文档介绍：Credit Card Marketing
Shariq Mukhtar
Cards Business, Citibank
May 2004
Presentation Path
Part 1. Credit card basics
Part 2. Taiwan market
Part 3. Credit card marketing
Part 4. Cards financial dynamics
Presentation Path
Part 1. Credit card basics
Part 2. Taiwan market
Part 3. Credit card marketing
Part 4. Cards financial dynamics
Credit card volumes worldwide
As of Sep 2003
Credit card is a product with mass appeal.
Total cards: 1,500MM
Visa
MasterCard
American Express
Total sales: US$4,000BN
Visa
MasterCard
American Express
Why credit cards are so popular?
Convenience of not carrying cash
Peace-of-mind in case of emergency
Time
Place
Power to make impulse purchases
Cash Flow Management with revolving feature
Help meet Day-to-Day Needs of today’sfast paced life
Credit card can actually be better than cash
Lost Card Liability, in case of loss of wallet
Many Discounts available, due to pany tie-ups with merchant outlets
Rewards Points and/or Cash Rebate
Purchase Protection
Travel Insurance
And more….
Target Market
Everybody who has e, does not have negative credit history and is above certain age.
Issuing
Bank
Example of Credit Card Process Flow
Assuming % merchant discount and % interchange fee
Acquiring
Bank
$ $ $
Visa
MasterCard
Settlement
House
Merchant
Cardholder
$100 Charge
$100 Worth of Merchandise
$100
Bill
$
$
$100
Charge
$100 Charge
$
$100
Charge
Sharing of Merchant Discount
Cardholder Pays
Merchant gets
Acquiring bank gets
Issuing bank gets
Function of Issuing Bank
Issue card to qualified customers
Receive transaction information from Settlement House
Provide transactions and outstanding balance information to card members
Take credit and fraud risk on card members