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CCP604 (B)
CCP604 (B)
ANDHRA PRADESH
Name : Raja Sekhar Koduru
Designation : Lecturer In CCP
Branch : DCCP
Institute : GPW,Kakinada
YEAR/SEMSTER : VI SEMSTER
Subject : Banking II
Subject Coce : CCP-604(B)
Topic : Customer Facilities Offered By Bank
Duration : 50 Mts
Sub Topic : ATM
Teaching Aids : Power Point & Pictures
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Objectives:
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Recap
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Credit card
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Credit card
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Credit card
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Credit card
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Credit card
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Credit card
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Credit card
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Credit card
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Advantages to cardholders
Convenient
A card is convenient method of payment
as an alternative to cash or cheque
It is simple to operate and convenient to
carry
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Advantages to cardholders
Credit facility
Banks may offer credit to the consumer’s
conveniently
There is no need for the customer to go to
the bank for applying a loan
The customer can either repay the amount
of credit in full or opt for repaying in flexible
monthly installments
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Advantages to cardholders
Safety and security
Credit card offers a safe means of
conducting transaction
Credit card holders need not carry large
amounts of cash thus avoiding the risk of
theft
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Advantages to cardholders
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Advantages to cardholders
Universal acceptance
The card issued under the reputed
associations like VISA and ‘Master Card’ are
now universally accepted by merchants
It is an aid to business and holiday travel
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Advantages to Merchants
Guarantee of Payment
By accepting a credit card, the merchant has
a guarantee of payment
and his account is immediately credited with
the cleared funds as payment of the
vouchers into his bank.
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Benefits to Merchants
No bad debts
Merchants can use the card system as
an alternative to other means of
allowing credit and thus avoid bad
debts.
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Benefits to Merchants
Boost sales
A merchant accepts credit card and
expects to increase turnover as more
and more people accept the practical
advantage of credit card
and turn to those traders who accept
cards in settlement.
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Benefits to Merchants
No risk
A credit card system permits the merchant
to offer his customer the facility of taking
credit
without involving himself in the expense,
administration or risk of setting up his own
credit arrangement.
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Benefits to Merchants
Convenience
The credit card of sales is
convenience for book keeping
The merchant also have the support
of the credit card company in
advertising campaigns and other
promotional activities.
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Benefits to Bankers
Boost credit
Credit card an easy way to extend
credit and a convenient way for
customer to borrow.
Moreover, credit once granted, keeps
revolving which result in the bank
earning interest/income.
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Benefits to Bankers
Market Expansion
Credit card does not requires physical
presence of a branch or a bank
Banks can use this remote feature to
expand their market areas
For instance an ATM, which could be
established in a place like supermarkets,
can be accessed by the consumer directly
for carrying out financial transactions
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Benefits to Bankers
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Benefits to Bankers
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Summary
The customer can use his
magnetic stripe plastic cards -
Credit Card and get instant cash.
It is like a short-term loan.
If the customer wants, he can
postpone the payment
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Summary
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Quiz
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Quiz
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Frequently Asked Questions
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