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Credit cards in India 

Credit cards have finally arrived in India. The card industry, which

is growing at the rate of 20 per cent per annum is flooded withcards ranging from gold, silver, global, smart to secure…the list isendless. From just two payments in the early ‘80s, the industrynow houses over 10 major players vying for a major chunk of thecard pie.

Currently, four major bishops are ruling the card empire -Citibank, Standard Chartered Bank, HSBC and State Bank of India (SBI). The industry, which is catering to over 3.8

million

1

card users, is expected to double by the fiscal 2003.According to a study conducted by State Bank of India, Citibankis the dominant player, having issued 1.5 million cards so far.Standard Chartered Bank follows way behind with 0.67 million,while Hongkong Bank has 0.3 million credit card customers.Among the nationlaised banks, SBI tops the list with 0.28 millioncards, followed by Bank of Baroda at 0.22 million.

The credit card market in India, which started out in 1981, is onthe verge of an unprecedented boom. Between 1987 and 2000,the market has virtually grown to over 3.8 million cards withalmost 25-30 per cent growth in new card-holders.

India is generating more credit card spenders than spendingplaces. While card-base and appends are growing at a spiffy 25-30 per cent2 annually, the number of merchant establishmentswhich accept cards is growing selectively sluggish. The figure wasput at 75,000–80,000 a couple of years ago, and now stands at100,000 on both the Visa and MasterCard loops. As opposed to

that, there are 2.5 million card-holders and 3.3 million cards(some, obviously, have more than one) and the numbers aregrowing very strongly.

The seven million Indian credit card industry has been growingover 25 per cent3 annually and has now more than 30 banks

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chasing customers with their cards. Still, credit cards in Indiahave made business sense only to a few.

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AN EXAMPLE OF THE FRONT IN A TYPICAL CREDIT CARD: 

1.  Issuing bank logo

2.  EMV chip on "smart cards"

3.  Hologram

4.  Credit card number

5.  Card brand logo

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6.  Expiration Date

7.  Card Holder Name

8.  contactless chip

AN EXAMPLE OF THE REVERSE SIDE OF A TYPICAL CREDIT CARD:

1. 

Magnetic Stripe2.  Signature Strip

3.  Card Security Code

A credit card is a small plastic card issued to users as a system of payment. It

allows its holder to buy goods and services based on the holder's promise to payfor these goods and services.

[1] The issuer of the card grants a line of credit to the

consumer (or the user) from which the user can borrow money for payment to a

merchant or as a cash advance to the user. Usage of the term "credit card" to

imply a credit card account is a metonym. 

A credit card is different from a charge card: a charge card requires the balance to

be paid in full each month. In contrast, credit cards allow the consumers a

continuing balance of debt, subject to interest being charged. Most credit cards

are issued by banks or credit unions, and are the shape and size specified by theISO/IEC 7810 standard as ID-1. This is defined as 85.60 × 53.98 mm

(3.370 × 2.125 in) (33/8 × 2

1/8 in) in size.