Carl Lui Hung Sun Yolanda Wong Yee Ting Louis Lo Wan Shuen Karen Chung Tin Yu Cream Chung Suet Ying Peggy Fan King Yi 053193 053197 053198 053200 053215 053217

Rundown

Introduction of Credit Cards Transaction Process of Credit Card Market situation of credit cards Development of credit card

Clip Valid date

Credit Card

Bank name card number Expiry date Cards issuers cardholder ’ s name

signature

Hotlines Customer service hotline : xxxxxxxx Lost/ Stolen card hotline:: xxxxxxxx safety code

General History of Credit Cards

•In 1950, Diners Club and American Express launched their charge cards in the USA, the first "plastic money". •In 1951, Diners Club issued the first credit card to 200 customers who could use it at 27 restaurants in New York. •The first use of magnetic stripes on cards was in the early 1960’s, when the London Transit Authority installed a magnetic stripe system.

Three most well known brands of credit cards

Name of credit card companies

Visa MasterCard American Express

Year of beginning Meaning of the brands 1958 -Acceptance -convenience -reliability Original name BankAmericard Year of issue 1966 1966 -buying power -immediate deposit -security -flexible payment Master Charge 1967 1850 -Trust -Integrity -Security -Quality -customer service ------ 1958

Authorization Process of Transaction of Credit Card

Cardholde r

1

Merchant

2 10 9 3 8

Issuer (Cardholder’s bank)

7 6 2

Acquirer (Merchant’s bank)

4 5 2

Settlement Bank

Credit Card Company

Number of card issued worldwide 600,000 500,000 400,000 300,000 200,000 100,000 0 Number of Cards (000) Asia Pacific Canada CEMEA Europe Latin America & Caribbean United States

showing the growth of using credit card (01-05) Sources: http://www.corporate.visa.com/md/st/main.jsp

No. of share 12,000 10,000 8,000 6,000 4,000 2,000 0 2000 2001 2002 2003 2004 2005 2006 2000 2001 2002 2003 2004 2005 2006

Charge-off (bad debit)

The charge-off amount during 2000-2006 is as follow:

Charge-off amount (HK$ million)

10,000 8,000 6,000 4,000 2,000 0 2000 2001 2002 2003 2004 2005 2006

Charge-off (bad debit)

300,000 250,000 200,000 150,000 100,000 50,000 0

Average total receivables (HK$ million)

2000 2001 2002 2003 2004 2005 2006

Recommendation for card issuer

 issue a secured credit card  credit history, assymetric infromation  offer debt settlement program , prevent charging off

Data theft puts HK credit cards at risk

TJX on Mar31,2007 revealed personal information about

45.7 million

credit and debit cards Affected cardholders would

NOT

to bear the cost of any fraud be required According to the code of banking practices,

card issuers

will bear the full loss

For card issuers:

To use strong passwords To use readily available security To employ sufficient measures to detect unauthorized access

Sign your Credit Card immediately Check the total amount on slips before signing, and keep the "Cardholder Copy“ Do not sign any blank or incomplete slips Monitor your monthly statements Do not easily volunteer any personal information or financial information in email or phone.

Our survey

60 %: under $1000 95 %: under $5000

Data of Hong Kong Monetary Authority (HKMA)

4th quarter of 2006 The average expenditure by credit card in Hong Kong (per person): =$6254.27 per person

First Band Loyalties :

study conducted by Yankelovich, Skelly and Whit first brand loyalties as teenagers stay with company for a long period of time build up a long relationship with customers

Potential of University Students on Spending:

further of University graduates are brighter mean of salaries of fresh graduates from University is $9,500 increase continuously in the rest of lives The potential on spending are unlimited depend on University students

PayPass

a wireless, contactless card system without swiping credit card though a reader

Chip Card

increase the security level of credit card preventing your cards from being copied to produce counterfeit cards security level of clip cards is higher than magnetic stripe card

Chip

Accelerated Solutions Development Environment (ASDE)

innovate faster and faster a software development process that helps IT respond more quickly to such proposals methodology that meets a customer ’ s needs best

Carl Lui Hung Sun Yolanda Wong Yee Ting Louis Lo Wan Shuen 053193 053197 Karen Chung Tin Yu 053200 053198 Cream Chung Suet Ying 053215 Peggy Fan King Yi 053217