Credit Card

CORPORATE FINANCE

CREDIT CARDS

GROUP MEMBERS • USMAN AHMAD QADRI • FARHAN NASIR • AWAIS AHMAD TAHIR • SHUMAIR IJAZ • ASAD IQBAL

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CREDIT CARD A credit card is an automatic way of offering credit to a consumer

Who Invented Credit Cards? According to Encyclopedia Britannica, "the use of credit cards originated in the United States during the 1920s, when individual firms, such as oil companies and hotel chains, began issuing them to customers." However, references to credit cards have been made as far back as 1890 in Europe. Early credit cards involved sales directly between the merchant offering the credit and credit card, and that merchant's customer. Around 1938, companies started to accept each other's cards. Today, credit cards allow you to make purchases with countless third parties.

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The Shape of Credit Cards Credit cards were not always been made of plastic. There have been credit tokens made from metal coins, metal plates, and celluloid, metal, fiber, paper, and now mostly plastic cards.

First Bank Credit Card The inventor of the first bank issued credit card was John Biggins of the Flatbush National Bank of Brooklyn in New York. In 1946, Biggins invented the "Charge-It" program between bank customers and local merchants. Merchants could deposit sales slips into the bank and the bank billed the customer who used the card.

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The Stripe on a Credit Card The stripe on the back of a credit card is a magnetic stripe, often called a magstripe. The magstripe is made up of tiny iron-based magnetic particles in a plastic-like film. Each particle is really a tiny bar magnet about 20-millionths of an inch long.

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STANDERED CHARTERED BANK

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Best Suited for  Meant for those who wish to bring ultimate indulgence to thier lifestyle. It is a globally renowned brand with world wide acceptance and exciting features and benefits. Features  Access to the CIP Lounge (International Departures) at Jinnah International Airport, Karachi.  Withdraw cash up to 30% of your available credit limit at any VISA/MasterCard ATM across the globe.  Dial -a- Draft  Zero Loss Liability  Travel Accident Cover  24hr Phone Banking

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Best Suited for  It is a card which leads you to the financial freedom you deserve. It comes with worldwide acceptance, low mark up, exclusive promotions and rewards. Features  Withdraw cash up to 30% of your available credit limit at any VISA/MasterCard ATM across the globe.  Access to the CIP Lounge (International Departures) at Jinnah International Airport, Karachi.  Dial -a- Draft  Zero Loss Liability  Travel Accident Cover  24hr Phone Banking

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STANDERED CHARTERED VISA The following schedule of charges is associated CLASSIC CARD  Joining Fee: Rs 500  Annual Fee: Rs 2,000  Supplementary Annual Fee: Rs 750 GOLD CARD  Joining Fee: Rs 1,000  Annual Fee: Rs 4,000  Supplementary Annual Fee: Rs 2,000. OTHER FEE  Service Fee: 2.75% per month (both retail and cash)  Late Fee: Rs. 350 or 10% of the minimum payment due(Which ever is higher) Page  9

STANDERED CHARTERED VISA The following schedule of charges Cont.  Cash advance Fee: Rs. 500 ( per transaction)  Cheque/Cash pickup Fee: Rs. 200  Overlimit Fee: Rs. 500  Voucher Retrival Fee: Rs. 250 Local & Rs. 800 international  Dial’a’Draft: Bank rimitance charges + Rs. 400 ( per request) and accural of charges as cash advance  Card replacement Fee: Rs. 200  Cheque Return Charges: Rs. 500  Cash Payment Charges: Rs. 100(per bill)  Duplicate Statement Charges: Rs. 200 per Statement

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STANDERED CHARTERED MASTER CARD The following schedule of charges is associated CARD FEES  Joining Fee: Rs 500  Annual Fee: Rs 2,000  Supplementary Annual Fee: Rs 750 OTHER FEES  Service Fee: 2.33% per month (both retail and cash)  Late Fee: Rs. 350 or 10% of the minimum payment due(Which ever is higher)  Cash advance Fee: Rs. 500 ( per transaction)  Cheque/Cash pickup Fee: Rs. 200  Overlimit Fee: Rs. 500  Voucher Retrival Fee: Rs. 250 Local & Rs. 800 international  Dial’a’Draft: Bank remittance charges + Rs. 400 ( per request) and accural of charges as cash advance Page  11

STANDERED CHARTERED MASTER CARD The following schedule of charges Cont.  Card replacement Fee: Rs. 200  Cheque Return Charges: Rs. 500  Cash Payment Charges: Rs. 100(per bill)  Duplicate Statement Charges: Rs. 200 per Statement

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TYPES OF CREDIT CARDS OFFERED

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CREDIT CARDS Muslim Commercial Bank Pvt. Limited.

The Power Of MCB VISA Credit Card  MCB VISA is not just another card in your wallet. It not only provides the conventional credit card services in a manner that is superior in comparison, but goes an extra mile.  Global Acceptability: Standard Chartered Credit Cards can be used at 24 million establishments across the globe in 210 countries including 10,000 in Pakistan displaying the Credit Cards logo.  Cash Advance Facility: You can withdraw cash up to 30% of your available credit limit at any VISA/MasterCard ATM across the globe. Cash can also be withdrawn ‘Over-the-Counter’ at financial institutions worldwide or at any of the Standard Chartered branches and all other VISA/MasterCard member banks in Pakistan.

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MCB VISA Card The following schedule of charges is associated CLASSIC CARD  Joining Fee: Rs 0  Annual Fee: Rs 0  Supplementary Annual Fee: Rs 0 GOLD CARD  Joining Fee: Rs 0  Annual Fee: Rs 0  Supplementary Annual Fee: Rs 0 OTHER FEE  Service Fee/Markup on cash transactions: 2.83% per month translated into an APR of up to 34% calculated on daily unpaid balance from date of transaction  Service Fee/Markup retail Fixed): 2.83% for service fee/markup per month translated into APR of up to 34%  Late Fee: Rs. 600 or 10% of the minimum payment due Which ever is higher)

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MCB VISA Card The following schedule of charges Cont.  Cash advance Fee: Rs. 500 ( per transaction) or up to 3% of the cash advance transaction whichever is high)+ all Charges by acquiring bank  Cheque/Cash pickup Fee: Rs. 200  Over limit Fee: Rs. 500  Voucher Retrival Fee: Rs. 250 Local & Rs. 800 international  Dial’a’Draft: Bank remittances charges + Rs. 350 ( per request) or up to 3% of amount requested (which ever is higher)  Card replacement Fee: Rs. 500  Cheque Return Charges: Rs. 600  Cash Payment Charges: up to Rs. 100(per bill for MCB A/C holder) & up to Rs. 200 per bill for non-account holders.  Duplicate Statement Charges: Rs. 300 per Statement (more than 1 month old)

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CREDIT CARDS UNITED BANK LIMITED (UBL).

UBL VISA CARD

CARD FEES Joining Fee: NIL Annual Membership fee Fee: NIL Supplementary Annual Fee: NIL Minimum monthly payment: Rs. 200 Cash Advance: Rs. 750

OTHER FEES Late payment fee: 10% balance due or 750 (whichever high) Late Fee: Rs. 750 or 10% of the minimum payment due(Which ever is higher) SMS alert fee: 50 per month Overlimit Fee: Rs. 750 Card replacement Fee: Rs.300 Page  19

UBL MASTER CARD

Joining Fee: NIL Annual Fee: NIL Supplementary Annual Fee: NIL

OTHER FEE Minimum monthly payment: RS.200 CASH ADVANCE: Rs.750 UTILITY BILL PAYMENT: Up to Rs. 25 per transaction Emergency card replacement (Visa/Master card) Master card arbitration charges for disputed transaction USD 500/ or equivalent Late payment fee: 10% balance due or 750 (whichever high) Late Fee: Rs. 750 or 10% of the minimum payment due(Which ever is higher) SMS alert fee: 50 per month Overlimit Fee: Rs. 750 Page  20

COMPARISON BETWEEN BANKS

CHARGES

STANDERED MUSLIM UBL BANK CHARTERD BANK COMMERCIAL BANK

MASTER/VISA CARD Joining Fee:

Rs 500

0

Nil

Annual Fee:

Rs 2,000

0

Nil

Supplementary Annual Fee:

Rs 750

0

Nil

OTHER CHARGES

Rs. 350 or 10% of the minimum payment due(Which ever is higher

Rs. 350 or 10% of the minimum payment due (Which ever is higher)

Rs. 750 or 10% of the minimum payment due(Which ever is higher)

LATE PAYMENT:

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COMPARISON BETWEEN BANKS 90 80 70 60 50 40 30 20 10 0 Page  22

SCB MCB UBL

J

Cash Payment

COMPARISON BETWEEN BANKS

Service Fee

STANDERED MUSLIM COMMERCIAL CHARTERD BANK BANK 2.83% per month translated into an APR 2.75% per month of up to 34% (both retail and calculated on daily cash) unpaid balance from date of transaction.

5%OR Rs. 200 (which ever is higher)

Duplicate Statement Charges

Rs. 200 per Statement

Rs. 300 per Statement (more than 1 month old)

Rs. 100 per Statement

Card replacement Fee:

Rs.200

Rs.500

Rs.300

Over limit Fee:

RS.500

RS.500

RS.750

Returned cheque Fee

Rs.500

Rs.600

Rs.750

CHARGES OTHER FEE

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UBL BANK

CONCLUSION: For the Best Suited credit card , its have in some essential features For example  a card you select which given you the financial freedom which are you desire.  The card should have Worldwide acceptance  Its have a low mark up.  The card which are you used its have low charges fee accordingly to yours strength.  From Credit card, Cash can be withdrawn both ‘Over-the-Counter’ and ATM.

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