Standard Segregation of credit card

Standard Card it is the most basic card ( sans all frills) offered by issuers. Classic Card Brand name for the standard card issued by VISA Gold Card/ Executive Card A credit card that offers a higher line of credit than a standard card, income eligibility is also higher. In additions, issuers provide extra perks or incentives to cardholders. Platinum card A credit card with a higher limit and additional perks than a gold card. Titanium Card A card with an even higher limit than a platinum card.

PROGRESS OF CREDIT CARD BUSINESS

The number of members using credit card and the number of establishment ownering it after joining the scheme have increased vastly over the past few years. Many Indian banks have joined hand with international banks to provide this card facility on a worldwide based or a selected international centers. The number of credit card holders which was 8 lakh (1997), have increased to 25 lakh now. The credit card network is also fast spreading in smaller cities and towns besides by cities and metros.

ELIGIBILITY
A bank who is in the business of credit card grant subject to some rules and guidelines to its eligible customer before a credit card is given to a customer the banker analysis following factors and accordingly fixes a credit limit if found eligible. The customer should have a saving or current account with the bank. His/Her monthly or annual are regularly received and credit to this bank account. His/Her assets and liabilities are known and reported to the bank. He is considered credit worthy up to a limit depending on his income, assets and expenditure and past dealing with the bank. The eligible member is then asked to fill in an application from where in details of account number, name and address, income, wealth, status and evidence statement of income etc. are given. This application form is processed and credit limit is established. This credit limit differs from individual to individual and Bank to bank. The maximum limit depends upon the users income. Some banks have fixed of Rs. 1 lakh, 2 lakh or 5 lakh.

ARRANGEMENTS WITH BANKER

Credit card is the key to opening of the bank accounts. The credit card charges and other payments utilized through credit cards are debited to his account. The banker issues a monthly statement and sent to cardholder. This statement contains details of the charges.

The following are some of the plus features of credit card in India.
Hotel discounts Travel fare discounts Free global calling card Lost baggage insurance Accident insurance Insurance on goods purchased Waiver of payment in case of accidental death Household insurance

Benefits of having a Credit card

A credit card makes it easy to buy something now and pay for it later. Its much safer to use a credit card than to carry around cash. If you lose your credit car, you can ask your credit card company to cancel your card, and no one else can use it. But if you lease cash your money is gone. Credit cards are also convenient. Your can use them to make hotel, are rental and other reservations. You can buy items over the phone or online. You can also use credit cards for emergencies, like unexpected care repairs, when you dont have the cash to cover the expenses. A Credit card gives you a credit history, which helps to get home loans and other credit in a future.

HOW CREDIT CARD BENEFITS THE BANK

Credit card increases the customer base of the bank. Credit card increases credit portfolio of the bank. Credit card enhances the reputation of the bank public. The business establishments, which accept these cards, also give some incentives or commission to bank, by which the bank gains.

HOW CREDIT CARD BENEFITS THE CARD HOLDER

Cardholder can avoid carrying cash and risk of its lose. Cardholder enjoys a credit limit up to which he makes purchases per his need and pay at leisure. Cardholder gets some period of 30 to 45 days the outstanding overdraft. Credit cards serve as a status symbol. Money can be withdrawn at any time over the day and night. It provides free accidentals insurance cover. It provides purchase protection loss of travel, documents, loss of delay in arrival of baggage screeched baggage.

BENEFITS TO BUSINESS ESTABLISHMENT

Business increases to great extent of business houses that accept credit cards. Reputation of the business establishment increases. Customer based increases.

What are the cost of having a credit card?

All credit cards have finance charges foror not paying your balance in fill each month, but you could save a lot of money by shopping around for the credit card that offers you the best terms. Key credit card terms to took at are the annual percentage rate (APR), annual fee, grace period, and late payment charge. Shop for a card with a grace period that gives you enough time to pay your bills on time without charging you interest. Credit card with no grace period start charging you fees as soon as you buy something on your credit card.

Where can I get credit card ?

Your mail is probably full credit card offers from national companies. Most local banks and Community Development Credit Unions (CDCUs) offer credit cards as well. The fees, charges and benefits for credit cards very among different companies. When youre choosing a card, shop around. CDCUs often offer the best rates and lowest fees, since they are not trying to make a profit like credit card companies are. Some large department stroes also offer credit cards that only can be used in their stores. Usually, when you apply for a store credit card, you get a one-time discount on your purchase that day. But these credit cards have limited uses and often carry high finance charges.

How do I get a credit card

If you are least 18 years old, have a regular source of income and good credit rating; you can probably qualify for a credit card. Before you submit a credit card application, order a copy of your credit report to make sure all of the information on it is correct. After you check your credit

report, and fix any wrong information, you can start carefully researching credit card rates, fees and benefits. At the same time, make a list of the features you want in a credit card. Call any credit any credit companies youre interested in for question and other available plans.

REVIEW OF LITERATURE
Investigates the attitudes of Turkish consumers towards credit cards, and the approach of card issuers, by surveying two samples of 200 card-holders and non-holders: the

better educated, middle-aged members of the upper-middle class seem to be the prime target; the most important reasons for using a credit card were ease of payment followed by risk of carrying cash; non-holders do not carry credit cards because they do not know much about it; informal sources of information appear to be more influential than mass media advertising in penetrating the market; proposes that the usage and the administration of credit cards are influenced very much by the infrastructure of the country and, hence, credit card companies have to modify their marketing and administrative procedures rather than following a standardized approach. Credit cards, including store cards and bankcards, serve two distinct functions for consumers: a means of payment and a source of credit (Ausubel 1991; Chakravorti 1997, 2000; Chakravorti and Emmons 2001; Slocum and Matthews 1970; Stavins 2000). Based on the main use of credit cards and the benefits sought, credit card users can be segmented into two groups: convenience users and revolvers (Lee and Hogarth 1999). Convenience users tend to employ credit cards as an easy mode of payment; typically pay their balance in full upon receiving the statement. Revolvers, on the other hand, use the card principally as a mode of financing and chose to pay interest charges on the unpaid balance. According to the consumer behavior literature, consumer usage behavior and the benefits sought from a product or a service are one of the best predictors to explain consumer purchase behavior (PeterandOlson1999). Credit cards also serve as an open-ended, easily available credit source ( Lee and Kwon 2002). When consumers use credit cards as a mode of financing, credit cards compete with bank loans and other forms of financing

(Brito and Hartley 1995). Credit cards allow consumers to borrow within their credit limit without transaction costs, which includes all the time and effort involved with obtaining a loan from a financial institution. This convenience attracts many consumers to pay high interest on outstanding

credit card balances, rather than taking the time to apply for a loan with a lower interest rate. As a result, credit cards account for a substantial and growing share of consumers' debt

Ausubel (1991) suggests that consumers may not even consider the interest rate when making purchases because they do not intend to borrow for an extended period when they make purchases. However, they may change their minds when the bill arrives. Stavins (1996) argues that consumers are somewhat sensitive not only to changes in the interest rate but also to the value of other credit-card enhancements such as frequent-use awards, expedited dispute resolution, extended warranties, and automobile rental insurance. However, she agrees with Ausubel (1991), Calem and Mester (1995) that lowering interest rates may attract less creditworthy consumers, therefore dissuading some credit-card issuers from interest rates. It is very essential to know whether the study has already been conducted before .If so, how to what extent? And because of this, scholar has to go through all the existing literature relation to the study. Credit card are a new concept introduced in India by Nationalized Banks only a few year back, very limited studies have been conducted on the subject. Due to time restriction Scholar could seek advice from only the limited literature, Which is available in the library as well as on the Internet. It is the real world we have 3 ways to pay for goods: cash check And credit cards or debit cards. Cards can be smart card, debit card, ATM cards and any kind of credit cards. They all serve a special Purpose. They allow us to pay without cash. They are also all Online electronic payment media. lowering their

REAL WORLD CASH

We have now so many mediums of exchange to simplify transaction, a standard of value to make it easier to decide on the Worth of goods, and a store of value to facilitate the concept of saving. For the purpose of E-commerce, electronic money must fulfill the first function. When you carry cash, you are making on the spot payment but online payment is not very different from cash transactions in the real world, except for speed of transfer, ease of handling and the safety of not having to carry cash. Outside of the Internet, cash continues to be most widely used of the payment.

Its unique features are:

Convenience: - easy to use and easy to carry. Wide acceptance: - the U.S.Dollar happens to be most widely accepted paper currency in the world because of its stability and durability. Anonymity: - No identification is needed to pay in cash. No audit trial: - Lack of trace ability means you can do what you want with your cash. In countries where trust in currency, banking system, or the govt. is in question, cash is still used to buy all kind of product including homes, automobiles and other big ticket item.

CREDIT CARD BASED ELECTRONIC PAYMENT SYSTEM

To avoid the complexity association with digital cash and electronic cheques, consumers and vendors are also looking at credit card payment on the Internet as one possible time-tasted alternative. There is nothing new in the basic process. If consumer wants to purchase or services, they simply send their credit card detail to their service provider involved and the credit card organization will handle this payment like any other. We can break credit card payment on online network into 3 basic categories: Payment using plain credit card detail: - The easiest method of payment is the exchange of unencrypted credit cards over a public network such as telephone lines or the Internet. The low level of security inherent in the design of the Internet makes this method problematic (any snooper can read credit card number, and programs can be created to scan the internet traffic for credit cards number and send the number to its master). Authentication is also a significant problem. And the vendor is usually responsible to ensure that the person using the credit card is its owner. Without encryption there is no way to do this.

Payment using encrypted credit card details: - It would make sense to encrypted your
credit card details before sending them out, but even then are certain factors to considered. One would be the cost of credit card transaction itself. Such cost would prohibit low value payment by adding costs to the transaction.

Payments using 3rd party verification:- One solution to security and verification
problem is the introduction of the 3rd party. A company that collects and approves payment from one client to another. After a certain period of time, one credit card transaction for the total accumulated amount is completed. Some of the companies that are attempting to provide the infrastructure on-line credit card processing.

MASTER BANKING
A house banking service started by MASTER CARD and check free corp., as online payment processor.

VISA INTERACTIVE
VISA International acquired US order, a screen phone manufacture. VISA Interactive has signed up more than 30 banks including national banks.

Standard Segregation of credit card

Standard Card it is the most basic card ( sans all frills) offered by issuers. Classic Card Brand name for the standard card issued by VISA

Gold Card/ Executive Card A credit card that offers a higher line of credit than a standard card, income eligibility is also higher. In additions, issuers provide extra perks or incentives to cardholders. Platinum card A credit card with a higher limit and additional perks than a gold card. Titanium Card A card with an even higher limit than a platinum card.

PROGRESS OF CREDIT CARD BUSINESS

The number of members using credit card and the number of establishment ownering it after joining the scheme have increased vastly over the past few years. Many Indian banks have joined hand with international banks to provide this card facility on a worldwide based or a selected international centers. The number of credit card holders which was 8 lakh (1997), have increased to 25 lakh now. The credit card network is also fast spreading in smaller cities and towns besides by cities and metros.

ELIGIBILITY
A bank who is in the business of credit card grant subject to some rules and guidelines to its eligible customer before a credit card is given to a customer the banker analysis following factors and accordingly fixes a credit limit if found eligible. The customer should have a saving or current account with the bank. His/Her monthly or annual are regularly received and credit to this bank account. His/Her assets and liabilities are known and reported to the bank. He is considered credit worthy up to a limit depending on his income, assets and expenditure and past dealing with the bank. The eligible member is then asked to fill in an application from where in details of account number, name and address, income, wealth, status and evidence statement of income etc. are given. This application form is processed and credit limit is established. This credit limit differs from individual to individual and Bank to bank. The maximum limit depends upon the users income. Some banks have fixed of Rs. 1 lakh, 2 lakh or 5 lakh.

ARRANGEMENTS WITH BANKER

Credit card is the key to opening of the bank accounts. The credit card charges and other payments utilized through credit cards are debited to his account. The banker issues a monthly statement and sent to cardholder. This statement contains details of the charges.

The following are some of the plus features of credit card in India.

Hotel discounts Travel fare discounts Free global calling card Lost baggage insurance Accident insurance Insurance on goods purchased Waiver of payment in case of accidental death Household insurance

Benefits of having a Credit card

A credit card makes it easy to buy something now and pay for it later. Its much safer to use a credit card than to carry around cash. If you lose your credit car, you can ask your credit card company to cancel your card, and no one else can use it. But if you lease cash your money is gone. Credit cards are also convenient. Your can use them to make hotel, are rental and other reservations. You can buy items over the phone or online. You can also use credit cards for emergencies, like unexpected care repairs, when you dont have the cash to cover the expenses. A Credit card gives you a credit history, which helps to get home loans and other credit in a future.

HOW CREDIT CARD BENEFITS THE BANK

Credit card increases the customer base of the bank. Credit card increases credit portfolio of the bank. Credit card enhances the reputation of the bank public. The business establishments, which accept these cards, also give some incentives or commission to bank, by which the bank gains.

HOW CREDIT CARD BENEFITS THE CARD HOLDER

Cardholder can avoid carrying cash and risk of its lose. Cardholder enjoys a credit limit up to which he makes purchases per his need and pay at leisure. Cardholder gets some period of 30 to 45 days the outstanding overdraft. Credit cards serve as a status symbol. Money can be withdrawn at any time over the day and night. It provides free accidentals insurance cover.

It provides purchase protection loss of travel, documents, loss of delay in arrival of baggage screeched baggage.

BENEFITS TO BUSINESS ESTABLISHMENT

Business increases to great extent of business houses that accept credit cards. Reputation of the business establishment increases. Customer based increases.

What are the cost of having a credit card?

All credit cards have finance charges foror not paying your balance in fill each month, but you could save a lot of money by shopping around for the credit card that offers you the best terms. Key credit card terms to took at are the annual percentage rate (APR), annual fee, grace period, and late payment charge. Shop for a card with a grace period that gives you enough time to pay your bills on time without charging you interest. Credit card with no grace period start charging you fees as soon as you buy something on your credit card.

Where can I get credit card ?

Your mail is probably full credit card offers from national companies. Most local banks and Community Development Credit Unions (CDCUs) offer credit cards as well. The fees, charges and benefits for credit cards very among different companies. When youre choosing a card, shop around. CDCUs often offer the best rates and lowest fees, since they are not trying to make a profit like credit card companies are. Some large department stroes also offer credit cards that only can be used in their stores. Usually, when you apply for a store credit card, you get a one-time discount on your purchase that day. But these credit cards have limited uses and often carry high finance charges.

How do I get a credit card

If you are least 18 years old, have a regular source of income and good credit rating; you can probably qualify for a credit card. Before you submit a credit card application, order a copy of your credit report to make sure all of the information on it is correct. After you check your credit report, and fix any wrong information, you can start carefully researching credit card rates, fees and benefits. At the same time, make a list of the features you want in a credit card. Call any credit any credit companies youre interested in for question and other available plans.

REVIEW OF LITERATURE
Investigates the attitudes of Turkish consumers towards credit cards, and the approach of card issuers, by surveying two samples of 200 card-holders and non-holders: the better educated, middle-aged members of the upper-middle class seem to be the prime target; the most important reasons for using a credit card were ease of payment followed by risk of carrying cash; non-holders do not carry credit cards because they do not know much about it; informal sources of information appear to be more influential than mass media

advertising in penetrating the market; proposes that the usage and the administration of credit cards are influenced very much by the infrastructure of the country and, hence, credit card companies have to modify their marketing and administrative procedures rather than following a standardized approach. Credit cards, including store cards and bankcards, serve two distinct functions for consumers: a means of payment and a source of credit (Ausubel 1991; Chakravorti 1997, 2000; Chakravorti and Emmons 2001; Slocum and Matthews 1970; Stavins 2000). Based on the main use of credit cards and the benefits sought, credit card users can be segmented into two groups: convenience users and revolvers (Lee and Hogarth 1999). Convenience users tend to employ credit cards as an easy mode of payment; typically pay their balance in full upon receiving the statement. Revolvers, on the other hand, use the card principally as a mode of financing and chose to pay interest charges on the unpaid balance. According to the consumer behavior literature, consumer usage behavior and the benefits sought from a product or a service are one of the best predictors to explain consumer purchase behavior (PeterandOlson1999). Credit cards also serve as an open-ended, easily available credit source ( Lee and Kwon 2002). When consumers use credit cards as a mode of financing, credit cards compete with bank loans and other forms of financing

(Brito and Hartley 1995). Credit cards allow consumers to borrow within their credit limit without transaction costs, which includes all the time and effort involved with obtaining a loan from a financial institution. This convenience attracts many consumers to pay high interest on outstanding

credit card balances, rather than taking the time to apply for a loan with a lower interest rate. As a result, credit cards account for a substantial and growing share of consumers' debt Ausubel (1991) suggests that consumers may not even consider the interest rate when making purchases because they do not intend to borrow for an extended period when they make purchases. However, they may change their minds when the bill arrives. Stavins (1996)

argues that consumers are somewhat sensitive not only to changes in the interest rate but also to the value of other credit-card enhancements such as frequent-use awards, expedited dispute resolution, extended warranties, and automobile rental insurance. However, she agrees with Ausubel (1991), Calem and Mester (1995) that lowering interest rates may attract less creditworthy consumers, therefore dissuading some credit-card issuers from interest rates. It is very essential to know whether the study has already been conducted before .If so, how to what extent? And because of this, scholar has to go through all the existing literature relation to the study. Credit card are a new concept introduced in India by Nationalized Banks only a few year back, very limited studies have been conducted on the subject. Due to time restriction Scholar could seek advice from only the limited literature, Which is available in the library as well as on the Internet. It is the real world we have 3 ways to pay for goods: cash check And credit cards or debit cards. Cards can be smart card, debit card, ATM cards and any kind of credit cards. They all serve a special Purpose. They allow us to pay without cash. They are also all Online electronic payment media. lowering their

REAL WORLD CASH

We have now so many mediums of exchange to simplify transaction, a standard of value to make it easier to decide on the Worth of goods, and a store of value to facilitate the concept of saving. For the purpose of E-commerce, electronic money must fulfill the first function. When you carry cash, you are making on the spot payment but online payment is not very different from cash transactions in the real world, except for speed of transfer, ease of handling and the safety of not having to carry cash. Outside of the Internet, cash continues to be most widely used of the payment.

Its unique features are:

Convenience: - easy to use and easy to carry. Wide acceptance: - the U.S.Dollar happens to be most widely accepted paper currency in the world because of its stability and durability. Anonymity: - No identification is needed to pay in cash. No audit trial: - Lack of trace ability means you can do what you want with your cash. In countries where trust in currency, banking system, or the govt. is in question, cash is still used to buy all kind of product including homes, automobiles and other big ticket item.

CREDIT CARD BASED ELECTRONIC PAYMENT SYSTEM

To avoid the complexity association with digital cash and electronic cheques, consumers and vendors are also looking at credit card payment on the Internet as one possible time-tasted alternative. There is nothing new in the basic process. If consumer wants to purchase or services, they simply send their credit card detail to their service provider involved and the credit card organization will handle this payment like any other. We can break credit card payment on online network into 3 basic categories: Payment using plain credit card detail: - The easiest method of payment is the exchange of unencrypted credit cards over a public network such as telephone lines or the Internet. The low level of security inherent in the design of the Internet makes this method problematic (any snooper can read credit card number, and programs can be created to scan the internet traffic for credit cards number and send the number to its master). Authentication is also a significant problem. And the vendor is usually responsible to ensure that the person using the credit card is its owner. Without encryption there is no way to do this.

Payment using encrypted credit card details: - It would make sense to encrypted your
credit card details before sending them out, but even then are certain factors to considered. One would be the cost of credit card transaction itself. Such cost would prohibit low value payment by adding costs to the transaction.

Payments using 3rd party verification:- One solution to security and verification
problem is the introduction of the 3rd party. A company that collects and approves payment from one client to another. After a certain period of time, one credit card transaction for the total accumulated amount is completed. Some of the companies that are attempting to provide the infrastructure on-line credit card processing.

MASTER BANKING
A house banking service started by MASTER CARD and check free corp., as online payment processor.

VISA INTERACTIVE
VISA International acquired US order, a screen phone manufacture. VISA Interactive has signed up more than 30 banks including national banks.

Standard Segregation of credit card

Standard Card it is the most basic card ( sans all frills) offered by issuers. Classic Card Brand name for the standard card issued by VISA Gold Card/ Executive Card A credit card that offers a higher line of credit than a standard card, income eligibility is also higher. In additions, issuers provide extra perks or incentives to cardholders. Platinum card A credit card with a higher limit and additional perks than a gold card. Titanium Card A card with an even higher limit than a platinum card.

PROGRESS OF CREDIT CARD BUSINESS

The number of members using credit card and the number of establishment ownering it after joining the scheme have increased vastly over the past few years. Many Indian banks have joined hand with international banks to provide this card facility on a worldwide based or a selected international centers. The number of credit card holders which was 8 lakh (1997), have increased to 25 lakh now. The credit card network is also fast spreading in smaller cities and towns besides by cities and metros.

ELIGIBILITY
A bank who is in the business of credit card grant subject to some rules and guidelines to its eligible customer before a credit card is given to a customer the banker analysis following factors and accordingly fixes a credit limit if found eligible. The customer should have a saving or current account with the bank. His/Her monthly or annual are regularly received and credit to this bank account. His/Her assets and liabilities are known and reported to the bank. He is considered credit worthy up to a limit depending on his income, assets and expenditure and past dealing with the bank. The eligible member is then asked to fill in an application from where in details of account number, name and address, income, wealth, status and evidence statement of income etc. are given. This application form is processed and credit limit is established. This credit limit differs from individual to individual and Bank to bank. The maximum limit depends upon the users income. Some banks have fixed of Rs. 1 lakh, 2 lakh or 5 lakh.

ARRANGEMENTS WITH BANKER

Credit card is the key to opening of the bank accounts. The credit card charges and other payments utilized through credit cards are debited to his account. The banker issues a monthly statement and sent to cardholder. This statement contains details of the charges.

The following are some of the plus features of credit card in India.
Hotel discounts Travel fare discounts Free global calling card Lost baggage insurance Accident insurance Insurance on goods purchased Waiver of payment in case of accidental death Household insurance

Benefits of having a Credit card

A credit card makes it easy to buy something now and pay for it later. Its much safer to use a credit card than to carry around cash. If you lose your credit car, you can ask your credit card company to cancel your card, and no one else can use it. But if you lease cash your money is gone. Credit cards are also convenient. Your can use them to make hotel, are rental and other reservations. You can buy items over the phone or online. You can also use credit cards for emergencies, like unexpected care repairs, when you dont have the cash to cover the expenses. A Credit card gives you a credit history, which helps to get home loans and other credit in a future.

HOW CREDIT CARD BENEFITS THE BANK

Credit card increases the customer base of the bank. Credit card increases credit portfolio of the bank. Credit card enhances the reputation of the bank public. The business establishments, which accept these cards, also give some incentives or commission to bank, by which the bank gains.

HOW CREDIT CARD BENEFITS THE CARD HOLDER

Cardholder can avoid carrying cash and risk of its lose. Cardholder enjoys a credit limit up to which he makes purchases per his need and pay at leisure. Cardholder gets some period of 30 to 45 days the outstanding overdraft. Credit cards serve as a status symbol. Money can be withdrawn at any time over the day and night. It provides free accidentals insurance cover. It provides purchase protection loss of travel, documents, loss of delay in arrival of baggage screeched baggage.

BENEFITS TO BUSINESS ESTABLISHMENT

Business increases to great extent of business houses that accept credit cards. Reputation of the business establishment increases.

Customer based increases.

What are the cost of having a credit card?

All credit cards have finance charges foror not paying your balance in fill each month, but you could save a lot of money by shopping around for the credit card that offers you the best terms. Key credit card terms to took at are the annual percentage rate (APR), annual fee, grace period, and late payment charge. Shop for a card with a grace period that gives you enough time to pay your bills on time without charging you interest. Credit card with no grace period start charging you fees as soon as you buy something on your credit card.

Where can I get credit card ?

Your mail is probably full credit card offers from national companies. Most local banks and Community Development Credit Unions (CDCUs) offer credit cards as well. The fees, charges and benefits for credit cards very among different companies. When youre choosing a card, shop around. CDCUs often offer the best rates and lowest fees, since they are not trying to make a profit like credit card companies are. Some large department stroes also offer credit cards that only can be used in their stores. Usually, when you apply for a store credit card, you get a one-time discount on your purchase that day. But these credit cards have limited uses and often carry high finance charges.

How do I get a credit card

If you are least 18 years old, have a regular source of income and good credit rating; you can probably qualify for a credit card. Before you submit a credit card application, order a copy of your credit report to make sure all of the information on it is correct. After you check your credit report, and fix any wrong information, you can start carefully researching credit card rates, fees and benefits. At the same time, make a list of the features you want in a credit card. Call any credit any credit companies youre interested in for question and other available plans.

REVIEW OF LITERATURE
Investigates the attitudes of Turkish consumers towards credit cards, and the approach of card issuers, by surveying two samples of 200 card-holders and non-holders: the better educated, middle-aged members of the upper-middle class seem to be the prime target; the most important reasons for using a credit card were ease of payment followed by risk of carrying cash; non-holders do not carry credit cards because they do not know much about it; informal sources of information appear to be more influential than mass media advertising in penetrating the market; proposes that the usage and the administration of credit cards are influenced very much by the infrastructure of the country and, hence, credit card companies have to modify their marketing and administrative procedures rather than following a standardized approach.

Credit cards, including store cards and bankcards, serve two distinct functions for consumers: a means of payment and a source of credit (Ausubel 1991; Chakravorti 1997, 2000; Chakravorti and Emmons 2001; Slocum and Matthews 1970; Stavins 2000). Based on the main use of credit cards and the benefits sought, credit card users can be segmented into two groups: convenience users and revolvers (Lee and Hogarth 1999). Convenience users tend to employ credit cards as an easy mode of payment; typically pay their balance in full upon receiving the statement. Revolvers, on the other hand, use the card principally as a mode of financing and chose to pay interest charges on the unpaid balance. According to the consumer behavior literature, consumer usage behavior and the benefits sought from a product or a service are one of the best predictors to explain consumer purchase behavior (PeterandOlson1999). Credit cards also serve as an open-ended, easily available credit source ( Lee and Kwon 2002). When consumers use credit cards as a mode of financing, credit cards compete with bank loans and other forms of financing

(Brito and Hartley 1995). Credit cards allow consumers to borrow within their credit limit without transaction costs, which includes all the time and effort involved with obtaining a loan from a financial institution. This convenience attracts many consumers to pay high interest on outstanding

credit card balances, rather than taking the time to apply for a loan with a lower interest rate. As a result, credit cards account for a substantial and growing share of consumers' debt Ausubel (1991) suggests that consumers may not even consider the interest rate when making purchases because they do not intend to borrow for an extended period when they make purchases. However, they may change their minds when the bill arrives. Stavins (1996) argues that consumers are somewhat sensitive not only to changes in the interest rate but also to the value of other credit-card enhancements such as frequent-use awards, expedited dispute resolution, extended warranties, and automobile rental insurance. However, she agrees with Ausubel (1991), Calem and Mester (1995) that lowering interest rates may attract less

creditworthy consumers, therefore dissuading some credit-card issuers from interest rates.

lowering their

It is very essential to know whether the study has already been conducted before .If so, how to what extent? And because of this, scholar has to go through all the existing literature relation to the study. Credit card are a new concept introduced in India by Nationalized Banks only a few year back, very limited studies have been conducted on the subject. Due to time restriction Scholar could seek advice from only the limited literature, Which is available in the library as well as on the Internet. It is the real world we have 3 ways to pay for goods: cash check And credit cards or debit cards. Cards can be smart card, debit card, ATM cards and any kind of credit cards. They all serve a special Purpose. They allow us to pay without cash. They are also all Online electronic payment media.

REAL WORLD CASH

We have now so many mediums of exchange to simplify transaction, a standard of value to make it easier to decide on the Worth of goods, and a store of value to facilitate the concept of saving. For the purpose of E-commerce, electronic money must fulfill the first function. When you carry cash, you are making on the spot payment but online payment is not very different from cash transactions in the real world, except for speed of transfer, ease of handling and the safety of not having to carry cash. Outside of the Internet, cash continues to be most widely used of the payment.

Its unique features are:

Convenience: - easy to use and easy to carry. Wide acceptance: - the U.S.Dollar happens to be most widely accepted paper currency in the world because of its stability and durability. Anonymity: - No identification is needed to pay in cash. No audit trial: - Lack of trace ability means you can do what you want with your cash. In countries where trust in currency, banking system, or the govt. is in question, cash is still used to buy all kind of product including homes, automobiles and other big ticket item.

CREDIT CARD BASED ELECTRONIC PAYMENT SYSTEM

To avoid the complexity association with digital cash and electronic cheques, consumers and vendors are also looking at credit card payment on the Internet as one possible time-tasted alternative. There is nothing new in the basic process. If consumer wants to purchase or services, they simply send their credit card detail to their service provider involved and the credit card organization will handle this payment like any other. We can break credit card payment on online network into 3 basic categories:

Payment using plain credit card detail: - The easiest method of payment is the
exchange of unencrypted credit cards over a public network such as telephone lines or the Internet. The low level of security inherent in the design of the Internet makes this method problematic (any snooper can read credit card number, and programs can be created to scan the internet traffic for credit cards number and send the number to its master). Authentication is also a significant problem. And the vendor is usually responsible to ensure that the person using the credit card is its owner. Without encryption there is no way to do this.

Payment using encrypted credit card details: - It would make sense to encrypted your
credit card details before sending them out, but even then are certain factors to considered. One would be the cost of credit card transaction itself. Such cost would prohibit low value payment by adding costs to the transaction.

Payments using 3rd party verification:- One solution to security and verification
problem is the introduction of the 3rd party. A company that collects and approves payment from one client to another. After a certain period of time, one credit card transaction for the total accumulated amount is completed. Some of the companies that are attempting to provide the infrastructure on-line credit card processing.

MASTER BANKING
A house banking service started by MASTER CARD and check free corp., as online payment processor.

VISA INTERACTIVE
VISA International acquired US order, a screen phone manufacture. VISA Interactive has signed up more than 30 banks including national banks.

Standard Segregation of credit card

Standard Card it is the most basic card ( sans all frills) offered by issuers. Classic Card Brand name for the standard card issued by VISA Gold Card/ Executive Card A credit card that offers a higher line of credit than a standard card, income eligibility is also higher. In additions, issuers provide extra perks or incentives to cardholders. Platinum card A credit card with a higher limit and additional perks than a gold card. Titanium Card A card with an even higher limit than a platinum card.

PROGRESS OF CREDIT CARD BUSINESS

The number of members using credit card and the number of establishment ownering it after joining the scheme have increased vastly over the past few years. Many Indian banks have joined hand with international banks to provide this card facility on a worldwide based or a selected international centers. The number of credit card holders which was 8 lakh (1997), have increased to 25 lakh now. The credit card network is also fast spreading in smaller cities and towns besides by cities and metros.

ELIGIBILITY
A bank who is in the business of credit card grant subject to some rules and guidelines to its eligible customer before a credit card is given to a customer the banker analysis following factors and accordingly fixes a credit limit if found eligible. The customer should have a saving or current account with the bank. His/Her monthly or annual are regularly received and credit to this bank account. His/Her assets and liabilities are known and reported to the bank. He is considered credit worthy up to a limit depending on his income, assets and expenditure and past dealing with the bank. The eligible member is then asked to fill in an application from where in details of account number, name and address, income, wealth, status and evidence statement of income etc. are given. This application form is processed and credit limit is established. This credit limit differs from individual to individual and Bank to bank. The maximum limit depends upon the users income. Some banks have fixed of Rs. 1 lakh, 2 lakh or 5 lakh.

ARRANGEMENTS WITH BANKER

Credit card is the key to opening of the bank accounts. The credit card charges and other payments utilized through credit cards are debited to his account. The banker issues a monthly statement and sent to cardholder. This statement contains details of the charges.

The following are some of the plus features of credit card in India.
Hotel discounts Travel fare discounts Free global calling card Lost baggage insurance Accident insurance Insurance on goods purchased Waiver of payment in case of accidental death Household insurance

Benefits of having a Credit card

A credit card makes it easy to buy something now and pay for it later. Its much safer to use a credit card than to carry around cash. If you lose your credit car, you can ask your credit card company to cancel your card, and no one else can use it. But if you lease cash your money is gone.

Credit cards are also convenient. Your can use them to make hotel, are rental and other reservations. You can buy items over the phone or online. You can also use credit cards for emergencies, like unexpected care repairs, when you dont have the cash to cover the expenses. A Credit card gives you a credit history, which helps to get home loans and other credit in a future.

HOW CREDIT CARD BENEFITS THE BANK

Credit card increases the customer base of the bank. Credit card increases credit portfolio of the bank. Credit card enhances the reputation of the bank public. The business establishments, which accept these cards, also give some incentives or commission to bank, by which the bank gains.

HOW CREDIT CARD BENEFITS THE CARD HOLDER

Cardholder can avoid carrying cash and risk of its lose. Cardholder enjoys a credit limit up to which he makes purchases per his need and pay at leisure. Cardholder gets some period of 30 to 45 days the outstanding overdraft. Credit cards serve as a status symbol. Money can be withdrawn at any time over the day and night. It provides free accidentals insurance cover. It provides purchase protection loss of travel, documents, loss of delay in arrival of baggage screeched baggage.

BENEFITS TO BUSINESS ESTABLISHMENT

Business increases to great extent of business houses that accept credit cards. Reputation of the business establishment increases. Customer based increases.

What are the cost of having a credit card?

All credit cards have finance charges foror not paying your balance in fill each month, but you could save a lot of money by shopping around for the credit card that offers you the best terms.

Key credit card terms to took at are the annual percentage rate (APR), annual fee, grace period, and late payment charge. Shop for a card with a grace period that gives you enough time to pay your bills on time without charging you interest. Credit card with no grace period start charging you fees as soon as you buy something on your credit card.

Where can I get credit card ?

Your mail is probably full credit card offers from national companies. Most local banks and Community Development Credit Unions (CDCUs) offer credit cards as well. The fees, charges and benefits for credit cards very among different companies. When youre choosing a card, shop around. CDCUs often offer the best rates and lowest fees, since they are not trying to make a profit like credit card companies are. Some large department stroes also offer credit cards that only can be used in their stores. Usually, when you apply for a store credit card, you get a one-time discount on your purchase that day. But these credit cards have limited uses and often carry high finance charges.

How do I get a credit card

If you are least 18 years old, have a regular source of income and good credit rating; you can probably qualify for a credit card. Before you submit a credit card application, order a copy of your credit report to make sure all of the information on it is correct. After you check your credit report, and fix any wrong information, you can start carefully researching credit card rates, fees and benefits. At the same time, make a list of the features you want in a credit card. Call any credit any credit companies youre interested in for question and other available plans.

REVIEW OF LITERATURE
Investigates the attitudes of Turkish consumers towards credit cards, and the approach of card issuers, by surveying two samples of 200 card-holders and non-holders: the better educated, middle-aged members of the upper-middle class seem to be the prime target; the most important reasons for using a credit card were ease of payment followed by risk of carrying cash; non-holders do not carry credit cards because they do not know much about it; informal sources of information appear to be more influential than mass media advertising in penetrating the market; proposes that the usage and the administration of credit cards are influenced very much by the infrastructure of the country and, hence, credit card companies have to modify their marketing and administrative procedures rather than following a standardized approach. Credit cards, including store cards and bankcards, serve two distinct functions for consumers: a means of payment and a source of credit (Ausubel 1991; Chakravorti 1997, 2000; Chakravorti and Emmons 2001; Slocum and Matthews 1970; Stavins 2000). Based on the main use of credit cards and the benefits sought, credit card users can be segmented into two groups: convenience users and revolvers (Lee and Hogarth 1999).

Convenience users tend to employ credit cards as an easy mode of payment; typically pay their balance in full upon receiving the statement. Revolvers, on the other hand, use the card principally as a mode of financing and chose to pay interest charges on the unpaid balance. According to the consumer behavior literature, consumer usage behavior and the benefits sought from a product or a service are one of the best predictors to explain consumer purchase behavior (PeterandOlson1999). Credit cards also serve as an open-ended, easily available credit source ( Lee and Kwon 2002). When consumers use credit cards as a mode of financing, credit cards compete with bank loans and other forms of financing

(Brito and Hartley 1995). Credit cards allow consumers to borrow within their credit limit without transaction costs, which includes all the time and effort involved with obtaining a loan from a financial institution. This convenience attracts many consumers to pay high interest on outstanding

credit card balances, rather than taking the time to apply for a loan with a lower interest rate. As a result, credit cards account for a substantial and growing share of consumers' debt Ausubel (1991) suggests that consumers may not even consider the interest rate when making purchases because they do not intend to borrow for an extended period when they make purchases. However, they may change their minds when the bill arrives. Stavins (1996) argues that consumers are somewhat sensitive not only to changes in the interest rate but also to the value of other credit-card enhancements such as frequent-use awards, expedited dispute resolution, extended warranties, and automobile rental insurance. However, she agrees with Ausubel (1991), Calem and Mester (1995) that lowering interest rates may attract less creditworthy consumers, therefore dissuading some credit-card issuers from interest rates. It is very essential to know whether the study has already been conducted before .If so, how to what extent? And because of this, scholar has to go through all the existing literature relation to the study. Credit card are a new concept introduced in India by Nationalized Banks only a few year back, very limited studies have been conducted on the subject. Due to time restriction lowering their

Scholar could seek advice from only the limited literature, Which is available in the library as well as on the Internet. It is the real world we have 3 ways to pay for goods: cash check And credit cards or debit cards. Cards can be smart card, debit card, ATM cards and any kind of credit cards. They all serve a special Purpose. They allow us to pay without cash. They are also all Online electronic payment media.

REAL WORLD CASH

We have now so many mediums of exchange to simplify transaction, a standard of value to make it easier to decide on the Worth of goods, and a store of value to facilitate the concept of saving. For the purpose of E-commerce, electronic money must fulfill the first function. When you carry cash, you are making on the spot payment but online payment is not very different from cash transactions in the real world, except for speed of transfer, ease of handling and the safety of not having to carry cash. Outside of the Internet, cash continues to be most widely used of the payment.

Its unique features are:

Convenience: - easy to use and easy to carry. Wide acceptance: - the U.S.Dollar happens to be most widely accepted paper currency in the world because of its stability and durability. Anonymity: - No identification is needed to pay in cash. No audit trial: - Lack of trace ability means you can do what you want with your cash. In countries where trust in currency, banking system, or the govt. is in question, cash is still used to buy all kind of product including homes, automobiles and other big ticket item.

CREDIT CARD BASED ELECTRONIC PAYMENT SYSTEM

To avoid the complexity association with digital cash and electronic cheques, consumers and vendors are also looking at credit card payment on the Internet as one possible time-tasted alternative. There is nothing new in the basic process. If consumer wants to purchase or services, they simply send their credit card detail to their service provider involved and the credit card organization will handle this payment like any other. We can break credit card payment on online network into 3 basic categories: Payment using plain credit card detail: - The easiest method of payment is the exchange of unencrypted credit cards over a public network such as telephone lines or the Internet. The low level of security inherent in the design of the Internet makes this method problematic (any snooper can read credit card number, and programs can be created to scan the internet traffic for credit cards number and send the number to its master). Authentication is also a significant problem. And the vendor is usually responsible to ensure that the person using the credit card is its owner. Without encryption there is no way to do this.

Payment using encrypted credit card details: - It would make sense to encrypted your
credit card details before sending them out, but even then are certain factors to considered. One would be the cost of credit card transaction itself. Such cost would prohibit low value payment by adding costs to the transaction.

Payments using 3rd party verification:- One solution to security and verification
problem is the introduction of the 3rd party. A company that collects and approves payment from one client to another. After a certain period of time, one credit card transaction for the total accumulated amount is completed. Some of the companies that are attempting to provide the infrastructure on-line credit card processing.

MASTER BANKING
A house banking service started by MASTER CARD and check free corp., as online payment processor.

VISA INTERACTIVE
VISA International acquired US order, a screen phone manufacture. VISA Interactive has signed up more than 30 banks including national banks.

Standard Segregation of credit card

Standard Card it is the most basic card ( sans all frills) offered by issuers. Classic Card Brand name for the standard card issued by VISA Gold Card/ Executive Card A credit card that offers a higher line of credit than a standard card, income eligibility is also higher. In additions, issuers provide extra perks or incentives to cardholders. Platinum card A credit card with a higher limit and additional perks than a gold card. Titanium Card A card with an even higher limit than a platinum card.

PROGRESS OF CREDIT CARD BUSINESS

The number of members using credit card and the number of establishment ownering it after joining the scheme have increased vastly over the past few years. Many Indian banks have joined hand with international banks to provide this card facility on a worldwide based or a selected international centers. The number of credit card holders which was 8 lakh (1997), have increased to 25 lakh now. The credit card network is also fast spreading in smaller cities and towns besides by cities and metros.

ELIGIBILITY
A bank who is in the business of credit card grant subject to some rules and guidelines to its eligible customer before a credit card is given to a customer the banker analysis following factors and accordingly fixes a credit limit if found eligible. The customer should have a saving or current account with the bank.

His/Her monthly or annual are regularly received and credit to this bank account. His/Her assets and liabilities are known and reported to the bank. He is considered credit worthy up to a limit depending on his income, assets and expenditure and past dealing with the bank. The eligible member is then asked to fill in an application from where in details of account number, name and address, income, wealth, status and evidence statement of income etc. are given. This application form is processed and credit limit is established. This credit limit differs from individual to individual and Bank to bank. The maximum limit depends upon the users income. Some banks have fixed of Rs. 1 lakh, 2 lakh or 5 lakh.

ARRANGEMENTS WITH BANKER

Credit card is the key to opening of the bank accounts. The credit card charges and other payments utilized through credit cards are debited to his account. The banker issues a monthly statement and sent to cardholder. This statement contains details of the charges.

The following are some of the plus features of credit card in India.
Hotel discounts Travel fare discounts Free global calling card Lost baggage insurance Accident insurance Insurance on goods purchased Waiver of payment in case of accidental death Household insurance

Benefits of having a Credit card

A credit card makes it easy to buy something now and pay for it later. Its much safer to use a credit card than to carry around cash. If you lose your credit car, you can ask your credit card company to cancel your card, and no one else can use it. But if you lease cash your money is gone. Credit cards are also convenient. Your can use them to make hotel, are rental and other reservations. You can buy items over the phone or online. You can also use credit cards for emergencies, like unexpected care repairs, when you dont have the cash to cover the expenses. A Credit card gives you a credit history, which helps to get home loans and other credit in a future.

HOW CREDIT CARD BENEFITS THE BANK

Credit card increases the customer base of the bank. Credit card increases credit portfolio of the bank. Credit card enhances the reputation of the bank public. The business establishments, which accept these cards, also give some incentives or commission to bank, by which the bank gains.

HOW CREDIT CARD BENEFITS THE CARD HOLDER

Cardholder can avoid carrying cash and risk of its lose. Cardholder enjoys a credit limit up to which he makes purchases per his need and pay at leisure. Cardholder gets some period of 30 to 45 days the outstanding overdraft. Credit cards serve as a status symbol. Money can be withdrawn at any time over the day and night. It provides free accidentals insurance cover. It provides purchase protection loss of travel, documents, loss of delay in arrival of baggage screeched baggage.

BENEFITS TO BUSINESS ESTABLISHMENT

Business increases to great extent of business houses that accept credit cards. Reputation of the business establishment increases. Customer based increases.

What are the cost of having a credit card?

All credit cards have finance charges foror not paying your balance in fill each month, but you could save a lot of money by shopping around for the credit card that offers you the best terms. Key credit card terms to took at are the annual percentage rate (APR), annual fee, grace period, and late payment charge. Shop for a card with a grace period that gives you enough time to pay your bills on time without charging you interest. Credit card with no grace period start charging you fees as soon as you buy something on your credit card.

Where can I get credit card ?

Your mail is probably full credit card offers from national companies. Most local banks and Community Development Credit Unions (CDCUs) offer credit cards as well. The fees, charges and benefits for credit cards very among different companies. When youre choosing a card, shop around. CDCUs often offer the best rates and lowest fees, since they are not trying to make a profit like credit card companies are. Some large department stroes also offer credit cards that only can be used in their stores. Usually, when you apply for a store credit card, you get a one-time discount on your purchase that day. But these credit cards have limited uses and often carry high finance charges.

How do I get a credit card

If you are least 18 years old, have a regular source of income and good credit rating; you can probably qualify for a credit card. Before you submit a credit card application, order a copy of your credit report to make sure all of the information on it is correct. After you check your credit report, and fix any wrong information, you can start carefully researching credit card rates, fees and benefits. At the same time, make a list of the features you want in a credit card. Call any credit any credit companies youre interested in for question and other available plans.

REVIEW OF LITERATURE
Investigates the attitudes of Turkish consumers towards credit cards, and the approach of card issuers, by surveying two samples of 200 card-holders and non-holders: the better educated, middle-aged members of the upper-middle class seem to be the prime target; the most important reasons for using a credit card were ease of payment followed by risk of carrying cash; non-holders do not carry credit cards because they do not know much about it; informal sources of information appear to be more influential than mass media advertising in penetrating the market; proposes that the usage and the administration of credit cards are influenced very much by the infrastructure of the country and, hence, credit card companies have to modify their marketing and administrative procedures rather than following a standardized approach. Credit cards, including store cards and bankcards, serve two distinct functions for consumers: a means of payment and a source of credit (Ausubel 1991; Chakravorti 1997, 2000; Chakravorti and Emmons 2001; Slocum and Matthews 1970; Stavins 2000). Based on the main use of credit cards and the benefits sought, credit card users can be segmented into two groups: convenience users and revolvers (Lee and Hogarth 1999). Convenience users tend to employ credit cards as an easy mode of payment; typically pay their balance in full upon receiving the statement. Revolvers, on the other hand, use the card principally as a mode of financing and chose to pay interest charges on the unpaid balance. According to the consumer behavior literature, consumer usage behavior and the benefits

sought from a product or a service are one of the best predictors to explain consumer purchase behavior (PeterandOlson1999). Credit cards also serve as an open-ended, easily available credit source ( Lee and Kwon 2002). When consumers use credit cards as a mode of financing, credit cards compete with bank loans and other forms of financing

(Brito and Hartley 1995). Credit cards allow consumers to borrow within their credit limit without transaction costs, which includes all the time and effort involved with obtaining a loan from a financial institution. This convenience attracts many consumers to pay high interest on outstanding

credit card balances, rather than taking the time to apply for a loan with a lower interest rate. As a result, credit cards account for a substantial and growing share of consumers' debt Ausubel (1991) suggests that consumers may not even consider the interest rate when making purchases because they do not intend to borrow for an extended period when they make purchases. However, they may change their minds when the bill arrives. Stavins (1996) argues that consumers are somewhat sensitive not only to changes in the interest rate but also to the value of other credit-card enhancements such as frequent-use awards, expedited dispute resolution, extended warranties, and automobile rental insurance. However, she agrees with Ausubel (1991), Calem and Mester (1995) that lowering interest rates may attract less creditworthy consumers, therefore dissuading some credit-card issuers from interest rates. It is very essential to know whether the study has already been conducted before .If so, how to what extent? And because of this, scholar has to go through all the existing literature relation to the study. Credit card are a new concept introduced in India by Nationalized Banks only a few year back, very limited studies have been conducted on the subject. Due to time restriction Scholar could seek advice from only the limited literature, Which is available in the library as well as on the Internet. It is the real world we have 3 ways to pay for goods: cash check And credit cards or debit cards. Cards can be smart card, debit card, ATM cards and any kind of credit cards. They all serve a special Purpose. They allow us to pay without cash. They are also all Online electronic payment media. lowering their

REAL WORLD CASH

We have now so many mediums of exchange to simplify transaction, a standard of value to make it easier to decide on the Worth of goods, and a store of value to facilitate the concept of saving. For the purpose of E-commerce, electronic money must fulfill the first function. When you carry cash, you are making on the spot payment but online payment is not very different from cash transactions in the real world, except for speed of transfer, ease of handling and the safety of not having to carry cash. Outside of the Internet, cash continues to be most widely used of the payment.

Its unique features are:

Convenience: - easy to use and easy to carry. Wide acceptance: - the U.S.Dollar happens to be most widely accepted paper currency in the world because of its stability and durability. Anonymity: - No identification is needed to pay in cash. No audit trial: - Lack of trace ability means you can do what you want with your cash. In countries where trust in currency, banking system, or the govt. is in question, cash is still used to buy all kind of product including homes, automobiles and other big ticket item.

CREDIT CARD BASED ELECTRONIC PAYMENT SYSTEM

To avoid the complexity association with digital cash and electronic cheques, consumers and vendors are also looking at credit card payment on the Internet as one possible time-tasted alternative. There is nothing new in the basic process. If consumer wants to purchase or services, they simply send their credit card detail to their service provider involved and the credit card organization will handle this payment like any other. We can break credit card payment on online network into 3 basic categories: Payment using plain credit card detail: - The easiest method of payment is the exchange of unencrypted credit cards over a public network such as telephone lines or the Internet. The low level of security inherent in the design of the Internet makes this method problematic (any snooper can read credit card number, and programs can be created to scan the internet traffic for credit cards number and send the number to its master). Authentication is also a significant problem. And the vendor is usually responsible to ensure that the person using the credit card is its owner. Without encryption there is no way to do this.

Payment using encrypted credit card details: - It would make sense to encrypted your
credit card details before sending them out, but even then are certain factors to considered. One would be the cost of credit card transaction itself. Such cost would prohibit low value payment by adding costs to the transaction.

Payments using 3rd party verification:- One solution to security and verification
problem is the introduction of the 3rd party. A company that collects and approves payment from one client to another. After a certain period of time, one credit card transaction for the total accumulated amount is completed. Some of the companies that are attempting to provide the infrastructure on-line credit card processing.

MASTER BANKING
A house banking service started by MASTER CARD and check free corp., as online payment processor.

VISA INTERACTIVE
VISA International acquired US order, a screen phone manufacture. VISA Interactive has signed up more than 30 banks including national banks.

Standard Segregation of credit card

Standard Card it is the most basic card ( sans all frills) offered by issuers. Classic Card Brand name for the standard card issued by VISA Gold Card/ Executive Card A credit card that offers a higher line of credit than a standard card, income eligibility is also higher. In additions, issuers provide extra perks or incentives to cardholders. Platinum card A credit card with a higher limit and additional perks than a gold card. Titanium Card A card with an even higher limit than a platinum card.

PROGRESS OF CREDIT CARD BUSINESS

The number of members using credit card and the number of establishment ownering it after joining the scheme have increased vastly over the past few years. Many Indian banks have joined hand with international banks to provide this card facility on a worldwide based or a selected international centers. The number of credit card holders which was 8 lakh (1997), have increased to 25 lakh now. The credit card network is also fast spreading in smaller cities and towns besides by cities and metros.

ELIGIBILITY
A bank who is in the business of credit card grant subject to some rules and guidelines to its eligible customer before a credit card is given to a customer the banker analysis following factors and accordingly fixes a credit limit if found eligible. The customer should have a saving or current account with the bank. His/Her monthly or annual are regularly received and credit to this bank account. His/Her assets and liabilities are known and reported to the bank. He is considered credit worthy up to a limit depending on his income, assets and expenditure and past dealing with the bank.

The eligible member is then asked to fill in an application from where in details of account number, name and address, income, wealth, status and evidence statement of income etc. are given. This application form is processed and credit limit is established. This credit limit differs from individual to individual and Bank to bank. The maximum limit depends upon the users income. Some banks have fixed of Rs. 1 lakh, 2 lakh or 5 lakh.

ARRANGEMENTS WITH BANKER

Credit card is the key to opening of the bank accounts. The credit card charges and other payments utilized through credit cards are debited to his account. The banker issues a monthly statement and sent to cardholder. This statement contains details of the charges.

The following are some of the plus features of credit card in India.
Hotel discounts Travel fare discounts Free global calling card Lost baggage insurance Accident insurance Insurance on goods purchased Waiver of payment in case of accidental death Household insurance

Benefits of having a Credit card

A credit card makes it easy to buy something now and pay for it later. Its much safer to use a credit card than to carry around cash. If you lose your credit car, you can ask your credit card company to cancel your card, and no one else can use it. But if you lease cash your money is gone. Credit cards are also convenient. Your can use them to make hotel, are rental and other reservations. You can buy items over the phone or online. You can also use credit cards for emergencies, like unexpected care repairs, when you dont have the cash to cover the expenses. A Credit card gives you a credit history, which helps to get home loans and other credit in a future.

HOW CREDIT CARD BENEFITS THE BANK

Credit card increases the customer base of the bank. Credit card increases credit portfolio of the bank. Credit card enhances the reputation of the bank public.

The business establishments, which accept these cards, also give some incentives or commission to bank, by which the bank gains.

HOW CREDIT CARD BENEFITS THE CARD HOLDER

Cardholder can avoid carrying cash and risk of its lose. Cardholder enjoys a credit limit up to which he makes purchases per his need and pay at leisure. Cardholder gets some period of 30 to 45 days the outstanding overdraft. Credit cards serve as a status symbol. Money can be withdrawn at any time over the day and night. It provides free accidentals insurance cover. It provides purchase protection loss of travel, documents, loss of delay in arrival of baggage screeched baggage.

BENEFITS TO BUSINESS ESTABLISHMENT

Business increases to great extent of business houses that accept credit cards. Reputation of the business establishment increases. Customer based increases.

What are the cost of having a credit card?

All credit cards have finance charges foror not paying your balance in fill each month, but you could save a lot of money by shopping around for the credit card that offers you the best terms. Key credit card terms to took at are the annual percentage rate (APR), annual fee, grace period, and late payment charge. Shop for a card with a grace period that gives you enough time to pay your bills on time without charging you interest. Credit card with no grace period start charging you fees as soon as you buy something on your credit card.

Where can I get credit card ?

Your mail is probably full credit card offers from national companies. Most local banks and Community Development Credit Unions (CDCUs) offer credit cards as well. The fees, charges and benefits for credit cards very among different companies. When youre choosing a card,

shop around. CDCUs often offer the best rates and lowest fees, since they are not trying to make a profit like credit card companies are. Some large department stroes also offer credit cards that only can be used in their stores. Usually, when you apply for a store credit card, you get a one-time discount on your purchase that day. But these credit cards have limited uses and often carry high finance charges.

How do I get a credit card

If you are least 18 years old, have a regular source of income and good credit rating; you can probably qualify for a credit card. Before you submit a credit card application, order a copy of your credit report to make sure all of the information on it is correct. After you check your credit report, and fix any wrong information, you can start carefully researching credit card rates, fees and benefits. At the same time, make a list of the features you want in a credit card. Call any credit any credit companies youre interested in for question and other available plans.

REVIEW OF LITERATURE
Investigates the attitudes of Turkish consumers towards credit cards, and the approach of card issuers, by surveying two samples of 200 card-holders and non-holders: the better educated, middle-aged members of the upper-middle class seem to be the prime target; the most important reasons for using a credit card were ease of payment followed by risk of carrying cash; non-holders do not carry credit cards because they do not know much about it; informal sources of information appear to be more influential than mass media advertising in penetrating the market; proposes that the usage and the administration of credit cards are influenced very much by the infrastructure of the country and, hence, credit card companies have to modify their marketing and administrative procedures rather than following a standardized approach. Credit cards, including store cards and bankcards, serve two distinct functions for consumers: a means of payment and a source of credit (Ausubel 1991; Chakravorti 1997, 2000; Chakravorti and Emmons 2001; Slocum and Matthews 1970; Stavins 2000). Based on the main use of credit cards and the benefits sought, credit card users can be segmented into two groups: convenience users and revolvers (Lee and Hogarth 1999). Convenience users tend to employ credit cards as an easy mode of payment; typically pay their balance in full upon receiving the statement. Revolvers, on the other hand, use the card principally as a mode of financing and chose to pay interest charges on the unpaid balance. According to the consumer behavior literature, consumer usage behavior and the benefits sought from a product or a service are one of the best predictors to explain consumer purchase behavior (PeterandOlson1999). Credit cards also serve as an open-ended, easily available credit source ( Lee and Kwon

2002). When consumers use credit cards as a mode of financing, credit cards compete with bank loans and other forms of financing

(Brito and Hartley 1995). Credit cards allow consumers to borrow within their credit limit without transaction costs, which includes all the time and effort involved with obtaining a loan from a financial institution. This convenience attracts many consumers to pay high interest on outstanding

credit card balances, rather than taking the time to apply for a loan with a lower interest rate. As a result, credit cards account for a substantial and growing share of consumers' debt Ausubel (1991) suggests that consumers may not even consider the interest rate when making purchases because they do not intend to borrow for an extended period when they make purchases. However, they may change their minds when the bill arrives. Stavins (1996) argues that consumers are somewhat sensitive not only to changes in the interest rate but also to the value of other credit-card enhancements such as frequent-use awards, expedited dispute resolution, extended warranties, and automobile rental insurance. However, she agrees with Ausubel (1991), Calem and Mester (1995) that lowering interest rates may attract less creditworthy consumers, therefore dissuading some credit-card issuers from interest rates. It is very essential to know whether the study has already been conducted before .If so, how to what extent? And because of this, scholar has to go through all the existing literature relation to the study. Credit card are a new concept introduced in India by Nationalized Banks only a few year back, very limited studies have been conducted on the subject. Due to time restriction Scholar could seek advice from only the limited literature, Which is available in the library as well as on the Internet. It is the real world we have 3 ways to pay for goods: cash check And credit cards or debit cards. Cards can be smart card, debit card, ATM cards and any kind of credit cards. They all serve a special Purpose. They allow us to pay without cash. They are also all Online electronic payment media. lowering their

REAL WORLD CASH

We have now so many mediums of exchange to simplify transaction, a standard of value to make it easier to decide on the Worth of goods, and a store of value to facilitate the concept of saving. For the purpose of E-commerce, electronic money must fulfill the first function. When

you carry cash, you are making on the spot payment but online payment is not very different from cash transactions in the real world, except for speed of transfer, ease of handling and the safety of not having to carry cash. Outside of the Internet, cash continues to be most widely used of the payment.

Its unique features are:

Convenience: - easy to use and easy to carry. Wide acceptance: - the U.S.Dollar happens to be most widely accepted paper currency in the world because of its stability and durability. Anonymity: - No identification is needed to pay in cash. No audit trial: - Lack of trace ability means you can do what you want with your cash. In countries where trust in currency, banking system, or the govt. is in question, cash is still used to buy all kind of product including homes, automobiles and other big ticket item.

CREDIT CARD BASED ELECTRONIC PAYMENT SYSTEM

To avoid the complexity association with digital cash and electronic cheques, consumers and vendors are also looking at credit card payment on the Internet as one possible time-tasted alternative. There is nothing new in the basic process. If consumer wants to purchase or services, they simply send their credit card detail to their service provider involved and the credit card organization will handle this payment like any other. We can break credit card payment on online network into 3 basic categories: Payment using plain credit card detail: - The easiest method of payment is the exchange of unencrypted credit cards over a public network such as telephone lines or the Internet. The low level of security inherent in the design of the Internet makes this method problematic (any snooper can read credit card number, and programs can be created to scan the internet traffic for credit cards number and send the number to its master). Authentication is also a significant problem. And the vendor is usually responsible to ensure that the person using the credit card is its owner. Without encryption there is no way to do this.

Payment using encrypted credit card details: - It would make sense to encrypted your
credit card details before sending them out, but even then are certain factors to considered. One would be the cost of credit card transaction itself. Such cost would prohibit low value payment by adding costs to the transaction.

Payments using 3rd party verification:- One solution to security and verification
problem is the introduction of the 3rd party. A company that collects and approves payment from one client to another. After a certain period of time, one credit card transaction for the total accumulated amount is completed. Some of the companies that are attempting to provide the infrastructure on-line credit card processing.

MASTER BANKING
A house banking service started by MASTER CARD and check free corp., as online payment processor.

VISA INTERACTIVE
VISA International acquired US order, a screen phone manufacture. VISA Interactive has signed up more than 30 banks including national banks.

Standard Segregation of credit card

Standard Card it is the most basic card ( sans all frills) offered by issuers. Classic Card Brand name for the standard card issued by VISA Gold Card/ Executive Card A credit card that offers a higher line of credit than a standard card, income eligibility is also higher. In additions, issuers provide extra perks or incentives to cardholders. Platinum card A credit card with a higher limit and additional perks than a gold card. Titanium Card A card with an even higher limit than a platinum card.

PROGRESS OF CREDIT CARD BUSINESS

The number of members using credit card and the number of establishment ownering it after joining the scheme have increased vastly over the past few years. Many Indian banks have joined hand with international banks to provide this card facility on a worldwide based or a selected international centers. The number of credit card holders which was 8 lakh (1997), have increased to 25 lakh now. The credit card network is also fast spreading in smaller cities and towns besides by cities and metros.

ELIGIBILITY
A bank who is in the business of credit card grant subject to some rules and guidelines to its eligible customer before a credit card is given to a customer the banker analysis following factors and accordingly fixes a credit limit if found eligible. The customer should have a saving or current account with the bank. His/Her monthly or annual are regularly received and credit to this bank account. His/Her assets and liabilities are known and reported to the bank. He is considered credit worthy up to a limit depending on his income, assets and expenditure and past dealing with the bank. The eligible member is then asked to fill in an application from where in details of account number, name and address, income, wealth, status and evidence statement of income etc. are given. This application form is processed and credit limit is established. This credit limit differs from individual to individual and Bank to bank. The maximum limit depends upon the users income. Some banks have fixed of Rs. 1 lakh, 2 lakh or 5 lakh.

ARRANGEMENTS WITH BANKER

Credit card is the key to opening of the bank accounts. The credit card charges and other payments utilized through credit cards are debited to his account. The banker issues a monthly statement and sent to cardholder. This statement contains details of the charges.

The following are some of the plus features of credit card in India.
Hotel discounts Travel fare discounts Free global calling card Lost baggage insurance Accident insurance Insurance on goods purchased Waiver of payment in case of accidental death Household insurance

Benefits of having a Credit card

A credit card makes it easy to buy something now and pay for it later. Its much safer to use a credit card than to carry around cash. If you lose your credit car, you can ask your credit card company to cancel your card, and no one else can use it. But if you lease cash your money is gone. Credit cards are also convenient. Your can use them to make hotel, are rental and other reservations. You can buy items over the phone or online. You can also use credit cards for emergencies, like unexpected care repairs, when you dont have the cash to cover the expenses. A Credit card gives you a credit history, which helps to get home loans and other credit in a future.

HOW CREDIT CARD BENEFITS THE BANK

Credit card increases the customer base of the bank. Credit card increases credit portfolio of the bank. Credit card enhances the reputation of the bank public. The business establishments, which accept these cards, also give some incentives or commission to bank, by which the bank gains.

HOW CREDIT CARD BENEFITS THE CARD HOLDER

Cardholder can avoid carrying cash and risk of its lose. Cardholder enjoys a credit limit up to which he makes purchases per his need and pay at leisure. Cardholder gets some period of 30 to 45 days the outstanding overdraft. Credit cards serve as a status symbol. Money can be withdrawn at any time over the day and night. It provides free accidentals insurance cover. It provides purchase protection loss of travel, documents, loss of delay in arrival of baggage screeched baggage.

BENEFITS TO BUSINESS ESTABLISHMENT

Business increases to great extent of business houses that accept credit cards. Reputation of the business establishment increases. Customer based increases.

What are the cost of having a credit card?

All credit cards have finance charges foror not paying your balance in fill each month, but you could save a lot of money by shopping around for the credit card that offers you the best terms. Key credit card terms to took at are the annual percentage rate (APR), annual fee, grace period, and late payment charge. Shop for a card with a grace period that gives you enough time to pay your bills on time without charging you interest. Credit card with no grace period start charging you fees as soon as you buy something on your credit card.

Where can I get credit card ?

Your mail is probably full credit card offers from national companies. Most local banks and Community Development Credit Unions (CDCUs) offer credit cards as well. The fees, charges and benefits for credit cards very among different companies. When youre choosing a card, shop around. CDCUs often offer the best rates and lowest fees, since they are not trying to make a profit like credit card companies are. Some large department stroes also offer credit cards that only can be used in their stores. Usually, when you apply for a store credit card, you get a one-time discount on your purchase that day. But these credit cards have limited uses and often carry high finance charges.

How do I get a credit card

If you are least 18 years old, have a regular source of income and good credit rating; you can probably qualify for a credit card. Before you submit a credit card application, order a copy of your credit report to make sure all of the information on it is correct. After you check your credit report, and fix any wrong information, you can start carefully researching credit card rates, fees and benefits. At the same time, make a list of the features you want in a credit card. Call any credit any credit companies youre interested in for question and other available plans.

REVIEW OF LITERATURE
Investigates the attitudes of Turkish consumers towards credit cards, and the approach of card issuers, by surveying two samples of 200 card-holders and non-holders: the better educated, middle-aged members of the upper-middle class seem to be the prime target; the most important reasons for using a credit card were ease of payment followed by risk of carrying cash; non-holders do not carry credit cards because they do not know much about it; informal sources of information appear to be more influential than mass media advertising in penetrating the market; proposes that the usage and the administration of credit cards are influenced very much by the infrastructure of the country and, hence, credit card companies have to modify their marketing and administrative procedures rather than following a standardized approach. Credit cards, including store cards and bankcards, serve two distinct functions for consumers: a means of payment and a source of credit (Ausubel 1991; Chakravorti 1997, 2000; Chakravorti and Emmons 2001; Slocum and Matthews 1970; Stavins 2000). Based on the main use of credit cards and the benefits sought, credit card users can be segmented into two groups: convenience users and revolvers (Lee and Hogarth 1999). Convenience users tend to employ credit cards as an easy mode of payment; typically pay their balance in full upon receiving the statement. Revolvers, on the other hand, use the card principally as a mode of financing and chose to pay interest charges on the unpaid balance. According to the consumer behavior literature, consumer usage behavior and the benefits sought from a product or a service are one of the best predictors to explain consumer purchase behavior (PeterandOlson1999). Credit cards also serve as an open-ended, easily available credit source ( Lee and Kwon 2002). When consumers use credit cards as a mode of financing, credit cards compete with bank loans and other forms of financing

(Brito and Hartley 1995).

Credit cards allow consumers to borrow within their credit limit without transaction costs, which includes all the time and effort involved with obtaining a loan from a financial institution. This convenience attracts many consumers to pay high interest on outstanding

credit card balances, rather than taking the time to apply for a loan with a lower interest rate. As a result, credit cards account for a substantial and growing share of consumers' debt Ausubel (1991) suggests that consumers may not even consider the interest rate when making purchases because they do not intend to borrow for an extended period when they make purchases. However, they may change their minds when the bill arrives. Stavins (1996) argues that consumers are somewhat sensitive not only to changes in the interest rate but also to the value of other credit-card enhancements such as frequent-use awards, expedited dispute resolution, extended warranties, and automobile rental insurance. However, she agrees with Ausubel (1991), Calem and Mester (1995) that lowering interest rates may attract less creditworthy consumers, therefore dissuading some credit-card issuers from interest rates. It is very essential to know whether the study has already been conducted before .If so, how to what extent? And because of this, scholar has to go through all the existing literature relation to the study. Credit card are a new concept introduced in India by Nationalized Banks only a few year back, very limited studies have been conducted on the subject. Due to time restriction Scholar could seek advice from only the limited literature, Which is available in the library as well as on the Internet. It is the real world we have 3 ways to pay for goods: cash check And credit cards or debit cards. Cards can be smart card, debit card, ATM cards and any kind of credit cards. They all serve a special Purpose. They allow us to pay without cash. They are also all Online electronic payment media. lowering their

REAL WORLD CASH

We have now so many mediums of exchange to simplify transaction, a standard of value to make it easier to decide on the Worth of goods, and a store of value to facilitate the concept of saving. For the purpose of E-commerce, electronic money must fulfill the first function. When you carry cash, you are making on the spot payment but online payment is not very different from cash transactions in the real world, except for speed of transfer, ease of handling and the safety of not having to carry cash. Outside of the Internet, cash continues to be most widely used of the payment.

Its unique features are:

Convenience: - easy to use and easy to carry. Wide acceptance: - the U.S.Dollar happens to be most widely accepted paper currency in the world because of its stability and durability. Anonymity: - No identification is needed to pay in cash. No audit trial: - Lack of trace ability means you can do what you want with your cash. In countries where trust in currency, banking system, or the govt. is in question, cash is still used to buy all kind of product including homes, automobiles and other big ticket item.

CREDIT CARD BASED ELECTRONIC PAYMENT SYSTEM

To avoid the complexity association with digital cash and electronic cheques, consumers and vendors are also looking at credit card payment on the Internet as one possible time-tasted alternative. There is nothing new in the basic process. If consumer wants to purchase or services, they simply send their credit card detail to their service provider involved and the credit card organization will handle this payment like any other. We can break credit card payment on online network into 3 basic categories: Payment using plain credit card detail: - The easiest method of payment is the exchange of unencrypted credit cards over a public network such as telephone lines or the Internet. The low level of security inherent in the design of the Internet makes this method problematic (any snooper can read credit card number, and programs can be created to scan the internet traffic for credit cards number and send the number to its master). Authentication is also a significant problem. And the vendor is usually responsible to ensure that the person using the credit card is its owner. Without encryption there is no way to do this.

Payment using encrypted credit card details: - It would make sense to encrypted your
credit card details before sending them out, but even then are certain factors to considered. One would be the cost of credit card transaction itself. Such cost would prohibit low value payment by adding costs to the transaction.

Payments using 3rd party verification:- One solution to security and verification
problem is the introduction of the 3rd party. A company that collects and approves payment from one client to another. After a certain period of time, one credit card transaction for the total accumulated amount is completed. Some of the companies that are attempting to provide the infrastructure on-line credit card processing.

MASTER BANKING
A house banking service started by MASTER CARD and check free corp., as online payment processor.

VISA INTERACTIVE
VISA International acquired US order, a screen phone manufacture. VISA Interactive has signed up more than 30 banks including national banks.

Standard Segregation of credit card

Standard Card it is the most basic card ( sans all frills) offered by issuers. Classic Card Brand name for the standard card issued by VISA Gold Card/ Executive Card A credit card that offers a higher line of credit than a standard card, income eligibility is also higher. In additions, issuers provide extra perks or incentives to cardholders. Platinum card A credit card with a higher limit and additional perks than a gold card. Titanium Card A card with an even higher limit than a platinum card.

PROGRESS OF CREDIT CARD BUSINESS

The number of members using credit card and the number of establishment ownering it after joining the scheme have increased vastly over the past few years. Many Indian banks have joined hand with international banks to provide this card facility on a worldwide based or a selected international centers. The number of credit card holders which was 8 lakh (1997), have increased to 25 lakh now. The credit card network is also fast spreading in smaller cities and towns besides by cities and metros.

ELIGIBILITY
A bank who is in the business of credit card grant subject to some rules and guidelines to its eligible customer before a credit card is given to a customer the banker analysis following factors and accordingly fixes a credit limit if found eligible. The customer should have a saving or current account with the bank. His/Her monthly or annual are regularly received and credit to this bank account. His/Her assets and liabilities are known and reported to the bank. He is considered credit worthy up to a limit depending on his income, assets and expenditure and past dealing with the bank. The eligible member is then asked to fill in an application from where in details of account number, name and address, income, wealth, status and evidence statement of income etc. are given. This application form is processed and credit limit is established. This credit limit differs from individual to individual and Bank to bank. The maximum limit depends upon the users income. Some banks have fixed of Rs. 1 lakh, 2 lakh or 5 lakh.

ARRANGEMENTS WITH BANKER

Credit card is the key to opening of the bank accounts. The credit card charges and other payments utilized through credit cards are debited to his account. The banker issues a monthly statement and sent to cardholder. This statement contains details of the charges.

The following are some of the plus features of credit card in India.
Hotel discounts Travel fare discounts Free global calling card Lost baggage insurance Accident insurance Insurance on goods purchased Waiver of payment in case of accidental death Household insurance

Benefits of having a Credit card

A credit card makes it easy to buy something now and pay for it later. Its much safer to use a credit card than to carry around cash. If you lose your credit car, you can ask your credit card company to cancel your card, and no one else can use it. But if you lease cash your money is gone. Credit cards are also convenient. Your can use them to make hotel, are rental and other reservations. You can buy items over the phone or online. You can also use credit cards for emergencies, like unexpected care repairs, when you dont have the cash to cover the expenses. A Credit card gives you a credit history, which helps to get home loans and other credit in a future.

HOW CREDIT CARD BENEFITS THE BANK

Credit card increases the customer base of the bank. Credit card increases credit portfolio of the bank. Credit card enhances the reputation of the bank public. The business establishments, which accept these cards, also give some incentives or commission to bank, by which the bank gains.

HOW CREDIT CARD BENEFITS THE CARD HOLDER

Cardholder can avoid carrying cash and risk of its lose. Cardholder enjoys a credit limit up to which he makes purchases per his need and pay at leisure. Cardholder gets some period of 30 to 45 days the outstanding overdraft. Credit cards serve as a status symbol. Money can be withdrawn at any time over the day and night. It provides free accidentals insurance cover. It provides purchase protection loss of travel, documents, loss of delay in arrival of baggage screeched baggage.

BENEFITS TO BUSINESS ESTABLISHMENT

Business increases to great extent of business houses that accept credit cards. Reputation of the business establishment increases. Customer based increases.

What are the cost of having a credit card?

All credit cards have finance charges foror not paying your balance in fill each month, but you could save a lot of money by shopping around for the credit card that offers you the best terms. Key credit card terms to took at are the annual percentage rate (APR), annual fee, grace period, and late payment charge. Shop for a card with a grace period that gives you enough time to pay your bills on time without charging you interest. Credit card with no grace period start charging you fees as soon as you buy something on your credit card.

Where can I get credit card ?

Your mail is probably full credit card offers from national companies. Most local banks and Community Development Credit Unions (CDCUs) offer credit cards as well. The fees, charges and benefits for credit cards very among different companies. When youre choosing a card, shop around. CDCUs often offer the best rates and lowest fees, since they are not trying to make a profit like credit card companies are. Some large department stroes also offer credit cards that only can be used in their stores. Usually, when you apply for a store credit card, you get a one-time discount on your purchase that day. But these credit cards have limited uses and often carry high finance charges.

How do I get a credit card

If you are least 18 years old, have a regular source of income and good credit rating; you can probably qualify for a credit card. Before you submit a credit card application, order a copy of

your credit report to make sure all of the information on it is correct. After you check your credit report, and fix any wrong information, you can start carefully researching credit card rates, fees and benefits. At the same time, make a list of the features you want in a credit card. Call any credit any credit companies youre interested in for question and other available plans.

REVIEW OF LITERATURE
Investigates the attitudes of Turkish consumers towards credit cards, and the approach of card issuers, by surveying two samples of 200 card-holders and non-holders: the

better educated, middle-aged members of the upper-middle class seem to be the prime target; the most important reasons for using a credit card were ease of payment followed by risk of carrying cash; non-holders do not carry credit cards because they do not know much about it; informal sources of information appear to be more influential than mass media advertising in penetrating the market; proposes that the usage and the administration of credit cards are influenced very much by the infrastructure of the country and, hence, credit card companies have to modify their marketing and administrative procedures rather than following a standardized approach. Credit cards, including store cards and bankcards, serve two distinct functions for consumers: a means of payment and a source of credit (Ausubel 1991; Chakravorti 1997, 2000; Chakravorti and Emmons 2001; Slocum and Matthews 1970; Stavins 2000). Based on the main use of credit cards and the benefits sought, credit card users can be segmented into two groups: convenience users and revolvers (Lee and Hogarth 1999). Convenience users tend to employ credit cards as an easy mode of payment; typically pay their balance in full upon receiving the statement. Revolvers, on the other hand, use the card principally as a mode of financing and chose to pay interest charges on the unpaid balance. According to the consumer behavior literature, consumer usage behavior and the benefits sought from a product or a service are one of the best predictors to explain consumer purchase behavior (PeterandOlson1999). Credit cards also serve as an open-ended, easily available credit source ( Lee and Kwon 2002). When consumers use credit cards as a mode of financing, credit cards compete with bank loans and other forms of financing

(Brito and Hartley 1995). Credit cards allow consumers to borrow within their credit limit without transaction costs, which includes all the time and effort involved with obtaining a loan from a financial institution. This convenience attracts many consumers to pay high interest on outstanding

credit card balances, rather than taking the time to apply for a loan with a lower interest rate. As a result, credit cards account for a substantial and growing share of consumers' debt

Ausubel (1991) suggests that consumers may not even consider the interest rate when making purchases because they do not intend to borrow for an extended period when they make purchases. However, they may change their minds when the bill arrives. Stavins (1996) argues that consumers are somewhat sensitive not only to changes in the interest rate but also to the value of other credit-card enhancements such as frequent-use awards, expedited dispute resolution, extended warranties, and automobile rental insurance. However, she agrees with Ausubel (1991), Calem and Mester (1995) that lowering interest rates may attract less creditworthy consumers, therefore dissuading some credit-card issuers from interest rates. It is very essential to know whether the study has already been conducted before .If so, how to what extent? And because of this, scholar has to go through all the existing literature relation to the study. Credit card are a new concept introduced in India by Nationalized Banks only a few year back, very limited studies have been conducted on the subject. Due to time restriction Scholar could seek advice from only the limited literature, Which is available in the library as well as on the Internet. It is the real world we have 3 ways to pay for goods: cash check And credit cards or debit cards. Cards can be smart card, debit card, ATM cards and any kind of credit cards. They all serve a special Purpose. They allow us to pay without cash. They are also all Online electronic payment media. lowering their

REAL WORLD CASH

We have now so many mediums of exchange to simplify transaction, a standard of value to make it easier to decide on the Worth of goods, and a store of value to facilitate the concept of saving. For the purpose of E-commerce, electronic money must fulfill the first function. When you carry cash, you are making on the spot payment but online payment is not very different from cash transactions in the real world, except for speed of transfer, ease of handling and the safety of not having to carry cash. Outside of the Internet, cash continues to be most widely used of the payment.

Its unique features are:

Convenience: - easy to use and easy to carry. Wide acceptance: - the U.S.Dollar happens to be most widely accepted paper currency in the world because of its stability and durability. Anonymity: - No identification is needed to pay in cash. No audit trial: - Lack of trace ability means you can do what you want with your cash. In countries where trust in currency, banking system, or the govt. is in question, cash is still used to buy all kind of product including homes, automobiles and other big ticket item.

CREDIT CARD BASED ELECTRONIC PAYMENT SYSTEM

To avoid the complexity association with digital cash and electronic cheques, consumers and vendors are also looking at credit card payment on the Internet as one possible time-tasted alternative. There is nothing new in the basic process. If consumer wants to purchase or services, they simply send their credit card detail to their service provider involved and the credit card organization will handle this payment like any other. We can break credit card payment on online network into 3 basic categories: Payment using plain credit card detail: - The easiest method of payment is the exchange of unencrypted credit cards over a public network such as telephone lines or the Internet. The low level of security inherent in the design of the Internet makes this method problematic (any snooper can read credit card number, and programs can be created to scan the internet traffic for credit cards number and send the number to its master). Authentication is also a significant problem. And the vendor is usually responsible to ensure that the person using the credit card is its owner. Without encryption there is no way to do this.

Payment using encrypted credit card details: - It would make sense to encrypted your
credit card details before sending them out, but even then are certain factors to considered. One would be the cost of credit card transaction itself. Such cost would prohibit low value payment by adding costs to the transaction.

Payments using 3rd party verification:- One solution to security and verification
problem is the introduction of the 3rd party. A company that collects and approves payment from one client to another. After a certain period of time, one credit card transaction for the total accumulated amount is completed. Some of the companies that are attempting to provide the infrastructure on-line credit card processing.

MASTER BANKING
A house banking service started by MASTER CARD and check free corp., as online payment processor.

VISA INTERACTIVE
VISA International acquired US order, a screen phone manufacture. VISA Interactive has signed up more than 30 banks including national banks.

Standard Segregation of credit card

Standard Card it is the most basic card ( sans all frills) offered by issuers. Classic Card Brand name for the standard card issued by VISA

Gold Card/ Executive Card A credit card that offers a higher line of credit than a standard card, income eligibility is also higher. In additions, issuers provide extra perks or incentives to cardholders. Platinum card A credit card with a higher limit and additional perks than a gold card. Titanium Card A card with an even higher limit than a platinum card.

PROGRESS OF CREDIT CARD BUSINESS

The number of members using credit card and the number of establishment ownering it after joining the scheme have increased vastly over the past few years. Many Indian banks have joined hand with international banks to provide this card facility on a worldwide based or a selected international centers. The number of credit card holders which was 8 lakh (1997), have increased to 25 lakh now. The credit card network is also fast spreading in smaller cities and towns besides by cities and metros.

ELIGIBILITY
A bank who is in the business of credit card grant subject to some rules and guidelines to its eligible customer before a credit card is given to a customer the banker analysis following factors and accordingly fixes a credit limit if found eligible. The customer should have a saving or current account with the bank. His/Her monthly or annual are regularly received and credit to this bank account. His/Her assets and liabilities are known and reported to the bank. He is considered credit worthy up to a limit depending on his income, assets and expenditure and past dealing with the bank. The eligible member is then asked to fill in an application from where in details of account number, name and address, income, wealth, status and evidence statement of income etc. are given. This application form is processed and credit limit is established. This credit limit differs from individual to individual and Bank to bank. The maximum limit depends upon the users income. Some banks have fixed of Rs. 1 lakh, 2 lakh or 5 lakh.

ARRANGEMENTS WITH BANKER

Credit card is the key to opening of the bank accounts. The credit card charges and other payments utilized through credit cards are debited to his account. The banker issues a monthly statement and sent to cardholder. This statement contains details of the charges.

The following are some of the plus features of credit card in India.

Hotel discounts Travel fare discounts Free global calling card Lost baggage insurance Accident insurance Insurance on goods purchased Waiver of payment in case of accidental death Household insurance

Benefits of having a Credit card

A credit card makes it easy to buy something now and pay for it later. Its much safer to use a credit card than to carry around cash. If you lose your credit car, you can ask your credit card company to cancel your card, and no one else can use it. But if you lease cash your money is gone. Credit cards are also convenient. Your can use them to make hotel, are rental and other reservations. You can buy items over the phone or online. You can also use credit cards for emergencies, like unexpected care repairs, when you dont have the cash to cover the expenses. A Credit card gives you a credit history, which helps to get home loans and other credit in a future.

HOW CREDIT CARD BENEFITS THE BANK

Credit card increases the customer base of the bank. Credit card increases credit portfolio of the bank. Credit card enhances the reputation of the bank public. The business establishments, which accept these cards, also give some incentives or commission to bank, by which the bank gains.

HOW CREDIT CARD BENEFITS THE CARD HOLDER

Cardholder can avoid carrying cash and risk of its lose. Cardholder enjoys a credit limit up to which he makes purchases per his need and pay at leisure. Cardholder gets some period of 30 to 45 days the outstanding overdraft. Credit cards serve as a status symbol. Money can be withdrawn at any time over the day and night. It provides free accidentals insurance cover.

It provides purchase protection loss of travel, documents, loss of delay in arrival of baggage screeched baggage.

BENEFITS TO BUSINESS ESTABLISHMENT

Business increases to great extent of business houses that accept credit cards. Reputation of the business establishment increases. Customer based increases.

What are the cost of having a credit card?

All credit cards have finance charges foror not paying your balance in fill each month, but you could save a lot of money by shopping around for the credit card that offers you the best terms. Key credit card terms to took at are the annual percentage rate (APR), annual fee, grace period, and late payment charge. Shop for a card with a grace period that gives you enough time to pay your bills on time without charging you interest. Credit card with no grace period start charging you fees as soon as you buy something on your credit card.

Where can I get credit card ?

Your mail is probably full credit card offers from national companies. Most local banks and Community Development Credit Unions (CDCUs) offer credit cards as well. The fees, charges and benefits for credit cards very among different companies. When youre choosing a card, shop around. CDCUs often offer the best rates and lowest fees, since they are not trying to make a profit like credit card companies are. Some large department stroes also offer credit cards that only can be used in their stores. Usually, when you apply for a store credit card, you get a one-time discount on your purchase that day. But these credit cards have limited uses and often carry high finance charges.

How do I get a credit card

If you are least 18 years old, have a regular source of income and good credit rating; you can probably qualify for a credit card. Before you submit a credit card application, order a copy of your credit report to make sure all of the information on it is correct. After you check your credit report, and fix any wrong information, you can start carefully researching credit card rates, fees and benefits. At the same time, make a list of the features you want in a credit card. Call any credit any credit companies youre interested in for question and other available plans.

REVIEW OF LITERATURE
Investigates the attitudes of Turkish consumers towards credit cards, and the approach of card issuers, by surveying two samples of 200 card-holders and non-holders: the better educated, middle-aged members of the upper-middle class seem to be the prime target; the most important reasons for using a credit card were ease of payment followed by risk of carrying cash; non-holders do not carry credit cards because they do not know much about it; informal sources of information appear to be more influential than mass media

advertising in penetrating the market; proposes that the usage and the administration of credit cards are influenced very much by the infrastructure of the country and, hence, credit card companies have to modify their marketing and administrative procedures rather than following a standardized approach. Credit cards, including store cards and bankcards, serve two distinct functions for consumers: a means of payment and a source of credit (Ausubel 1991; Chakravorti 1997, 2000; Chakravorti and Emmons 2001; Slocum and Matthews 1970; Stavins 2000). Based on the main use of credit cards and the benefits sought, credit card users can be segmented into two groups: convenience users and revolvers (Lee and Hogarth 1999). Convenience users tend to employ credit cards as an easy mode of payment; typically pay their balance in full upon receiving the statement. Revolvers, on the other hand, use the card principally as a mode of financing and chose to pay interest charges on the unpaid balance. According to the consumer behavior literature, consumer usage behavior and the benefits sought from a product or a service are one of the best predictors to explain consumer purchase behavior (PeterandOlson1999). Credit cards also serve as an open-ended, easily available credit source ( Lee and Kwon 2002). When consumers use credit cards as a mode of financing, credit cards compete with bank loans and other forms of financing

(Brito and Hartley 1995). Credit cards allow consumers to borrow within their credit limit without transaction costs, which includes all the time and effort involved with obtaining a loan from a financial institution. This convenience attracts many consumers to pay high interest on outstanding

credit card balances, rather than taking the time to apply for a loan with a lower interest rate. As a result, credit cards account for a substantial and growing share of consumers' debt Ausubel (1991) suggests that consumers may not even consider the interest rate when making purchases because they do not intend to borrow for an extended period when they make purchases. However, they may change their minds when the bill arrives. Stavins (1996)

argues that consumers are somewhat sensitive not only to changes in the interest rate but also to the value of other credit-card enhancements such as frequent-use awards, expedited dispute resolution, extended warranties, and automobile rental insurance. However, she agrees with Ausubel (1991), Calem and Mester (1995) that lowering interest rates may attract less creditworthy consumers, therefore dissuading some credit-card issuers from interest rates. It is very essential to know whether the study has already been conducted before .If so, how to what extent? And because of this, scholar has to go through all the existing literature relation to the study. Credit card are a new concept introduced in India by Nationalized Banks only a few year back, very limited studies have been conducted on the subject. Due to time restriction Scholar could seek advice from only the limited literature, Which is available in the library as well as on the Internet. It is the real world we have 3 ways to pay for goods: cash check And credit cards or debit cards. Cards can be smart card, debit card, ATM cards and any kind of credit cards. They all serve a special Purpose. They allow us to pay without cash. They are also all Online electronic payment media. lowering their

REAL WORLD CASH

We have now so many mediums of exchange to simplify transaction, a standard of value to make it easier to decide on the Worth of goods, and a store of value to facilitate the concept of saving. For the purpose of E-commerce, electronic money must fulfill the first function. When you carry cash, you are making on the spot payment but online payment is not very different from cash transactions in the real world, except for speed of transfer, ease of handling and the safety of not having to carry cash. Outside of the Internet, cash continues to be most widely used of the payment.

Its unique features are:

Convenience: - easy to use and easy to carry. Wide acceptance: - the U.S.Dollar happens to be most widely accepted paper currency in the world because of its stability and durability. Anonymity: - No identification is needed to pay in cash. No audit trial: - Lack of trace ability means you can do what you want with your cash. In countries where trust in currency, banking system, or the govt. is in question, cash is still used to buy all kind of product including homes, automobiles and other big ticket item.

CREDIT CARD BASED ELECTRONIC PAYMENT SYSTEM

To avoid the complexity association with digital cash and electronic cheques, consumers and vendors are also looking at credit card payment on the Internet as one possible time-tasted alternative. There is nothing new in the basic process. If consumer wants to purchase or services, they simply send their credit card detail to their service provider involved and the credit card organization will handle this payment like any other. We can break credit card payment on online network into 3 basic categories: Payment using plain credit card detail: - The easiest method of payment is the exchange of unencrypted credit cards over a public network such as telephone lines or the Internet. The low level of security inherent in the design of the Internet makes this method problematic (any snooper can read credit card number, and programs can be created to scan the internet traffic for credit cards number and send the number to its master). Authentication is also a significant problem. And the vendor is usually responsible to ensure that the person using the credit card is its owner. Without encryption there is no way to do this.

Payment using encrypted credit card details: - It would make sense to encrypted your
credit card details before sending them out, but even then are certain factors to considered. One would be the cost of credit card transaction itself. Such cost would prohibit low value payment by adding costs to the transaction.

Payments using 3rd party verification:- One solution to security and verification
problem is the introduction of the 3rd party. A company that collects and approves payment from one client to another. After a certain period of time, one credit card transaction for the total accumulated amount is completed. Some of the companies that are attempting to provide the infrastructure on-line credit card processing.

MASTER BANKING
A house banking service started by MASTER CARD and check free corp., as online payment processor.

VISA INTERACTIVE
VISA International acquired US order, a screen phone manufacture. VISA Interactive has signed up more than 30 banks including national banks.

Standard Segregation of credit card

Standard Card it is the most basic card ( sans all frills) offered by issuers. Classic Card Brand name for the standard card issued by VISA Gold Card/ Executive Card A credit card that offers a higher line of credit than a standard card, income eligibility is also higher. In additions, issuers provide extra perks or incentives to cardholders. Platinum card A credit card with a higher limit and additional perks than a gold card. Titanium Card A card with an even higher limit than a platinum card.

PROGRESS OF CREDIT CARD BUSINESS

The number of members using credit card and the number of establishment ownering it after joining the scheme have increased vastly over the past few years. Many Indian banks have joined hand with international banks to provide this card facility on a worldwide based or a selected international centers. The number of credit card holders which was 8 lakh (1997), have increased to 25 lakh now. The credit card network is also fast spreading in smaller cities and towns besides by cities and metros.

ELIGIBILITY
A bank who is in the business of credit card grant subject to some rules and guidelines to its eligible customer before a credit card is given to a customer the banker analysis following factors and accordingly fixes a credit limit if found eligible. The customer should have a saving or current account with the bank. His/Her monthly or annual are regularly received and credit to this bank account. His/Her assets and liabilities are known and reported to the bank. He is considered credit worthy up to a limit depending on his income, assets and expenditure and past dealing with the bank. The eligible member is then asked to fill in an application from where in details of account number, name and address, income, wealth, status and evidence statement of income etc. are given. This application form is processed and credit limit is established. This credit limit differs from individual to individual and Bank to bank. The maximum limit depends upon the users income. Some banks have fixed of Rs. 1 lakh, 2 lakh or 5 lakh.

ARRANGEMENTS WITH BANKER

Credit card is the key to opening of the bank accounts. The credit card charges and other payments utilized through credit cards are debited to his account. The banker issues a monthly statement and sent to cardholder. This statement contains details of the charges.

The following are some of the plus features of credit card in India.
Hotel discounts Travel fare discounts Free global calling card Lost baggage insurance Accident insurance Insurance on goods purchased Waiver of payment in case of accidental death Household insurance

Benefits of having a Credit card

A credit card makes it easy to buy something now and pay for it later. Its much safer to use a credit card than to carry around cash. If you lose your credit car, you can ask your credit card company to cancel your card, and no one else can use it. But if you lease cash your money is gone. Credit cards are also convenient. Your can use them to make hotel, are rental and other reservations. You can buy items over the phone or online. You can also use credit cards for emergencies, like unexpected care repairs, when you dont have the cash to cover the expenses. A Credit card gives you a credit history, which helps to get home loans and other credit in a future.

HOW CREDIT CARD BENEFITS THE BANK

Credit card increases the customer base of the bank. Credit card increases credit portfolio of the bank. Credit card enhances the reputation of the bank public. The business establishments, which accept these cards, also give some incentives or commission to bank, by which the bank gains.

HOW CREDIT CARD BENEFITS THE CARD HOLDER

Cardholder can avoid carrying cash and risk of its lose. Cardholder enjoys a credit limit up to which he makes purchases per his need and pay at leisure. Cardholder gets some period of 30 to 45 days the outstanding overdraft. Credit cards serve as a status symbol. Money can be withdrawn at any time over the day and night. It provides free accidentals insurance cover. It provides purchase protection loss of travel, documents, loss of delay in arrival of baggage screeched baggage.

BENEFITS TO BUSINESS ESTABLISHMENT

Business increases to great extent of business houses that accept credit cards. Reputation of the business establishment increases.

Customer based increases.

What are the cost of having a credit card?

All credit cards have finance charges foror not paying your balance in fill each month, but you could save a lot of money by shopping around for the credit card that offers you the best terms. Key credit card terms to took at are the annual percentage rate (APR), annual fee, grace period, and late payment charge. Shop for a card with a grace period that gives you enough time to pay your bills on time without charging you interest. Credit card with no grace period start charging you fees as soon as you buy something on your credit card.

Where can I get credit card ?

Your mail is probably full credit card offers from national companies. Most local banks and Community Development Credit Unions (CDCUs) offer credit cards as well. The fees, charges and benefits for credit cards very among different companies. When youre choosing a card, shop around. CDCUs often offer the best rates and lowest fees, since they are not trying to make a profit like credit card companies are. Some large department stroes also offer credit cards that only can be used in their stores. Usually, when you apply for a store credit card, you get a one-time discount on your purchase that day. But these credit cards have limited uses and often carry high finance charges.

How do I get a credit card

If you are least 18 years old, have a regular source of income and good credit rating; you can probably qualify for a credit card. Before you submit a credit card application, order a copy of your credit report to make sure all of the information on it is correct. After you check your credit report, and fix any wrong information, you can start carefully researching credit card rates, fees and benefits. At the same time, make a list of the features you want in a credit card. Call any credit any credit companies youre interested in for question and other available plans.

REVIEW OF LITERATURE
Investigates the attitudes of Turkish consumers towards credit cards, and the approach of card issuers, by surveying two samples of 200 card-holders and non-holders: the better educated, middle-aged members of the upper-middle class seem to be the prime target; the most important reasons for using a credit card were ease of payment followed by risk of carrying cash; non-holders do not carry credit cards because they do not know much about it; informal sources of information appear to be more influential than mass media advertising in penetrating the market; proposes that the usage and the administration of credit cards are influenced very much by the infrastructure of the country and, hence, credit card companies have to modify their marketing and administrative procedures rather than following a standardized approach.

Credit cards, including store cards and bankcards, serve two distinct functions for consumers: a means of payment and a source of credit (Ausubel 1991; Chakravorti 1997, 2000; Chakravorti and Emmons 2001; Slocum and Matthews 1970; Stavins 2000). Based on the main use of credit cards and the benefits sought, credit card users can be segmented into two groups: convenience users and revolvers (Lee and Hogarth 1999). Convenience users tend to employ credit cards as an easy mode of payment; typically pay their balance in full upon receiving the statement. Revolvers, on the other hand, use the card principally as a mode of financing and chose to pay interest charges on the unpaid balance. According to the consumer behavior literature, consumer usage behavior and the benefits sought from a product or a service are one of the best predictors to explain consumer purchase behavior (PeterandOlson1999). Credit cards also serve as an open-ended, easily available credit source ( Lee and Kwon 2002). When consumers use credit cards as a mode of financing, credit cards compete with bank loans and other forms of financing

(Brito and Hartley 1995). Credit cards allow consumers to borrow within their credit limit without transaction costs, which includes all the time and effort involved with obtaining a loan from a financial institution. This convenience attracts many consumers to pay high interest on outstanding

credit card balances, rather than taking the time to apply for a loan with a lower interest rate. As a result, credit cards account for a substantial and growing share of consumers' debt Ausubel (1991) suggests that consumers may not even consider the interest rate when making purchases because they do not intend to borrow for an extended period when they make purchases. However, they may change their minds when the bill arrives. Stavins (1996) argues that consumers are somewhat sensitive not only to changes in the interest rate but also to the value of other credit-card enhancements such as frequent-use awards, expedited dispute resolution, extended warranties, and automobile rental insurance. However, she agrees with Ausubel (1991), Calem and Mester (1995) that lowering interest rates may attract less

creditworthy consumers, therefore dissuading some credit-card issuers from interest rates.

lowering their

It is very essential to know whether the study has already been conducted before .If so, how to what extent? And because of this, scholar has to go through all the existing literature relation to the study. Credit card are a new concept introduced in India by Nationalized Banks only a few year back, very limited studies have been conducted on the subject. Due to time restriction Scholar could seek advice from only the limited literature, Which is available in the library as well as on the Internet. It is the real world we have 3 ways to pay for goods: cash check And credit cards or debit cards. Cards can be smart card, debit card, ATM cards and any kind of credit cards. They all serve a special Purpose. They allow us to pay without cash. They are also all Online electronic payment media.

REAL WORLD CASH

We have now so many mediums of exchange to simplify transaction, a standard of value to make it easier to decide on the Worth of goods, and a store of value to facilitate the concept of saving. For the purpose of E-commerce, electronic money must fulfill the first function. When you carry cash, you are making on the spot payment but online payment is not very different from cash transactions in the real world, except for speed of transfer, ease of handling and the safety of not having to carry cash. Outside of the Internet, cash continues to be most widely used of the payment.

Its unique features are:

Convenience: - easy to use and easy to carry. Wide acceptance: - the U.S.Dollar happens to be most widely accepted paper currency in the world because of its stability and durability. Anonymity: - No identification is needed to pay in cash. No audit trial: - Lack of trace ability means you can do what you want with your cash. In countries where trust in currency, banking system, or the govt. is in question, cash is still used to buy all kind of product including homes, automobiles and other big ticket item.

CREDIT CARD BASED ELECTRONIC PAYMENT SYSTEM

To avoid the complexity association with digital cash and electronic cheques, consumers and vendors are also looking at credit card payment on the Internet as one possible time-tasted alternative. There is nothing new in the basic process. If consumer wants to purchase or services, they simply send their credit card detail to their service provider involved and the credit card organization will handle this payment like any other. We can break credit card payment on online network into 3 basic categories:

Payment using plain credit card detail: - The easiest method of payment is the
exchange of unencrypted credit cards over a public network such as telephone lines or the Internet. The low level of security inherent in the design of the Internet makes this method problematic (any snooper can read credit card number, and programs can be created to scan the internet traffic for credit cards number and send the number to its master). Authentication is also a significant problem. And the vendor is usually responsible to ensure that the person using the credit card is its owner. Without encryption there is no way to do this.

Payment using encrypted credit card details: - It would make sense to encrypted your
credit card details before sending them out, but even then are certain factors to considered. One would be the cost of credit card transaction itself. Such cost would prohibit low value payment by adding costs to the transaction.

Payments using 3rd party verification:- One solution to security and verification
problem is the introduction of the 3rd party. A company that collects and approves payment from one client to another. After a certain period of time, one credit card transaction for the total accumulated amount is completed. Some of the companies that are attempting to provide the infrastructure on-line credit card processing.

MASTER BANKING
A house banking service started by MASTER CARD and check free corp., as online payment processor.

VISA INTERACTIVE
VISA International acquired US order, a screen phone manufacture. VISA Interactive has signed up more than 30 banks including national banks.

Standard Segregation of credit card

Standard Card it is the most basic card ( sans all frills) offered by issuers. Classic Card Brand name for the standard card issued by VISA Gold Card/ Executive Card A credit card that offers a higher line of credit than a standard card, income eligibility is also higher. In additions, issuers provide extra perks or incentives to cardholders. Platinum card A credit card with a higher limit and additional perks than a gold card. Titanium Card A card with an even higher limit than a platinum card.

PROGRESS OF CREDIT CARD BUSINESS

The number of members using credit card and the number of establishment ownering it after joining the scheme have increased vastly over the past few years. Many Indian banks have joined hand with international banks to provide this card facility on a worldwide based or a selected international centers. The number of credit card holders which was 8 lakh (1997), have increased to 25 lakh now. The credit card network is also fast spreading in smaller cities and towns besides by cities and metros.

ELIGIBILITY
A bank who is in the business of credit card grant subject to some rules and guidelines to its eligible customer before a credit card is given to a customer the banker analysis following factors and accordingly fixes a credit limit if found eligible. The customer should have a saving or current account with the bank. His/Her monthly or annual are regularly received and credit to this bank account. His/Her assets and liabilities are known and reported to the bank. He is considered credit worthy up to a limit depending on his income, assets and expenditure and past dealing with the bank. The eligible member is then asked to fill in an application from where in details of account number, name and address, income, wealth, status and evidence statement of income etc. are given. This application form is processed and credit limit is established. This credit limit differs from individual to individual and Bank to bank. The maximum limit depends upon the users income. Some banks have fixed of Rs. 1 lakh, 2 lakh or 5 lakh.

ARRANGEMENTS WITH BANKER

Credit card is the key to opening of the bank accounts. The credit card charges and other payments utilized through credit cards are debited to his account. The banker issues a monthly statement and sent to cardholder. This statement contains details of the charges.

The following are some of the plus features of credit card in India.
Hotel discounts Travel fare discounts Free global calling card Lost baggage insurance Accident insurance Insurance on goods purchased Waiver of payment in case of accidental death Household insurance

Benefits of having a Credit card

A credit card makes it easy to buy something now and pay for it later. Its much safer to use a credit card than to carry around cash. If you lose your credit car, you can ask your credit card company to cancel your card, and no one else can use it. But if you lease cash your money is gone.

Credit cards are also convenient. Your can use them to make hotel, are rental and other reservations. You can buy items over the phone or online. You can also use credit cards for emergencies, like unexpected care repairs, when you dont have the cash to cover the expenses. A Credit card gives you a credit history, which helps to get home loans and other credit in a future.

HOW CREDIT CARD BENEFITS THE BANK

Credit card increases the customer base of the bank. Credit card increases credit portfolio of the bank. Credit card enhances the reputation of the bank public. The business establishments, which accept these cards, also give some incentives or commission to bank, by which the bank gains.

HOW CREDIT CARD BENEFITS THE CARD HOLDER

Cardholder can avoid carrying cash and risk of its lose. Cardholder enjoys a credit limit up to which he makes purchases per his need and pay at leisure. Cardholder gets some period of 30 to 45 days the outstanding overdraft. Credit cards serve as a status symbol. Money can be withdrawn at any time over the day and night. It provides free accidentals insurance cover. It provides purchase protection loss of travel, documents, loss of delay in arrival of baggage screeched baggage.

BENEFITS TO BUSINESS ESTABLISHMENT

Business increases to great extent of business houses that accept credit cards. Reputation of the business establishment increases. Customer based increases.

What are the cost of having a credit card?

All credit cards have finance charges foror not paying your balance in fill each month, but you could save a lot of money by shopping around for the credit card that offers you the best terms.

Key credit card terms to took at are the annual percentage rate (APR), annual fee, grace period, and late payment charge. Shop for a card with a grace period that gives you enough time to pay your bills on time without charging you interest. Credit card with no grace period start charging you fees as soon as you buy something on your credit card.

Where can I get credit card ?

Your mail is probably full credit card offers from national companies. Most local banks and Community Development Credit Unions (CDCUs) offer credit cards as well. The fees, charges and benefits for credit cards very among different companies. When youre choosing a card, shop around. CDCUs often offer the best rates and lowest fees, since they are not trying to make a profit like credit card companies are. Some large department stroes also offer credit cards that only can be used in their stores. Usually, when you apply for a store credit card, you get a one-time discount on your purchase that day. But these credit cards have limited uses and often carry high finance charges.

How do I get a credit card

If you are least 18 years old, have a regular source of income and good credit rating; you can probably qualify for a credit card. Before you submit a credit card application, order a copy of your credit report to make sure all of the information on it is correct. After you check your credit report, and fix any wrong information, you can start carefully researching credit card rates, fees and benefits. At the same time, make a list of the features you want in a credit card. Call any credit any credit companies youre interested in for question and other available plans.

REVIEW OF LITERATURE
Investigates the attitudes of Turkish consumers towards credit cards, and the approach of card issuers, by surveying two samples of 200 card-holders and non-holders: the better educated, middle-aged members of the upper-middle class seem to be the prime target; the most important reasons for using a credit card were ease of payment followed by risk of carrying cash; non-holders do not carry credit cards because they do not know much about it; informal sources of information appear to be more influential than mass media advertising in penetrating the market; proposes that the usage and the administration of credit cards are influenced very much by the infrastructure of the country and, hence, credit card companies have to modify their marketing and administrative procedures rather than following a standardized approach. Credit cards, including store cards and bankcards, serve two distinct functions for consumers: a means of payment and a source of credit (Ausubel 1991; Chakravorti 1997, 2000; Chakravorti and Emmons 2001; Slocum and Matthews 1970; Stavins 2000). Based on the main use of credit cards and the benefits sought, credit card users can be segmented into two groups: convenience users and revolvers (Lee and Hogarth 1999).

Convenience users tend to employ credit cards as an easy mode of payment; typically pay their balance in full upon receiving the statement. Revolvers, on the other hand, use the card principally as a mode of financing and chose to pay interest charges on the unpaid balance. According to the consumer behavior literature, consumer usage behavior and the benefits sought from a product or a service are one of the best predictors to explain consumer purchase behavior (PeterandOlson1999). Credit cards also serve as an open-ended, easily available credit source ( Lee and Kwon 2002). When consumers use credit cards as a mode of financing, credit cards compete with bank loans and other forms of financing

(Brito and Hartley 1995). Credit cards allow consumers to borrow within their credit limit without transaction costs, which includes all the time and effort involved with obtaining a loan from a financial institution. This convenience attracts many consumers to pay high interest on outstanding

credit card balances, rather than taking the time to apply for a loan with a lower interest rate. As a result, credit cards account for a substantial and growing share of consumers' debt Ausubel (1991) suggests that consumers may not even consider the interest rate when making purchases because they do not intend to borrow for an extended period when they make purchases. However, they may change their minds when the bill arrives. Stavins (1996) argues that consumers are somewhat sensitive not only to changes in the interest rate but also to the value of other credit-card enhancements such as frequent-use awards, expedited dispute resolution, extended warranties, and automobile rental insurance. However, she agrees with Ausubel (1991), Calem and Mester (1995) that lowering interest rates may attract less creditworthy consumers, therefore dissuading some credit-card issuers from interest rates. It is very essential to know whether the study has already been conducted before .If so, how to what extent? And because of this, scholar has to go through all the existing literature relation to the study. Credit card are a new concept introduced in India by Nationalized Banks only a few year back, very limited studies have been conducted on the subject. Due to time restriction lowering their

Scholar could seek advice from only the limited literature, Which is available in the library as well as on the Internet. It is the real world we have 3 ways to pay for goods: cash check And credit cards or debit cards. Cards can be smart card, debit card, ATM cards and any kind of credit cards. They all serve a special Purpose. They allow us to pay without cash. They are also all Online electronic payment media.

REAL WORLD CASH

We have now so many mediums of exchange to simplify transaction, a standard of value to make it easier to decide on the Worth of goods, and a store of value to facilitate the concept of saving. For the purpose of E-commerce, electronic money must fulfill the first function. When you carry cash, you are making on the spot payment but online payment is not very different from cash transactions in the real world, except for speed of transfer, ease of handling and the safety of not having to carry cash. Outside of the Internet, cash continues to be most widely used of the payment.

Its unique features are:

Convenience: - easy to use and easy to carry. Wide acceptance: - the U.S.Dollar happens to be most widely accepted paper currency in the world because of its stability and durability. Anonymity: - No identification is needed to pay in cash. No audit trial: - Lack of trace ability means you can do what you want with your cash. In countries where trust in currency, banking system, or the govt. is in question, cash is still used to buy all kind of product including homes, automobiles and other big ticket item.

CREDIT CARD BASED ELECTRONIC PAYMENT SYSTEM

To avoid the complexity association with digital cash and electronic cheques, consumers and vendors are also looking at credit card payment on the Internet as one possible time-tasted alternative. There is nothing new in the basic process. If consumer wants to purchase or services, they simply send their credit card detail to their service provider involved and the credit card organization will handle this payment like any other. We can break credit card payment on online network into 3 basic categories: Payment using plain credit card detail: - The easiest method of payment is the exchange of unencrypted credit cards over a public network such as telephone lines or the Internet. The low level of security inherent in the design of the Internet makes this method problematic (any snooper can read credit card number, and programs can be created to scan the internet traffic for credit cards number and send the number to its master). Authentication is also a significant problem. And the vendor is usually responsible to ensure that the person using the credit card is its owner. Without encryption there is no way to do this.

Payment using encrypted credit card details: - It would make sense to encrypted your
credit card details before sending them out, but even then are certain factors to considered. One would be the cost of credit card transaction itself. Such cost would prohibit low value payment by adding costs to the transaction.

Payments using 3rd party verification:- One solution to security and verification
problem is the introduction of the 3rd party. A company that collects and approves payment from one client to another. After a certain period of time, one credit card transaction for the total accumulated amount is completed. Some of the companies that are attempting to provide the infrastructure on-line credit card processing.

MASTER BANKING
A house banking service started by MASTER CARD and check free corp., as online payment processor.

VISA INTERACTIVE
VISA International acquired US order, a screen phone manufacture. VISA Interactive has signed up more than 30 banks including national banks.

Standard Segregation of credit card

Standard Card it is the most basic card ( sans all frills) offered by issuers. Classic Card Brand name for the standard card issued by VISA Gold Card/ Executive Card A credit card that offers a higher line of credit than a standard card, income eligibility is also higher. In additions, issuers provide extra perks or incentives to cardholders. Platinum card A credit card with a higher limit and additional perks than a gold card. Titanium Card A card with an even higher limit than a platinum card.

PROGRESS OF CREDIT CARD BUSINESS

The number of members using credit card and the number of establishment ownering it after joining the scheme have increased vastly over the past few years. Many Indian banks have joined hand with international banks to provide this card facility on a worldwide based or a selected international centers. The number of credit card holders which was 8 lakh (1997), have increased to 25 lakh now. The credit card network is also fast spreading in smaller cities and towns besides by cities and metros.

ELIGIBILITY
A bank who is in the business of credit card grant subject to some rules and guidelines to its eligible customer before a credit card is given to a customer the banker analysis following factors and accordingly fixes a credit limit if found eligible. The customer should have a saving or current account with the bank.

His/Her monthly or annual are regularly received and credit to this bank account. His/Her assets and liabilities are known and reported to the bank. He is considered credit worthy up to a limit depending on his income, assets and expenditure and past dealing with the bank. The eligible member is then asked to fill in an application from where in details of account number, name and address, income, wealth, status and evidence statement of income etc. are given. This application form is processed and credit limit is established. This credit limit differs from individual to individual and Bank to bank. The maximum limit depends upon the users income. Some banks have fixed of Rs. 1 lakh, 2 lakh or 5 lakh.

ARRANGEMENTS WITH BANKER

Credit card is the key to opening of the bank accounts. The credit card charges and other payments utilized through credit cards are debited to his account. The banker issues a monthly statement and sent to cardholder. This statement contains details of the charges.

The following are some of the plus features of credit card in India.
Hotel discounts Travel fare discounts Free global calling card Lost baggage insurance Accident insurance Insurance on goods purchased Waiver of payment in case of accidental death Household insurance

Benefits of having a Credit card

A credit card makes it easy to buy something now and pay for it later. Its much safer to use a credit card than to carry around cash. If you lose your credit car, you can ask your credit card company to cancel your card, and no one else can use it. But if you lease cash your money is gone. Credit cards are also convenient. Your can use them to make hotel, are rental and other reservations. You can buy items over the phone or online. You can also use credit cards for emergencies, like unexpected care repairs, when you dont have the cash to cover the expenses. A Credit card gives you a credit history, which helps to get home loans and other credit in a future.

HOW CREDIT CARD BENEFITS THE BANK

Credit card increases the customer base of the bank. Credit card increases credit portfolio of the bank. Credit card enhances the reputation of the bank public. The business establishments, which accept these cards, also give some incentives or commission to bank, by which the bank gains.

HOW CREDIT CARD BENEFITS THE CARD HOLDER

Cardholder can avoid carrying cash and risk of its lose. Cardholder enjoys a credit limit up to which he makes purchases per his need and pay at leisure. Cardholder gets some period of 30 to 45 days the outstanding overdraft. Credit cards serve as a status symbol. Money can be withdrawn at any time over the day and night. It provides free accidentals insurance cover. It provides purchase protection loss of travel, documents, loss of delay in arrival of baggage screeched baggage.

BENEFITS TO BUSINESS ESTABLISHMENT

Business increases to great extent of business houses that accept credit cards. Reputation of the business establishment increases. Customer based increases.

What are the cost of having a credit card?

All credit cards have finance charges foror not paying your balance in fill each month, but you could save a lot of money by shopping around for the credit card that offers you the best terms. Key credit card terms to took at are the annual percentage rate (APR), annual fee, grace period, and late payment charge. Shop for a card with a grace period that gives you enough time to pay your bills on time without charging you interest. Credit card with no grace period start charging you fees as soon as you buy something on your credit card.

Where can I get credit card ?

Your mail is probably full credit card offers from national companies. Most local banks and Community Development Credit Unions (CDCUs) offer credit cards as well. The fees, charges and benefits for credit cards very among different companies. When youre choosing a card, shop around. CDCUs often offer the best rates and lowest fees, since they are not trying to make a profit like credit card companies are. Some large department stroes also offer credit cards that only can be used in their stores. Usually, when you apply for a store credit card, you get a one-time discount on your purchase that day. But these credit cards have limited uses and often carry high finance charges.

How do I get a credit card

If you are least 18 years old, have a regular source of income and good credit rating; you can probably qualify for a credit card. Before you submit a credit card application, order a copy of your credit report to make sure all of the information on it is correct. After you check your credit report, and fix any wrong information, you can start carefully researching credit card rates, fees and benefits. At the same time, make a list of the features you want in a credit card. Call any credit any credit companies youre interested in for question and other available plans.

REVIEW OF LITERATURE
Investigates the attitudes of Turkish consumers towards credit cards, and the approach of card issuers, by surveying two samples of 200 card-holders and non-holders: the better educated, middle-aged members of the upper-middle class seem to be the prime target; the most important reasons for using a credit card were ease of payment followed by risk of carrying cash; non-holders do not carry credit cards because they do not know much about it; informal sources of information appear to be more influential than mass media advertising in penetrating the market; proposes that the usage and the administration of credit cards are influenced very much by the infrastructure of the country and, hence, credit card companies have to modify their marketing and administrative procedures rather than following a standardized approach. Credit cards, including store cards and bankcards, serve two distinct functions for consumers: a means of payment and a source of credit (Ausubel 1991; Chakravorti 1997, 2000; Chakravorti and Emmons 2001; Slocum and Matthews 1970; Stavins 2000). Based on the main use of credit cards and the benefits sought, credit card users can be segmented into two groups: convenience users and revolvers (Lee and Hogarth 1999). Convenience users tend to employ credit cards as an easy mode of payment; typically pay their balance in full upon receiving the statement. Revolvers, on the other hand, use the card principally as a mode of financing and chose to pay interest charges on the unpaid balance. According to the consumer behavior literature, consumer usage behavior and the benefits

sought from a product or a service are one of the best predictors to explain consumer purchase behavior (PeterandOlson1999). Credit cards also serve as an open-ended, easily available credit source ( Lee and Kwon 2002). When consumers use credit cards as a mode of financing, credit cards compete with bank loans and other forms of financing

(Brito and Hartley 1995). Credit cards allow consumers to borrow within their credit limit without transaction costs, which includes all the time and effort involved with obtaining a loan from a financial institution. This convenience attracts many consumers to pay high interest on outstanding

credit card balances, rather than taking the time to apply for a loan with a lower interest rate. As a result, credit cards account for a substantial and growing share of consumers' debt Ausubel (1991) suggests that consumers may not even consider the interest rate when making purchases because they do not intend to borrow for an extended period when they make purchases. However, they may change their minds when the bill arrives. Stavins (1996) argues that consumers are somewhat sensitive not only to changes in the interest rate but also to the value of other credit-card enhancements such as frequent-use awards, expedited dispute resolution, extended warranties, and automobile rental insurance. However, she agrees with Ausubel (1991), Calem and Mester (1995) that lowering interest rates may attract less creditworthy consumers, therefore dissuading some credit-card issuers from interest rates. It is very essential to know whether the study has already been conducted before .If so, how to what extent? And because of this, scholar has to go through all the existing literature relation to the study. Credit card are a new concept introduced in India by Nationalized Banks only a few year back, very limited studies have been conducted on the subject. Due to time restriction Scholar could seek advice from only the limited literature, Which is available in the library as well as on the Internet. It is the real world we have 3 ways to pay for goods: cash check And credit cards or debit cards. Cards can be smart card, debit card, ATM cards and any kind of credit cards. They all serve a special Purpose. They allow us to pay without cash. They are also all Online electronic payment media. lowering their

REAL WORLD CASH

We have now so many mediums of exchange to simplify transaction, a standard of value to make it easier to decide on the Worth of goods, and a store of value to facilitate the concept of saving. For the purpose of E-commerce, electronic money must fulfill the first function. When you carry cash, you are making on the spot payment but online payment is not very different from cash transactions in the real world, except for speed of transfer, ease of handling and the safety of not having to carry cash. Outside of the Internet, cash continues to be most widely used of the payment.

Its unique features are:

Convenience: - easy to use and easy to carry. Wide acceptance: - the U.S.Dollar happens to be most widely accepted paper currency in the world because of its stability and durability. Anonymity: - No identification is needed to pay in cash. No audit trial: - Lack of trace ability means you can do what you want with your cash. In countries where trust in currency, banking system, or the govt. is in question, cash is still used to buy all kind of product including homes, automobiles and other big ticket item.

CREDIT CARD BASED ELECTRONIC PAYMENT SYSTEM

To avoid the complexity association with digital cash and electronic cheques, consumers and vendors are also looking at credit card payment on the Internet as one possible time-tasted alternative. There is nothing new in the basic process. If consumer wants to purchase or services, they simply send their credit card detail to their service provider involved and the credit card organization will handle this payment like any other. We can break credit card payment on online network into 3 basic categories: Payment using plain credit card detail: - The easiest method of payment is the exchange of unencrypted credit cards over a public network such as telephone lines or the Internet. The low level of security inherent in the design of the Internet makes this method problematic (any snooper can read credit card number, and programs can be created to scan the internet traffic for credit cards number and send the number to its master). Authentication is also a significant problem. And the vendor is usually responsible to ensure that the person using the credit card is its owner. Without encryption there is no way to do this.

Payment using encrypted credit card details: - It would make sense to encrypted your
credit card details before sending them out, but even then are certain factors to considered. One would be the cost of credit card transaction itself. Such cost would prohibit low value payment by adding costs to the transaction.

Payments using 3rd party verification:- One solution to security and verification
problem is the introduction of the 3rd party. A company that collects and approves payment from one client to another. After a certain period of time, one credit card transaction for the total accumulated amount is completed. Some of the companies that are attempting to provide the infrastructure on-line credit card processing.

MASTER BANKING
A house banking service started by MASTER CARD and check free corp., as online payment processor.

VISA INTERACTIVE
VISA International acquired US order, a screen phone manufacture. VISA Interactive has signed up more than 30 banks including national banks.

Standard Segregation of credit card

Standard Card it is the most basic card ( sans all frills) offered by issuers. Classic Card Brand name for the standard card issued by VISA Gold Card/ Executive Card A credit card that offers a higher line of credit than a standard card, income eligibility is also higher. In additions, issuers provide extra perks or incentives to cardholders. Platinum card A credit card with a higher limit and additional perks than a gold card. Titanium Card A card with an even higher limit than a platinum card.

PROGRESS OF CREDIT CARD BUSINESS

The number of members using credit card and the number of establishment ownering it after joining the scheme have increased vastly over the past few years. Many Indian banks have joined hand with international banks to provide this card facility on a worldwide based or a selected international centers. The number of credit card holders which was 8 lakh (1997), have increased to 25 lakh now. The credit card network is also fast spreading in smaller cities and towns besides by cities and metros.

ELIGIBILITY
A bank who is in the business of credit card grant subject to some rules and guidelines to its eligible customer before a credit card is given to a customer the banker analysis following factors and accordingly fixes a credit limit if found eligible. The customer should have a saving or current account with the bank. His/Her monthly or annual are regularly received and credit to this bank account. His/Her assets and liabilities are known and reported to the bank. He is considered credit worthy up to a limit depending on his income, assets and expenditure and past dealing with the bank.

The eligible member is then asked to fill in an application from where in details of account number, name and address, income, wealth, status and evidence statement of income etc. are given. This application form is processed and credit limit is established. This credit limit differs from individual to individual and Bank to bank. The maximum limit depends upon the users income. Some banks have fixed of Rs. 1 lakh, 2 lakh or 5 lakh.

ARRANGEMENTS WITH BANKER

Credit card is the key to opening of the bank accounts. The credit card charges and other payments utilized through credit cards are debited to his account. The banker issues a monthly statement and sent to cardholder. This statement contains details of the charges.

The following are some of the plus features of credit card in India.
Hotel discounts Travel fare discounts Free global calling card Lost baggage insurance Accident insurance Insurance on goods purchased Waiver of payment in case of accidental death Household insurance

Benefits of having a Credit card

A credit card makes it easy to buy something now and pay for it later. Its much safer to use a credit card than to carry around cash. If you lose your credit car, you can ask your credit card company to cancel your card, and no one else can use it. But if you lease cash your money is gone. Credit cards are also convenient. Your can use them to make hotel, are rental and other reservations. You can buy items over the phone or online. You can also use credit cards for emergencies, like unexpected care repairs, when you dont have the cash to cover the expenses. A Credit card gives you a credit history, which helps to get home loans and other credit in a future.

HOW CREDIT CARD BENEFITS THE BANK

Credit card increases the customer base of the bank. Credit card increases credit portfolio of the bank. Credit card enhances the reputation of the bank public.

The business establishments, which accept these cards, also give some incentives or commission to bank, by which the bank gains.

HOW CREDIT CARD BENEFITS THE CARD HOLDER

Cardholder can avoid carrying cash and risk of its lose. Cardholder enjoys a credit limit up to which he makes purchases per his need and pay at leisure. Cardholder gets some period of 30 to 45 days the outstanding overdraft. Credit cards serve as a status symbol. Money can be withdrawn at any time over the day and night. It provides free accidentals insurance cover. It provides purchase protection loss of travel, documents, loss of delay in arrival of baggage screeched baggage.

BENEFITS TO BUSINESS ESTABLISHMENT

Business increases to great extent of business houses that accept credit cards. Reputation of the business establishment increases. Customer based increases.

What are the cost of having a credit card?

All credit cards have finance charges foror not paying your balance in fill each month, but you could save a lot of money by shopping around for the credit card that offers you the best terms. Key credit card terms to took at are the annual percentage rate (APR), annual fee, grace period, and late payment charge. Shop for a card with a grace period that gives you enough time to pay your bills on time without charging you interest. Credit card with no grace period start charging you fees as soon as you buy something on your credit card.

Where can I get credit card ?

Your mail is probably full credit card offers from national companies. Most local banks and Community Development Credit Unions (CDCUs) offer credit cards as well. The fees, charges and benefits for credit cards very among different companies. When youre choosing a card,

shop around. CDCUs often offer the best rates and lowest fees, since they are not trying to make a profit like credit card companies are. Some large department stroes also offer credit cards that only can be used in their stores. Usually, when you apply for a store credit card, you get a one-time discount on your purchase that day. But these credit cards have limited uses and often carry high finance charges.

How do I get a credit card

If you are least 18 years old, have a regular source of income and good credit rating; you can probably qualify for a credit card. Before you submit a credit card application, order a copy of your credit report to make sure all of the information on it is correct. After you check your credit report, and fix any wrong information, you can start carefully researching credit card rates, fees and benefits. At the same time, make a list of the features you want in a credit card. Call any credit any credit companies youre interested in for question and other available plans.

REVIEW OF LITERATURE
Investigates the attitudes of Turkish consumers towards credit cards, and the approach of card issuers, by surveying two samples of 200 card-holders and non-holders: the better educated, middle-aged members of the upper-middle class seem to be the prime target; the most important reasons for using a credit card were ease of payment followed by risk of carrying cash; non-holders do not carry credit cards because they do not know much about it; informal sources of information appear to be more influential than mass media advertising in penetrating the market; proposes that the usage and the administration of credit cards are influenced very much by the infrastructure of the country and, hence, credit card companies have to modify their marketing and administrative procedures rather than following a standardized approach. Credit cards, including store cards and bankcards, serve two distinct functions for consumers: a means of payment and a source of credit (Ausubel 1991; Chakravorti 1997, 2000; Chakravorti and Emmons 2001; Slocum and Matthews 1970; Stavins 2000). Based on the main use of credit cards and the benefits sought, credit card users can be segmented into two groups: convenience users and revolvers (Lee and Hogarth 1999). Convenience users tend to employ credit cards as an easy mode of payment; typically pay their balance in full upon receiving the statement. Revolvers, on the other hand, use the card principally as a mode of financing and chose to pay interest charges on the unpaid balance. According to the consumer behavior literature, consumer usage behavior and the benefits sought from a product or a service are one of the best predictors to explain consumer purchase behavior (PeterandOlson1999). Credit cards also serve as an open-ended, easily available credit source ( Lee and Kwon

2002). When consumers use credit cards as a mode of financing, credit cards compete with bank loans and other forms of financing

(Brito and Hartley 1995). Credit cards allow consumers to borrow within their credit limit without transaction costs, which includes all the time and effort involved with obtaining a loan from a financial institution. This convenience attracts many consumers to pay high interest on outstanding

credit card balances, rather than taking the time to apply for a loan with a lower interest rate. As a result, credit cards account for a substantial and growing share of consumers' debt Ausubel (1991) suggests that consumers may not even consider the interest rate when making purchases because they do not intend to borrow for an extended period when they make purchases. However, they may change their minds when the bill arrives. Stavins (1996) argues that consumers are somewhat sensitive not only to changes in the interest rate but also to the value of other credit-card enhancements such as frequent-use awards, expedited dispute resolution, extended warranties, and automobile rental insurance. However, she agrees with Ausubel (1991), Calem and Mester (1995) that lowering interest rates may attract less creditworthy consumers, therefore dissuading some credit-card issuers from interest rates. It is very essential to know whether the study has already been conducted before .If so, how to what extent? And because of this, scholar has to go through all the existing literature relation to the study. Credit card are a new concept introduced in India by Nationalized Banks only a few year back, very limited studies have been conducted on the subject. Due to time restriction Scholar could seek advice from only the limited literature, Which is available in the library as well as on the Internet. It is the real world we have 3 ways to pay for goods: cash check And credit cards or debit cards. Cards can be smart card, debit card, ATM cards and any kind of credit cards. They all serve a special Purpose. They allow us to pay without cash. They are also all Online electronic payment media. lowering their

REAL WORLD CASH

We have now so many mediums of exchange to simplify transaction, a standard of value to make it easier to decide on the Worth of goods, and a store of value to facilitate the concept of saving. For the purpose of E-commerce, electronic money must fulfill the first function. When

you carry cash, you are making on the spot payment but online payment is not very different from cash transactions in the real world, except for speed of transfer, ease of handling and the safety of not having to carry cash. Outside of the Internet, cash continues to be most widely used of the payment.

Its unique features are:

Convenience: - easy to use and easy to carry. Wide acceptance: - the U.S.Dollar happens to be most widely accepted paper currency in the world because of its stability and durability. Anonymity: - No identification is needed to pay in cash. No audit trial: - Lack of trace ability means you can do what you want with your cash. In countries where trust in currency, banking system, or the govt. is in question, cash is still used to buy all kind of product including homes, automobiles and other big ticket item.

CREDIT CARD BASED ELECTRONIC PAYMENT SYSTEM

To avoid the complexity association with digital cash and electronic cheques, consumers and vendors are also looking at credit card payment on the Internet as one possible time-tasted alternative. There is nothing new in the basic process. If consumer wants to purchase or services, they simply send their credit card detail to their service provider involved and the credit card organization will handle this payment like any other. We can break credit card payment on online network into 3 basic categories: Payment using plain credit card detail: - The easiest method of payment is the exchange of unencrypted credit cards over a public network such as telephone lines or the Internet. The low level of security inherent in the design of the Internet makes this method problematic (any snooper can read credit card number, and programs can be created to scan the internet traffic for credit cards number and send the number to its master). Authentication is also a significant problem. And the vendor is usually responsible to ensure that the person using the credit card is its owner. Without encryption there is no way to do this.

Payment using encrypted credit card details: - It would make sense to encrypted your
credit card details before sending them out, but even then are certain factors to considered. One would be the cost of credit card transaction itself. Such cost would prohibit low value payment by adding costs to the transaction.

Payments using 3rd party verification:- One solution to security and verification
problem is the introduction of the 3rd party. A company that collects and approves payment from one client to another. After a certain period of time, one credit card transaction for the total accumulated amount is completed. Some of the companies that are attempting to provide the infrastructure on-line credit card processing.

MASTER BANKING
A house banking service started by MASTER CARD and check free corp., as online payment processor.

VISA INTERACTIVE
VISA International acquired US order, a screen phone manufacture. VISA Interactive has signed up more than 30 banks including national banks.

Standard Segregation of credit card

Standard Card it is the most basic card ( sans all frills) offered by issuers. Classic Card Brand name for the standard card issued by VISA Gold Card/ Executive Card A credit card that offers a higher line of credit than a standard card, income eligibility is also higher. In additions, issuers provide extra perks or incentives to cardholders. Platinum card A credit card with a higher limit and additional perks than a gold card. Titanium Card A card with an even higher limit than a platinum card.

PROGRESS OF CREDIT CARD BUSINESS

The number of members using credit card and the number of establishment ownering it after joining the scheme have increased vastly over the past few years. Many Indian banks have joined hand with international banks to provide this card facility on a worldwide based or a selected international centers. The number of credit card holders which was 8 lakh (1997), have increased to 25 lakh now. The credit card network is also fast spreading in smaller cities and towns besides by cities and metros.

ELIGIBILITY
A bank who is in the business of credit card grant subject to some rules and guidelines to its eligible customer before a credit card is given to a customer the banker analysis following factors and accordingly fixes a credit limit if found eligible. The customer should have a saving or current account with the bank. His/Her monthly or annual are regularly received and credit to this bank account. His/Her assets and liabilities are known and reported to the bank. He is considered credit worthy up to a limit depending on his income, assets and expenditure and past dealing with the bank. The eligible member is then asked to fill in an application from where in details of account number, name and address, income, wealth, status and evidence statement of income etc. are given. This application form is processed and credit limit is established. This credit limit differs from individual to individual and Bank to bank. The maximum limit depends upon the users income. Some banks have fixed of Rs. 1 lakh, 2 lakh or 5 lakh.

ARRANGEMENTS WITH BANKER

Credit card is the key to opening of the bank accounts. The credit card charges and other payments utilized through credit cards are debited to his account. The banker issues a monthly statement and sent to cardholder. This statement contains details of the charges.

The following are some of the plus features of credit card in India.
Hotel discounts Travel fare discounts Free global calling card Lost baggage insurance Accident insurance Insurance on goods purchased Waiver of payment in case of accidental death Household insurance

Benefits of having a Credit card

A credit card makes it easy to buy something now and pay for it later. Its much safer to use a credit card than to carry around cash. If you lose your credit car, you can ask your credit card company to cancel your card, and no one else can use it. But if you lease cash your money is gone. Credit cards are also convenient. Your can use them to make hotel, are rental and other reservations. You can buy items over the phone or online. You can also use credit cards for emergencies, like unexpected care repairs, when you dont have the cash to cover the expenses. A Credit card gives you a credit history, which helps to get home loans and other credit in a future.

HOW CREDIT CARD BENEFITS THE BANK

Credit card increases the customer base of the bank. Credit card increases credit portfolio of the bank. Credit card enhances the reputation of the bank public. The business establishments, which accept these cards, also give some incentives or commission to bank, by which the bank gains.

HOW CREDIT CARD BENEFITS THE CARD HOLDER

Cardholder can avoid carrying cash and risk of its lose. Cardholder enjoys a credit limit up to which he makes purchases per his need and pay at leisure. Cardholder gets some period of 30 to 45 days the outstanding overdraft. Credit cards serve as a status symbol. Money can be withdrawn at any time over the day and night. It provides free accidentals insurance cover. It provides purchase protection loss of travel, documents, loss of delay in arrival of baggage screeched baggage.

BENEFITS TO BUSINESS ESTABLISHMENT

Business increases to great extent of business houses that accept credit cards. Reputation of the business establishment increases. Customer based increases.

What are the cost of having a credit card?

All credit cards have finance charges foror not paying your balance in fill each month, but you could save a lot of money by shopping around for the credit card that offers you the best terms. Key credit card terms to took at are the annual percentage rate (APR), annual fee, grace period, and late payment charge. Shop for a card with a grace period that gives you enough time to pay your bills on time without charging you interest. Credit card with no grace period start charging you fees as soon as you buy something on your credit card.

Where can I get credit card ?

Your mail is probably full credit card offers from national companies. Most local banks and Community Development Credit Unions (CDCUs) offer credit cards as well. The fees, charges and benefits for credit cards very among different companies. When youre choosing a card, shop around. CDCUs often offer the best rates and lowest fees, since they are not trying to make a profit like credit card companies are. Some large department stroes also offer credit cards that only can be used in their stores. Usually, when you apply for a store credit card, you get a one-time discount on your purchase that day. But these credit cards have limited uses and often carry high finance charges.

How do I get a credit card

If you are least 18 years old, have a regular source of income and good credit rating; you can probably qualify for a credit card. Before you submit a credit card application, order a copy of your credit report to make sure all of the information on it is correct. After you check your credit report, and fix any wrong information, you can start carefully researching credit card rates, fees and benefits. At the same time, make a list of the features you want in a credit card. Call any credit any credit companies youre interested in for question and other available plans.

REVIEW OF LITERATURE
Investigates the attitudes of Turkish consumers towards credit cards, and the approach of card issuers, by surveying two samples of 200 card-holders and non-holders: the better educated, middle-aged members of the upper-middle class seem to be the prime target; the most important reasons for using a credit card were ease of payment followed by risk of carrying cash; non-holders do not carry credit cards because they do not know much about it; informal sources of information appear to be more influential than mass media advertising in penetrating the market; proposes that the usage and the administration of credit cards are influenced very much by the infrastructure of the country and, hence, credit card companies have to modify their marketing and administrative procedures rather than following a standardized approach. Credit cards, including store cards and bankcards, serve two distinct functions for consumers: a means of payment and a source of credit (Ausubel 1991; Chakravorti 1997, 2000; Chakravorti and Emmons 2001; Slocum and Matthews 1970; Stavins 2000). Based on the main use of credit cards and the benefits sought, credit card users can be segmented into two groups: convenience users and revolvers (Lee and Hogarth 1999). Convenience users tend to employ credit cards as an easy mode of payment; typically pay their balance in full upon receiving the statement. Revolvers, on the other hand, use the card principally as a mode of financing and chose to pay interest charges on the unpaid balance. According to the consumer behavior literature, consumer usage behavior and the benefits sought from a product or a service are one of the best predictors to explain consumer purchase behavior (PeterandOlson1999). Credit cards also serve as an open-ended, easily available credit source ( Lee and Kwon 2002). When consumers use credit cards as a mode of financing, credit cards compete with bank loans and other forms of financing

(Brito and Hartley 1995).

Credit cards allow consumers to borrow within their credit limit without transaction costs, which includes all the time and effort involved with obtaining a loan from a financial institution. This convenience attracts many consumers to pay high interest on outstanding

credit card balances, rather than taking the time to apply for a loan with a lower interest rate. As a result, credit cards account for a substantial and growing share of consumers' debt Ausubel (1991) suggests that consumers may not even consider the interest rate when making purchases because they do not intend to borrow for an extended period when they make purchases. However, they may change their minds when the bill arrives. Stavins (1996) argues that consumers are somewhat sensitive not only to changes in the interest rate but also to the value of other credit-card enhancements such as frequent-use awards, expedited dispute resolution, extended warranties, and automobile rental insurance. However, she agrees with Ausubel (1991), Calem and Mester (1995) that lowering interest rates may attract less creditworthy consumers, therefore dissuading some credit-card issuers from interest rates. It is very essential to know whether the study has already been conducted before .If so, how to what extent? And because of this, scholar has to go through all the existing literature relation to the study. Credit card are a new concept introduced in India by Nationalized Banks only a few year back, very limited studies have been conducted on the subject. Due to time restriction Scholar could seek advice from only the limited literature, Which is available in the library as well as on the Internet. It is the real world we have 3 ways to pay for goods: cash check And credit cards or debit cards. Cards can be smart card, debit card, ATM cards and any kind of credit cards. They all serve a special Purpose. They allow us to pay without cash. They are also all Online electronic payment media. lowering their

REAL WORLD CASH

We have now so many mediums of exchange to simplify transaction, a standard of value to make it easier to decide on the Worth of goods, and a store of value to facilitate the concept of saving. For the purpose of E-commerce, electronic money must fulfill the first function. When you carry cash, you are making on the spot payment but online payment is not very different from cash transactions in the real world, except for speed of transfer, ease of handling and the safety of not having to carry cash. Outside of the Internet, cash continues to be most widely used of the payment.

Its unique features are:

Convenience: - easy to use and easy to carry. Wide acceptance: - the U.S.Dollar happens to be most widely accepted paper currency in the world because of its stability and durability. Anonymity: - No identification is needed to pay in cash. No audit trial: - Lack of trace ability means you can do what you want with your cash. In countries where trust in currency, banking system, or the govt. is in question, cash is still used to buy all kind of product including homes, automobiles and other big ticket item.

CREDIT CARD BASED ELECTRONIC PAYMENT SYSTEM

To avoid the complexity association with digital cash and electronic cheques, consumers and vendors are also looking at credit card payment on the Internet as one possible time-tasted alternative. There is nothing new in the basic process. If consumer wants to purchase or services, they simply send their credit card detail to their service provider involved and the credit card organization will handle this payment like any other. We can break credit card payment on online network into 3 basic categories: Payment using plain credit card detail: - The easiest method of payment is the exchange of unencrypted credit cards over a public network such as telephone lines or the Internet. The low level of security inherent in the design of the Internet makes this method problematic (any snooper can read credit card number, and programs can be created to scan the internet traffic for credit cards number and send the number to its master). Authentication is also a significant problem. And the vendor is usually responsible to ensure that the person using the credit card is its owner. Without encryption there is no way to do this.

Payment using encrypted credit card details: - It would make sense to encrypted your
credit card details before sending them out, but even then are certain factors to considered. One would be the cost of credit card transaction itself. Such cost would prohibit low value payment by adding costs to the transaction.

Payments using 3rd party verification:- One solution to security and verification
problem is the introduction of the 3rd party. A company that collects and approves payment from one client to another. After a certain period of time, one credit card transaction for the total accumulated amount is completed. Some of the companies that are attempting to provide the infrastructure on-line credit card processing.

MASTER BANKING
A house banking service started by MASTER CARD and check free corp., as online payment processor.

VISA INTERACTIVE
VISA International acquired US order, a screen phone manufacture. VISA Interactive has signed up more than 30 banks including national banks.

Standard Segregation of credit card

Standard Card it is the most basic card ( sans all frills) offered by issuers. Classic Card Brand name for the standard card issued by VISA Gold Card/ Executive Card A credit card that offers a higher line of credit than a standard card, income eligibility is also higher. In additions, issuers provide extra perks or incentives to cardholders. Platinum card A credit card with a higher limit and additional perks than a gold card. Titanium Card A card with an even higher limit than a platinum card.

PROGRESS OF CREDIT CARD BUSINESS

The number of members using credit card and the number of establishment ownering it after joining the scheme have increased vastly over the past few years. Many Indian banks have joined hand with international banks to provide this card facility on a worldwide based or a selected international centers. The number of credit card holders which was 8 lakh (1997), have increased to 25 lakh now. The credit card network is also fast spreading in smaller cities and towns besides by cities and metros.

ELIGIBILITY
A bank who is in the business of credit card grant subject to some rules and guidelines to its eligible customer before a credit card is given to a customer the banker analysis following factors and accordingly fixes a credit limit if found eligible. The customer should have a saving or current account with the bank. His/Her monthly or annual are regularly received and credit to this bank account. His/Her assets and liabilities are known and reported to the bank. He is considered credit worthy up to a limit depending on his income, assets and expenditure and past dealing with the bank. The eligible member is then asked to fill in an application from where in details of account number, name and address, income, wealth, status and evidence statement of income etc. are given. This application form is processed and credit limit is established. This credit limit differs from individual to individual and Bank to bank. The maximum limit depends upon the users income. Some banks have fixed of Rs. 1 lakh, 2 lakh or 5 lakh.

ARRANGEMENTS WITH BANKER

Credit card is the key to opening of the bank accounts. The credit card charges and other payments utilized through credit cards are debited to his account. The banker issues a monthly statement and sent to cardholder. This statement contains details of the charges.

The following are some of the plus features of credit card in India.
Hotel discounts Travel fare discounts Free global calling card Lost baggage insurance Accident insurance Insurance on goods purchased Waiver of payment in case of accidental death Household insurance

Benefits of having a Credit card

A credit card makes it easy to buy something now and pay for it later. Its much safer to use a credit card than to carry around cash. If you lose your credit car, you can ask your credit card company to cancel your card, and no one else can use it. But if you lease cash your money is gone. Credit cards are also convenient. Your can use them to make hotel, are rental and other reservations. You can buy items over the phone or online. You can also use credit cards for emergencies, like unexpected care repairs, when you dont have the cash to cover the expenses. A Credit card gives you a credit history, which helps to get home loans and other credit in a future.

HOW CREDIT CARD BENEFITS THE BANK

Credit card increases the customer base of the bank. Credit card increases credit portfolio of the bank. Credit card enhances the reputation of the bank public. The business establishments, which accept these cards, also give some incentives or commission to bank, by which the bank gains.

HOW CREDIT CARD BENEFITS THE CARD HOLDER

Cardholder can avoid carrying cash and risk of its lose. Cardholder enjoys a credit limit up to which he makes purchases per his need and pay at leisure. Cardholder gets some period of 30 to 45 days the outstanding overdraft. Credit cards serve as a status symbol. Money can be withdrawn at any time over the day and night. It provides free accidentals insurance cover. It provides purchase protection loss of travel, documents, loss of delay in arrival of baggage screeched baggage.

BENEFITS TO BUSINESS ESTABLISHMENT

Business increases to great extent of business houses that accept credit cards. Reputation of the business establishment increases. Customer based increases.

What are the cost of having a credit card?

All credit cards have finance charges foror not paying your balance in fill each month, but you could save a lot of money by shopping around for the credit card that offers you the best terms. Key credit card terms to took at are the annual percentage rate (APR), annual fee, grace period, and late payment charge. Shop for a card with a grace period that gives you enough time to pay your bills on time without charging you interest. Credit card with no grace period start charging you fees as soon as you buy something on your credit card.

Where can I get credit card ?

Your mail is probably full credit card offers from national companies. Most local banks and Community Development Credit Unions (CDCUs) offer credit cards as well. The fees, charges and benefits for credit cards very among different companies. When youre choosing a card, shop around. CDCUs often offer the best rates and lowest fees, since they are not trying to make a profit like credit card companies are. Some large department stroes also offer credit cards that only can be used in their stores. Usually, when you apply for a store credit card, you get a one-time discount on your purchase that day. But these credit cards have limited uses and often carry high finance charges.

How do I get a credit card

If you are least 18 years old, have a regular source of income and good credit rating; you can probably qualify for a credit card. Before you submit a credit card application, order a copy of

your credit report to make sure all of the information on it is correct. After you check your credit report, and fix any wrong information, you can start carefully researching credit card rates, fees and benefits. At the same time, make a list of the features you want in a credit card. Call any credit any credit companies youre interested in for question and other available plans.

REVIEW OF LITERATURE
Investigates the attitudes of Turkish consumers towards credit cards, and the approach of card issuers, by surveying two samples of 200 card-holders and non-holders: the

better educated, middle-aged members of the upper-middle class seem to be the prime target; the most important reasons for using a credit card were ease of payment followed by risk of carrying cash; non-holders do not carry credit cards because they do not know much about it; informal sources of information appear to be more influential than mass media advertising in penetrating the market; proposes that the usage and the administration of credit cards are influenced very much by the infrastructure of the country and, hence, credit card companies have to modify their marketing and administrative procedures rather than following a standardized approach. Credit cards, including store cards and bankcards, serve two distinct functions for consumers: a means of payment and a source of credit (Ausubel 1991; Chakravorti 1997, 2000; Chakravorti and Emmons 2001; Slocum and Matthews 1970; Stavins 2000). Based on the main use of credit cards and the benefits sought, credit card users can be segmented into two groups: convenience users and revolvers (Lee and Hogarth 1999). Convenience users tend to employ credit cards as an easy mode of payment; typically pay their balance in full upon receiving the statement. Revolvers, on the other hand, use the card principally as a mode of financing and chose to pay interest charges on the unpaid balance. According to the consumer behavior literature, consumer usage behavior and the benefits sought from a product or a service are one of the best predictors to explain consumer purchase behavior (PeterandOlson1999). Credit cards also serve as an open-ended, easily available credit source ( Lee and Kwon 2002). When consumers use credit cards as a mode of financing, credit cards compete with bank loans and other forms of financing

(Brito and Hartley 1995). Credit cards allow consumers to borrow within their credit limit without transaction costs, which includes all the time and effort involved with obtaining a loan from a financial institution. This convenience attracts many consumers to pay high interest on outstanding

credit card balances, rather than taking the time to apply for a loan with a lower interest rate. As a result, credit cards account for a substantial and growing share of consumers' debt

Ausubel (1991) suggests that consumers may not even consider the interest rate when making purchases because they do not intend to borrow for an extended period when they make purchases. However, they may change their minds when the bill arrives. Stavins (1996) argues that consumers are somewhat sensitive not only to changes in the interest rate but also to the value of other credit-card enhancements such as frequent-use awards, expedited dispute resolution, extended warranties, and automobile rental insurance. However, she agrees with Ausubel (1991), Calem and Mester (1995) that lowering interest rates may attract less creditworthy consumers, therefore dissuading some credit-card issuers from interest rates. It is very essential to know whether the study has already been conducted before .If so, how to what extent? And because of this, scholar has to go through all the existing literature relation to the study. Credit card are a new concept introduced in India by Nationalized Banks only a few year back, very limited studies have been conducted on the subject. Due to time restriction Scholar could seek advice from only the limited literature, Which is available in the library as well as on the Internet. It is the real world we have 3 ways to pay for goods: cash check And credit cards or debit cards. Cards can be smart card, debit card, ATM cards and any kind of credit cards. They all serve a special Purpose. They allow us to pay without cash. They are also all Online electronic payment media. lowering their

REAL WORLD CASH

We have now so many mediums of exchange to simplify transaction, a standard of value to make it easier to decide on the Worth of goods, and a store of value to facilitate the concept of saving. For the purpose of E-commerce, electronic money must fulfill the first function. When you carry cash, you are making on the spot payment but online payment is not very different from cash transactions in the real world, except for speed of transfer, ease of handling and the safety of not having to carry cash. Outside of the Internet, cash continues to be most widely used of the payment.

Its unique features are:

Convenience: - easy to use and easy to carry. Wide acceptance: - the U.S.Dollar happens to be most widely accepted paper currency in the world because of its stability and durability. Anonymity: - No identification is needed to pay in cash. No audit trial: - Lack of trace ability means you can do what you want with your cash. In countries where trust in currency, banking system, or the govt. is in question, cash is still used to buy all kind of product including homes, automobiles and other big ticket item.

CREDIT CARD BASED ELECTRONIC PAYMENT SYSTEM

To avoid the complexity association with digital cash and electronic cheques, consumers and vendors are also looking at credit card payment on the Internet as one possible time-tasted alternative. There is nothing new in the basic process. If consumer wants to purchase or services, they simply send their credit card detail to their service provider involved and the credit card organization will handle this payment like any other. We can break credit card payment on online network into 3 basic categories: Payment using plain credit card detail: - The easiest method of payment is the exchange of unencrypted credit cards over a public network such as telephone lines or the Internet. The low level of security inherent in the design of the Internet makes this method problematic (any snooper can read credit card number, and programs can be created to scan the internet traffic for credit cards number and send the number to its master). Authentication is also a significant problem. And the vendor is usually responsible to ensure that the person using the credit card is its owner. Without encryption there is no way to do this.

Payment using encrypted credit card details: - It would make sense to encrypted your
credit card details before sending them out, but even then are certain factors to considered. One would be the cost of credit card transaction itself. Such cost would prohibit low value payment by adding costs to the transaction.

Payments using 3rd party verification:- One solution to security and verification
problem is the introduction of the 3rd party. A company that collects and approves payment from one client to another. After a certain period of time, one credit card transaction for the total accumulated amount is completed. Some of the companies that are attempting to provide the infrastructure on-line credit card processing.

MASTER BANKING
A house banking service started by MASTER CARD and check free corp., as online payment processor.

VISA INTERACTIVE
VISA International acquired US order, a screen phone manufacture. VISA Interactive has signed up more than 30 banks including national banks.

Standard Segregation of credit card

Standard Card it is the most basic card ( sans all frills) offered by issuers. Classic Card Brand name for the standard card issued by VISA

Gold Card/ Executive Card A credit card that offers a higher line of credit than a standard card, income eligibility is also higher. In additions, issuers provide extra perks or incentives to cardholders. Platinum card A credit card with a higher limit and additional perks than a gold card. Titanium Card A card with an even higher limit than a platinum card.

PROGRESS OF CREDIT CARD BUSINESS

The number of members using credit card and the number of establishment ownering it after joining the scheme have increased vastly over the past few years. Many Indian banks have joined hand with international banks to provide this card facility on a worldwide based or a selected international centers. The number of credit card holders which was 8 lakh (1997), have increased to 25 lakh now. The credit card network is also fast spreading in smaller cities and towns besides by cities and metros.

ELIGIBILITY
A bank who is in the business of credit card grant subject to some rules and guidelines to its eligible customer before a credit card is given to a customer the banker analysis following factors and accordingly fixes a credit limit if found eligible. The customer should have a saving or current account with the bank. His/Her monthly or annual are regularly received and credit to this bank account. His/Her assets and liabilities are known and reported to the bank. He is considered credit worthy up to a limit depending on his income, assets and expenditure and past dealing with the bank. The eligible member is then asked to fill in an application from where in details of account number, name and address, income, wealth, status and evidence statement of income etc. are given. This application form is processed and credit limit is established. This credit limit differs from individual to individual and Bank to bank. The maximum limit depends upon the users income. Some banks have fixed of Rs. 1 lakh, 2 lakh or 5 lakh.

ARRANGEMENTS WITH BANKER

Credit card is the key to opening of the bank accounts. The credit card charges and other payments utilized through credit cards are debited to his account. The banker issues a monthly statement and sent to cardholder. This statement contains details of the charges.

The following are some of the plus features of credit card in India.

Hotel discounts Travel fare discounts Free global calling card Lost baggage insurance Accident insurance Insurance on goods purchased Waiver of payment in case of accidental death Household insurance

Benefits of having a Credit card

A credit card makes it easy to buy something now and pay for it later. Its much safer to use a credit card than to carry around cash. If you lose your credit car, you can ask your credit card company to cancel your card, and no one else can use it. But if you lease cash your money is gone. Credit cards are also convenient. Your can use them to make hotel, are rental and other reservations. You can buy items over the phone or online. You can also use credit cards for emergencies, like unexpected care repairs, when you dont have the cash to cover the expenses. A Credit card gives you a credit history, which helps to get home loans and other credit in a future.

HOW CREDIT CARD BENEFITS THE BANK

Credit card increases the customer base of the bank. Credit card increases credit portfolio of the bank. Credit card enhances the reputation of the bank public. The business establishments, which accept these cards, also give some incentives or commission to bank, by which the bank gains.

HOW CREDIT CARD BENEFITS THE CARD HOLDER

Cardholder can avoid carrying cash and risk of its lose. Cardholder enjoys a credit limit up to which he makes purchases per his need and pay at leisure. Cardholder gets some period of 30 to 45 days the outstanding overdraft. Credit cards serve as a status symbol. Money can be withdrawn at any time over the day and night. It provides free accidentals insurance cover.

It provides purchase protection loss of travel, documents, loss of delay in arrival of baggage screeched baggage.

BENEFITS TO BUSINESS ESTABLISHMENT

Business increases to great extent of business houses that accept credit cards. Reputation of the business establishment increases. Customer based increases.

What are the cost of having a credit card?

All credit cards have finance charges foror not paying your balance in fill each month, but you could save a lot of money by shopping around for the credit card that offers you the best terms. Key credit card terms to took at are the annual percentage rate (APR), annual fee, grace period, and late payment charge. Shop for a card with a grace period that gives you enough time to pay your bills on time without charging you interest. Credit card with no grace period start charging you fees as soon as you buy something on your credit card.

Where can I get credit card ?

Your mail is probably full credit card offers from national companies. Most local banks and Community Development Credit Unions (CDCUs) offer credit cards as well. The fees, charges and benefits for credit cards very among different companies. When youre choosing a card, shop around. CDCUs often offer the best rates and lowest fees, since they are not trying to make a profit like credit card companies are. Some large department stroes also offer credit cards that only can be used in their stores. Usually, when you apply for a store credit card, you get a one-time discount on your purchase that day. But these credit cards have limited uses and often carry high finance charges.

How do I get a credit card

If you are least 18 years old, have a regular source of income and good credit rating; you can probably qualify for a credit card. Before you submit a credit card application, order a copy of your credit report to make sure all of the information on it is correct. After you check your credit report, and fix any wrong information, you can start carefully researching credit card rates, fees and benefits. At the same time, make a list of the features you want in a credit card. Call any credit any credit companies youre interested in for question and other available plans.

REVIEW OF LITERATURE
Investigates the attitudes of Turkish consumers towards credit cards, and the approach of card issuers, by surveying two samples of 200 card-holders and non-holders: the better educated, middle-aged members of the upper-middle class seem to be the prime target; the most important reasons for using a credit card were ease of payment followed by risk of carrying cash; non-holders do not carry credit cards because they do not know much about it; informal sources of information appear to be more influential than mass media

advertising in penetrating the market; proposes that the usage and the administration of credit cards are influenced very much by the infrastructure of the country and, hence, credit card companies have to modify their marketing and administrative procedures rather than following a standardized approach. Credit cards, including store cards and bankcards, serve two distinct functions for consumers: a means of payment and a source of credit (Ausubel 1991; Chakravorti 1997, 2000; Chakravorti and Emmons 2001; Slocum and Matthews 1970; Stavins 2000). Based on the main use of credit cards and the benefits sought, credit card users can be segmented into two groups: convenience users and revolvers (Lee and Hogarth 1999). Convenience users tend to employ credit cards as an easy mode of payment; typically pay their balance in full upon receiving the statement. Revolvers, on the other hand, use the card principally as a mode of financing and chose to pay interest charges on the unpaid balance. According to the consumer behavior literature, consumer usage behavior and the benefits sought from a product or a service are one of the best predictors to explain consumer purchase behavior (PeterandOlson1999). Credit cards also serve as an open-ended, easily available credit source ( Lee and Kwon 2002). When consumers use credit cards as a mode of financing, credit cards compete with bank loans and other forms of financing

(Brito and Hartley 1995). Credit cards allow consumers to borrow within their credit limit without transaction costs, which includes all the time and effort involved with obtaining a loan from a financial institution. This convenience attracts many consumers to pay high interest on outstanding

credit card balances, rather than taking the time to apply for a loan with a lower interest rate. As a result, credit cards account for a substantial and growing share of consumers' debt Ausubel (1991) suggests that consumers may not even consider the interest rate when making purchases because they do not intend to borrow for an extended period when they make purchases. However, they may change their minds when the bill arrives. Stavins (1996)

argues that consumers are somewhat sensitive not only to changes in the interest rate but also to the value of other credit-card enhancements such as frequent-use awards, expedited dispute resolution, extended warranties, and automobile rental insurance. However, she agrees with Ausubel (1991), Calem and Mester (1995) that lowering interest rates may attract less creditworthy consumers, therefore dissuading some credit-card issuers from interest rates. It is very essential to know whether the study has already been conducted before .If so, how to what extent? And because of this, scholar has to go through all the existing literature relation to the study. Credit card are a new concept introduced in India by Nationalized Banks only a few year back, very limited studies have been conducted on the subject. Due to time restriction Scholar could seek advice from only the limited literature, Which is available in the library as well as on the Internet. It is the real world we have 3 ways to pay for goods: cash check And credit cards or debit cards. Cards can be smart card, debit card, ATM cards and any kind of credit cards. They all serve a special Purpose. They allow us to pay without cash. They are also all Online electronic payment media. lowering their

REAL WORLD CASH

We have now so many mediums of exchange to simplify transaction, a standard of value to make it easier to decide on the Worth of goods, and a store of value to facilitate the concept of saving. For the purpose of E-commerce, electronic money must fulfill the first function. When you carry cash, you are making on the spot payment but online payment is not very different from cash transactions in the real world, except for speed of transfer, ease of handling and the safety of not having to carry cash. Outside of the Internet, cash continues to be most widely used of the payment.

Its unique features are:

Convenience: - easy to use and easy to carry. Wide acceptance: - the U.S.Dollar happens to be most widely accepted paper currency in the world because of its stability and durability. Anonymity: - No identification is needed to pay in cash. No audit trial: - Lack of trace ability means you can do what you want with your cash. In countries where trust in currency, banking system, or the govt. is in question, cash is still used to buy all kind of product including homes, automobiles and other big ticket item.

CREDIT CARD BASED ELECTRONIC PAYMENT SYSTEM

To avoid the complexity association with digital cash and electronic cheques, consumers and vendors are also looking at credit card payment on the Internet as one possible time-tasted alternative. There is nothing new in the basic process. If consumer wants to purchase or services, they simply send their credit card detail to their service provider involved and the credit card organization will handle this payment like any other. We can break credit card payment on online network into 3 basic categories: Payment using plain credit card detail: - The easiest method of payment is the exchange of unencrypted credit cards over a public network such as telephone lines or the Internet. The low level of security inherent in the design of the Internet makes this method problematic (any snooper can read credit card number, and programs can be created to scan the internet traffic for credit cards number and send the number to its master). Authentication is also a significant problem. And the vendor is usually responsible to ensure that the person using the credit card is its owner. Without encryption there is no way to do this.

Payment using encrypted credit card details: - It would make sense to encrypted your
credit card details before sending them out, but even then are certain factors to considered. One would be the cost of credit card transaction itself. Such cost would prohibit low value payment by adding costs to the transaction.

Payments using 3rd party verification:- One solution to security and verification
problem is the introduction of the 3rd party. A company that collects and approves payment from one client to another. After a certain period of time, one credit card transaction for the total accumulated amount is completed. Some of the companies that are attempting to provide the infrastructure on-line credit card processing.

MASTER BANKING
A house banking service started by MASTER CARD and check free corp., as online payment processor.

VISA INTERACTIVE
VISA International acquired US order, a screen phone manufacture. VISA Interactive has signed up more than 30 banks including national banks.

Standard Segregation of credit card

Standard Card it is the most basic card ( sans all frills) offered by issuers. Classic Card Brand name for the standard card issued by VISA Gold Card/ Executive Card A credit card that offers a higher line of credit than a standard card, income eligibility is also higher. In additions, issuers provide extra perks or incentives to cardholders. Platinum card A credit card with a higher limit and additional perks than a gold card. Titanium Card A card with an even higher limit than a platinum card.

PROGRESS OF CREDIT CARD BUSINESS

The number of members using credit card and the number of establishment ownering it after joining the scheme have increased vastly over the past few years. Many Indian banks have joined hand with international banks to provide this card facility on a worldwide based or a selected international centers. The number of credit card holders which was 8 lakh (1997), have increased to 25 lakh now. The credit card network is also fast spreading in smaller cities and towns besides by cities and metros.

ELIGIBILITY
A bank who is in the business of credit card grant subject to some rules and guidelines to its eligible customer before a credit card is given to a customer the banker analysis following factors and accordingly fixes a credit limit if found eligible. The customer should have a saving or current account with the bank. His/Her monthly or annual are regularly received and credit to this bank account. His/Her assets and liabilities are known and reported to the bank. He is considered credit worthy up to a limit depending on his income, assets and expenditure and past dealing with the bank. The eligible member is then asked to fill in an application from where in details of account number, name and address, income, wealth, status and evidence statement of income etc. are given. This application form is processed and credit limit is established. This credit limit differs from individual to individual and Bank to bank. The maximum limit depends upon the users income. Some banks have fixed of Rs. 1 lakh, 2 lakh or 5 lakh.

ARRANGEMENTS WITH BANKER

Credit card is the key to opening of the bank accounts. The credit card charges and other payments utilized through credit cards are debited to his account. The banker issues a monthly statement and sent to cardholder. This statement contains details of the charges.

The following are some of the plus features of credit card in India.
Hotel discounts Travel fare discounts Free global calling card Lost baggage insurance Accident insurance Insurance on goods purchased Waiver of payment in case of accidental death Household insurance

Benefits of having a Credit card

A credit card makes it easy to buy something now and pay for it later. Its much safer to use a credit card than to carry around cash. If you lose your credit car, you can ask your credit card company to cancel your card, and no one else can use it. But if you lease cash your money is gone. Credit cards are also convenient. Your can use them to make hotel, are rental and other reservations. You can buy items over the phone or online. You can also use credit cards for emergencies, like unexpected care repairs, when you dont have the cash to cover the expenses. A Credit card gives you a credit history, which helps to get home loans and other credit in a future.

HOW CREDIT CARD BENEFITS THE BANK

Credit card increases the customer base of the bank. Credit card increases credit portfolio of the bank. Credit card enhances the reputation of the bank public. The business establishments, which accept these cards, also give some incentives or commission to bank, by which the bank gains.

HOW CREDIT CARD BENEFITS THE CARD HOLDER

Cardholder can avoid carrying cash and risk of its lose. Cardholder enjoys a credit limit up to which he makes purchases per his need and pay at leisure. Cardholder gets some period of 30 to 45 days the outstanding overdraft. Credit cards serve as a status symbol. Money can be withdrawn at any time over the day and night. It provides free accidentals insurance cover. It provides purchase protection loss of travel, documents, loss of delay in arrival of baggage screeched baggage.

BENEFITS TO BUSINESS ESTABLISHMENT

Business increases to great extent of business houses that accept credit cards. Reputation of the business establishment increases.

Customer based increases.

What are the cost of having a credit card?

All credit cards have finance charges foror not paying your balance in fill each month, but you could save a lot of money by shopping around for the credit card that offers you the best terms. Key credit card terms to took at are the annual percentage rate (APR), annual fee, grace period, and late payment charge. Shop for a card with a grace period that gives you enough time to pay your bills on time without charging you interest. Credit card with no grace period start charging you fees as soon as you buy something on your credit card.

Where can I get credit card ?

Your mail is probably full credit card offers from national companies. Most local banks and Community Development Credit Unions (CDCUs) offer credit cards as well. The fees, charges and benefits for credit cards very among different companies. When youre choosing a card, shop around. CDCUs often offer the best rates and lowest fees, since they are not trying to make a profit like credit card companies are. Some large department stroes also offer credit cards that only can be used in their stores. Usually, when you apply for a store credit card, you get a one-time discount on your purchase that day. But these credit cards have limited uses and often carry high finance charges.

How do I get a credit card

If you are least 18 years old, have a regular source of income and good credit rating; you can probably qualify for a credit card. Before you submit a credit card application, order a copy of your credit report to make sure all of the information on it is correct. After you check your credit report, and fix any wrong information, you can start carefully researching credit card rates, fees and benefits. At the same time, make a list of the features you want in a credit card. Call any credit any credit companies youre interested in for question and other available plans.

REVIEW OF LITERATURE
Investigates the attitudes of Turkish consumers towards credit cards, and the approach of card issuers, by surveying two samples of 200 card-holders and non-holders: the better educated, middle-aged members of the upper-middle class seem to be the prime target; the most important reasons for using a credit card were ease of payment followed by risk of carrying cash; non-holders do not carry credit cards because they do not know much about it; informal sources of information appear to be more influential than mass media advertising in penetrating the market; proposes that the usage and the administration of credit cards are influenced very much by the infrastructure of the country and, hence, credit card companies have to modify their marketing and administrative procedures rather than following a standardized approach.

Credit cards, including store cards and bankcards, serve two distinct functions for consumers: a means of payment and a source of credit (Ausubel 1991; Chakravorti 1997, 2000; Chakravorti and Emmons 2001; Slocum and Matthews 1970; Stavins 2000). Based on the main use of credit cards and the benefits sought, credit card users can be segmented into two groups: convenience users and revolvers (Lee and Hogarth 1999). Convenience users tend to employ credit cards as an easy mode of payment; typically pay their balance in full upon receiving the statement. Revolvers, on the other hand, use the card principally as a mode of financing and chose to pay interest charges on the unpaid balance. According to the consumer behavior literature, consumer usage behavior and the benefits sought from a product or a service are one of the best predictors to explain consumer purchase behavior (PeterandOlson1999). Credit cards also serve as an open-ended, easily available credit source ( Lee and Kwon 2002). When consumers use credit cards as a mode of financing, credit cards compete with bank loans and other forms of financing

(Brito and Hartley 1995). Credit cards allow consumers to borrow within their credit limit without transaction costs, which includes all the time and effort involved with obtaining a loan from a financial institution. This convenience attracts many consumers to pay high interest on outstanding

credit card balances, rather than taking the time to apply for a loan with a lower interest rate. As a result, credit cards account for a substantial and growing share of consumers' debt Ausubel (1991) suggests that consumers may not even consider the interest rate when making purchases because they do not intend to borrow for an extended period when they make purchases. However, they may change their minds when the bill arrives. Stavins (1996) argues that consumers are somewhat sensitive not only to changes in the interest rate but also to the value of other credit-card enhancements such as frequent-use awards, expedited dispute resolution, extended warranties, and automobile rental insurance. However, she agrees with Ausubel (1991), Calem and Mester (1995) that lowering interest rates may attract less

creditworthy consumers, therefore dissuading some credit-card issuers from interest rates.

lowering their

It is very essential to know whether the study has already been conducted before .If so, how to what extent? And because of this, scholar has to go through all the existing literature relation to the study. Credit card are a new concept introduced in India by Nationalized Banks only a few year back, very limited studies have been conducted on the subject. Due to time restriction Scholar could seek advice from only the limited literature, Which is available in the library as well as on the Internet. It is the real world we have 3 ways to pay for goods: cash check And credit cards or debit cards. Cards can be smart card, debit card, ATM cards and any kind of credit cards. They all serve a special Purpose. They allow us to pay without cash. They are also all Online electronic payment media.

REAL WORLD CASH

We have now so many mediums of exchange to simplify transaction, a standard of value to make it easier to decide on the Worth of goods, and a store of value to facilitate the concept of saving. For the purpose of E-commerce, electronic money must fulfill the first function. When you carry cash, you are making on the spot payment but online payment is not very different from cash transactions in the real world, except for speed of transfer, ease of handling and the safety of not having to carry cash. Outside of the Internet, cash continues to be most widely used of the payment.

Its unique features are:

Convenience: - easy to use and easy to carry. Wide acceptance: - the U.S.Dollar happens to be most widely accepted paper currency in the world because of its stability and durability. Anonymity: - No identification is needed to pay in cash. No audit trial: - Lack of trace ability means you can do what you want with your cash. In countries where trust in currency, banking system, or the govt. is in question, cash is still used to buy all kind of product including homes, automobiles and other big ticket item.

CREDIT CARD BASED ELECTRONIC PAYMENT SYSTEM

To avoid the complexity association with digital cash and electronic cheques, consumers and vendors are also looking at credit card payment on the Internet as one possible time-tasted alternative. There is nothing new in the basic process. If consumer wants to purchase or services, they simply send their credit card detail to their service provider involved and the credit card organization will handle this payment like any other. We can break credit card payment on online network into 3 basic categories:

Payment using plain credit card detail: - The easiest method of payment is the
exchange of unencrypted credit cards over a public network such as telephone lines or the Internet. The low level of security inherent in the design of the Internet makes this method problematic (any snooper can read credit card number, and programs can be created to scan the internet traffic for credit cards number and send the number to its master). Authentication is also a significant problem. And the vendor is usually responsible to ensure that the person using the credit card is its owner. Without encryption there is no way to do this.

Payment using encrypted credit card details: - It would make sense to encrypted your
credit card details before sending them out, but even then are certain factors to considered. One would be the cost of credit card transaction itself. Such cost would prohibit low value payment by adding costs to the transaction.

Payments using 3rd party verification:- One solution to security and verification
problem is the introduction of the 3rd party. A company that collects and approves payment from one client to another. After a certain period of time, one credit card transaction for the total accumulated amount is completed. Some of the companies that are attempting to provide the infrastructure on-line credit card processing.

MASTER BANKING
A house banking service started by MASTER CARD and check free corp., as online payment processor.

VISA INTERACTIVE
VISA International acquired US order, a screen phone manufacture. VISA Interactive has signed up more than 30 banks including national banks.

Standard Segregation of credit card

Standard Card it is the most basic card ( sans all frills) offered by issuers. Classic Card Brand name for the standard card issued by VISA Gold Card/ Executive Card A credit card that offers a higher line of credit than a standard card, income eligibility is also higher. In additions, issuers provide extra perks or incentives to cardholders. Platinum card A credit card with a higher limit and additional perks than a gold card. Titanium Card A card with an even higher limit than a platinum card.

PROGRESS OF CREDIT CARD BUSINESS

The number of members using credit card and the number of establishment ownering it after joining the scheme have increased vastly over the past few years. Many Indian banks have joined hand with international banks to provide this card facility on a worldwide based or a selected international centers. The number of credit card holders which was 8 lakh (1997), have increased to 25 lakh now. The credit card network is also fast spreading in smaller cities and towns besides by cities and metros.

ELIGIBILITY
A bank who is in the business of credit card grant subject to some rules and guidelines to its eligible customer before a credit card is given to a customer the banker analysis following factors and accordingly fixes a credit limit if found eligible. The customer should have a saving or current account with the bank. His/Her monthly or annual are regularly received and credit to this bank account. His/Her assets and liabilities are known and reported to the bank. He is considered credit worthy up to a limit depending on his income, assets and expenditure and past dealing with the bank. The eligible member is then asked to fill in an application from where in details of account number, name and address, income, wealth, status and evidence statement of income etc. are given. This application form is processed and credit limit is established. This credit limit differs from individual to individual and Bank to bank. The maximum limit depends upon the users income. Some banks have fixed of Rs. 1 lakh, 2 lakh or 5 lakh.

ARRANGEMENTS WITH BANKER

Credit card is the key to opening of the bank accounts. The credit card charges and other payments utilized through credit cards are debited to his account. The banker issues a monthly statement and sent to cardholder. This statement contains details of the charges.

The following are some of the plus features of credit card in India.
Hotel discounts Travel fare discounts Free global calling card Lost baggage insurance Accident insurance Insurance on goods purchased Waiver of payment in case of accidental death Household insurance

Benefits of having a Credit card

A credit card makes it easy to buy something now and pay for it later. Its much safer to use a credit card than to carry around cash. If you lose your credit car, you can ask your credit card company to cancel your card, and no one else can use it. But if you lease cash your money is gone.

Credit cards are also convenient. Your can use them to make hotel, are rental and other reservations. You can buy items over the phone or online. You can also use credit cards for emergencies, like unexpected care repairs, when you dont have the cash to cover the expenses. A Credit card gives you a credit history, which helps to get home loans and other credit in a future.

HOW CREDIT CARD BENEFITS THE BANK

Credit card increases the customer base of the bank. Credit card increases credit portfolio of the bank. Credit card enhances the reputation of the bank public. The business establishments, which accept these cards, also give some incentives or commission to bank, by which the bank gains.

HOW CREDIT CARD BENEFITS THE CARD HOLDER

Cardholder can avoid carrying cash and risk of its lose. Cardholder enjoys a credit limit up to which he makes purchases per his need and pay at leisure. Cardholder gets some period of 30 to 45 days the outstanding overdraft. Credit cards serve as a status symbol. Money can be withdrawn at any time over the day and night. It provides free accidentals insurance cover. It provides purchase protection loss of travel, documents, loss of delay in arrival of baggage screeched baggage.

BENEFITS TO BUSINESS ESTABLISHMENT

Business increases to great extent of business houses that accept credit cards. Reputation of the business establishment increases. Customer based increases.

What are the cost of having a credit card?

All credit cards have finance charges foror not paying your balance in fill each month, but you could save a lot of money by shopping around for the credit card that offers you the best terms.

Key credit card terms to took at are the annual percentage rate (APR), annual fee, grace period, and late payment charge. Shop for a card with a grace period that gives you enough time to pay your bills on time without charging you interest. Credit card with no grace period start charging you fees as soon as you buy something on your credit card.

Where can I get credit card ?

Your mail is probably full credit card offers from national companies. Most local banks and Community Development Credit Unions (CDCUs) offer credit cards as well. The fees, charges and benefits for credit cards very among different companies. When youre choosing a card, shop around. CDCUs often offer the best rates and lowest fees, since they are not trying to make a profit like credit card companies are. Some large department stroes also offer credit cards that only can be used in their stores. Usually, when you apply for a store credit card, you get a one-time discount on your purchase that day. But these credit cards have limited uses and often carry high finance charges.

How do I get a credit card

If you are least 18 years old, have a regular source of income and good credit rating; you can probably qualify for a credit card. Before you submit a credit card application, order a copy of your credit report to make sure all of the information on it is correct. After you check your credit report, and fix any wrong information, you can start carefully researching credit card rates, fees and benefits. At the same time, make a list of the features you want in a credit card. Call any credit any credit companies youre interested in for question and other available plans.

REVIEW OF LITERATURE
Investigates the attitudes of Turkish consumers towards credit cards, and the approach of card issuers, by surveying two samples of 200 card-holders and non-holders: the better educated, middle-aged members of the upper-middle class seem to be the prime target; the most important reasons for using a credit card were ease of payment followed by risk of carrying cash; non-holders do not carry credit cards because they do not know much about it; informal sources of information appear to be more influential than mass media advertising in penetrating the market; proposes that the usage and the administration of credit cards are influenced very much by the infrastructure of the country and, hence, credit card companies have to modify their marketing and administrative procedures rather than following a standardized approach. Credit cards, including store cards and bankcards, serve two distinct functions for consumers: a means of payment and a source of credit (Ausubel 1991; Chakravorti 1997, 2000; Chakravorti and Emmons 2001; Slocum and Matthews 1970; Stavins 2000). Based on the main use of credit cards and the benefits sought, credit card users can be segmented into two groups: convenience users and revolvers (Lee and Hogarth 1999).

Convenience users tend to employ credit cards as an easy mode of payment; typically pay their balance in full upon receiving the statement. Revolvers, on the other hand, use the card principally as a mode of financing and chose to pay interest charges on the unpaid balance. According to the consumer behavior literature, consumer usage behavior and the benefits sought from a product or a service are one of the best predictors to explain consumer purchase behavior (PeterandOlson1999). Credit cards also serve as an open-ended, easily available credit source ( Lee and Kwon 2002). When consumers use credit cards as a mode of financing, credit cards compete with bank loans and other forms of financing

(Brito and Hartley 1995). Credit cards allow consumers to borrow within their credit limit without transaction costs, which includes all the time and effort involved with obtaining a loan from a financial institution. This convenience attracts many consumers to pay high interest on outstanding

credit card balances, rather than taking the time to apply for a loan with a lower interest rate. As a result, credit cards account for a substantial and growing share of consumers' debt Ausubel (1991) suggests that consumers may not even consider the interest rate when making purchases because they do not intend to borrow for an extended period when they make purchases. However, they may change their minds when the bill arrives. Stavins (1996) argues that consumers are somewhat sensitive not only to changes in the interest rate but also to the value of other credit-card enhancements such as frequent-use awards, expedited dispute resolution, extended warranties, and automobile rental insurance. However, she agrees with Ausubel (1991), Calem and Mester (1995) that lowering interest rates may attract less creditworthy consumers, therefore dissuading some credit-card issuers from interest rates. It is very essential to know whether the study has already been conducted before .If so, how to what extent? And because of this, scholar has to go through all the existing literature relation to the study. Credit card are a new concept introduced in India by Nationalized Banks only a few year back, very limited studies have been conducted on the subject. Due to time restriction lowering their

Scholar could seek advice from only the limited literature, Which is available in the library as well as on the Internet. It is the real world we have 3 ways to pay for goods: cash check And credit cards or debit cards. Cards can be smart card, debit card, ATM cards and any kind of credit cards. They all serve a special Purpose. They allow us to pay without cash. They are also all Online electronic payment media.

REAL WORLD CASH

We have now so many mediums of exchange to simplify transaction, a standard of value to make it easier to decide on the Worth of goods, and a store of value to facilitate the concept of saving. For the purpose of E-commerce, electronic money must fulfill the first function. When you carry cash, you are making on the spot payment but online payment is not very different from cash transactions in the real world, except for speed of transfer, ease of handling and the safety of not having to carry cash. Outside of the Internet, cash continues to be most widely used of the payment.

Its unique features are:

Convenience: - easy to use and easy to carry. Wide acceptance: - the U.S.Dollar happens to be most widely accepted paper currency in the world because of its stability and durability. Anonymity: - No identification is needed to pay in cash. No audit trial: - Lack of trace ability means you can do what you want with your cash. In countries where trust in currency, banking system, or the govt. is in question, cash is still used to buy all kind of product including homes, automobiles and other big ticket item.

CREDIT CARD BASED ELECTRONIC PAYMENT SYSTEM

To avoid the complexity association with digital cash and electronic cheques, consumers and vendors are also looking at credit card payment on the Internet as one possible time-tasted alternative. There is nothing new in the basic process. If consumer wants to purchase or services, they simply send their credit card detail to their service provider involved and the credit card organization will handle this payment like any other. We can break credit card payment on online network into 3 basic categories: Payment using plain credit card detail: - The easiest method of payment is the exchange of unencrypted credit cards over a public network such as telephone lines or the Internet. The low level of security inherent in the design of the Internet makes this method problematic (any snooper can read credit card number, and programs can be created to scan the internet traffic for credit cards number and send the number to its master). Authentication is also a significant problem. And the vendor is usually responsible to ensure that the person using the credit card is its owner. Without encryption there is no way to do this.

Payment using encrypted credit card details: - It would make sense to encrypted your
credit card details before sending them out, but even then are certain factors to considered. One would be the cost of credit card transaction itself. Such cost would prohibit low value payment by adding costs to the transaction.

Payments using 3rd party verification:- One solution to security and verification
problem is the introduction of the 3rd party. A company that collects and approves payment from one client to another. After a certain period of time, one credit card transaction for the total accumulated amount is completed. Some of the companies that are attempting to provide the infrastructure on-line credit card processing.

MASTER BANKING
A house banking service started by MASTER CARD and check free corp., as online payment processor.

VISA INTERACTIVE
VISA International acquired US order, a screen phone manufacture. VISA Interactive has signed up more than 30 banks including national banks.

Standard Segregation of credit card

Standard Card it is the most basic card ( sans all frills) offered by issuers. Classic Card Brand name for the standard card issued by VISA Gold Card/ Executive Card A credit card that offers a higher line of credit than a standard card, income eligibility is also higher. In additions, issuers provide extra perks or incentives to cardholders. Platinum card A credit card with a higher limit and additional perks than a gold card. Titanium Card A card with an even higher limit than a platinum card.

PROGRESS OF CREDIT CARD BUSINESS

The number of members using credit card and the number of establishment ownering it after joining the scheme have increased vastly over the past few years. Many Indian banks have joined hand with international banks to provide this card facility on a worldwide based or a selected international centers. The number of credit card holders which was 8 lakh (1997), have increased to 25 lakh now. The credit card network is also fast spreading in smaller cities and towns besides by cities and metros.

ELIGIBILITY
A bank who is in the business of credit card grant subject to some rules and guidelines to its eligible customer before a credit card is given to a customer the banker analysis following factors and accordingly fixes a credit limit if found eligible. The customer should have a saving or current account with the bank.

His/Her monthly or annual are regularly received and credit to this bank account. His/Her assets and liabilities are known and reported to the bank. He is considered credit worthy up to a limit depending on his income, assets and expenditure and past dealing with the bank. The eligible member is then asked to fill in an application from where in details of account number, name and address, income, wealth, status and evidence statement of income etc. are given. This application form is processed and credit limit is established. This credit limit differs from individual to individual and Bank to bank. The maximum limit depends upon the users income. Some banks have fixed of Rs. 1 lakh, 2 lakh or 5 lakh.

ARRANGEMENTS WITH BANKER

Credit card is the key to opening of the bank accounts. The credit card charges and other payments utilized through credit cards are debited to his account. The banker issues a monthly statement and sent to cardholder. This statement contains details of the charges.

The following are some of the plus features of credit card in India.
Hotel discounts Travel fare discounts Free global calling card Lost baggage insurance Accident insurance Insurance on goods purchased Waiver of payment in case of accidental death Household insurance

Benefits of having a Credit card

A credit card makes it easy to buy something now and pay for it later. Its much safer to use a credit card than to carry around cash. If you lose your credit car, you can ask your credit card company to cancel your card, and no one else can use it. But if you lease cash your money is gone. Credit cards are also convenient. Your can use them to make hotel, are rental and other reservations. You can buy items over the phone or online. You can also use credit cards for emergencies, like unexpected care repairs, when you dont have the cash to cover the expenses. A Credit card gives you a credit history, which helps to get home loans and other credit in a future.

HOW CREDIT CARD BENEFITS THE BANK

Credit card increases the customer base of the bank. Credit card increases credit portfolio of the bank. Credit card enhances the reputation of the bank public. The business establishments, which accept these cards, also give some incentives or commission to bank, by which the bank gains.

HOW CREDIT CARD BENEFITS THE CARD HOLDER

Cardholder can avoid carrying cash and risk of its lose. Cardholder enjoys a credit limit up to which he makes purchases per his need and pay at leisure. Cardholder gets some period of 30 to 45 days the outstanding overdraft. Credit cards serve as a status symbol. Money can be withdrawn at any time over the day and night. It provides free accidentals insurance cover. It provides purchase protection loss of travel, documents, loss of delay in arrival of baggage screeched baggage.

BENEFITS TO BUSINESS ESTABLISHMENT

Business increases to great extent of business houses that accept credit cards. Reputation of the business establishment increases. Customer based increases.

What are the cost of having a credit card?

All credit cards have finance charges foror not paying your balance in fill each month, but you could save a lot of money by shopping around for the credit card that offers you the best terms. Key credit card terms to took at are the annual percentage rate (APR), annual fee, grace period, and late payment charge. Shop for a card with a grace period that gives you enough time to pay your bills on time without charging you interest. Credit card with no grace period start charging you fees as soon as you buy something on your credit card.

Where can I get credit card ?

Your mail is probably full credit card offers from national companies. Most local banks and Community Development Credit Unions (CDCUs) offer credit cards as well. The fees, charges and benefits for credit cards very among different companies. When youre choosing a card, shop around. CDCUs often offer the best rates and lowest fees, since they are not trying to make a profit like credit card companies are. Some large department stroes also offer credit cards that only can be used in their stores. Usually, when you apply for a store credit card, you get a one-time discount on your purchase that day. But these credit cards have limited uses and often carry high finance charges.

How do I get a credit card

If you are least 18 years old, have a regular source of income and good credit rating; you can probably qualify for a credit card. Before you submit a credit card application, order a copy of your credit report to make sure all of the information on it is correct. After you check your credit report, and fix any wrong information, you can start carefully researching credit card rates, fees and benefits. At the same time, make a list of the features you want in a credit card. Call any credit any credit companies youre interested in for question and other available plans.

REVIEW OF LITERATURE
Investigates the attitudes of Turkish consumers towards credit cards, and the approach of card issuers, by surveying two samples of 200 card-holders and non-holders: the better educated, middle-aged members of the upper-middle class seem to be the prime target; the most important reasons for using a credit card were ease of payment followed by risk of carrying cash; non-holders do not carry credit cards because they do not know much about it; informal sources of information appear to be more influential than mass media advertising in penetrating the market; proposes that the usage and the administration of credit cards are influenced very much by the infrastructure of the country and, hence, credit card companies have to modify their marketing and administrative procedures rather than following a standardized approach. Credit cards, including store cards and bankcards, serve two distinct functions for consumers: a means of payment and a source of credit (Ausubel 1991; Chakravorti 1997, 2000; Chakravorti and Emmons 2001; Slocum and Matthews 1970; Stavins 2000). Based on the main use of credit cards and the benefits sought, credit card users can be segmented into two groups: convenience users and revolvers (Lee and Hogarth 1999). Convenience users tend to employ credit cards as an easy mode of payment; typically pay their balance in full upon receiving the statement. Revolvers, on the other hand, use the card principally as a mode of financing and chose to pay interest charges on the unpaid balance. According to the consumer behavior literature, consumer usage behavior and the benefits

sought from a product or a service are one of the best predictors to explain consumer purchase behavior (PeterandOlson1999). Credit cards also serve as an open-ended, easily available credit source ( Lee and Kwon 2002). When consumers use credit cards as a mode of financing, credit cards compete with bank loans and other forms of financing

(Brito and Hartley 1995). Credit cards allow consumers to borrow within their credit limit without transaction costs, which includes all the time and effort involved with obtaining a loan from a financial institution. This convenience attracts many consumers to pay high interest on outstanding

credit card balances, rather than taking the time to apply for a loan with a lower interest rate. As a result, credit cards account for a substantial and growing share of consumers' debt Ausubel (1991) suggests that consumers may not even consider the interest rate when making purchases because they do not intend to borrow for an extended period when they make purchases. However, they may change their minds when the bill arrives. Stavins (1996) argues that consumers are somewhat sensitive not only to changes in the interest rate but also to the value of other credit-card enhancements such as frequent-use awards, expedited dispute resolution, extended warranties, and automobile rental insurance. However, she agrees with Ausubel (1991), Calem and Mester (1995) that lowering interest rates may attract less creditworthy consumers, therefore dissuading some credit-card issuers from interest rates. It is very essential to know whether the study has already been conducted before .If so, how to what extent? And because of this, scholar has to go through all the existing literature relation to the study. Credit card are a new concept introduced in India by Nationalized Banks only a few year back, very limited studies have been conducted on the subject. Due to time restriction Scholar could seek advice from only the limited literature, Which is available in the library as well as on the Internet. It is the real world we have 3 ways to pay for goods: cash check And credit cards or debit cards. Cards can be smart card, debit card, ATM cards and any kind of credit cards. They all serve a special Purpose. They allow us to pay without cash. They are also all Online electronic payment media. lowering their

REAL WORLD CASH

We have now so many mediums of exchange to simplify transaction, a standard of value to make it easier to decide on the Worth of goods, and a store of value to facilitate the concept of saving. For the purpose of E-commerce, electronic money must fulfill the first function. When you carry cash, you are making on the spot payment but online payment is not very different from cash transactions in the real world, except for speed of transfer, ease of handling and the safety of not having to carry cash. Outside of the Internet, cash continues to be most widely used of the payment.

Its unique features are:

Convenience: - easy to use and easy to carry. Wide acceptance: - the U.S.Dollar happens to be most widely accepted paper currency in the world because of its stability and durability. Anonymity: - No identification is needed to pay in cash. No audit trial: - Lack of trace ability means you can do what you want with your cash. In countries where trust in currency, banking system, or the govt. is in question, cash is still used to buy all kind of product including homes, automobiles and other big ticket item.

CREDIT CARD BASED ELECTRONIC PAYMENT SYSTEM

To avoid the complexity association with digital cash and electronic cheques, consumers and vendors are also looking at credit card payment on the Internet as one possible time-tasted alternative. There is nothing new in the basic process. If consumer wants to purchase or services, they simply send their credit card detail to their service provider involved and the credit card organization will handle this payment like any other. We can break credit card payment on online network into 3 basic categories: Payment using plain credit card detail: - The easiest method of payment is the exchange of unencrypted credit cards over a public network such as telephone lines or the Internet. The low level of security inherent in the design of the Internet makes this method problematic (any snooper can read credit card number, and programs can be created to scan the internet traffic for credit cards number and send the number to its master). Authentication is also a significant problem. And the vendor is usually responsible to ensure that the person using the credit card is its owner. Without encryption there is no way to do this.

Payment using encrypted credit card details: - It would make sense to encrypted your
credit card details before sending them out, but even then are certain factors to considered. One would be the cost of credit card transaction itself. Such cost would prohibit low value payment by adding costs to the transaction.

Payments using 3rd party verification:- One solution to security and verification
problem is the introduction of the 3rd party. A company that collects and approves payment from one client to another. After a certain period of time, one credit card transaction for the total accumulated amount is completed. Some of the companies that are attempting to provide the infrastructure on-line credit card processing.

MASTER BANKING
A house banking service started by MASTER CARD and check free corp., as online payment processor.

VISA INTERACTIVE
VISA International acquired US order, a screen phone manufacture. VISA Interactive has signed up more than 30 banks including national banks.

Standard Segregation of credit card

Standard Card it is the most basic card ( sans all frills) offered by issuers. Classic Card Brand name for the standard card issued by VISA Gold Card/ Executive Card A credit card that offers a higher line of credit than a standard card, income eligibility is also higher. In additions, issuers provide extra perks or incentives to cardholders. Platinum card A credit card with a higher limit and additional perks than a gold card. Titanium Card A card with an even higher limit than a platinum card.

PROGRESS OF CREDIT CARD BUSINESS

The number of members using credit card and the number of establishment ownering it after joining the scheme have increased vastly over the past few years. Many Indian banks have joined hand with international banks to provide this card facility on a worldwide based or a selected international centers. The number of credit card holders which was 8 lakh (1997), have increased to 25 lakh now. The credit card network is also fast spreading in smaller cities and towns besides by cities and metros.

ELIGIBILITY
A bank who is in the business of credit card grant subject to some rules and guidelines to its eligible customer before a credit card is given to a customer the banker analysis following factors and accordingly fixes a credit limit if found eligible. The customer should have a saving or current account with the bank. His/Her monthly or annual are regularly received and credit to this bank account. His/Her assets and liabilities are known and reported to the bank. He is considered credit worthy up to a limit depending on his income, assets and expenditure and past dealing with the bank.

The eligible member is then asked to fill in an application from where in details of account number, name and address, income, wealth, status and evidence statement of income etc. are given. This application form is processed and credit limit is established. This credit limit differs from individual to individual and Bank to bank. The maximum limit depends upon the users income. Some banks have fixed of Rs. 1 lakh, 2 lakh or 5 lakh.

ARRANGEMENTS WITH BANKER

Credit card is the key to opening of the bank accounts. The credit card charges and other payments utilized through credit cards are debited to his account. The banker issues a monthly statement and sent to cardholder. This statement contains details of the charges.

The following are some of the plus features of credit card in India.
Hotel discounts Travel fare discounts Free global calling card Lost baggage insurance Accident insurance Insurance on goods purchased Waiver of payment in case of accidental death Household insurance

Benefits of having a Credit card

A credit card makes it easy to buy something now and pay for it later. Its much safer to use a credit card than to carry around cash. If you lose your credit car, you can ask your credit card company to cancel your card, and no one else can use it. But if you lease cash your money is gone. Credit cards are also convenient. Your can use them to make hotel, are rental and other reservations. You can buy items over the phone or online. You can also use credit cards for emergencies, like unexpected care repairs, when you dont have the cash to cover the expenses. A Credit card gives you a credit history, which helps to get home loans and other credit in a future.

HOW CREDIT CARD BENEFITS THE BANK

Credit card increases the customer base of the bank. Credit card increases credit portfolio of the bank. Credit card enhances the reputation of the bank public.

The business establishments, which accept these cards, also give some incentives or commission to bank, by which the bank gains.

HOW CREDIT CARD BENEFITS THE CARD HOLDER

Cardholder can avoid carrying cash and risk of its lose. Cardholder enjoys a credit limit up to which he makes purchases per his need and pay at leisure. Cardholder gets some period of 30 to 45 days the outstanding overdraft. Credit cards serve as a status symbol. Money can be withdrawn at any time over the day and night. It provides free accidentals insurance cover. It provides purchase protection loss of travel, documents, loss of delay in arrival of baggage screeched baggage.

BENEFITS TO BUSINESS ESTABLISHMENT

Business increases to great extent of business houses that accept credit cards. Reputation of the business establishment increases. Customer based increases.

What are the cost of having a credit card?

All credit cards have finance charges foror not paying your balance in fill each month, but you could save a lot of money by shopping around for the credit card that offers you the best terms. Key credit card terms to took at are the annual percentage rate (APR), annual fee, grace period, and late payment charge. Shop for a card with a grace period that gives you enough time to pay your bills on time without charging you interest. Credit card with no grace period start charging you fees as soon as you buy something on your credit card.

Where can I get credit card ?

Your mail is probably full credit card offers from national companies. Most local banks and Community Development Credit Unions (CDCUs) offer credit cards as well. The fees, charges and benefits for credit cards very among different companies. When youre choosing a card,

shop around. CDCUs often offer the best rates and lowest fees, since they are not trying to make a profit like credit card companies are. Some large department stroes also offer credit cards that only can be used in their stores. Usually, when you apply for a store credit card, you get a one-time discount on your purchase that day. But these credit cards have limited uses and often carry high finance charges.

How do I get a credit card

If you are least 18 years old, have a regular source of income and good credit rating; you can probably qualify for a credit card. Before you submit a credit card application, order a copy of your credit report to make sure all of the information on it is correct. After you check your credit report, and fix any wrong information, you can start carefully researching credit card rates, fees and benefits. At the same time, make a list of the features you want in a credit card. Call any credit any credit companies youre interested in for question and other available plans.

REVIEW OF LITERATURE
Investigates the attitudes of Turkish consumers towards credit cards, and the approach of card issuers, by surveying two samples of 200 card-holders and non-holders: the better educated, middle-aged members of the upper-middle class seem to be the prime target; the most important reasons for using a credit card were ease of payment followed by risk of carrying cash; non-holders do not carry credit cards because they do not know much about it; informal sources of information appear to be more influential than mass media advertising in penetrating the market; proposes that the usage and the administration of credit cards are influenced very much by the infrastructure of the country and, hence, credit card companies have to modify their marketing and administrative procedures rather than following a standardized approach. Credit cards, including store cards and bankcards, serve two distinct functions for consumers: a means of payment and a source of credit (Ausubel 1991; Chakravorti 1997, 2000; Chakravorti and Emmons 2001; Slocum and Matthews 1970; Stavins 2000). Based on the main use of credit cards and the benefits sought, credit card users can be segmented into two groups: convenience users and revolvers (Lee and Hogarth 1999). Convenience users tend to employ credit cards as an easy mode of payment; typically pay their balance in full upon receiving the statement. Revolvers, on the other hand, use the card principally as a mode of financing and chose to pay interest charges on the unpaid balance. According to the consumer behavior literature, consumer usage behavior and the benefits sought from a product or a service are one of the best predictors to explain consumer purchase behavior (PeterandOlson1999). Credit cards also serve as an open-ended, easily available credit source ( Lee and Kwon

2002). When consumers use credit cards as a mode of financing, credit cards compete with bank loans and other forms of financing

(Brito and Hartley 1995). Credit cards allow consumers to borrow within their credit limit without transaction costs, which includes all the time and effort involved with obtaining a loan from a financial institution. This convenience attracts many consumers to pay high interest on outstanding

credit card balances, rather than taking the time to apply for a loan with a lower interest rate. As a result, credit cards account for a substantial and growing share of consumers' debt Ausubel (1991) suggests that consumers may not even consider the interest rate when making purchases because they do not intend to borrow for an extended period when they make purchases. However, they may change their minds when the bill arrives. Stavins (1996) argues that consumers are somewhat sensitive not only to changes in the interest rate but also to the value of other credit-card enhancements such as frequent-use awards, expedited dispute resolution, extended warranties, and automobile rental insurance. However, she agrees with Ausubel (1991), Calem and Mester (1995) that lowering interest rates may attract less creditworthy consumers, therefore dissuading some credit-card issuers from interest rates. It is very essential to know whether the study has already been conducted before .If so, how to what extent? And because of this, scholar has to go through all the existing literature relation to the study. Credit card are a new concept introduced in India by Nationalized Banks only a few year back, very limited studies have been conducted on the subject. Due to time restriction Scholar could seek advice from only the limited literature, Which is available in the library as well as on the Internet. It is the real world we have 3 ways to pay for goods: cash check And credit cards or debit cards. Cards can be smart card, debit card, ATM cards and any kind of credit cards. They all serve a special Purpose. They allow us to pay without cash. They are also all Online electronic payment media. lowering their

REAL WORLD CASH

We have now so many mediums of exchange to simplify transaction, a standard of value to make it easier to decide on the Worth of goods, and a store of value to facilitate the concept of saving. For the purpose of E-commerce, electronic money must fulfill the first function. When

you carry cash, you are making on the spot payment but online payment is not very different from cash transactions in the real world, except for speed of transfer, ease of handling and the safety of not having to carry cash. Outside of the Internet, cash continues to be most widely used of the payment.

Its unique features are:

Convenience: - easy to use and easy to carry. Wide acceptance: - the U.S.Dollar happens to be most widely accepted paper currency in the world because of its stability and durability. Anonymity: - No identification is needed to pay in cash. No audit trial: - Lack of trace ability means you can do what you want with your cash. In countries where trust in currency, banking system, or the govt. is in question, cash is still used to buy all kind of product including homes, automobiles and other big ticket item.

CREDIT CARD BASED ELECTRONIC PAYMENT SYSTEM

To avoid the complexity association with digital cash and electronic cheques, consumers and vendors are also looking at credit card payment on the Internet as one possible time-tasted alternative. There is nothing new in the basic process. If consumer wants to purchase or services, they simply send their credit card detail to their service provider involved and the credit card organization will handle this payment like any other. We can break credit card payment on online network into 3 basic categories: Payment using plain credit card detail: - The easiest method of payment is the exchange of unencrypted credit cards over a public network such as telephone lines or the Internet. The low level of security inherent in the design of the Internet makes this method problematic (any snooper can read credit card number, and programs can be created to scan the internet traffic for credit cards number and send the number to its master). Authentication is also a significant problem. And the vendor is usually responsible to ensure that the person using the credit card is its owner. Without encryption there is no way to do this.

Payment using encrypted credit card details: - It would make sense to encrypted your
credit card details before sending them out, but even then are certain factors to considered. One would be the cost of credit card transaction itself. Such cost would prohibit low value payment by adding costs to the transaction.

Payments using 3rd party verification:- One solution to security and verification
problem is the introduction of the 3rd party. A company that collects and approves payment from one client to another. After a certain period of time, one credit card transaction for the total accumulated amount is completed. Some of the companies that are attempting to provide the infrastructure on-line credit card processing.

MASTER BANKING
A house banking service started by MASTER CARD and check free corp., as online payment processor.

VISA INTERACTIVE
VISA International acquired US order, a screen phone manufacture. VISA Interactive has signed up more than 30 banks including national banks.

Standard Segregation of credit card

Standard Card it is the most basic card ( sans all frills) offered by issuers. Classic Card Brand name for the standard card issued by VISA Gold Card/ Executive Card A credit card that offers a higher line of credit than a standard card, income eligibility is also higher. In additions, issuers provide extra perks or incentives to cardholders. Platinum card A credit card with a higher limit and additional perks than a gold card. Titanium Card A card with an even higher limit than a platinum card.

PROGRESS OF CREDIT CARD BUSINESS

The number of members using credit card and the number of establishment ownering it after joining the scheme have increased vastly over the past few years. Many Indian banks have joined hand with international banks to provide this card facility on a worldwide based or a selected international centers. The number of credit card holders which was 8 lakh (1997), have increased to 25 lakh now. The credit card network is also fast spreading in smaller cities and towns besides by cities and metros.

ELIGIBILITY
A bank who is in the business of credit card grant subject to some rules and guidelines to its eligible customer before a credit card is given to a customer the banker analysis following factors and accordingly fixes a credit limit if found eligible. The customer should have a saving or current account with the bank. His/Her monthly or annual are regularly received and credit to this bank account. His/Her assets and liabilities are known and reported to the bank. He is considered credit worthy up to a limit depending on his income, assets and expenditure and past dealing with the bank. The eligible member is then asked to fill in an application from where in details of account number, name and address, income, wealth, status and evidence statement of income etc. are given. This application form is processed and credit limit is established. This credit limit differs from individual to individual and Bank to bank. The maximum limit depends upon the users income. Some banks have fixed of Rs. 1 lakh, 2 lakh or 5 lakh.

ARRANGEMENTS WITH BANKER

Credit card is the key to opening of the bank accounts. The credit card charges and other payments utilized through credit cards are debited to his account. The banker issues a monthly statement and sent to cardholder. This statement contains details of the charges.

The following are some of the plus features of credit card in India.
Hotel discounts Travel fare discounts Free global calling card Lost baggage insurance Accident insurance Insurance on goods purchased Waiver of payment in case of accidental death Household insurance

Benefits of having a Credit card

A credit card makes it easy to buy something now and pay for it later. Its much safer to use a credit card than to carry around cash. If you lose your credit car, you can ask your credit card company to cancel your card, and no one else can use it. But if you lease cash your money is gone. Credit cards are also convenient. Your can use them to make hotel, are rental and other reservations. You can buy items over the phone or online. You can also use credit cards for emergencies, like unexpected care repairs, when you dont have the cash to cover the expenses. A Credit card gives you a credit history, which helps to get home loans and other credit in a future.

HOW CREDIT CARD BENEFITS THE BANK

Credit card increases the customer base of the bank. Credit card increases credit portfolio of the bank. Credit card enhances the reputation of the bank public. The business establishments, which accept these cards, also give some incentives or commission to bank, by which the bank gains.

HOW CREDIT CARD BENEFITS THE CARD HOLDER

Cardholder can avoid carrying cash and risk of its lose. Cardholder enjoys a credit limit up to which he makes purchases per his need and pay at leisure. Cardholder gets some period of 30 to 45 days the outstanding overdraft. Credit cards serve as a status symbol. Money can be withdrawn at any time over the day and night. It provides free accidentals insurance cover. It provides purchase protection loss of travel, documents, loss of delay in arrival of baggage screeched baggage.

BENEFITS TO BUSINESS ESTABLISHMENT

Business increases to great extent of business houses that accept credit cards. Reputation of the business establishment increases. Customer based increases.

What are the cost of having a credit card?

All credit cards have finance charges foror not paying your balance in fill each month, but you could save a lot of money by shopping around for the credit card that offers you the best terms. Key credit card terms to took at are the annual percentage rate (APR), annual fee, grace period, and late payment charge. Shop for a card with a grace period that gives you enough time to pay your bills on time without charging you interest. Credit card with no grace period start charging you fees as soon as you buy something on your credit card.

Where can I get credit card ?

Your mail is probably full credit card offers from national companies. Most local banks and Community Development Credit Unions (CDCUs) offer credit cards as well. The fees, charges and benefits for credit cards very among different companies. When youre choosing a card, shop around. CDCUs often offer the best rates and lowest fees, since they are not trying to make a profit like credit card companies are. Some large department stroes also offer credit cards that only can be used in their stores. Usually, when you apply for a store credit card, you get a one-time discount on your purchase that day. But these credit cards have limited uses and often carry high finance charges.

How do I get a credit card

If you are least 18 years old, have a regular source of income and good credit rating; you can probably qualify for a credit card. Before you submit a credit card application, order a copy of your credit report to make sure all of the information on it is correct. After you check your credit report, and fix any wrong information, you can start carefully researching credit card rates, fees and benefits. At the same time, make a list of the features you want in a credit card. Call any credit any credit companies youre interested in for question and other available plans.

REVIEW OF LITERATURE
Investigates the attitudes of Turkish consumers towards credit cards, and the approach of card issuers, by surveying two samples of 200 card-holders and non-holders: the better educated, middle-aged members of the upper-middle class seem to be the prime target; the most important reasons for using a credit card were ease of payment followed by risk of carrying cash; non-holders do not carry credit cards because they do not know much about it; informal sources of information appear to be more influential than mass media advertising in penetrating the market; proposes that the usage and the administration of credit cards are influenced very much by the infrastructure of the country and, hence, credit card companies have to modify their marketing and administrative procedures rather than following a standardized approach. Credit cards, including store cards and bankcards, serve two distinct functions for consumers: a means of payment and a source of credit (Ausubel 1991; Chakravorti 1997, 2000; Chakravorti and Emmons 2001; Slocum and Matthews 1970; Stavins 2000). Based on the main use of credit cards and the benefits sought, credit card users can be segmented into two groups: convenience users and revolvers (Lee and Hogarth 1999). Convenience users tend to employ credit cards as an easy mode of payment; typically pay their balance in full upon receiving the statement. Revolvers, on the other hand, use the card principally as a mode of financing and chose to pay interest charges on the unpaid balance. According to the consumer behavior literature, consumer usage behavior and the benefits sought from a product or a service are one of the best predictors to explain consumer purchase behavior (PeterandOlson1999). Credit cards also serve as an open-ended, easily available credit source ( Lee and Kwon 2002). When consumers use credit cards as a mode of financing, credit cards compete with bank loans and other forms of financing

(Brito and Hartley 1995).

Credit cards allow consumers to borrow within their credit limit without transaction costs, which includes all the time and effort involved with obtaining a loan from a financial institution. This convenience attracts many consumers to pay high interest on outstanding

credit card balances, rather than taking the time to apply for a loan with a lower interest rate. As a result, credit cards account for a substantial and growing share of consumers' debt Ausubel (1991) suggests that consumers may not even consider the interest rate when making purchases because they do not intend to borrow for an extended period when they make purchases. However, they may change their minds when the bill arrives. Stavins (1996) argues that consumers are somewhat sensitive not only to changes in the interest rate but also to the value of other credit-card enhancements such as frequent-use awards, expedited dispute resolution, extended warranties, and automobile rental insurance. However, she agrees with Ausubel (1991), Calem and Mester (1995) that lowering interest rates may attract less creditworthy consumers, therefore dissuading some credit-card issuers from interest rates. It is very essential to know whether the study has already been conducted before .If so, how to what extent? And because of this, scholar has to go through all the existing literature relation to the study. Credit card are a new concept introduced in India by Nationalized Banks only a few year back, very limited studies have been conducted on the subject. Due to time restriction Scholar could seek advice from only the limited literature, Which is available in the library as well as on the Internet. It is the real world we have 3 ways to pay for goods: cash check And credit cards or debit cards. Cards can be smart card, debit card, ATM cards and any kind of credit cards. They all serve a special Purpose. They allow us to pay without cash. They are also all Online electronic payment media. lowering their

REAL WORLD CASH

We have now so many mediums of exchange to simplify transaction, a standard of value to make it easier to decide on the Worth of goods, and a store of value to facilitate the concept of saving. For the purpose of E-commerce, electronic money must fulfill the first function. When you carry cash, you are making on the spot payment but online payment is not very different from cash transactions in the real world, except for speed of transfer, ease of handling and the safety of not having to carry cash. Outside of the Internet, cash continues to be most widely used of the payment.

Its unique features are:

Convenience: - easy to use and easy to carry. Wide acceptance: - the U.S.Dollar happens to be most widely accepted paper currency in the world because of its stability and durability. Anonymity: - No identification is needed to pay in cash. No audit trial: - Lack of trace ability means you can do what you want with your cash. In countries where trust in currency, banking system, or the govt. is in question, cash is still used to buy all kind of product including homes, automobiles and other big ticket item.

CREDIT CARD BASED ELECTRONIC PAYMENT SYSTEM

To avoid the complexity association with digital cash and electronic cheques, consumers and vendors are also looking at credit card payment on the Internet as one possible time-tasted alternative. There is nothing new in the basic process. If consumer wants to purchase or services, they simply send their credit card detail to their service provider involved and the credit card organization will handle this payment like any other. We can break credit card payment on online network into 3 basic categories: Payment using plain credit card detail: - The easiest method of payment is the exchange of unencrypted credit cards over a public network such as telephone lines or the Internet. The low level of security inherent in the design of the Internet makes this method problematic (any snooper can read credit card number, and programs can be created to scan the internet traffic for credit cards number and send the number to its master). Authentication is also a significant problem. And the vendor is usually responsible to ensure that the person using the credit card is its owner. Without encryption there is no way to do this.

Payment using encrypted credit card details: - It would make sense to encrypted your
credit card details before sending them out, but even then are certain factors to considered. One would be the cost of credit card transaction itself. Such cost would prohibit low value payment by adding costs to the transaction.

Payments using 3rd party verification:- One solution to security and verification
problem is the introduction of the 3rd party. A company that collects and approves payment from one client to another. After a certain period of time, one credit card transaction for the total accumulated amount is completed. Some of the companies that are attempting to provide the infrastructure on-line credit card processing.

MASTER BANKING
A house banking service started by MASTER CARD and check free corp., as online payment processor.

VISA INTERACTIVE
VISA International acquired US order, a screen phone manufacture. VISA Interactive has signed up more than 30 banks including national banks.