Credit Cards

RBI initiated steps to popularize Credit Cards to encourage alternate payment system in the country to minimize the risks associated with traditional modes of payments such as cash/cheque/Demand Draft etc.

Of late, credit card has become one of the means to make payments by majority of house-holds and it is no longer a status symbol. Buy Now – Pay Later concept is attracting and popularizing the credit cards in the market. It is easy to carry with a limit and hassle free payment system. Cardholders undertake purchase of goods and services without carrying currency and make payment at a later date. In a way, Banks are extending short term unsecured personal loans by issuing Credit Cards to their customers. Card business augments other income of the banks through annual subscription, service charges and interchange fee. The salient features of credit cards offered by our bank are furnished here under (cir.no.92 Ref 5/1 dated 28.06.11).

Titanium Credit Card: In order to issue hassle free credit cards against Term Deposit with simple documentation process, Bank has launched a new products “Titanium” in the month of July 2013. Under this, cards are issued without insisting on Income proof and Rating sheet to all eligible customers. The salient features of the card are as under:

The borrowers enjoying the credit facility with our branches are eligible for cards with simplified procedure (without submission of any income proof) and the details are as under:

Credit Scoring Model: Card limit is fixed based on the rating arrived using Credit Scoring Model, which covers six important factors pertaining to the applicant such as Own House, Employment/Occupation, Proven income, Bank Account, Age and Risk category (KYC norms). The minimum marks to be scored for eligibility and process the application are 18 at the branch level. Zonal Manager may improve overall scoring by not more than 2 points, depending on merits of individual case while recommending. Where the score ranges 18 to 22 points, the cardholder is eligible for Base limit. Higher limit may be considered by the sanctioning authority where the score is above 22.

Corporate Cards: Banks are issuing Corporate Cards to the companies registered under Companies Act 1956 and whose net worth should be minimum Rs.25 lakhs. The cards will be issued to the Executives / Officers / Employees of the company. No admission fee and the annual subscription fee is Rs.2000/-. The aggregate limits under various cards issued to a company should not exceed 25% of its net worth subject to a maximum of Rs.50 lakhs in total and not exceeding Rs.10 lacs per card. Companies availing credit facilities with Banks/DFIs are only eligible except where 100% liquid security is offered as guarantee by way of lien on deposits / Govt. Securities for the Corporate Credit Card limits. In case of non-customers, they are required to produce status reports from their Financing Banks / Development Finance Institutions etc while submitting the application for Corporate Cards. Company is required to submit copies of Memorandum & Articles of the company, Board Resolution, Last two years audited balance sheet, 2 colour Photographs of the card Applicants and undertaking letter to the branch for sanction of corporate credit cards. Zonal Managers are empowered to sanction the Corporate Cards.

Credit Cards – Highlights (Circular no.102 Ref 05/01 dated 08.07.09)

• Cards are issued to our Customers generally.
• Service charges at 2.50%, which is one of lowest in the Industry.
• Global validity.
• Accidental Insurance coverage to the Main and Add on cardholders.
• Free Credit period of 21 to 51 days even under roll over facility.
• Cash Advance up to 50% of the Base Limit.
• No Annual subscription in the First year and shall be waived in the subsequent years if card used for stipulated minimum amount.
• Highly secured payment for Internet usage through VBV (Verified by VISA) and Msecure (Verified by MASTER).

Prepaid Cards: In order to provide further value added services to the customers / public, bank has launched two types of prepaid cards viz., Gift Card and International Travel Card on 30.09.2011 and the salient features of the said products are as under (Cir.no.218 Ref 5/2 dated 30.09.2011):

Gift Card

• Gift cards are available for denominations starting from Rs.250/- to Rs.50,000/-. All ELBs, VLBs and select Large Branches are allowed to issue Gift cards.
• The Card is valid in India and valid for ONE year from the date of purchase
• Cards are Non-Reloadable and not enabled for cash withdrawals
• Branch issue cards with a service charge Rs.25/- for the cards value up to Rs.1000/- and Rs.50/- for cards beyond Rs.1000/-
• Wide acceptance in all Master Card affiliated merchants for transactions at POS (Merchants), Online (Internet) and IVR (Mobile/Phone) payments
• Customer will be provided with PIN for POS transactions to prevent misuse.
• SMS alerts are sent for all transactions at Free of cost
• Locking/Unlocking of card Account is enabled to the cardholder
• No charges for Balance enquiry and Mini statement at Andhra Bank ATM
• Cardholders can access the card information through Internet login
• Lost/Stolen/Damaged Card Replacement at any Branch with charges

International Travel Card

• The Travel cards are accepted in all countries except India, Nepal and Bhutan
• Travel cards are issued under USD only
• Cards are enabled for transactions at POS Merchants. POS and ATM usage require PIN for secured transactions
• Travel cards are available from USD 200 to the maximum eligibility under FEMA guidelines
• Validity period of the card is 2 years from the date of issue
• Cards are re-loadable from any select Branch
• The Welcome Kit contains Two cards. In case where existing card is misplaced / damaged, the Second card can be Activated after Blocking the Primary card.
• Unique feature of Locking/unlocking the card Account through IVR or through Website self care portal system
• An exclusive Internet login provided in the Website for balance enquiry, viewing transactions etc.
• No charges for Balance enquiry and Mini statement at Andhra Bank ATM
• Withdrawal of cash at ATM is permitted in the upcountry at local currency

EMV Cards: Chip technology is an evolution in our payment system to strengthen security and to deter fraudulent transactions. This technology was developed jointly by Europay, MasterCard and Visa Chip cards and named as EMV. These are standard cards embedded with a micro computer chip that store and protect cardholder data. EMV chip technology is becoming the global standard for credit card and debit card payments. The microchip provides an additional level of authenticity for the transaction. EMV-enabled device will communicate with the chip inside the customer’s smart card to determine whether or not the card is authentic. Generally, the terminal will prompt the customer to sign or enter a PIN to validate their identity. This process enhances the authentication of both the card and cardholder, effectively reducing the possibility of accepting a counterfeit card or be held liable for a fraudrelated chargeback. As per the recent RBI guidelines, all new Debit/Credit cards issued by banks will allow usage in India only and in case the cardholder wants to carry out international usage, the cards will have EMV chip embedded on the card and will be pin enabled with effective from 1st December 2013. Another important ruling is the liability shift where merchants who have not made the investment in chip-enabled technology will be held financially liable for card-present fraud that could have been prevented with the use of a chip-enabled POS system.