1

Short Historyof Credit Card

Took place in USA with Diner’s Club

Turkey followed the trend and Koç issued in1960’s

2

What is Credit Card ?A new payment system

Credit Limit

Account number

3

BENEFITS to BANKS

Basicly to make profit

New card fee

Annual fee

Renewal fee

Member business commissions

Interest of default

Brand Awareness

4

Installments

Plus Points

Cash Need

World wide Usage

benefits to

Installments46%

Plus Points25%

Cash Need15%

Worldwide Usage14%

5

High interest rate

Using credit cards unlogically

Increases price of goods6

ofDefault risks

Legal transaction costs

Risks of not having return on

invesment

Banks

7

Underground Economy

Accelerate Trade Activities

Transparency and Control

8

Credit card sharp growth

% of using credit card in shopping

Average card number per person

Monthly average shopping amounts

9

pie of cake?

10

0

1000

2000

3000

4000

5000

6000

7000

8000

2004 2006 2008

Isbank 3100 3750 5000

Garanti 4100 5300 7500

Ykb 4300 6500 7750

11

0

5

10

15

20

25

30

2004 2006 2008

Isbank 11 11,5 14,7

Garanti 20 22 21,1

Ykb 25 26,3 21,8

12

50 % of total revenue beforeregulations

Now nearly 25 %

Banks disagree with government

of Credit Cards

13

o Indispensible tool of our daily lifes

o Makes life easier

o However, there are problems as

uncontrolled spending

14

thEND

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