Transcript Comparison of Payment Cards

Comparison of
Payment Cards
Laura Baruch
Shannon Johnson
Jindra Předotová
Agenda
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History
Profiles of USBank Corp. and HVB Bank
Debit Cards
Credit Cards
Lost Card Procedure
Payment Card Usage
Incentive Programs
United States Banking History
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First Bank of the United States
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Chartered by Congress February 25, 1791
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Alexander Hamilton
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Handled financial needs and requirements
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Established an excise tax
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Established financial order for the newly formed United States.
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Established credit—both in country and overseas
United States Banking History
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Second Bank of the U.S.
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1816, chartered 5 years after expiration of First Bank
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U.S. President James Madison
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Goal: Stabalize currency
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Philedelphia, Pennsylvania
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Political Corruption and fraud
United States Banking History
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Free Banking Era 1837-1862
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National Banks 1863-1913
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1913 Creation of the Federal Reserve System
Czech Republic Banking History
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Under communism
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Privatization
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centrally planed, under a control of state
Banks were sold to private companies
Present
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banking runs on the market principals
currently 36 banks
supervision is provided by the Czech National Bank
Profile of the USBank Corp.
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Assets in excess of $221 billion
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6th largest commercial bank in the U.S.
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Operates 2,498 banking offices
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4,837 ATMs
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Service products: banking, brokerage, insurance, investment, mortgage,
trust and payment
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Customers: personal consumers, businesses and institutions
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Free internet Banking, live telephone bankers 24 hours a day
Profile of the HVB Bank
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Entered into the Czech market on October 1, 2001
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Focus: corporate and private clients
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4th in the Czech market
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Market share of 6%
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In 2005, HVB became a member of the Unicredit group
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Unicredit group has more than 28 million clients
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Assists its customers in financing their projects using EU Structural Funds
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Specializes in enterpreneurs and small business
Unicredit Worldwide Operations
Countries where the Group operates via its own branches
Countries where the Group operates via local banks controlled
Abu Dhabi
Hong Kong
Bahrain
Johannesburg
Seoul
Beijing
Mexico City
Singapore
Boston
Miami
Shanghai
Buenos Aires
Mumbai
Sydney
Cairo
New York
Teheran
Guangzhou
Rio de Janeiro
Tel Aviv
Hanoi
São Paulo
Tokyo
Debit Cards
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USBank Corp.
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Account requirements for “Free Checking with Interest”
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Minimum Opening Deposit - $100.00
Minimum daily Balance – None
Monthly Maintenance Fee – None
Free ATM Transactions at U.S. Bank ATMs
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Debit card can only be opened with a Checking Account
$3.00 transaction fee at other non-U.S. Bank ATMs
Additional Fees
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Insufficient fund fee – Variable
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Overdraft fee - $30.00
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For each withdrawal transaction that exceeds your available balance on a given day. (e.g. in-person, ATM,
automatic payment, or other paper or electronic withdrawal transaction)
For every transaction that causes the available balance to become negative
Availability of ATMs:
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4943 U.S. Bank ATMs
1,000,000 Visa ATMs*
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*U.S. Bank only partners with VISA credit card company
Debit Cards
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HVB Bank
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Account requirements: bank
account (0-399 Kč)
ATM fees: normally 30 Kč,
product packages have no fee
1,540 cashpoints and 28,000
acceptance places
Mastercard, Visa and Diners club
Standard cards, business cards,
Gold cards and Diners club
Automaticaly blocked for paying
on the internet
Credit
Cardscards
8%
Credit
8%
Charge
ChargeCards
cards5%
5%
Debit cards
87%
Debit Cards
87%
Credit Cards
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USBank Corp.
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APR: 0% for the first 6 months, then 14.24% to 23.24%
Annual Fee: $0 the first year and every year that you charge at least one purchase
to the Account. Otherwise $20
Available card companies – VISA sponsored by multiple companies from NWA to
GYMBOREE
Grace Period – 20-25 days for purchases only
Minimum Finance Charge - $2.00
Account management fee: $2.50 per month
Fraud Protection: Zero Liability Program
Conditions for getting Credit card:
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Age: 18 years or older
Completed Application
Active Checking Account
Proof of residency
Credit Cards
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HVB Bank
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Interest rates: 0.5% – 1.99%
Fees for bank account: 0-30 Kč
Fees for withrawals: 60 Kč
Up to 45 days without interest
Conditions for getting Credit card:
 Age: 18 years or older
 Monthly income greater than 9,500 Kč
 Proofs (ID, pass port, confirmatin of income, bills for
phone...)
Lost Card Procedure
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USBank Corp.
Lost Card
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U.S. Bank Zero Liability Policy
Check Cards: cannot use without pin number
Fraudulent purchase: report, reimbursed next business day after
verification of claim
Issuance of new card
 7-10 business days, 2 days rushed
 Expiration date: 4 years both debit card and credit card
Lost Card Procedure
 HVB
Lost card
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Bank
Stoplist 1500 Kč
Blocation 300 Kč
It is the customer’s
responsibility, same day, until
midnight.
Issuing new card
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10 working days
Expiration dates: 1 year for
credit cards, 3 years for debit
card
Use of Payment Cards
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USBank Corp.
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There were 278 million debit cards in U.S. hands in
2004, with 22.2 billion transactions amounting to
more than $1 trillion.
56% of all American Families use credit cards as first
choice of payment method.
Use of Payment Cards
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HVB Bank
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80% withdrawals
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Increasing trend in terms of payment by card
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Paying is free
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7 ATM´s
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Credit cards – in case of paying is noninterest period
Czech Republic Payment Cards
Progress of paym ent cards - Czech m arket
8000000
7000000
6000000
Number of debit
cards
5000000
4000000
Number of credit
cards
3000000
Whole number of
cards
2000000
1000000
0
2001
2002
2003
2004
2005
Incentive Programs
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USBank Corp.
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Cash Rewards
Travel Rewards
Merchandise Rewards
Earn Rewards for an
Affiliation
Do Not Earn Rewards
Incentive Programs
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HVB Bank
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Insurance against the Loss of a Payment Card
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Travel insurance
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Credit card: For inability for paying
Questions?