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Money & Banking

Carl Lui Hung Sun. 053193. Yolanda Wong Yee Ting. 053197. Louis Lo Wan Shuen. 053198. Karen Chung Tin Yu. 053200. Cream Chung Suet Ying. 053215. Peggy Fan King Yi. 053217. Money & Banking. The current local market situation of credit cards. Group 1. Rundown.

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Money & Banking

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  1. Carl Lui Hung Sun 053193 Yolanda Wong Yee Ting 053197 Louis Lo Wan Shuen 053198 Karen Chung Tin Yu 053200 Cream Chung Suet Ying 053215 Peggy Fan King Yi 053217 Money & Banking The current local market situation of credit cards Group 1

  2. Rundown • Introduction of Credit Cards • Transaction Process of Credit Card • Market situation of credit cards • Development of credit card

  3. Credit Card Clip Bank name card number Expiry date Cards issuers Valid date cardholder’s name

  4. Hotlines Customer service hotline : xxxxxxxx Lost/ Stolen card hotline:: xxxxxxxx safety code signature

  5. General History of Credit Cards • In 1950, Diners Club and American Express launched their charge cards in the USA, the first "plastic money". • In 1951, Diners Club issued the first credit cardto 200 customers who could use it at 27 restaurants in New York. • The first use of magnetic stripes on cards was in the early 1960’s, when the London Transit Authority installed a magnetic stripe system.

  6. Three most well known brands of credit cards

  7. Cardholder 1 Merchant 9 2 8 10 3 Issuer (Cardholder’s bank) Acquirer (Merchant’s bank) 7 6 Settlement Bank 2 4 5 2 Credit Card Company Authorization Process of Transaction of Credit Card

  8. Credit card market

  9. Credit card market showing the growth of using credit card (01-05) Sources: http://www.corporate.visa.com/md/st/main.jsp

  10. Credit card market

  11. Charge-off (bad debit) The charge-off amount during 2000-2006 is as follow:

  12. Charge-off (bad debit)

  13. Recommendationfor card issuer • issue a secured credit card • credit history, assymetric infromation • offer debt settlement program , prevent charging off

  14. The security Data theft puts HK credit cards at risk • TJX on Mar31,2007 revealed personal information about 45.7 million credit and debit cards • Affected cardholders would NOT be required to bear the cost of any fraud • According to the code of banking practices, card issuers will bear the full loss

  15. Ways to strengthen the security For card issuers: • To use strong passwords • To use readily available security • To employ sufficient measures to detect unauthorized access

  16. For cardholders: • Sign your Credit Card immediately • Check the total amount on slips before signing, and keep the "Cardholder Copy“ • Do not sign any blank or incomplete slips • Monitor your monthly statements • Do not easily volunteer any personal information or financial information in email or phone.

  17. How many credit cards do you have??

  18. Our survey 60 %: under $1000 95 %: under $5000

  19. Data of Hong Kong Monetary Authority (HKMA) • 4th quarter of 2006 • The average expenditure by credit card in Hong Kong (per person): • =$6254.27 per person

  20. Reason for expanding Credit Card Market on University First Band Loyalties: • study conducted by Yankelovich, Skelly and Whit • first brand loyalties as teenagers • stay with company for a long period of time • build up a long relationship with customers

  21. Reason for expanding Credit Card Market on University Potential of University Students on Spending: • further of University graduates are brighter • mean of salaries of fresh graduates from University is $9,500 • increase continuously in the rest of lives • The potential on spending are unlimited • depend on University students

  22. Development of Credit Card PayPass • a wireless, contactless card system • without swiping credit card though a reader

  23. Chip Development of Credit Card Chip Card • increase the security level of credit card • preventing your cards from being copied to produce counterfeit cards • security level of clip cards is higher than magnetic stripe card

  24. Development of Credit Card Accelerated Solutions Development Environment (ASDE) • innovate faster and faster • a software development process that helps IT respond more quickly to such proposals • methodology that meets a customer’s needs best

  25. Q & A section

  26. Carl Lui Hung Sun 053193 053197 Yolanda Wong Yee Ting 053198 Louis Lo Wan Shuen 053200 Karen Chung Tin Yu 053215 Cream Chung Suet Ying 053217 Peggy Fan King Yi

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