Comparison of Payment Cards

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Comparison of Payment Cards

• Laura Baruch
• Shannon Johnson
• Jindra Predotová

2
Agenda

• History
• Profiles of USBank Corp. and HVB Bank
• Debit Cards
• Credit Cards
• Lost Card Procedure
• Payment Card Usage
• Incentive Programs

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United States Banking History

• First Bank of the United States
• Chartered by Congress February 25, 1791
• Alexander Hamilton
• Handled financial needs and requirements
• Established an excise tax
• Established financial order for the newly formed
  United States.
• Established creditboth in country and overseas

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United States Banking History

• Second Bank of the U.S.
• 1816, chartered 5 years after expiration of First
  Bank
• U.S. President James Madison
• Goal Stabalize currency
• Philedelphia, Pennsylvania
• Political Corruption and fraud

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United States Banking History

• Free Banking Era 1837-1862
• National Banks 1863-1913
• 1913 Creation of the Federal Reserve System

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Czech Republic Banking History

• Under communism
• centrally planed, under a control of state
• Privatization
• Banks were sold to private companies
• Present
• banking runs on the market principals
• currently 36 banks
• supervision is provided by the Czech National
  Bank

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Profile of the USBank Corp.

• Assets in excess of 221 billion
• 6th largest commercial bank in the U.S.
• Operates 2,498 banking offices
• 4,837 ATMs
• Service products banking, brokerage, insurance,
  investment, mortgage, trust and payment
• Customers personal consumers, businesses and
  institutions
• Free internet Banking, live telephone bankers 24
  hours a day

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Profile of the HVB Bank

• Entered into the Czech market on October 1, 2001
• Focus corporate and private clients
• 4th in the Czech market
• Market share of 6
• In 2005, HVB became a member of the Unicredit
  group
• Unicredit group has more than 28 million clients
• Assists its customers in financing their projects
  using EU Structural Funds
• Specializes in enterpreneurs and small business

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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
Seoul
Bahrain
Johannesburg
Singapore
Beijing
Mexico City
Shanghai
Boston
Miami
Mumbai
Sydney
Buenos Aires
Teheran
New York
Cairo
Rio de Janeiro
Tel Aviv
Guangzhou
São Paulo
Tokyo
Hanoi
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Debit Cards

• USBank Corp.
• Debit card can only be opened with a Checking
  Account
• Account requirements for Free Checking with
  Interest
• Minimum Opening Deposit - 100.00
• Minimum daily Balance None
• Monthly Maintenance Fee None
• Free ATM Transactions at U.S. Bank ATMs
• 3.00 transaction fee at other non-U.S. Bank ATMs
• Additional Fees
• Insufficient fund fee Variable
• 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)
• Overdraft fee - 30.00
• For every transaction that causes the available
  balance to become negative
• Availability of ATMs
• 4943 U.S. Bank ATMs
• 1,000,000 Visa ATMs
• U.S. Bank only partners with VISA credit card
  company

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Debit Cards

• HVB Bank
• Account requirements bank account (0-399 Kc)
• ATM fees normally 30 Kc, 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

Charge Cards 5
Credit Cards 8
Debit Cards 87
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Credit Cards

• USBank Corp.
• 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
• Age 18 years or older
• Completed Application
• Active Checking Account
• Proof of residency

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Credit Cards

• HVB Bank
• Interest rates 0.5 1.99
• Fees for bank account 0-30 Kc
• Fees for withrawals 60 Kc
• Up to 45 days without interest
• Conditions for getting Credit card
• Age 18 years or older
• Monthly income greater than 9,500 Kc
• Proofs (ID, pass port, confirmatin of income,
  bills for phone...)

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Lost Card Procedure

• USBank Corp.
• Lost Card
• 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

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Lost Card Procedure

• HVB Bank
• Lost card
• Stoplist 1500 Kc
• Blocation 300 Kc
• It is the customers responsibility, same day,
  until midnight.
• Issuing new card
• 10 working days
• Expiration dates 1 year for credit cards, 3
  years for debit card

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Use of Payment Cards

• USBank Corp.
• 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.

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Use of Payment Cards

• HVB Bank
• 80 withdrawals
• Increasing trend in terms of payment by card
• Paying is free
• 7 ATMs
• Credit cards in case of paying is noninterest
  period

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Czech Republic Payment Cards
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Incentive Programs

• USBank Corp.
• Cash Rewards
• Travel Rewards
• Merchandise Rewards
• Earn Rewards for an Affiliation
• Do Not Earn Rewards

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Incentive Programs

• HVB Bank
• Insurance against the Loss of a Payment Card 
• Travel insurance
• Credit card For inability for paying

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Questions?