How much is the joining fee and the annual fee?
Generally, a credit card with a higher annual fee enjoys more benefits like higher credit limit, higher accident insurance cover, accessibility to airport lounges, travel discounts etc. OF at least the used to be the case. With cutthroat competition between the card issuing banks, players are ready to waive joining fees and also one-year membership fees for anyone. Grab these offers, or negotiate this for yourself.
How much is the Add-on card fee?
If you are interested in buying add-on cards for your children, spouse or friend, ask for the add-on card fee. Remember that you will be settling the bills on the add-on card that you so touchingly gift to someone dear to you – the statement will come to you, and the responsibility for payment is yours (as far as the credit card company is concerned)
What is the interest rate?
This is actually a question that you should be asking fairly soon in the discussion.… Read More »
The credit card industry in India has registered an encouraging growth in recent times, but the usage pattern of credit cards remains a point of concern, those in the industry say. Seven years back, India had a base of around five lakh credit cards. There has been a seven-fold increase, with the number of cardholders touching over 38 lakh. These figures point towards the fact that the credit card industry in India is growing at a brisk annual rate of 30 per cent and is expected to grow at a similar rate in the coming years. This fortifies the view that conservative purchasing ideas are giving way to the big in-thing. But it is the usability that raises doubts.
According to a survey by the Credit Card & Management Consultancy (CCMC), 71 per cent of first time credit card applicants in the country have expressed the need for advice on appropriate card selection despite the plethora of cards available in the market.… Read More »
A plastic card is a thin card that contains identification information such as a signature or picture, and authorizes the card holder to charge purchases or services to the card holder‟s account. Today, the information on the card is read by automated teller machines (ATMs), banks, and the internet.
It all started in the 1920s, when individual companies (such as oil companies and hotels) issued these “plastic cards” for purchases made at their businesses. However, these cards could not be used outside of the company.
In the 1950s a “universal card” was introduced by Diners Club, INC. This was when credit cards were made. These cards allowed the card holders to use the cards in various locations and businesses. The way the cards worked was that there were annual fees, and depending on the plan, the card holders were billed either monthly or yearly.
Later on the “bank credit card system” was introduced. Under this system, the bank credits the account of the merchant at each sale and bills to the card holder at the end of the billing period to account for the sale.… Read More »
What is MasterCard?
But what does MasterCard exactly do? It provides credit, debit, and prepaid cards from over 25,000 financial institutions. However, MasterCard is primarily a credit card company and specializes in the innovation of these cards throughout the world. It is a also a payment solutions company and through its three tiered business model as franchisor, processor and advisor, the company has developed a new world for its card holders and merchants. The company provides marketing, approval, and transaction services for a variety of payment products in more than 210 countries and territories.
Regardless of the type of card, all of them act under the “four-party” payment system. Under this system there are obviously four types of people, the card holder, the issuing bank, the merchant, and the acquiring bank. First, the issuing bank provides their customer with a card that they market and issue throughout their locations. Then the now card holder buys a good or service. But before there are even cardholders buying goods or services at this said business, the merchant’s bank (or acquiring bank) must first enroll the merchant in a program that accepts MasterCard (Cirrus or Maestro) cards.… Read More »
The previous (current) financial crisis has severe effects on the business of companies in the credit card business. For a long time, the credit card business has been regarded as one of the most profitable businesses in the financial services industry. MasterCard was one of the most successful companies with its business model differing in one important point from its competitors. Most of the companies in the credit card business issue their cards on their own (including market leader American Express), whereas MasterCard and its main competitor VISA operate through a franchise system which allows its partners (banks) to issue cards of MasterCard. The company is therefore not a direct business partner of cardholders but with the banks which have the right to issue its cards. MasterCard itself states that it is more a franchisor than an issuer of cards. It is therefore not directly exposed to the possibility of defaulting borrowers.
The last 10 to 15 years saw rapid growth rates of revenues of credit card companies.… Read More »
Check, cash, or credit card? How many times have you heard that question and replied “credit card” without even thinking about it? When you do think about it, however, credit cards are a relatively new phenomenon. Yet when it comes time to pay, it seems we’re more likely to use the credit card (and to have several of them) than checks or cash. Indeed, some writers have even suggested that, in the not so distant future, we will all operate with “plastic money” all the time.
MasterCard had its beginnings in 1966, when a group of banks joined together to form the Interbank Card Association (ICA). The ICA was founded by an association of banks rather than by a single dominant bank. Member committees ran the association by establishing rules for authorization, clearing, and settlement as well as marketing, security, and legal matters. In 1968, ICA went “global” by forming an association with Banco Nacional in Mexico and later with eurocard in Europe.… Read More »