (2017-18) has

successfully completed the project on PLASTIC MONEY under the

guidelines of PROF.TANISH HAZARI.

PRINCIPAL

COURSE CO-ORDIATOR

PROJECT GUIDE/INTERNAL EXAMINER

EXTERNAL EXAMINER
 DECLARATION

I SANKET KADAM student of VEDANTA COLLEGE OF MANAGEMENT

AND INFROMATION TECHNOLOGYstudying in THIRD YEAR of

BACHELOR OF BANKING AND INSURANCE hereby declare that I have

completed the project on PLASTIC MONEY in the Academic year

2017-18.

The information submitted is true and original to the best of my

knowledge.

SANKET KADAM
 ACKNOWLEGEMENT

The urge and need to complete this project successfully was not possible

without helping hands of people. I take this opportunity to thank all of them who

played a major role in completing this project.

I express my deep gratitude towards Prof. Tanish Hazari for encouraging me to

work on this project.

Finally, my heartfelt appreciations to all those who worked behind the

curtains to make this project a success.
VEDANTA COLLEGE OF
MANAGEMENT & INFORMATION
TECHNOLOGY

PLASTIC MONEY
 INDEX

SR.
DESCRIPTION
NO.
1 Introduction, meaning, Definition

2 History of credit card and debit card in plastic money

3 Types of plastic money

4 Credit card

5 Marketing strategies
6 Debit card

7 Plastic Fraud

8 Advantages & Disadvantage of plastic money

9 Technology & infrastructure

10 Case study

11 conclusion

12 Customer survey

13 Survey summery

14 Bibliography
 INTRODUCTION

Plastic money or polymer money, made out of plastic, is a new and easier way of paying for
goods and services. Plastic money was introduced in the 1950s and is now an essential form
of ready money which reduces the risk of handling a huge amount of cash. It includes debit
cards, ATMs, smart cards, etc. Credit cards, variants of plastic money, are used as substitutes
for currency. This book on plastic money is divided into two sections titled Concepts and
Experience. The former covers articles on the emergence of plastic money, different types of
plastic cards and their growth in India and other related issues. An experience discusses the
experience of banks like Standard Chartered, Citibank, which deal with plastic money and
their growth in the market.

MEANING
Plastic money refers to credit cards, you use them whenever you want and pat
later with interest. It makes it too easy for people to buy things they normally could not
afford, which makes it easier to get in to debt.

DEFINITION

A slang phrase for credit cards, especially when such cards used to make purchases. The
plastic portion of this term refers to the plastic construction of credit cards, as opposed to
paper and metal of currency. The money portion is an erroneous reference to credit cards as
a form of money, which they are not. Although credit cards do facilitate transaction, because
they are a liability rather than an asset, they are not money and not part of the economys
money supply.
 History Of Credit Cards and Debit Cards In Plastic Money

Credit cards have evolved into a safe and secure manner to purchase goods and services. The
Internet has given credit card users additional purchasing power. Banks have options like
cash-back rewards, savings plans and other incentives to entice people to use their cards.
Debit cards allow people the convenience of cards without the worry of racking up debt. The
convenience, security and rewards offered by credit and debit cards keep shoppers using their
cards as opposed to checks or cash.

Credit Card Origins

The first credit cards were issued by individual stores and merchants. These cards
were issued in limited locations and only accepted by the businesses that issued them. While
the cards were convenient for the customers, they also provided a customer loyalty and
customer service benefit, which was good for both customer and merchant. It was not until
1950 that the Dinner's Club card was created by a restaurant patron who forgot his wallet and
realized there needed to be an alternative to cash only. This started the first credit card
specifically for widespread use, even though it was primarily used for entertainment and
travel expenses.

Plastic Becomes the Standard

The first Diner's Club cards were made out of cardboard or celluloid. In 1959
American Express changed all that with the first card made of plastic. American Express
created a system of making an impression of the card presented at the register for payment.
Then that impression was billed to the customer and due in full each month. Several
American Express cards still operate like this as of 2010. It was not until the late 1980s that
American Express began allowing people to pay their balance over time with additional card
options.
 Bank Card Associations
In 1966, Bank of America created a card that was a general purpose card or "open
loop" card. These "closed loop" agreements limited cards like Diners Club and American
Express to certain merchants, unlike the new "open loop" cards. The new general purpose
system required interbank cooperation and additional regulations. This created additional
safety features and began building the credit card system of today. Two systems emerged as
the leaders--Visa and Master Card. However, today there is little difference between the two
and most merchants accept both card associations.

Debit Cards Emerge

The Visa association of cards took credit cards to a new level in 1989 when they
introduced debit cards. These cards linked consumers to their checking accounts. Money was
now drawn from a checking account at the point of sale with these new cards and replaced
check writing. This helped the merchants check that money was available and made it easier
to track the customer if the funds could not be obtained. Consumers liked the convenience of
not having to write checks at the point of sale, which made debit cards a safe alternative to
cash and checks.

The Future

There were almost 29 million debit card users as of 2006, with a projected 34.4
million users by 2016. However, online services like PayPal are emerging as a way for
people to pay their debts in new, secure and convenient ways. Technology also exists to have
devices implanted into phones, keys and other everyday devices so that the ability to pay at
the point of sale is even more convenient.
 TYPES OF PLASTIC MONEY

Different types :-
Credit card

A credit card is plastic money that is used to pay for products and services at over 20
Million locations around the world. All you need to do is produce the card and sign a
charge slip to pay for your purchases. The institution which issues the card makes the
payment to the outlet on your behalf; you will pay this 'loan' back to the institution at
a later date.

Debit card

Debit cards are substitutes for cash or check payments, much the same way that credit
cards are. However, banks only issue them to you if you hold an account with them.
When a debit card is used to make a payment, the total amount charged is instantly
reduced from your bank balance.
Don't borrow on your credit card! Here's why
A debit card is only accepted at outlets with electronic swipe-machines that can check
and deduct amounts from your bank balance online.
 Charge card
A charge card carries all the features of credit cards. However, after using a charge
card you will have to pay off the entire amount billed, by the due date. If you fail to-
do so, you are likely to be considered a defaulter and will usually have to pay up a
steep late payment charge.
When you use a credit card you are not declared defaulter even if you miss your due
date. A 2.95 per cent late payment fees (this differs from one bank to another) is
levied in your next billing statement.

Amex card

Amex stands for American Express and is one of the well-known charge cards. This
card has its own merchant establishment tie-ups and does not depend on the network
of MasterCard or Visa.
Credit cards: Remember these dos and don'ts.
This card is typically meant for high-income group categories and companies and may
not be acceptable at many outlets. There are a wide variety of special privileges
offered to Amex cardholders.
 Dinner club card

Diners Club is a branded charge card. There are a wide variety of special privileges
offered to the Diners Club cardholder. For instance, as a cardholder you can set your
own spending limit. Besides, the card has its own merchant establishment tie-ups and
does not depend on the network of MasterCard or Visa.
However, since this card is typically meant for high-income group categories, it may
not be acceptable at many outlets. It would be a good idea to check whether a
member establishment does accept the card or not in advance.

Global card

Global cards allow you the flexibility and convenience of using a credit card rather
than cash or travelers cheque while traveling abroad for either business or personal
reasons.
 Co-branded card

Co-branded cards are credit cards issued by card companies that have tied up with a
popular brand for the purpose of offering certain exclusive benefits to the consumer.
A debit card with a difference
For example, the Citi-Times card gives you all the benefits of a Citibank credit card
along with a special discount on Times Music cassettes, free entry to Times Music
events, etc.

Master card & Visa

MasterCard and Visa are global non-profit organizations dedicated to promote the
growth of the card business across the world.
They have built a vast network of merchant establishments so that customers
worldwide may use their respective
credit cards to make various purchases.
 Smart card

A smart card contains an electronic chip which is used to store cash. This is most
useful when you have to pay for small purchases, for example bus fares and coffee.
No identification, signature or payment authorization is required for using this card.

The exact amount of purchase is deducted from the smart card during payment and is
collected by smart card reading machines. No change is given. Currently this product
is available only in very developed countries like the United States and is being used
only sporadically in India.

Photo card

If your photograph is imprinted on a card, then you have what is known as a photo
card. Doing this helps identify the user of the credit card and is therefore considered
safer. Besides, in many cases, your photo card can function as your identity card as
well.
 CREDIT CARD

INTRODUCTION:-

A credit card is a small plastic card issued to users as a system of payment. It allows
its holder to buy goods and services based on the holder's promise to pay for these goods and
services. The issuer of the card 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. Usage
of the term "credit card" to imply a credit card account is a metonym.

When a purchase is made the user would indicate consent to pay by signing a receipt
with a record of the card details and indicating the amount to be paid. Issuer agrees to pay the
merchant and the credit card user agrees to pay the card issuer.

DEFINITION:-

The credit card can be defined as A small plastic card that allows its holder to buy goods
and services on credit and to pay at fixed intervals through the card issuing agency.

MEANING:-

A credit card is a card or mechanism which enables card holder to purchase goods,
travels and dine in a hotel without making immediate payments. The holders can use the
cards to get credit from banks up to 45 days.

The credit card relieves the consumers from the botheration of carrying cash and
ensures safety. It is a convenience of extended credit without formality. Thus credit card is a
passport to, safety, convenience, prestige and credit.


ADVANTAGES & DISADVANTAGES OF CREDIT CARD

 ADVANTAGES OF CREDIT CARD

The benefits of credit card can be grouped as follows:

(A) BENEFITS TO THE BANK

a) A credit card is an integral part of banks major services these days. The credit card
provides the following advantages to the bank: the system provides an opportunity to the
bank to attract new potential customers.

b) To get new customers the bank has to employee special trained staff. This gives the bank
an opportunity to find the latent talent from among existing staff that would have been
otherwise wasted.

c) The more important function of a credit card, however, is simply to yield direct profit for
the bank. There is a scope and a potential for a better profitability out of income / commission
earned from the traders turn over.

d) This also provides additional customer services to the existing clients. It enhances the
customer satisfaction.

e) More use by the car holder and consequently the growth of banking habits in general.

f) Better network of card holders and increased use of cards means higher popularity and
image of the bank

g) Savings of expense on cash holdings, i.e. stationery, printing and man power to handle
clearing transactions while considerably is reduced. It increases

(B) BENEFITS TO CARD HOLDER

The principal benefits to a card holder are:

a) He can purchase goods and services at a large number of outlets without cash or cheque.
he card is useful in emergency, and can save embarrassment.

b) The risk factor of carrying and storing cash is avoided. It is convenient for him to carry
credit card and he has trouble free travel and may purchase his without carrying cash or
cheque.

c) Months purchases can be settled with a single remittance, thus, tending to reduce bank and
handling charges.

d) The card holder has the period of free credit usually between 30-50 days of purchase

e) Cash can usually be obtained with the card, either on card account or by using it as
identification when encasings a cheque at the bank.

f) Availing credit with minimum formality.

g) The credit card saves trouble and paper work to travelling business man.

(C) BENEFITS TO THE MERCHANT ESTABLISHMENT

The principal benefits offer credit card to the retailer is

a) This will carry prestigious weight to the outlets.

b) Increases in sale because of increased purchasing power of the cardholder due to unbilled
credit available to the card holder.

c) The retailers gain from the impulse buying and trading up the tendency to buy the bigger
or better article

d) Credit card ensures timely and certainly of payments.

e) Suppliers/sellers no longer have to send reminders of outstanding debits.

f) Systematic accounting since sales receipts are routed through banking channels.

g) Advertising and promotional support on national scale.

h) Development of prestigious clientele base.

DISADVANTAGES OF CREDIT CARD

The following are the common disadvantages of the credit card:
a) Some credit card transactions take longer time than cash transactions because of various
formalities.

b) The customer tends to overspend out of immerse happiness.

c) Discounts and rebates can rarely be obtained.

d) The cardholder is responsible for charges due to loss or theft of the card and the bank may
not be party for loss due to fraud or collusion of staff, etc

e) Customers may be denied cash discount for payment through card.

f) It might lead to spending habits and cardholders may end up in big debts

i) Avoid the entire cost and security problem involved in handling cash.

j) Losses to bad debts and reduced an additional liquidity is

k) It also allows him to delegate spending power to add on members

l) Credit card is considered as a status symbol.

MARKETING STRATEGIES
 American companies spend billions of dollars each year on marketing. As a matter of
fact, in 2001, U.S. advertising expenditures alone topped $230 billion, more than doubling
the $105.97 billion spent in 1980.
(Source: Advertising: Exposure and Statistics November 2003 newsletter of the
Media Education Foundation)

Now, these figures may seem staggering to the independent professional on a budget,
but dont panic; there are lots of effective strategies you can utilize that will help you grow
your business fast.

Here are some of my favourite :

Identify your niche.

One of the easiest ways to attract customers is to figure out which group of
prospective customers you get your very best results for and go after them exclusively. Many
professionals are afraid to do this claiming that theyll be leaving someone out, but many
marketing experts agree that niche marketing as the easiest and fastest way to get business.

Position yourself as an expert.

Why? Experts make more money and get more media attention and thats free
advertising! Lets face it; its easier to trust a specialist than a generalist whos trying to be
everything to everyone. Once youve identified your niche, let the world know about how
you can help. Provide free information products, write articles and white papers about the
problems your clients face and how they can solve them.

Conduct workshops, seminars and tele -classes specifically geared towards helping
your prospective customers and before long youll be regarded as an expert in your field.
And, while youre at it dont forget to, collect names, emails and addresses of prospects to
keep filling your pipeline.
Develop ongoing relationships with complementary professionals and build
your referral team.

These are other professionals who sell non-competing services or products to the
same niche customers you are targeting. For instance, my clients often need the services of
bookkeepers, accountants and business attorneys. Likewise, they refer business to me. Here
are a couple of other examples:

Residential realtor, mortgage broker, real estate attorney, home improvement contractor,
architect and interior designer.000000000

Commercial printer, copywriter, graphic designer.

Institute a system to keep track of all of the people who are interested in
your product or services, and find creative ways of keeping in touch with
them on a regular basis.

To start, go through your notes. Put together a list of all of the people youve spoken
to in the last 6-9 months whove showed interest in you but havent become paying
customers. Follow up with them in a variety of ways: call them to touch base, use email, ask
them to subscribe to a newsletter, send them interesting articles, or invite them to join you at
events. It takes numerous impressions to make the sale; thats why you see commercials on
TV over and over again for the same products.

By Keeping track of all of the people whove showed interest and keeping your
business on their radar screen youll turn more of them into paying customers.
Let your satisfied customers help you sell your products or services.

Here are a couple of ways to do this: 00000000000000000000000000

Ask them for referrals - right away (if you were a car salesman you wouldnt wait for the
new car to get dirty and dented!)000000000000

Ask them to write testimonials for you, (also right away) and compile a list of testimonials
to use in your all of your marketing collateral.

Create a marketing calendar and keep to it consistently.

Scheduling marketing activities that take place weekly, bi monthly, monthly and
quarterly will help you to avoid the feast or famine syndrome that most independent
professionals fall prey to. And, by doing so, marketing will become easier since it becomes a
regular part of your business life.

Identify innovative ways to get more business from existing customers.

Its much easier to get business from customers who are already happy with your
services or products. So develop additional services or products to keep customers coming
back for more.

STEPS FOLOWED IN CREDIT CARD TRANSACTION

1. Authorization

For Internet Merchants, the shopping card is connected to or integrated with a

Payment Gateway. For Retail Merchants, the card is swiped through a magnetic
reader on the point of sale terminal the authorization is transmitted to the appropriate
card issuer for approval. The issuing bank of card issuer authenticates the card holder
and approves or declines the transaction amount.

It is important to note that no money changes hands during the authorization.

Merchants must re-present the transaction to receive payment.

2. Merchant balancing

This is also known as batching out. Most pos terminals and all payment gateway per
firm an auto close functions at the and of the day and batch out automatically.

3. Capture

The front end processor matches the authorization data to the settlement data and
transmits the card capture file to a back end processor for V/MC transactions or to the
appropriate card issuer for other card types.

4. Clearing

During this stage the back end processor performs compliance checks and risk
management procedures and transmits the transaction to V/MC or to the appropriate
card issuer for other card types.
5. Interchange (VS/MC Only)

During this stage the V/MC Association sort the transactions by issuing bank and
transmit them to the appropriate issuing banks for settlement.

6. Settlement

During this stage the Issuing Bank calculates fees and deductions and routs the net
funds to the appropriate Card Issuer which determines the daily deposits for the
merchants.

7. Merchant ACH

During this stage the acquiring bank or card issuer transmits the merchant deposit to
the merchants checking account.

Different Types of Credit Cards

 Credit cards are of various types, everyone has to select credit cards on the basis of
the pros and cons of each type of credit card and at the same time the nature of use. This
article gives an insight into the several types of credit cards available in the market

Today, credit card customers enjoy more options and choices than ever before. To
gain new customers, credit card companies compete by offering new services and cards to
customers. No matter what your needs, chances are good that there is a card out there that
would be ideal for you. If you are looking for the right card, you can begin by considering the
many types of cards available to you:

Low Interest Credit Cards

These types of credit cards offer very low interest. In some cases, these cards just
charge a few percent interests. The reasons for this are numerous. In most cases, the low
interest rate is for a limited time only. After a set number of months, you will begin paying
higher interest rates. In some cases, low interest credit cards are not really credit cards at all -
they are debit cards linked to a low-interest loan such as a line of credit. Check your
agreement to find out what type of card you have. If you need to consolidate debts or if you
like the idea of having low interest for a while, this type of credit card can be perfect for you.

Instant Approval Credit Cards

These cards are really a product of our fast-paced society. The idea behind this type of credit
card is that once you fill out your application, you will be told whether you are approved or
not right away. The approval process only takes a few minutes. Instant approval credit cards
are very popular online and applicants can apply via the internet or over the phone.
 If you are very impatient or need credit right away, these types of cards can be for
you. However, you should be aware that these cards do not guarantee that you will be
approved right away - sometimes, more time is needed to process your application. Another
drawback to these cards is that they rely heavily on your credit score. If you have poor credit
or any extenuating financial circumstances, these types of cards may not be for you.

Balance Transfer Cards

Balance transfer cards are a type of temporary low-interest card that is meant to help
you consolidate your debt. They work this way: if you have several credit cards with a
balance, you can get a balance transfer card. You then transfer all your credit card debt onto
the new card and work to pay it off. Since the new card has a low interest rate, you can
quickly repay your bills.

If you are in debt, a balance transfer card can be a great way to get out of debt. It
offers the convenience of one bill and low rates. However, some cards have high fees. Also,
if you run up your other cards after consolidating your debts or if you are unable to pay off
your new card in the limited time before the low interest rate increases, you may find yourself
even more in debt than before.

Rewards Credit Cards

Rewards credit cards offer you points, rewards, or bonuses for every cash purchase
made with your credit card over time. As you accumulate rewards or points, you can redeem
your bonus for entertainment events, purchases, travel, and other fun prizes. Some cards even
offer customers extra automatic-enter sweepstakes and draws. Each time you use your card,
you are entered into a draw to win specific prizes.
 These types of cards are really a marketing tool for card companies. Companies know
that customers love rewards and prizes and so offer these

enticements to lure customers. The major advantage of these cards is that they can help you
get more cash value for your money. They can also be fun and rewarding for almost any
credit card customer. However, not all reward credit cards are a deal. Some charge high fees
to offset the costs of the bonuses. Some also have very low points systems, meaning that you
need to spend a lot with your credit card to get any rewards at all. Read the fine print
carefully before signing.

Cash Back Credit Cards

Cash back credit cards give you money rewards. When you make a purchase with this
type of credit card, you get some points based on the amount of money you have spent with
your credit card. When you accumulate enough points, you get cash back. On most cards, you
can get back about 1% of your total purchases.

These cards are great for those who are budget-conscious as they give you some
money back from your purchases. However, there are several drawbacks to these types of
cards. Some cards have low cash-back percentage rates. Some charge high fees or have limits
on how much money you can get back each year. Most cards only offer you cash back
advantages on purchases - not on your balance. If you decide this card is right for you, do
compare several card offers to find the best cash back credit card option.

Airline Credit Cards

This type of card allows you to accumulate frequent flyer points on all your credit
card purchases. If you travel a lot or love to travel, this card can help you accumulate points
for a free trip or for a discount ticket. In many cases, these cards are great because they allow
you to gather points for every purchase. However, these cards can also charge high fees. In
some cases, your points will expire if you do not use them within a specified time. Worse,
some airline credit cards make use of a point system that is not very user-friendly. You may
have to slowly accumulate an enormous amount of points to qualify for a trip. If you do not
love to travel and if you do not use your Credit card a lot, then, your ability to get rewards
you like may be very limited.

Prepaid Debit Cards

These cards are sometimes called junior credit cards. They are not truly credit cards at
all, since you are not getting credit or loans from the credit card company. Instead, these
cards work by having you deposit some money into the card account. You can then use your
card to charge any amount up to the amount in the account. When you add more money, you
can charge more to your card.0

000000000000000000000000000000000

Secured Credit Cards

Secured credit cards use collateral to ensure that the card company will be paid back.
Often, these cards are used by people with no credit or bad credit. With secured credit cards,
you can enjoy credit card convenience even if you do not qualify for traditional cards.
However, you will also have to cope with the additional fees and low credit limits that these
credit cards have.

Credit Cards for Bad Credit

Bad credit credit cards are designed for people with poor credit histories. These cards
generally have very low credit limits and charge extra fees. This is because they are designed
for people who are considered far less likely to repay their debts. If you have a bad credit
rating, these types of credit cards can be a great way to rebuild your credit history. These
cards can also allow you to have credit even if you would be rejected for most other cards due
to your credit history.

Student Credit Cards

Student credit cards are cards meant to attract college and university students. These
cards often offer sign-up bonuses for students. They are also easier to apply for, since credit
card companies recognize that students have much shorter credit histories than the average
customer.000000000000
If you are a student, student credit cards can be a great option. They are simple to use
and can help you build a good credit rating before you graduate. However, there are some
disadvantages to student credit cards. These cards may have no reward programs and may
have fewer benefits, including fewer bonuses and services, than other cards.

Business Credit Cards

Business credit cards are created especially for business use. They offer many of the
same advantages as traditional credit cards, but also offer services that can really help a
business. With some business credit cards, for example, you can enjoy higher interest rates,
extra cards for business employees, monthly reports on your expenses, and services that let
you keep your personal and business expenses separate on the same card. These advantages
mean that using this card for your business is more convenient.
 Credit Cards offered by Indian Banks

Silver Cards

Silver credit cards rank lowest among the metal named cards, and, because of lower
prestige when compared to gold and platinum cards, are commonly known as basic and
standard credit cards. Silver credit cards come with advantages such as lower annual
membership fees if there is any, and a lower threshold salary which banks use to evaluate
your application in case you should apply.

Silver credit cards will provide you with almost the same credit limit as other cards
provided you have a good credit history. You can also avail of 0% interest balance transfer
schemes which are made available for a period of 6-9 months for silver card holders.

There are also some disadvantages to using silver credit cards. One would be the
lower cash advance limits, less rewards and promotional packages, and less travel perks
compared to gold and platinum cards. HDFC Bank, ICICI offer silver credit cards through
their HDFC Bank Silver cards and ICICI Sterling Silver credit card

Gold and Platinum Cards

Gold and platinum credit cards are a status symbol for any credit card holder, bringing
prestige since getting gold and platinum cards usually require that you have good credit rating
and a higher income levels. Gold and platinum cards offer higher limit for cash advance
withdrawals and sometimes can provide higher credit limits as compared to standard or silver
cards.
 If you have a gold or platinum card, you also get better perks and privileges such as
travel insurance, extended warranties for appliance purchases and special deals on specific
products, and purchase protection insurance.

You can also engage in some loyalty schemes that are offered for gold and platinum credit
card holders which can sometimes involve cash back promos and reward points systems.

Some popular gold and platinum cards available are the American Express Gold card, and the
ICICI Solid Gold Credit Card.

It is not possible to cover them the exact offerings of these cards but I will highly
advice you to check all these websites of the banks to get all the info about the credit cards
they are offering. Also try to talk to your friends who are having credit cards to get more info.
 Credit Card Data

Credit Card is either Visa or MasterCard which is the Most popular and in some instance
American Express.000000000000000000000000000000

The Top 10 Credit Card Issuers in India are as follows,

ICICI Bank - 5.07 Mn

HDFC Bank - 4.42 Mn
SBI Cards - 2.65 Mn
Citibank - - 2.54 Mn
HSBC Cards - 1.3 Mn
ABN Amro - 0.78 Mn
Axis Bank - 0.57 Mn
Deutsche Bank - 0.495 Mn
American Express 0.45 Mn

Data Courtesy - The Reserve Bank of India

 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. Functionally, 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. In some cases, the cards are designed exclusively for
use on the Internet, and so there is no physical card.

In many countries the use of debit cards has become so widespread that their volume
of use has overtaken the cheque and, in some instances, cash transactions.

Like credit cards, debit cards are used widely for telephone and Internet purchases
and, unlike credit cards, the funds are transferred immediately from the bearer's bank account
instead of having the bearer pay back the money at a later date.

Debit cards may also allow for instant withdrawal of cash, acting as the ATM card for
withdrawing cash and as a cheque guarantee card. Merchants may also offer cash back
facilities to customers, where a customer can withdraw cash along with their purchase.
 Types of debit card systems

Online Debit System

Online debit cards require electronic authorization of every transaction and the debits
are reflected in the users account immediately. The transaction may be additionally secured
with the personal identification number (PIN) authentication system and some online cards
require such authentication for every transaction, essentially becoming enhanced automatic
teller machine (ATM) cards. One difficulty in using online debit cards is the necessity of an
electronic authorization device at the point of sale (POS) and sometimes also a separate PIN
pad to enter the PIN, although this is becoming commonplace for all card transactions in
many countries. Overall, the online debit card is generally viewed as superior to the offline
debit card because of its more secure authentication system and live status, which alleviates
problems with processing lag on transactions that may only issue online debit cards. Some
on-line debit systems are using the normal authentication processes of Internet banking to
provide real-time on-line debit transactions. The most notable of these are Ideal and POL.

Offline Debit System

Offline debit cards have the logos of major credit cards (e.g. Visa or MasterCard) or
major debit cards (e.g. Maestro in the United Kingdom and other countries, but not the
United States) and are used at the point of sale like a credit card (with payer's signature). This
type of debit card may be subject to a daily limit, and/or a maximum limit equal to the
current/checking account balance from which it draws funds. Transactions conducted with
offline debit cards require 23 days to be reflected on users account balances. In some
countries and with some banks and merchant service organizations, a "credit" or offline debit
transaction is without cost to the purchaser beyond the face value of the transaction, while a
small fee may be charged for a "debit" or online debit transaction (although it is often
absorbed by the retailer). Other differences are that online debit purchasers may opt to
withdraw cash in addition to the amount of the debit purchase (if the merchant supports that
functionality); also, from the merchant's standpoint, the merchant pays lower fees on online
debit transaction as compared to "credit" (offline) debit transaction.

Electronic Purse Card System

Smart-card-based electronic purse systems (in which value is stored on the card chip,
not in an externally recorded account, so that machines accepting the card need no network
connectivity) are in use throughout Europe since the mid-1990s, most notably in Germany
(Geldkarte), Austria (Quick), the Netherlands (Chipknip), Belgium and Switzerland (CASH).
In Austria and Germany, all current bank cards now include electronic purses.

Prepaid Debit Card

Prepaid debit cards, also called reload able debit cards or reload able prepaid cards,
are often used for recurring payments. The payer loads funds to the cardholder's card account.
Prepaid debit cards use either the offline debit system or the online debit system to access
these funds. Particularly for companies with a large number of payment recipients abroad,
prepaid debit cards allow the delivery of international payments without the delays and fees
associated with international checks and bank transfers. Providers include Caxton FX prepaid
cards, [Escape prepaid cards and Travelex prepaid cards. [ Whereas, web-based services such
as stock photography websites (stockpot), outsourced services (odes), and affiliate networks
(Media Whiz) have all started offering prepaid debit cards for their
contributors/freelancers/vendors.
 BENEFITS& FEATURES OF DEBIT CARDS

BENEFITS OF THE DEBIT CARD

FREE WITH OUR BANK ACCOUNT

Obtaining a debit card is easy. If we qualify to open a bank account, we usually get a debit
card, if our bank offers the service.

NO BACKGROUND CHECK

When we are applying for a debit card, the ban does not need to look into our credit history.
All we need is the documentation to open a bank, account, and money in our bank when we
use our debit card.

CASH WITHDRAWALS

The customer can withdraw a minimum of Rs. 100/- and a maximum Rs.10, 000/- per day

CONVENIENCE

A Debit card fees us from carrying a lot of cash or a cheque book. In case, we are an
international traveller, we dont need to stock up on Travellers Cheques or cash. We can use
our debit card to withdraw Cash from over 500,000 ATMs around the world in over 100
countries. We can withdraw in the local currency of the country we are in, limited only by the
money we have back home in our account, and Business Travel Quota (BTQ) limit arability.
 FAIR EXCHANGE

If we return merchandise or cancel services paid for with a Debit card, the transaction is
treated as if it were made with cash or a check. Customers usually get cash back for offline
purchases; for on-line transactions, the amount is credited to our account.

STATEMENT OF ACCOUNT

A statement of transactions can be obtained from the customers branch. For example, a mini
statement containing the last four transactions and balance can be obtained at a State Bank
Group during the working hours of the customers branch.

BANKING CUM SHPPING CARD

Your Debit card can be used as ATM card at any ATM across the world, as well as for
making purchase at merchant locations. You can also withdraw cash from any of the 12000
ATMs in India.

WIDELY ACCEPTED, INTERNATIONALLY VALID

 FEATURES OF DEBIT CARD

The following are features of Debit cards

A) It is a combination of a Cheque and ATM card. Therefore, there are no fees for using the
ATM for cash withdrawal, or as a debit card for purchase.

B) The Debit Card services in meant for withdrawals against the balance already available in
the designated account.

C) It is the card holders obligation to maintain sufficient balance in the designated account to
meet withdrawals and service charges.

D) A Debit card is more affordable than credit card. We just our bank account for all our
transactions. No credit period. Our bank account is debited immediately.

E) No credit check is required to get a Debit card.

F) Use of card is terminated without notice, upon the death, bankruptcy or insolvency of the
cardholder or for other valid reasons.

G) Spending is limited to our bank balance.

 Process Debit Card Transactions

A successful business will usually accept debit cards as a part of their overall profile of
payment solutions. If you dont process debit cards, you may not be taking full advantage of
all the potential that your merchant account can deliver. There are essentially two ways you
can accept debit cards, online and offline.

Off line debit card transactions

An offline debit card transaction is still the way most merchants accept debit cards.
This is essentially the same as processing credit cards. You swipe your customers debit card
through a credit card terminal and have them sign the receipt.

If you choose to accept debit cards offline, be sure that the debit card has a VISA or
MasterCard logo. Otherwise, the debit card wont be approved and you wont be able to
process the debit card offline

Online debit card transactions

The most advantageous way to process debit cards is to do it online. You will still be
able to accept debit cards at the point of sale, but you will need to install a PIN pad on your
credit card terminal.

An online debit card transaction works much like a credit card transaction, except that
after your customer swipes his or her debit card, they will enter a PIN instead of signing the
receipt.

At this point the encrypted debit card information is sent to the customers bank for
authorization, and youll receive the funds just as you would for a credit card transaction.

Your business has many advantages when you accept debit cards.
 For example, you pay a flat fee for each debit card transaction that you process,
instead the flat fee plus percentage rate that you are charged when you accept credit cards.
Over time, this can potentially save you a lot of money.
0000000000000000000000000000000000000000000000000
Another advantage when you process debit cards is that you cant be charged higher
downgrade fees.

In a credit card transaction, you are usually charged the discount rate. However,
some transactions are considered to be a higher risk or expense to the bank, and you are
charged a higher rate as a result.

But when you accept debit cards, you always pay the same flat rate, with no danger of
the rate increasing.

You can also cut down on checkout time when you accept debit cards. It takes an
average of 30 seconds to hand over the pen, wait for the customer to sign the receipt, and then
take the pen back.

If you process 20 credit card transactions a day, youre losing 100 minutes a day just
passing a pen back and forth! Thats almost two hours.
 Plastic Fraud

State-of-the-art thieves are concentrating on plastic cards. In the past, this type of fraud was
not very common. Today, it is a big business for criminals. Plastic cards bring new
convenience to your shopping and banking, but they can turn into nightmares in the wrong
hands. This pamphlet describes credit and debit cards and some common schemes involving
card fraud with tips to help you avoid them

The following are the types of frauds

1. Stolen Cards at the Office

2. Extra Copies of Charge Slips
3. Discarded Charge Slips
4. Unsigned Credit Cards
5. Loss of Multiple Cards
6. Strange Requests for Your PIN Numbers
7. Legitimate Cards
8. Altered Cards
9. Counterfeit Cards
Advantages & Disadvantage of plastic money

Advantages

Plastic money, unlike paper money, will not burn easily and can resist higher
temperatures than paper money.

You have no fear to be theft. And its easy to use.

Plastic money, unlike paper money, will not burn easily and can resist higher
temperatures than paper money.

Paper money also picks up dirt and stains more easily than plastic money.

Plastic money is the debit and credit cards. Plus point of plastic money is
that you won't have to carry your cash around all the time.

It also doesn't wear after time as paper does nor does it rip and tear.

Give you incentives, such as reward points, that you can redeem.

Be more convenient to carry than cash.

Provide a convenient payment method for purchases made on the Internet

and over the telephone.

Help you establish a good credit history.

Disadvantage

Cost much more than other forms of credit, such as a line of credit or a

Personal loan, if you don't pay on time.

Damage your credit rating if your payments are late;

Allow you to build up more debt than you can handle;

Have complicated terms and conditions;

It also doesn't wear after time as paper does nor does it rip and tear.

Paper money also picks up dirt and stains more easily than plastic money.

I can't really see any advantages to have paper money, unless it is cheaper to make.

Its disadvantage is that, some extra money will be deducted for the bank services.

Its around 2.5% of the money you spent.

 TECHNOLOGY AND INFRASTRUCTURE

One of the most important features that Plastic Money offers is the technology
associated with this business.
Credit card businesses rely on very reliable and secure technology and demands very
Strong connectivity backbone.
Although a third world country, with lot of insecurities and almost no infrastructure,
Pakistan has no exception when it comes to credit card business.
There is approximately 3000 Point of Sale Terminals (POST) present on merchant's
sites connected with bank host system.
Inter-city connectivity is accomplished through X.25 networks.
Perhaps, it is the most important time in the history of Pakistan as the parameters of its
Infrastructures are coming into existence.
There is an immense need of reliable wide area connectivity and this market is so huge
and lucrative that it can accommodate many more industry giant
 CASE STUDY

What Happens in Credit Card Fraud Cases?

1. The Basics

A variety of crimes constitute credit card fraud. The term can describe a person using
a stolen credit card to purchase goods or services posing as the person named on the card. It
can also describe illegally and fraudulently withdrawing funds from an account that is not
yours. Identity theft, which is the act of posing as an individual to make purchases, is often
classified together with credit card fraud. A victim of credit card fraud can sometimes see
bank accounts emptied of all their funds or negative marks going on her credit report for
things she had nothing to do with. Many banks will monitor transactions made with a credit
card and alert the person named on the account of any potentially suspicious activity. This is
to protect the bank or Credit Card Company just as much as it is to protect the customer.

2. Investigation

Exactly what happens during a credit card fraud case depends a great deal on the
actions of the Credit Card Company or bank involved. If fraudulent transactions are proven to
have been made on a person's account but the amount of the transactions is lower than the
cost of an investigation the company can credit the money back to a person and then close the
account to protect from further harm.00000000000000000000000000

If the amounts of fraudulent charges are so great that an investigation is warranted, the police
will be notified. The credit card company can look at a list of the fraudulent charges and
determine where they were made. At that point an officer can question witnesses and review
security camera footage in an attempt to identify suspects. If a suspect is arrested he can be
tried in a court of law.
 CONCLUSION

21ST Century banking has become wholly customer-driven & technology driven by
challenges of competition, rising customer expectations & shrinking margins, banks have
been using technology to reduce cost & enhance efficiency, productivity & customer
convenienence. Technology intensive delivery channels like net banking, mobile banking, etc
have created a win-win situation by extending great convenienence. & multiple options for
customer.

From educating customers about credit cards there is a need to educate them about the
differentiating factors of the cards. Because visa and master card are advertising regularly
and thereby increases awareness. The strategy should be to emphasize on its differentiating
characteristics.

They also need to identify potential customers and target those using mailers. As
internet is growing at a fast rate the net users can be targeted by having interactive sites. The
prospective companys card personality could also be used in the home page to solve
customer queries in the Best Possible Manner.
 CUSTOMER SURVEY SUMMERY

1] Do you have idea about plastic money? Which of them are you
aware of ?

percentage
credit cards debit card premium card

30% 25%

45%

2] according to you which is the most convenient way to pay ?

percentage

9%
40% cas
h
car
51% d
bot
h
3] do you have one of them ?

percentage
credit cards debit card premium card

24% 16%

60%

4] how do you make payment for purchases of household

consumables ?

percentage

9%
40%
cash

51% card

ECS
5while travelling according to you which is preferred way to
payment?

percentage
cash card both of them

30% 25%

45%

6]do you have the use of plastic money to be safest modes of the
transaction ?

percentage
yes no may be

20%

51%

29%
7] why dont you prefer plastic money ?

percentage
unable income lack of knowledge missuse by others

23%

58%
19%

8] which can be carried and kept easy and has more life ?

percentage
paper mopney plastic money

11%

89%
9] which type of security measurement you expect for stepping
misuse of plastic money ?

percentage
password pin finger print

17%

25%
58%

10] which of them options given you consider more reliable and
secured ?

percentage
paper money plastic money both

20%
29%

51%
BIBLIOGRAPHY

BOOKS

INOVATION IN BANKING & INSURANCE

FINANCIAL MARKET & SERVICES
INDIAN BANKING INDUSTRIES
INDIAN BANKING

WEBSITE

WWW.GOOGLESERCH.COM
WWW.WIKIPEDIA .COM
WWW.INFOSEE.COM
WWW.INDIANMBA.COM
WWW.INDINBANKING.ORG