Credit card, also called debit card, is a consumer loan service provided by banks.

After commercial banks issue credit cards to eligible consumers, cardholders can go to specialized commercial service departments for shopping or consumption, and then the banks settle accounts with merchants and cardholders, and cardholders can overdraw within the prescribed limits.

The advantage of a credit card is that, compared with a savings card, holding a credit card can be used for credit consumption, and there is no cash in the card, only the consumption amount needs to be returned on schedule.

With the improvement of residents' income level and the change of consumption concept, more and more young white-collar workers and post-90 s youth regard borrowing consumption as a normal behavior and can enjoy a higher quality of life in advance. Seeing the huge demand in this area, banks focus on developing this business.

As a loan business, banks develop credit card business for many purposes:

First, increase the loan business to obtain interest income;

The second is to increase customer stickiness, provide more products, and attract customers to handle other financial services in banks through various means;

Third, increase contact with special merchants, establish a credit card customer database, and analyze customers' income levels and consumption preferences, so as to serve the development of other products and businesses.

According to industry estimates, credit card business is the business with the largest spread in banking business, and its spread is much higher than that of mortgage. The reason is that credit cards will charge customers interest, late fees, annual fees, handling fees, POS card fees, SMS notification fees and so on. , the comprehensive income is higher than other loan products.

Since 1985 China Bank issued the first credit card, the number of cards issued, the number of cards issued and the transaction volume in China have all achieved tremendous growth in the past 30 years. Credit card business has become the most potential department in bank retail business.

As of 20 17, according to incomplete statistics, domestic banks have issued nearly 700 million credit cards, and even three of them have entered the "100 million yuan club". The credit card business of several joint-stock banks has contributed more than 40% to the performance of branches.

Although credit cards are easy to use, they are different from savings cards. It is recommended that you pay special attention to the following aspects in daily use:

1, there is a charge for cash withdrawal.

If it is an overdraft, it is equivalent to borrowing cash directly from the bank. Generally, banks charge interest and handling fees. Even if we take the "existing money" from the credit card, the bank is interest-free, but it is still possible to charge a handling fee. In short, don't treat credit cards as savings cards.

Step 2 charge an annual fee

3, POS machine related.

Just like many Internet products are charged at the B end and free at the C end. When we use the POS machine to play with the credit card to buy goods, although the bank doesn't charge more from our account, it may get more commission from the merchants.

4. There may be related expenses such as card replacement fee and loss reporting fee.

These are details that are easily overlooked, so you need to know them in advance to avoid inconvenience.

In addition, remember to repay in time. Even if you don't have enough funds at the time of repayment, you should choose to repay by installments or pay off the "minimum repayment amount". Only in this way will your credit be unaffected. Otherwise, if the repayment is not made on time, it will not only affect the credit report of the People's Bank of China, but also suffer the "penalty interest" of the bank, and even be investigated for criminal responsibility of "malicious default".

Why is the bank credit card business developing so fast?

It is because the market demand for credit cards has increased, which has promoted the rapid development of credit card business.

By the end of 20 17, the number of credit cards issued in China has reached 588 million. According to the annual data growth, it is predicted that the number of credit cards issued in China will reach165438+36 million in 20021year.

With the increase of credit card issuance, the use of credit cards is becoming more and more frequent. Market research shows that the total amount owed by cardholders has reached 3.57 trillion yuan, and nearly 65% of them have been empty for a long time, and overdraft consumption is increasing.

Among these credit card consumers, Rong 360 made a survey on the age of the crowd, and found that 49.335438+0% of the crowd belonged to the post-90s generation, ranking first among Asian peers.

With the current economic slowdown and stricter financial supervision, the growth of banking companies and inter-bank businesses has slowed down, and more banks have transformed into retail finance. In the field of retail finance, the income contribution of credit cards has gradually increased. By the end of the third quarter of 20 18, the domestic credit card issuance reached 659 million, an increase of 43% compared with the first quarter of 20 15, and the per capita credit card issuance increased from 0.3 1 card in the first quarter of 20 15 to 0.47. With the rapid growth of card issuance in recent years, the marketing competition between banks with large card issuance and high-quality credit card users in first-and second-tier cities is becoming increasingly fierce. Banks adopt various attractive card-opening gifts and preferential activities to market new users. Most of the bank's credit card business is still dominated by card handling and card handling, and the credit card market has gradually extended to third-and fourth-tier cities.

Judging from the number of credit cards held per capita, in the quarter of 20 15, the number of credit cards held per capita in China was only 0.3 1. By the end of the third quarter of 20 18, the number of credit cards held per capita rose to 0.47. Although the per capita credit card holdings are still low compared with developed countries, the per capita credit card holdings in first-tier cities such as Beijing and Shanghai are as early as 20. After nearly eight years of expanding territory and staking land, the number of cards per capita in first-tier cities such as Beijing, Guangzhou and Shenzhen may be close to 1.5.

Next, banks will continue to provide quality services and occupy a higher market share of credit cards.

Why do banks issue credit cards?

Why do banks issue credit cards?

Banks issue credit cards only to make money, to be precise, to make money without risk.

When banks issue credit cards, they actually lend money. Lending is not as simple as saving. Banks must consider the risk of capital. In order to control the risk of funds, banks have established a set of credit system as an important basis for enterprises and individuals to lend. With the credit mechanism, but without the credit records of customers, banks still have no way to judge the Excellence of customers. In order to establish a perfect credit system, banks must introduce a simple and easy way for all customers to borrow, so credit cards appeared.

Because credit cards have the following characteristics:

1. Credit card review, card making and issuance are all streamlined, and the issuance cost is very low compared with other loans.

2. Credit card has the widest coverage among all loan methods of banks.

The credit card bill is issued once a month, and the customer must repay it every month, which is the fastest way to withdraw funds.

Credit card is the most profitable of all bank loans.

Credit card is the least risky way to borrow.

As a special financial commodity and modern financial tool, credit card is an internationally accepted advanced settlement means, payment tool and novel consumer credit method, which is increasingly favored by people. The issuance of credit cards gives banks a new means to win deposits from special merchants and credit card customers, which is conducive to expanding bank transfer settlement business and increasing the source of bank credit funds, thus obtaining more interest and accelerating social mobility. In addition, due to the use of credit cards, cash transactions are changed to transfer settlement, which replaces a certain amount of currency circulating in the market, reduces the circulation of currency, and reduces the annual funds used by the state for currency printing, allocation, transportation, warehousing and delivery. With the issuance and use of credit cards, cardholders can avoid the inconvenience and risk of carrying a lot of cash, and at the same time, they can easily obtain bank loans through overdraft. As a special merchant, special merchants can provide goods and services to cardholders with confidence because of the credit guarantee of the credit card issuer, thus expanding the sales volume of goods, reducing the workload of collecting money and counting money, and simplifying the process of payment, bookkeeping and settlement.

There are three ways to make profits from credit cards: one is the huge overdraft interest of credit cards. The Measures for the Administration of Bank Card Business stipulates that credit card overdrafts will be compounded monthly, and quasi-credit card overdrafts will be charged with simple interest monthly. The overdraft interest rate is five ten thousandths of the daily interest rate, so the annual interest rate is as high as 18.25%, which is much higher than the current ordinary loan interest rate. The second is the handling fee extracted from the special merchants. According to the regulations, commercial banks charge not less than 2% of the transaction amount for hotels, restaurants, entertainment, tourism and other industries, and1%of the transaction amount for other industries; The third is the annual fee for credit cards. Different commercial banks charge different annual fees for credit card holders, ranging from tens to hundreds of yuan.

It's simple. Make money. The charging rate of credit card is higher than that of savings card, and credit card can derive many additional charging services, which is beneficial to banks.

Credit card not only enables banks to attract customers who can't live near banks, but also provides excellent opportunities for new credit card users to develop other financial products of banks. There are both new sources of income and new sources of deposits, and their attractiveness has triggered a high degree of competition. As more and more businesses accept credit cards, it is more and more convenient for cardholders to use them. On the contrary, with the increase of the number of cardholders, the opportunities for merchants to promote their products are also increasing. The two promote each other and promote the development of credit cards, while banks also benefit from cardholders and merchants.

Why do banks issue credit cards?

The income of credit card business mainly includes: interest income; Merchant commission; Punitive charges; Cash withdrawal fee; Annual fee; Cross-selling and other value-added income.

1 yuan credit card, why do banks issue small credit cards?

Tips for daily use and quick withdrawal of credit cards

High frequency of swiping cards

In daily life, it is best to develop the habit of swiping your card when you can. On the one hand, you can have an interest-free period in the bank and add a little extra wealth management income for yourself. On the other hand, you have virtually become an active user of the bank. Usually the bank will give a quota to the active users of the bank.

Sustained and stable consumption time is long.

Generally speaking, for credit cards with cardholders over 1 year and monthly transactions, banks will take the initiative to withdraw the amount. If customers take the initiative to apply for permanent withdrawal, the chances of bank approval are greater.

Cash withdrawals are frequent, and credit card installments are often done.

Cardholders who frequently withdraw cash from credit cards have a very high risk coefficient to banks, but cardholders who withdraw cash at the same time have the highest contribution to banks; The risk of staging users is relatively low, but the contribution is not low. Therefore, for credit cards that mainly rely on interest and intermediary business as income-generating means, cash withdrawal and installment users are the favorite of banks, and the relative success rate of applying for credit line withdrawal will be high.

High consumption amount

Irregular large-scale consumption, which can be repaid normally afterwards, is usually defined as a quality customer by banks. After judging whether the cardholder has a large demand, increase the credit limit as appropriate.

Why do banks issue credit cards?

Because there is demand in the market, the counter handling process:

1. Go to the bank outlet where the credit card is handled, or find the staff of the credit card center of the local bank and fill out the credit card application form. The contents of the application form generally include the applicant's name, basic information, economic status or income source, guarantor and its basic information;

2. Submit copies of certain certificates and vouchers to the issuing bank;

3. After the contents of the application form are truthfully filled in, relevant credit certificates shall be submitted at the same time as the application form is filled in;

The application form is accompanied by a credit card contract. The applicant authorizes the issuing bank or relevant departments to investigate the relevant information, and submit the information authenticity statement and the privacy protection policy of the issuing bank. , and must have his signature;

5. The credit card processing process is basically completed, waiting for the issuance of credit cards.

Why can banks issue credit cards?

For banks, only one credit card center and supporting business processes are needed to increase credit card business, and the cost of this part is relatively small, and each bank has its own risk control system. It is not uncommon for credit cards to fail to repay or even default for a long time, but it has not produced a large number of bad debts, and the credit card business itself has high interest, which can accept a higher bad debt rate than ordinary loan business;

2. The main source of income for banks is deposit and loan spreads, but banks are limited by loan-to-deposit ratio and need to pay the cost of deposits first.

How to develop credit card business

1. Credit card is an important part of the bank card industry. The development of credit card can promote personal consumption credit, meet personal consumption demand in advance with bank money, and drive the growth of personal financial business of banks. At the same time, it is conducive to facilitating people's lives, expanding social consumption, and promoting social informationization and national economic development. Compared with western developed countries, due to the differences in consumption habits, credit system and understanding, the development of credit cards in China has been hindered to a certain extent, which is manifested in the small scale of card holding, low utilization rate of credit cards, especially the overdraft of goodwill. How to develop credit card business is a subject that the banking industry needs to study.

2. Cultivate positive marketing awareness

3. The front-line staff of counter marketing banks face a large number of customers who handle business at the counter every day. Every year, major commercial banks offer discounts for different types of credit cards, such as reducing the annual fee for the first year or other kinds of promotional activities, which provide a lot of marketing space for counter staff. Tellers should be familiar with the relevant certification documents provided by cards, the problems that should be paid attention to when using various credit cards and the knowledge of how to use them, and highlight profitable, convenient and important marketing products to attract customers to handle them. Every grass-roots outlet of the door-to-door marketing bank should investigate the enterprises and shops within its jurisdiction, get first-hand information, know the number and location of enterprises and shops, and whether to open an account in our bank. On this basis, take the initiative to carry out door-to-door marketing The success rate of enterprise groups in handling cards is higher than that of social casual letters, and they can have a more comprehensive understanding of personal information and have a higher credit rating. Differentiated marketing focuses on VIP, fund high-quality customers and other high-quality customers of the Bank, and is managed by a special person. While providing these customers with personal financial management such as economic and financial information and investment consulting, we also actively carry out credit card marketing to provide them with convenience in consumption and form a real "package" service system.

4. Problems in marketing

5. Establishing personal credit system is the premise of the development of credit card industry. Because of this lack, banks have to write off a large number of bad credit cards in recent years. Due to the lack of a complete credit system, in order to reduce the risk, the issuing bank must spend a lot of money to investigate personal information, and need to provide a lot of supporting documents and materials, and even some things involve personal privacy, which greatly increases the transaction cost. The possible consequence is that people with good credit will think that the benefits brought by credit card services can't make up for the costs paid, so they quit the credit card market; Some people with poor credit may try to breach the contract and then strive for a credit line. It is impossible to set the grade according to the demand, and cardholders with different credit degrees enjoy different services, which restricts the development of the credit card industry at present. At present, the credit line management of many domestic card issuers needs to be improved, and foreign experience can be used for reference. Foreign card issuers usually don't give customers a high quota at first. After tracking their repayment behavior and consumption habits, they will adjust the quota according to actual needs. Improving the quality of card issuing If the card issuing institution is open to all, the circulation of cards will go up, but it has no actual benefit. After issuing cards, it is easy to generate sleep card and cancel cards, which wastes limited resources and increases operating costs. Domestic credit card cycle credit difference. According to the survey data, only 2% customers often use revolving credit, and more than 85% customers repay in full every month. Overdraft interest generated by revolving credit is an important channel for credit card profit. The domestic revolving credit market has potential, provided that banks must strengthen the infrastructure construction of risk management, and at the same time, banks can take high-income and high-consumption people as expanded customer groups. Improve the quality of customer service After a customer successfully applies for a credit card, the bank should have corresponding customer service facilities to provide convenience for the customer's future use. At this point, domestic banks have not done enough. At present, credit cards are used to settle consumption, and cardholders only need to sign their names to pay for consumption without entering a password. Therefore, if the credit card is lost and the cardholder fails to report the loss in time, the cardholder can imitate the handwriting on the signature form to sign the bill. It is finite risk's responsibility to take measures against credit card theft abroad. If the credit card is stolen and the money on the card is stolen after the cardholder reports the loss, then the cardholder will not suffer any losses, and the bank and the store will pay in full. Even if the cardholder's money has been stolen before reporting the loss, the cardholder only needs to pay 50 dollars to get the money back. The promotion of each new product will go through a long process of exploration, and there will be bumps and problems on the road of development. However, as long as foreign advanced technology and experience are introduced, China's credit card business will be accepted and recognized as a debit card, and great progress will be made.

As a commercial bank, should we expand credit card business or reduce credit card business? Why?

Credit card business should be expanded.

Because expanding the credit card business will push the credit card business into a new stage of specialization, differentiation and fine quality development.

To develop credit card business, we must adhere to the business development as the leading factor, aim at improving economic benefits, establish the consciousness of promoting card deposit and increasing card deposit, and focus on expanding card issuance and increasing deposit balance.

Why don't we stop here for the introduction of developing credit card business?