Comparison of Payment Cards

1. Comparison of Payment Cards Laura Baruch Shannon Johnson Jindra Předotová

2. Agenda • History • Profiles of USBank Corp. and HVB Bank • Debit Cards • Credit Cards • Lost Card Procedure • Payment Card Usage • Incentive Programs

3. United States Banking History • First Bank of the United States • Chartered by Congress February 25, 1791 • Alexander Hamilton • Handled financial needs and requirements • Established an excise tax • Established financial order for the newly formed United States. • Established credit—both in country and overseas

4. United States Banking History • Second Bank of the U.S. • 1816, chartered 5 years after expiration of First Bank • U.S. President James Madison • Goal: Stabalize currency • Philedelphia, Pennsylvania • Political Corruption and fraud

5. United States Banking History • Free Banking Era 1837-1862 • National Banks 1863-1913 • 1913 Creation of the Federal Reserve System

6. Czech Republic Banking History • Under communism • centrally planed, under a control of state • Privatization • Banks were sold to private companies • Present • banking runs on the market principals • currently 36 banks • supervision is provided by the Czech National Bank

7. Profile of the USBank Corp. • Assets in excess of $221 billion • 6th largest commercial bank in the U.S. • Operates 2,498 banking offices • 4,837 ATMs • Service products: banking, brokerage, insurance, investment, mortgage, trust and payment • Customers: personal consumers, businesses and institutions • Free internet Banking, live telephone bankers 24 hours a day

8. Profile of the HVB Bank • Entered into the Czech market on October 1, 2001 • Focus: corporate and private clients • 4th in the Czech market • Market share of 6% • In 2005, HVB became a member of the Unicredit group • Unicredit group has more than 28 million clients • Assists its customers in financing their projects using EU Structural Funds • Specializes in enterpreneurs and small business

9. Unicredit Worldwide Operations Countries where the Group operates via its own branches Countries where the Group operates via local banks controlled Abu Dhabi Hong Kong Bahrain Johannesburg Seoul Singapore Beijing Mexico City Shanghai Boston Miami Buenos Aires Mumbai Sydney Teheran Cairo New York Tel Aviv Guangzhou Rio de Janeiro Tokyo Hanoi São Paulo

10. Debit Cards • USBank Corp. • Debit card can only be opened with a Checking Account • Account requirements for “Free Checking with Interest” • Minimum Opening Deposit - $100.00 • Minimum daily Balance – None • Monthly Maintenance Fee – None • Free ATM Transactions at U.S. Bank ATMs • $3.00 transaction fee at other non-U.S. Bank ATMs • Additional Fees • Insufficient fund fee – Variable • For each withdrawal transaction that exceeds your available balance on a given day. (e.g. in-person, ATM, automatic payment, or other paper or electronic withdrawal transaction) • Overdraft fee - $30.00 • For every transaction that causes the available balance to become negative • Availability of ATMs: • 4943 U.S. Bank ATMs • 1,000,000 Visa ATMs* • *U.S. Bank only partners with VISA credit card company

11. Debit Cards • HVB Bank • Account requirements: bank account (0-399 Kč) • ATM fees: normally 30 Kč, product packages have no fee • 1,540 cashpoints and 28,000 acceptanceplaces • Mastercard, Visa and Diners club • Standard cards, business cards, Gold cards and Diners club • Automaticaly blocked for paying on the internet Charge Cards 5% Credit Cards 8% Debit Cards 87%

12. Credit Cards • USBank Corp. • APR: 0% for the first 6 months, then 14.24% to 23.24% • Annual Fee: $0 the first year and every year that you charge at least one purchase to the Account. Otherwise $20 • Available card companies – VISA sponsored by multiple companies from NWA to GYMBOREE • Grace Period – 20-25 days for purchases only • Minimum Finance Charge - $2.00 • Account management fee: $2.50 per month • Fraud Protection: Zero Liability Program • Conditions for getting Credit card: • Age: 18 years or older • Completed Application • Active Checking Account • Proof of residency

13. Credit Cards • HVB Bank • Interest rates: 0.5% – 1.99% • Fees for bank account: 0-30 Kč • Fees for withrawals: 60 Kč • Up to 45 days without interest • Conditions for getting Credit card: • Age: 18 years or older • Monthly income greater than 9,500 Kč • Proofs (ID, pass port, confirmatin of income, bills for phone...)

14. Lost Card Procedure • USBank Corp. Lost Card • U.S. Bank Zero Liability Policy • Check Cards: cannot use without pin number • Fraudulent purchase: report, reimbursed next business day after verification of claim Issuance of new card • 7-10 business days, 2 days rushed • Expiration date: 4 years both debit card and credit card

15. Lost Card Procedure • HVB Bank Lost card • Stoplist 1500 Kč • Blocation 300 Kč • It is the customer’s responsibility, same day, until midnight. • Issuing new card • 10 working days • Expiration dates: 1 year for credit cards, 3 years for debit card

16. Use of Payment Cards • USBank Corp. • There were 278 million debit cards in U.S. hands in 2004, with 22.2 billion transactions amounting to more than $1 trillion. • 56% of all American Families use credit cards as first choice of payment method.

17. Use of Payment Cards • HVB Bank • 80% withdrawals • Increasing trend in terms of payment by card • Paying is free • 7 ATM´s • Credit cards – in case of paying is noninterest period

18. Czech Republic Payment Cards

19. Incentive Programs • USBank Corp. • Cash Rewards • Travel Rewards • Merchandise Rewards • Earn Rewards for an Affiliation • Do Not Earn Rewards

20. Incentive Programs • HVB Bank • Insurance against the Loss of a Payment Card  • Travel insurance • Credit card: For inability for paying

21. Questions?