Credit Card

This is revolving loan product for card holder, where card holder consumes card limit by purchasing product or services at different merchant point through POS, or by withdrawing money from the recommended ATM. Cardholder can also do transaction through internet called e-commerce transaction. Card limit is replenished/refiled through payment by cardholder for further use. Bank charges interest & other fees for the usages of card.

Features

• It is unsecured loan of a bank where bank offer a specific limit called ‘card limit’ based on the card holder’s assesses creditworthiness.
• Cardholder can use this card in any recommended ATM booth to withdraw cash, purchase products and services through POS and to make online transactions.
• Maximum card limit is BDT 500,000 & minimum is 10000 or equivalent USD amount. For secured card Maximum limit depends on security amount.
• Credit limit can be replenished by making payment by cardholder.
• Card issuer (bank/financial institute) provides monthly statement to card holder to inform about card transaction, charges (if any), total balance, minimum payment, payment due date, etc.

Credit Card Services & Benefits

• Card Cheque: Some banks offer card cheque as a facility of a cardholder to pay through cheque to any one as a mode of payment like conventional cheque service. Cheque processing fee is applicable for this service.
• Installment service: Cardholder can purchase any product by installment with 0% interest or lower interest rate for a particular period of time.
• SMS Alert: SMS alert is a service where cardholders get SMS in their mobile (which mobile numbers recorded in the card system) for the following instances:
  • Any transaction,
  • Any payment on card
  • Monthly statement.
• E-Statement: Cardholders can get their monthly Credit Card statements in their given email address.
• Reward Point: Cardholder can earn reward point for purchase through card. Point scores depend on purchase amount. So the policy is that the more you purchase, the more you earn reward points. Particular reward point is eligible for different reward/gift as per banks reward policy.
• Insurance: Cardholder can get insurance coverage in case of death or permanent disability of cardholder. Small amount of monthly premium charge is applicable for this service.
• Discount: Some Banks offer different discount on purchase/payment by card as per their discount schedule.
• Privilege Service: Some bank offer different premium service like free airport lounge of different country, travel accident insurance for different privilege cards like signature and platinum card. Privilege card’s annual charge is higher than the regular card.

Category of Credit Cards
Bank designs credit card products on the basis of different factors like card brand, card limit, card fees & charges, income segment, specific demand or requirement of client, etc. On the basis of these factors credit card products can be grouped into the following three major categories:

• Credit Card category as per Brand & Network
• Credit Card category as per card Limit, Fees & Charges
• Credit Card category as per Client requirement

a. Credit Card category as per Brand & Network
All over the world there are lots of card service providers which provide worldwide network for card transactions. VISA, MasterCard, American Express, JCB, Diners Club are some of the renowned names of that kind of organizations & Brand. These organizations usually do not directly issue the card, but they provide license/membership to bank or financial organization to use their brand name & permit to access their worldwide network. Brand & Network wise credit card products are

• VISA Credit Card
• MasterCard Credit Card
• American Express Credit Card
• JCB Credit Card
• Diners Club Credit Card