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.… Read the rest
Credit Management
Case Study of Mastercard: Going Upscale
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).… Read the rest
Some Facts Regarding Credit Cards
Know the Credit Card Well Before Applying for One
Owning credit cards are quite handy. You need not bring cash but still able to buy anything you want since almost all establishments, including those selling online, accept all types of credit cards. In fact, even if you do not have money yet, you can already make any purchase that may be heavily needed. It therefore provides safety and an answer to emergency needs.
However, people who are making use of credit cards should have discipline and be responsible enough not to spend beyond their means or end up being burdened with tons of debt.… Read the rest
How to Save Money with Credit Cards
Credit cards have been vilified by many as being the surest way of getting into irreversible debt. However, this notion and belief is not always true. It is possible to actually save money with credit cards. This is nevertheless only possible if you know how to go about saving money with credit cards. Here are a few time-tested ways in which you can still use your credit card and manage to put some cash into your pocket as well.
Rewards are a popular offer given by most credit card providers. They offer the card user certain rewards for using the card to purchase or make payments.… Read the rest
Case Study of J.P. Morgan Chase : The Credit Card Segment of the Financial Services Industry
As result of mergers and acquisitions activities Chase Credit Card Services (CCS) became fifth largest credit card issuer in the industry. Being a child of a highly reputable J.P. Morgan Chase bank the CCS has many competencies and competitive advantages in order to compete in already saturated credit card market. Evolvement of internet and technology, globalization, legislation and modernization of financial industry is giving new opportunities for expansion of the credit card business. Despite of intense competition among the banks to acquire and retain profitable customers this market still has a great potential for the right players. CCS reached a critical point when it is equipped with the right instruments and now needs to demonstrate that it is able to leverage them the most optimal way to maximize its profit and prove to its parent investment banking company that it still deserves to be a part of Chase core business.… Read the rest
Types of Credit Cards
There are many types of credit cards which are used by different types of customers and account holders. Mostly business personnel use credit cards which are convenient in their use and which suit businessmen. Similarly students would use student credit cards and a layman will use general purpose cards. There are some most used types of credit cards. For example Interest Credit Cards are mostly used by businessmen and company CEOs because there is a charge of interest if credit card payment has not been annulled in time.
Another important and commonly used type of credit cards is those in which 0 APR (Annual Percentage Rate) is charged as its introductory price similarly cash cards are also used which are just like cash but in the form of plastic card.… Read the rest