50730438 Project Report on Credit Card1

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A PROJECT ON

"A STUDY ON CREDIT CARD"

(THE PLASTIC MONEY)

Submitted in partial fulfillment of the requirement ofBachelor Of International Business & Finance,

Jamia Millia Islamia, University,New Delhi-110025

Submitted by: ZOFAIL HASSAN

SESSION :- 2009-2011

Submitted to:

DEPARTMENT OF COMMERCE AND

BUSINESS STUDIES

JAMIA MILLIA ISLIMIA UNIVERSITY

NEW DELHI-110025

ACKNOWLEDGEMENT

A project gains a lot of relevance as it on time activity

serving a definite object. Practical experience in undertaking a

project teaches many things which would otherwise elude

observations.

I am very indebted and obliged to have Ms. VARDHA

SAGHIR (lecturer) project guide and whose scholarly guidance

and sustained interest in the progress of my project have been

the major contributing factor in preparation of this project

report.

I am also placed my sincere thanks to all respondents and

concerned people to this project.


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CONTENTS

x EXECUTIVE SUMMARY OF CREDIT CARD INDUSTRY

INTRODUCTION

TYPES OF CARDS

SALIENT FEATURES

x OBJECTIVES & SCOPE OF THE STUDY

x RESEARCH METHODOLOGY

x INDIAN CREDIT CARD SCENARIO

x DECIDING ON THE RIGHT CREDIT CARD

x ANALYSIS

x COMPARISON OF CREDIT CARDS

x SUGGESTIONS OF THE STUDY

x LIMITATIONS OF THE STUDY

x CONCLUSION

x RECOMMENDATION

x BIBLIOGRAPHY

x QUESTIONNAIRE


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INTRODUCTION

ORIGIN

The credit card had its beginning in an embarrassing incident that

took place in the early 1950s in America. The story goes that Mr.

McNamara; a New York businessman took his friends out to dinner.

At the end of meal he discovered that he had forgotten his wallet at

home, the proprietor was kind enough to allow him a later

settlement of bill. As McNamara stepped out of the restaurant he

had the brainwave for the introduction of credit cards - system of

availing instant credit upon confirming the identity of cardholder.

Thus was born the Diners Club Cards, the pioneer of todays

multibillion-dollar plastic money business.

Diners Club adopted a promising approach by recruiting various

hotels and restaurants to act as member establishments for accepting

the cards. Not only did these establishments pay a commission on

members purchases but the members also paid an annual

subscription fee. Diners Club vetted its members for credit


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worthiness and guaranteed payment to participating establishment.

Thus was born the first Travel and Entertainment Card. It was

followed by American Express, which is now a dominant force in

the Travel and Entertainment cards industry, and by 1959 by Carte

Blanche, after many vicissitudes is now a part of Citi Bank Empire

Together With Diners Club. In the present time American Express

leads the travel and entertainment (T&E) card industry.

The next great leap-forward came from Bank of America, which in

other banks. Such cardholders could use their card 1966 offered to

license its successful blue, white and gold Bank America card to at

any accepting merchant establishments around the globe. Later in

1977 all the national and international Bank America licenses were

pulled together under the single name of Visa.

Not to be outdone, a rival group of American Banks came together

in 1966 under the name of Interbank, later renamed Master Charge

and later still Master Card. Ever since Master Card and Visa and

their affiliates have carved the world credit card market.

Documents

50730438 Project Report on Credit Card1