PART-I

1.0 Introduction
1.1 Origin of the Report This project is a requirement of BBA Program and includes experiences during preparing this project. This report is about the Credit Card Services of Standard Chartered Bank in Bangladesh. Here the project contains different system, program, process, features and benefits of Credit Card. Standard Chartered Bank is a multinational bank and started its business in Bangladesh in 1948 with a branch in Chittagong. Today it has 18 branches and 25 ATMs in different important places of this country. Standard Chartered Bank is the pioneer issuer of Credit Card in Bangladesh and it is also pioneer acquirer of Credit Card in Bangladesh. It acquires credit card since 1988 and started issuing credit cards from the year 1997. Today it has in total approximately 100,000 credit cards in the market with approximately 4000 merchants.
1.2 Objectives

The main objectives of this project to study the customer services provided by the Credit Card Services of Standard Chartered Bank in this country. Along with this the objectives of this study were as follows; i) ii) iii) iv) To study the product - Credit Card To study about the Credit Card customer service To reveal the limitations of the current Credit Card To suggest possible ways to overcome the limitations.

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1.3 Methodology

This is a vivid project with independent and dependant observation narrated all through the project. To write this project, information were collected from both the primary and secondary sources.

Primary Sources Few employee of Standard Chartered Bank who work in Credit Card Division, helped to get information about Standard Chartered Credit Card Service.

Secondary Sources Data was also collected from various manuals. 1.4 Scope A 24 hour customer service in the banking sector is very new in Bangladesh. As for Standard Chartered Credit Card, it has complete many years of its official launch. As credit card business is very susceptible to fraudulent activities critical information as well as financial information is very restrictive. Other than that information all other information was available.

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Limitations Lack of comprehension of the respondents was the major problem that created many confusions regarding verification of conceptual question.

Limitation of time was one of the most important factors that shortened the present study. Due to time limitation many aspect could not by discussed in the present study. Confidentiality of data was another important barrier that was confronted during the conduct of this study. Every organization has their own secrecy that is not revealed to others. While collecting data on Standard Chartered Bank, personnel did not disclose enough information for the sake of confidentiality of the organization. Rush hours and business was another reason that acts as an obstacle while gathering data. The finding of the survey is based on employees response in different Standard Chartered branches located in Dhaka City only. The results may not reflect the same for other branches of Standard Chartered outside Dhaka.

1.6 Report Preview The report contains five parts. Part one is the Introduction part, which includes objective of the project, scope, limitations, and methodology. Part two the Organizational part gives the idea about Standard Chartered Banks historical background, banking services specially the credit card services of SCB. Third part introduces the Standard Chartered Bank Credit Card services and discusses that how the Credit Card works, how SCB customers are getting advantage out of it. Forth part will highlight on Credit Card in Bangladesh perspective. Which

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card is popular in Bangladesh, its interest rate and the social impact of Credit Card. Fifth part is conclusion and recommendation.

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PART-II

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2.0 STANDARD CHARTERED BANK

Standard Chartered Bank (SCB) is an international bank, which primarily focuses its activities in Asia, Africa, and Middle East. This bank plays an invigorating role in linking the worlds developed economies with emerging markets and provides personal banking, corporate baking, institutional banking consumer finance and custodial services. The act of the bank is to provide the most efficient, consistent and timely services and to be the bank of choice in its principal territories. SCB is a multinational bank and financial services group that is incorporated in the U.K. with a unique international network. It now spans in the developed and emerging economies of the world, after been built over 150 years. The group operates through more than 600 offices in over 48 countries and has over 25,000 people managing assets of over 47 billion pounds. In asset size the group was ranked 94th in the world in 1997. The group has its long past history showing its huge growth worldwide. 2.1 Standard Chartered in Bangladesh The Chartered Bank opened its operation in Chittagong in 1947 that was, at that time the eastern region of the newly created Pakistan. The branch opened mainly to facilitate the post war re-establishment and expansion in South East Asia. The bank opened its first branch in Dhaka in 1966 and shifted its headquarter from Chittagong to Dhaka after the birth of the Republic of Bangladesh in 1971 the bank increasingly invested in people, technology and premises as its business grew in relation to the countrys thriving economy. Extensive knowledge of the market and essential expertise in wide financial

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services underline SCBs strength to build business opportunities and institutional clients at home and abroad. Continuous upgrading of technology and control system has enabled the bank to offer new services, which include unique ATM and Phone Banking on a 24-hour basis.

PART-III

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3.0 Credit Card

3.1 What is a Credit Card ? A plastic card issued by a bank, like Standard Chartered Bank or by other financial institutions. It is also known as plastic money. The credit cards are personalized to the user bear the user name, photograph and signature and are magnetized with unique card number. Credit card allows cardholder mainly to buy goods and services for the retailers or shops take cash advances from ATMs or branches pay their utility bills. On purchasing goods and services for the selected shops, called merchants, retailers are paid directly by the bank, less a service charge. Card holder receives monthly statements from the credit card unit of the bank, which may be paid in full within a certain number of days with no interest charged. Card holders may make a specified minimum payment (typically 5% of the outstanding) and pay interest on the outstanding balances.

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Credit Card allows customers to enjoy revolving credit as repaid amounts can be redrawn up to the allocated limit of the credit card. In modern time in most of the countries Credit Cards are viewed as a prime payment instrument, a safer substitute for cash.
3.2 Historical Background

In today's economy, the payment system has come a long way since the days of barter. The concept of cards or plastic money was first introduced by Western Union in the United States in 1914. The system was very well appreciated by everyone and began to spread out in other contexts also. In 1924, General Petroleum Corporation of California introduced their own fuel card to be used at their oil stations all over the country. This gave their customers the privilege of buying gas from all the general petroleum outlets with this card instead of using cash money. The popularity of card encouraged the banks to introduce this product to their customers. Bank credit card was first introduced in the USA in 1952 by the Franklin National Bank. But the rising curve of the credit card popularity started in the later half of the 60's. 1950's witnessed introduction of travel & entertainment cards such as Diners club, American Express and Carte Blanche. The incident that triggered the constitution of the Diners' Club is quite fascinating. The founder of 'Diner Club' Robert Mcnmara once experienced entertaining guests at a New York restaurant. This incident gave birth to the idea of charge cards. Barclays Bank of the UK introduced Barclaycard in 1966. This was followed by Access Credit Card launched jointly by Lloyds Bank, Midland Bank, National Westminster, Williams & Glyn's and the royal bank of Scotland. Travel and entertainment cards are used as a method of payment only and not considered as credit cards. In 1958, American Express

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introduced their corporate cards which has today become the most widely used charge card in the world. Consequently in 1966 Master charge & Bank Amricard (which later came to be known as MasterCard) and in 1977 VISA were born. Both MasterCard international and VISA international are scheme operators who operate all around the world through a wide range of established banks like Citibank, Hong Kong Shanghai Bank and ANZ Grindlays Bank, Standard Chartered Bank etc.
3.3 Types of Card

The basic underlying hypothesis of plastic cards is that a cardholder can use that card as a medium of payment at different points of sales (POS) in the place of cash currency, in a standard situation, every transaction through cards involves three parties. They are (1) Cardholder (2) The card issuing bank (3) The merchant. Here the card issuing bank acts as an intermediary between the card holder and the merchant. There are several cards being used around the world. The main Categories have been discussed in the proceeding section:
3.3.1 Credit card

Credit card as a substitute for cash or cheque and services is becoming increasingly popular with public since its introduction in the market. Global acceptability is the sign for the success of credit card. It provides two aspects of banking function together: the transmission of payment and granting of credit. The system is mutually attractive to parties involved in credit card operation-card holder, merchant and bank. A credit card has a limit on the amount the cardholder can spend on it; but at the same time it has the advantage of revolving credit. By

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definition, A Credit Card is a card which allows the cardholder to pay for goods and services or draw cash, up to a predetermined card spending limit and enables him to pay off the outstanding balance over from one statement to another. This charge covers the banks expenses of carrying unclear debit balances in the cardholders account.

3.3.2 Visa and MasterCard Credit cards

Visa and MasterCard are two scheme operators who operate all over the world through established banks like HSBC, Standard Chartered Bank, Citibank etc. A world wide known brand like VISA or Master Card is a very good example of strategic branding of services. Use of a single brand all over the world helps the users or cardholders by allowing them to derive maximum utility from their cards.
As a scheme operator VISA/ MasterCard works as a linkage between the card issuing bank and the card servicing bank here the card servicing bank is a member of the scheme operator's curtail and it provides different establishments in its locality. 3.3.3 Charge cards

Charge card is a card which allows the card holder to purchase goods or services in a style similar to credit cards but without the provision of deferred payments. The outstanding balance owing at the end of each billing cycle must be cleared in full by payment within due date which is usually is days from statement date. Charge cards do not have spending or credit limits but the issuer normally establishes a spending pattern based on the cardholders usage volumes and investigations abnormally excessive of large transactions. Examples of charge cards include American Express, Diners club & JCB cards.

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3.3.4 Debit Card A debit card is issued by a bank to its account holders against a minimum level of deposit in their account. Then after regular intervals (usually 30 days) the transaction amount is debited from the customers account along with the service charge.
3.4 The Credit Card Transaction Process: When a transaction through credit card is initiated, it involves four parties and they are: Credit card holder Card issuer Bank Acquirer Bank Merchant

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Figure 1: Transaction Process of Credit Card

The merchant is a business establishment which has the facilities to accept credit card as a form of payment for goods and services. To have this facility the merchant needs to formalize an agreement with a bank which is called the acquirer bank. For scheme operators like VISA or MasterCard, who operate world wide through a number of member banks the acquirer bank and the card issuer bank are usually two different ones. A credit card transaction is accepted by a participating merchant on the basis of either receiving a voice or electronic authorization or if the transaction is under a certain value (floor limit). The acquirer bank gives this authorization after checking with VISA/ Master card
Scheme Settles with Acquirer

ACQUIRER BANK

Authorize

Authorize

ISSUER BANK

SCHEME INTERCHANGE
Acquirer transmits Settlement claim Issuer receives Settlement claim

Merchant presents vouchers

Credit Cardholder pays issuing Bank

Acquirer credits Merchant Account

Issuer Provides Statement

Merchant Supplies Goods

MERCHANT
Cardholder uses card

CREDIT CARD HOLDER

international or the card issuer bank to fund out in his account or not.

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This authorization also protects the merchant from accepting lost or stolen card being presented by any person other than the cardholders. In technically advanced countries, this authorization is done electronically with the help of electronic devices.

After this transaction between the cardholder and the merchant has taken place, the merchant obtains compensation from the acquirer bank amount less a certain service charge and claims compensation from the card issuer bank through the scheme operator. The issuing of a credit card involves the creation of a credit relationship between the issuer and the cardholder. The issuer will perform a series of investigations to establish the reliability of the customer before providing a credit limit and a card. The cardholder will receive a statement of transactions from the issuer on a regular basis, which may include cash advances, sales and interest charges and request a minimum payment of the balance outstanding. A similar process is followed when an acquirer bank selects an establishment for becoming a merchant. The establishments past business records, financial performance, and banks recommendation along, with many more details are scrutinized before choosing it as a merchant and providing it with the necessary logistic and backup support to accept cards.

#3.5 key benefits of Standard Chartered Credit cards:

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Wide Acceptance Standard Chartered Bank issues both VISA and MasterCard Credit Cards, the two widely accepted cards. So, the customers can buy anything from clothes to meals in exclusive restaurants to airline tickets to hospital bills. Any outlet that accepts Visa or MasterCard will entertain our cardholders. They have (SCB) at present, agreements with 3500 merchants all over Bangladesh. But their cards are accepted in almost 4500 outlets. The number is growing everyday. Substitute of Cash

it is the primary benefit of credit card. Through cards one can buy almost any thing on credit within the credit-limit. Therefore people can go for their desired products and service and not bother whether they are carrying enough cash with them or have enough cash in their bank account. It enhances the purchasing power of the customer and gives them opportunity to shop any time as they like.

Safety
Customers do not need to carry cash to purchase goods and services. Through credit card customer can settle his/her dues to obtain credit in shops, hotels, restaurants, petrol stations, etc.

Supplementary Card Standard Chartered credit card holder can enjoy the convenience of supplementary card for cardholders spouse, children over 18 years of age or any family members or friends. Cardholder can set the spending limit of cardholder choice, which will be the maximum amount that the supplementary cardholder can spend in one billing cycle. A

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supplementary cardholder can enjoy all the benefits that only cardholder can. Emergency Need In cases of emergency, cardholders can get instant cash advances up 50% of card limit from any of their 23 ATMs 24 hours in a day. Since non-account holder also can be a credit card holder, so non-account holder also can use their ATM through credit card. Convenience Cardholders can pay their utility bills through the Auto Bills Pay Scheme. Customers no longer have to stand in long queues of the bank pay utility bills.

Insurance Coverage

Cardholders enjoy free any accidental death insurance coverage. Moreover under the Safety Net insurance scheme, in case of death or total permanent disability, the bank waives the total outstanding on the card. Installment Loan facility Customers can convert specific purchases into installment loans through the InstaBuy scheme. Cardholders can buy merchandise and pay them at a lower interest rate than most unsecured loans in the market. Moreover in certain special campaign, customers are offered ZERO interest rates loan facility for certain products. Gifts and Rewards Cards have an ongoing rewards campaign where customers get different gifts based on the Treasure Points that they get on their purchases of different goods. Besides that Cards always have some sort of campaign or other going on.

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Discounts Standard Chartered Credit Card has made arrangements with many shops, restaurants, gas station in Dhaka, Chittagong, Khulna, Sylhet, etc., to offer host of exclusive discounts on credit card purchases.

3.6

SCB

Credit

Cards-ELIGIBILITY

and

DOCUMENTATION:

3.6.1Target Market
Salaried Self-employed SCB RFCD & ERQ A/C holders (Intl Card)

3.6.2 Age
Primary 21-60 Supplementary 18-60

3.6.3Minimum Income
Card Type Amount

Master/Visa card (Local) Gold Master Card (Local) Visa Gold / Silver (Intl)
Table # 1

BDT 10,000 BDT 55,000 N/A (secured)

3.6.4 Multiple Cards

Card Type Amount

Primary Supplementary
Table # 2

One each type Max 4 / Primary Card

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3.6.5Credit Limit
Card Type Master / Visa Card (Local) Gold Master Card (Local) Platinum Master Card (Local) Visa Silver Visa Gold
Table # 3

Amount BDT 10,000 ~ BDT 90,000 BDT 100,000 ~ BDT 400,000 BDT 400,000~ 800,000 US$ 500 ~ US$ 4,500 US$ 5,000 ~ US$ 20,000

3.6.6 Debt Burden Ratio

50%

3.6.7 Secured Card (Local / Intl)

LTV 90%

3.6.8 Business Existence (for self-employed only)

1 Year Local

3.6.9

Minimum

Repayment

(15

days

after

the

statement date)
Local Higher of 5% / BDT 500 International Higher of 5% / US$ 10.

3.7 General differences between gold & silver card, Local and International cards

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3.7.1 Gold card and Silver cards

Gold Cards are for people with a higher level of income and with affluent lifestyles. Some of the attribute differences of the gold and silver cards are,
Criteria Minimum monthly income Minimum Credit Limit Maximum Credit Limit Annual Fees (Primary Card) Annual Fees (Supplementary Card) Card Replacement Fee, PIN Replacement Fee, Overlimit Charge & Late Payment Fee (Per cycle) Table # 4 BDT 1, 500/Card + VAT BDT 800/Card + VAT Card BDT 55,000 BDT 100,000 BDT 500,000 BDT 3500 BDT 1,000 Gold Silver Card BDT 10,000 BDT 10,000 BDT 90,000 BDT 1750 BDT 500

Fees and charges are subject to frequent changes to adjust with market condition and business priorities.

3.7.2 Local and International cards

Some of the attributable differences of the Local and International cards are, International Cards Use Local Cards

Can

be

used

outside To be used only in

Bangladesh for Purchases Bangladesh for

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other currencies. Security

Purchases only in BDT

Issued

against

the

Issued fully

deposits of an Account unsecured or an Export Retention Quota Account.

Charges are all in USD. Charges are in BDT

Charge
Currency
Usage

If the rate.

used

locally

then

customers are affected by currency As cards against conversion bills are foreign VISA and MasterCard both Table # 5

settled
Operator

currency Accounts. VISA only

3.8 Different types of Standard Chartered Credit Cards;

3.8.1 Local Card

MasterCard Gold MasterCard Silver Visa Silver

3.8.2 International Card

Visa Silver

Visa Gold

3.8.3 Cards also can be used in Bangladesh

MasterCard Silver

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Master Card Gold Master Card Platinum Visa Silver

3.8.4 Cricket Card: There is no difference in Visa Silver and MasterCard Silver from Standard Chartered point of view. Only is that some retailers accept Visa while some accept MasterCard depending on the acquiring membership respective retail shops holds. The merchants of Standard Chartered accept both VISA and MasterCard. The Standard Chartered Cricket Card is the latest edition to the Standard Chartered family of Cards. This is an exciting value-packed offer that has the whole town buzzing. For every Taka spend by the cardholders SCB will donate a portion of that amount to the cricket development fund. Whenever Bangladesh wins a Test or an ODI, SCB will double the reward points on the purchases made by the Cricket Cardholders in the next 15 days of the victory. Cricket cardholders will get discounts at different sports stores. The first few successful applicants will be given a special Cricket benefits. The abovementioned benefits are the special benefits that are exclusive to the Cricket Card. Beside that, Cricket Card holders will get all the usual benefits of a credit card including rewards program, Safety Net, InstaBuy, Auto bills Pay etc.

3.9 How do the Auto Bills pay System work?

Auto Bills pay is a simple method of paying utility bills. Cardholders who enroll into the scheme dont have to stand in line at different banks or other collection offices. Currently there are 9 service provides under the scheme.

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3.9.1 Features and Advantage: There are some features

and advantages of Auto billspay.The are: Hassle free transaction Convenient Easy tracking Simple and easy to apply.

3.9.2 Participating Merchants:

Mobile Phone ISP Cable TV: Utility Company
Table # 6

Grameen

Phone,

Aktel,

Citycell, Blink Accesstel, Agni, BOL Prisms Digital Desa, Desco

SCB cardholders, who are also customers of these utility companies, can issue a standing order, through which their bills will be automatically paid, in full, at the respective billing date. The payment of the bill is subject to the available credit in the credit limit of the cardholder. If there is insufficient credit to meet the bill amount, the billing company informs the cardholder that his Auto Bills pay has been declined and he needs to pay in the bill through other channels.It is possible for a cardholder to pay the bills of more than 1 utility or 2 or more bills of the same utility can be paid through the same card. Meaning 1 person can pay his and others bills as well.

3.93 Important Points:

Subscription

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Documentation Activation Disputes

3.10 Card cheque

SCB first introduces cheque against credit cards. A cardholder can issue a cheque for the total limit of the card if the amount is available. The cheque is account payee. The card holder is charged only 1% of the amount and can enjoy a max. Of 45 days and min.15 days interest free period (I the previous month is totally paid).

3.10.1 Features and Advantage;

Wider Acceptance Flexible Transaction More Convenience Safe and Secure Additional Card Cheque for Supplementary Card holder Reward

3.10.2 Fees and Charges; 1. card Cheque Book Fees; BDT 100 for 5 Leaves Cheque Book BDT 150 for 10 Leaves Cheque Book 2. Card Cheque Prossing Fees; 1`.00% of the Card Cheque transaction amount.

3.10.3 Important Points;

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Usage Area Usage Limit Subscription Time Line to get the Cheque Book

Lost Cheque / Cheque Book Reward Point

3.11 E-STATEMENT

3.11.1 What is E-STATEMENT? The subscriber of e- statement will be able to receive their monthly statements through e-mail. This is an alternative of printed statement. Through e-statement, Credit Card statement can be received anywhere in the world. This program has been launched from 1st June, 2003.

3.11.2 Features and Advantage:

Fast, easy and hassle free. No charge. Multiple emailing facilities. Increases security and confidentiality. Hassle free enrollment.

3.11.3 E-Statement Subscription Procedure:

The customer will fill out the application form and it will be collected by the sales executives. The sales executives will submit the form to the Portfolio officer. The application form will be processed by the operations department.

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Once e-statement is activated, the customer will immediately receive a WELCOME Message (email) confirming the receipt of the completed e-statement application form.

The monthly Credit Card e-statement will be in PDF format, which can be viewed by Acrobat Reader. If customer does not have Acrobat Reader, it can be downloaded from www.Adobe.com for free.

3.12 How come Instabuy is such a big hit?

InstaBuy is the new scheme of Standard Chartered Credit Cards. This is an installment plan where SCB Credit Card Holders can transfer their purchases to the installment loan account and repay in Equal Monthly installment (EMI).

3.12.1 Features and Benefits:

Ability to make high volume purchase. No further credit approval or documents require. No opening fee. Convenience to payback in 6,12,18,24 or 36 months on Installments. Rewards points earned on all Instabuy. Enjoy 0% interest rate for purchase from particular merchants.

3.12.2 Important Points:

Valid only in Local cards. Can transfer more than one transaction to Instabuy plan. Transaction amount has to be more than BDT 500.

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3.12.3 Repayment factor:

Months

Payment Factor

Monthly Installment

6 12 18 24 30 36

1.0848 1.1695 1.2543 1.3390 1.4238 1.5085

BDT BDT BDT BDT BDT BDT

1,446 780 557 446 380 335

Table # 7

3.13 What is Safety Net ?

It is an insurance Coverage safeguarding Standard Chartered Taka Cardholders against life uncertainties. In case of Death or any Permanent Total Disability, card outstanding will be waived by the bank. This program has been launched from 1st June,2003.

3.13.1 Features and Advantage:

Financial security in times of need In case of total permanent disability or death, the total outstanding on the credit card will be waived, without causing any inconvenience of loved ones. Very nominal monthly charge Only 0.35% of the last credit card statement balance. For instance,TK. 1000 outstanding will have a charge of only TK. 3.5.It will be charged to the account on the 1st day of each month. Free coverage for transactions on supplementary card Since all supplementary card transactions are charged to the primary card holders account, Safety net also covers supplementary card holder transaction.

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Free two months trial period First two months, Safety Net can be enjoyed absolutely free of charge. Statement will show Safety Net Insurance charge. During trial period, there will be another reserve transaction.

Automatic and hassle free enrollment No forms have to be filled. If no call received within the first two months, card holders will continue to benefit from Safety Net. If protection is not preferred, card holders will call them and request

for de-enrollment.

3.13.2 Important Points

Free trial period For existing clients: next 2 months. For new card holders: 2 months after his/her card issued. Insurance Claim After the incident card holder can call them or write to them, and necessary papers will be sent to the card holders for claming the benefits. Restrictions As with any other insurance policy, restrictions and disclaimers will apply. Suggest reading of terms and conditions. Insurance Company To be disclosed only if customer requests. American Life Insurance Company (Alico Bangladesh), a company of repute has been operation since 1952.

3.13.3 Safety Net Claim Procedure:

Cardholders family will contact Customer Service-CSAs will inform the family o send an application claming Safety net Insurance and also inform the family that death certificate and other documents will be required for processing the claim. The bank will contact them later regarding the documents required.

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Customer Service will send intimation email to ALICO informing of a new claim. ALICO Service will send letter to Standard Chartered Bank asking for the required document. Standard Chartered Bank will send letter to cardholders family asking for the documents required by ALICO. After receipts of the documents from cardholders family,CS will send the documents to ALICO. If claim is found valid by ALICO,they will send a cheque to Standard Chartered Bank. Standard Chartered Bank will settle the outstanding on the card and will send a letter to cardholders family informing the settlement.

3.14 SMS BANKING

3.14.1 What is SMS BANKING? SMS banking is the simplest way of finding out Accounts daily/monthend balance or Credit Cards daily outstanding balance and available limit, statement balance, minimum due amount and payment due date.

3.14.2 Features and Advantages;

Grameen Phone service: The SMS banking is available only on Grameen phone through SMS. Push! Service: Through Push service, the information regarding the Credit Card statement and Accounts month-end balance will be available to the customer periodically free of charge. PULL! Service:

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Through pull service, the customer will be able to access Credit Card/Accounts previous days outstanding by typing a pre-defined Keyword (CARD for Credit Card and ACC for Accounts.) with a 4 digit PIN as a message in the mobile phone and then send the message to 2727. Simple and Convenient:

With SMS banking, customer does not have to wait for the statements to arrive through mail or call up at Cards Call Centers. SMS banking will provide 24- hour access to the key financial information of Credit Card/Account.

3.14.3 SMS Banking Subscription Procedure:

To sing up for SMS banking, the customer needs to fill-out SMS banking form. The customer will fill out the application form by providing a 4 digit Pin. The sales executives will collect and submit the form to the Portfolio Officer. The application form will be processed by the operations departments. SCB will require 7 working days to activate the service.

3.14.4 Important Points of SMS Banking:

In case of Bank Account, SCB will accept application forms signed by the authorized signatories of the account only. In case of Credit Cards will accept application forms signed by the PRIMARY cardholder only.

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The accountholder/Cardholder is solely responsible to ensure the possession of the Mobil phone/Connection assigned to SMS banking service to maintain the confidentiality of his/her financial information.

SMS banking Service shall remain effective until otherwise advised in writing by the Accountholder/Cardholder, which should reach the Bank at least one week the next statement is due.

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3.15 What is the Reward Program? And how does it work

The Rewards Program of the Credit at SCB is a scheme to make the credit card experience more exciting for the cardholders. In this program, Cardholders accumulate Treasure Points for the Purchase on their credit cards. For every TK. 50 of purchase Cardholders will accumulate 1 Treasure Point. Through the treasure points, cardholders will be entitled to exclusive gifts or vouchers from selected merchant establishments across the country. The Treasure Points necessary for a specific gift is given in the booklet that each customer receives along with his credit card. Existing customers were mailed the booklet at the start of the campaign. The booklets are also available, in limited numbers, at the Branches. The customers have no fear of any portion loss here. In other words, if someone purchases TK. 530 at months end, he gets 10 points for the TK. 500 and the TK. 30 is held and will be added to next months points accumulation. So, customers get points for every Taka that they purchase on their SCB Credit Card.

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Each months statement includes the points accumulated by the customer till date. So customers can track their points accumulation. Customers can redeem their Treasury Points for prizes, by either filling in a rewards cheque or by calling in at a given number. Within a week the Reward release Voucher will be sent to the customers.

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PART IV

4.1 Popular Cards in BANGLADESH:

SCB has various types of Local as well as International Credit Cards. Among the Credit Cards, Master Card is more popular now a day, because of the merchant (GP, AKTEL, CITYCELL, BL, etc) out let. Previously visa Card was popular. But now Master card Gold, Master Card Silver, Master card Platinum are more popular in Bangladesh.

4.2 Interest rate in Bangladesh:

The interest rate charge for Credit Card is 2.5% monthly and .083% daily.

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4.3 Customer demand for Credit Card in Bangladesh:

Credit Card has a tremendous demand in Bangladesh; especially SCB Credit Card. SCB has 100,000 customers of Primary Card and 150,000 customers for Supplementary card. Every day they are increasing their customer in a numerous way. 300 to 400 customers they are retaining everyday.

4.4 Social Impact of Credit Card:

Our country has become more developed than before. New

technologies are using in many sector. Earning profit is not only concern of the business; they also think about the customer satisfaction. Like other sector private banks are also concern of customer satisfaction. So, for the sake of the customer private banks introduced Credit Card in Bangladesh. Maximum private banks use on-line banking system. Credit Card is one of part of On-line system. There is also another type of card, which is ATM card. Both the card got the same popularity in Bangladesh. By the Credit Card the card holder can purchase anything form there where the Credit Card is allowed. Credit Card holder also can draw cash but only from the Credit Card booth. There is limit specification that, up to that amount, the card holder can purchase. Credit Card is nothing but taking short term loan from banks. The card holder does not need to go to banks to take the loan. Now a day, the Credit Card is so popular in Bangladesh, that maximum account holders are using it. Customer like to use it because, it reduces the risk of carrying cash all the time. Credit Card system is changing the view of banking system. People of Bangladesh are now

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looking for easier and faster banking system for money transaction and for taking loans. Safety is another reason of carrying Credit Card instead of carrying cash. The concept of Credit Card changed the thinking pattern of the people.

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PART V

5.1 Conclusion:

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SCB bank is still regarded as a reliable bank and the growing number of its customers indicates its acceptance among clients. It is very common statistical saying that it is 5 times costly to get a new customer than retaining the customer. It is also noted that getting a credit card and closing it is expensive. In both cases a number of time consuming steps have to be taken from the bank and the customer. Since SCB has been able to increase the number of card holders, it now should take care on the matter of providing quality of service. The various systems of a Credit Card for customer service are a positive move towards greater quality service. But the bank needs to overcome the lack of internal co-ordination between the departments. To keep up the service quality, the service providers need regular motivations. The customers should also be enlightened regarding the services of Credit Card and more advertisement is a must to boost the Banks reputation. It is very true that the most of the customers do not hesitate to expression SCB as a better than other bank. But it should be considered that the customers have very few choices of banks with which they can actually compare the online service of SCB. The nationalized banks of Bangladesh already have earned a bad reputation in serving customers. Again among the foreign private banks like HSBC, AMEX is the banks that have widened operation like SCB. Other private banks have limited operation in limited locations. The local banks have recently focused their attention to customer service, satisfaction and also Credit Card Service. Moreover there are a good number of private banks that are coming into the competition soon. Therefore it is better for SCB not to let the situation be worst and should emphasize on serving customers effectively and efficiently to ensure better service.

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6.1 Recommendation:
The customer should be encouraged by offering new benefits to retain the Credit Card holders. Providing an authorization for a card is to sanction an unsecured loan. There are fraud issues related to it. Sometimes the agent has to take approval from the merchant division to provide authorization. Since authorizations are a vital service provide, t he merchant division should be more accessible in terms of issuing Credit Cards. The customer needs to be encouraged to use the SCB Credit Card. Special campaigns could be launched for the purpose. SCB should also be motivated to encourage for more customers. The Credit Card needs more advertising and campaigns to encourage customers.

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7.0 BIBLIOGRAPHY
www.standardchartered.com www.google.com Financial Report 03,04,05 of SCB Md. Imran Ali Product Service Officer, Customer Service Assurance Dept. Hadi Mension Branch, SCB.

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