Services of BEPS
Customize and provide ATM /debit/credit card software for banks according to their requirements.
Setup of hardware and telecommunication infrastructure in banks for card operation.
Complete certification of bank system for becoming issuer and acquirer of VISA/ MASTER CARD brands.
Train bank personnel to operate and manage the card center efficiently.
Provide banks the opportunity to use brand new ATM machines.
Local shariah based Islamic credit card service.
Bangladesh Credit Card: Major Issuers:
Major Bangladesh credit card issuers are:
Bangladesh Credit Card: Essential Considerations:
In 2009, the Bangladeshi government withdrew the source tax applicable on credit card usage. According to expert opinion, this step will provide an essential thrust to foreign investment in the financial sector and will promote credit card transactions in the nation as well.
An individual should consider the following points while applying for a Bangladesh credit card:
In the modern world, banking sector is growing very much fast than any other business. The entire bank industry is emphasizing on improvement with the help of technology. Out of various technological outcomes “Plastic Money Market” is the most important one. Now a day a modern client cannot think banking without the facility of plastic cards.
Plastic money is just the replacement of cash. It is such an electronic module where all the information about the client/card holder and the bank are stored and can be executed by putting it in the Automated Teller Machine and at the Point of Sales (P.O.S.) terminal. Its not only convenient but also very reliable and safe. In this type of card inside a magnetic strip all the necessary information about the customers are kept by reading, which the ATM machine can deliver the required money of the customer. The entire process is so secured and swift that it is really a big asset for the banks and that is why all the banks are trying to improve the service that being provided through plastic cards.
National Bank limited started the plastic card services in 1997. Currently the bank is providing following categories of plastic cards:
NBL Credit card is accepted in many merchant outlet around the world. The wide range of merchants include hotels, restaurants, airlines & travel agents, shopping malls and departmental stores, hospitals & diagnostic centers, jewelers, electronics & computer shops and many more.
National Bank limited is providing credit cards by obtaining principal membership from VISA/ Master Card. Currently the bank is offering two main categories of credit cards.
Local cards:
Gold local
Silver Local
International cards:
Gold Dual/International
Silver Dual / International
Features of NBL Credit Card:
NBL VISA dual card offers the facility to access both local and international spending limit through a single plastic.
An International / Dual card is accepted at millions of establishments across the world.
NBL VISA Credit Card offers free credit facility up to 45 days without any interest.
Through SMS Push Pull Service cardholder can enquire card account any time.
24 hours a day, 365 days a year worldwide service
Transfer of 80% amount of Local Card limit to any NBL A/c or pay order facility.
No Access limit charge
No hidden charge.
NBL is supporting the international payment association’s standard such as VISA and MASTER CARD.
NBL was also the first among domestic banks to introduce international Master Card in Bangladesh. In the meantime, NBL has also introduced the Visa Card and Power Card.
MASTER CARD:
Originally named Master Charge, the program was created in 1966 by United California Bank, Crocker National Bank (both California banks whom were merged/acquired by Wells Fargo) Wells Fargo, and Bank of California (whom later became Union Bank of California). Master Charge was created to compete with BankAmericard (the Visa predecessor) whom was created shortly beforehand.
These banks, along with First National Bank (Louisville, KY) and Marine Midland Bank from New York (whom became HSBC) formed the Interbank Card Association, abbreviated ICA and created what was known as “Master Charge – The Interbank Card” in 1967. It was around this time the logo of two intersecting orange and red circles were adapted.
It was not until 1979 that the name was changed to MasterCard. During the nineties MasterCard acquired the UK based credit card issuer, Access Card, and its business became part of MasterCard. They also bought Europay in 2002, which was another credit card association. Both of these companies brand names were dropped and replaced with the MasterCard name.
Visa:
Visa roots were founded in 1958. It was that year that Bank of America began the credit card program known as “BankAmericard.” Originally this concept was the idea of a bank manager as a way to more efficiently pay for smaller bills that were costing the bank vast amounts of time and money to process checks for. The BankAmericard system was intended to be used only statewide in California, but in 1965 Bank of America began licensing the system to other financial institutions. Within eleven years it was being offer across the globe.
Bank of America turned over control of the program in 1970 to the various financial institutions that were using it – creating an economic joint venture who would collectively own and operate it. The domestic operations were governed by a branch known as the National BankAmericard, or NBI. A separate branch was eventually established to handle the international licensing called IBANCO.
The blue, white, and gold logo flag was retained for the Visa logo. Previously, each country used their own version of this logo.
By 2006 over 21,000 financial institutions made up the Visa program. In October of that year it announced that some of it’s operations would be combined and turned into a publicly traded company. Although this IPO did not include all parts of the company, it had a very successful initial public offering. It kicked off by the market valuing the company at over $ 50 billion in 2008. Visa is traded under the symbol “V” on the New York Stock Exchange (NYSE).
Fees & Charges of Credit Card:
Gold Card Silver Card Principal Card Annual/Renewal Fee: Local Tk. 1500.00 700.00 International/dual USD. 35.00 20.00 Supplementary Card Annual Fee/ Renewal Fee : Local Tk. Free Free Replacement Card Fee : Local Tk. 500.00 500.00 International/dual USD. 15.00 15.00 Late Payment Fee : Local Tk. 300.00 200.00 International/dual USD. 10.00 10.00 Return Cheque Fee : Local Tk. 50.00 50.00 International/dual USD. N/A N/A Personal Identification Number (PIN) Re-issuance Fee : Local Tk. 500.00 500.00 International/dual USD. 10.00 10.00 Excess Limit Charge : Local Tk. Nil Nil International/dual USD. Nil Nil Banks introduced debit card namely NBL VISA power card which free from the burden of loans and interest. To get a power card non-requires having any account with NBL. Besides, bank has taken initiative for expansion of ATM services countrywide and with the introduction of on-line services customer will have easy excess to other techno based banking facilities. NBL issued 30000 debit card from the beginning.
Benefits:
It is a prepaid card.
Annual / Renewal Fee Tk. 350/= only.
May be issued and refilled from RFCD/FC Account.
Accepted at all VISA POS merchants.
Cash withdrawal at all ATM booths bearing VISA logo
Drawing of Cash:
Requirement for Account Opening:
i. Two copies of recent photographs.
ii. Nominees photographs
iii. Photocopy of National ID Card.
ATM Location of NBL:
ATM
Location
Branch
Location
District
Satmasjid Road
761 , Satmashjid Road , Dhanmondi Dhaka Uttara
. HossainTower , Next to over Bridge Dhaka Gulshan
97/1 , Gulshan Avenue
Dhaka Malibagh
474, DIT Road
Dhaka Karwan Bazar
BTMC Bhavan
Dhaka Dilkusha
48, Dilkusha C/A
Dhaka Mymensing
29/1 , durgabari Road
Mymensing
Bogra
Baragola bazar
Bogra
DhakaUniversity
Administrative Building
Dhaka Terms & Conditions of NBL Credit Card:
All facilities made by NBL to the successful applicant who has been issued a credit card will have to follow the following terms and conditions, which are in force or may be amended from time to time by NBL, of which the applicant conclusively evidencing himself/herself by signing the application form while applying for his /her credit card and by his / her signature on the credit card issued to him/her and while using his / her card for any sort of transaction.
Conditions:
Valid card issued by NBL bearing the name VISA or MASTER CARD to the principal / supplementary card holder for the use of their own account remains the property of NBL all the times.
The card will be issued by NBL under the condition where, all the asked information on the Credit Card Application Form will have to be truly furnished and finally with utmost satisfaction of NBL.
Terms:
CARDHOLDER means an applicant to whom a credit card has been issued bearing individual applicant’s name issued by NBL to operate a card account, which also includes supplementary cardholder.
CARD ACCOUNT means an account (the embossed card number) of the principal card holder against his/her issued card along with any supplementary one and which will be thoroughly observed and monitored by NBL.
CARD ACCOUNT STATEMENT means a statement or statement by NBL of the amount charged debited or paid to card account(s) stated therein. Card account statement shall have all details transactions of principal and supplementary cardholder included to the card account during the statement period.
CARD TRANSACTION means a payment whether for goods, services, other charges or cash advance availed or obtained through the use of card account number or the PIN of a card.
If the card is used by someone else other than the cardholder or supplementary cardholder with or without the permission or concern of the aforesaid cardholders’, in case of that transaction all the liabilities will be put into principal cardholders card account and which he /she has settle while paying the bills.
CASH ADVANCE means an advance of payment made in any currency or by travelers’ cheques or other forms by the card representing an amount of any currency.
MERCHANT means any person or entity with whom NBL or any member of VISA and MASTER CARD has a subsisting agreement relating to the use or acceptance of the card in payment to such person or entity whether for goods, services or charges incurred or to obtain cash advances from such persons or entity.
OUTSTANDING BALANCE in relation to any card account statement means the outstanding balance in favor of NBL as stated therein or where more than one outstanding balance is stated therein the total of all the outstanding balances stated therein.
PIN means personal identification number issued by NBL against the cardholder’s nominated card account, which will be used to access cash advance through ATM.
PRINCIPAL CARDHOLDER means the person(s) to whom a card is issued in his / her favor against his/her application but no Applications of minor, Insane, Lunatics, Dependants, Pupils, Insolvent, Bankrupt or Defaulters will be considered for assessment.
SUPPLEMENTARY CARDHOLDER means the person (other than the principal cardholder) to whom a card is issued on application of the principal cardholder whether alone or jointly with the principal cardholder and the full liability will be beard by the principal cardholder but if in case something goes wrong with the principal cardholder (death/abnormality etc.) then supplementary cardholder will be liable to pay the total outstanding of the issued card to the principal cardholder.
PAYMENT DUE DATE means the last date of payment and is usually 25 days from the date of statement, if not mentioned or specified on the card account statement. At least, the minimum payment due (excluding the overdue amount) must be paid by the cardholder with in the due date at any branch of NBL. Any overdue or over limit amount must be paid immediately.
COMPANY means when in used in relation to a cardholder shall include (i) whether the cardholder is the Director or the employee of the said company, (ii) whether the cardholder is the sole proprietor of such business enterprise, (iii) whether the cardholder is a partner of such firm.
Credit Limit of NBL Credit Card:
Credit Limit for Customers
The credit limit of NBL credit card is focused on different categories of income of people. There will be difference between Visa Gold Card and Visa Silver Card. Basically Visa Gold Card will be for an elite group while Visa Silver for the rest eligible people.
Silver Card
Credit Limit
BDT TK
USD
Silver for International Use -
500- 2000
Silver Card for Local Use Only 10000-45000
Silver Card for Dual Use 10000-45000
500-2000
Gold Card
Credit Limit
BDT TK
USD
Gold for International Use -
2001-6000
Gold Card for Local Use Only 15000-200000
Gold Card for Dual Use 50000-200000
2001-6000
Credit Limit for NBL Employees
All employees down to Junior Officers will be entitled for NBL Visa Credit Card. Card limit for Local Card will be 1.5 times of current gross salary. The following is the criteria for entitlement of NBL Employees for Visa Credit Card.
Designation
Entitlement of NBL Visa Credit Card
Limit
JO – AO Local Silver
30,000/-
Officer – SO Local Gold
50,000/-
PO – SPO Local Gold
70,000/-
AVP – VP Local Gold
1,00,000/-
VP – Above Local Gold
2,00,000/-
Note: International Card facility will be provided incase of necessity.
Required documents for Credit Card:
TIN certificate / Income Tax Return Certificate
Salary certificate from the employer
Letter of comfort
Bank statement (last 6 months)
Passport Size photograph (2 copies)
Photocopy of passport (1 to 5 pages)
Security deposit (for international credit limit)
Proof Of Residence
Gas / Electricity Bill
Land Phone and Mobile Phone Bills
Ownership of car or any other vehicle (if applicable)
Other Banks Credit Card’s Bills (if Applicable)
Club Membership
Spouse’s Income
Other Income
Individual Cardholder / Service holder 6.5 Issue of International Credit Card:
International credit cards are issued against:
Int’l Card Issued Against Exporters Retention Quota Card
Int’l Card Issued Against RFCD (Resident Foreign Currency Deposit Account)
Int’l Card Issued Against Travel Quota Entitlement
Exporters Retention Quota:
As per Bangladesh Bank Guidelines for Foreign Exchange Transactions, exporters may retain7.5 % of repatriated FOB value of total exports as retention quota. International Card will be issued to maximum of 3 executives (as defined by Bangladesh Bank) against Exporters Retention Quota.
RFCD (Resident Foreign Currency Deposit Account):
As per Bangladesh Bank guidelines for Foreign Exchange Transactions, a Bangladeshi National can bring in up to USD5000 while returning from abroad without declaration to Customs Authority in FMJ Form. The person ordinarily resident in Bangladesh can open RFCD A/C where foreign exchange brought in at the time of his/her return can be deposited. International Card will be issued against the balance available in RFCD A/C.
Travel Quota Entitlement:
International Card limit against Travel Quota will have the card limit as per yearly Personal Travel Quota of Bangladesh Bank. As per Bangladesh Bank Guidelines for Foreign Exchange Transactions, a Bangladeshi National can spend USD1000/= when traveling in SAARC Countries and Myanmar by air during a calendar year, within this annual limit, up to USD500 can be spent for overland travels to the aforesaid countries. For traveling in Non- SAARC countries a Bangladeshi National can spend maximum up to USD 3000/=. Personal Undertaking (as per Annexure -1) from the cardholder will be taken before card issuance for above compliance. Moreover software customization for the delineation of the quota for SAARC Countries and Non-SAARC Countries to be strictly followed. Lien on FDR will be as security before sanctioning Int’l Card Limit for Travel Quota Card.
Issue of Local Credit Card:
Personal guarantee:
A card can be issued to a prospect subject to obtaining an individual guarantee from an existing client of the bank. The guarantee makes the guarantor legally responsible to settle financial dues on behalf of the cardholder in case of default. To be a guarantor, the respective person requires following qualifications:
1. The guarantor has been maintaining a credit card account for at least one year and has transacted the card at least for three months during the year.
2. If the above criteria are not met, the potential guarantor still qualifies to be a guarantor provided he has capabilities to repay the dues and qualifies through the creditworthiness criteria
3. The guarantor of the credit card is a valued client of NBL and transacting frequently with the bank.
Against Lien over Deposit / Financial Instruments:
1. Letter of lien over deposit/financial instruments pledged as collateral
2. Letter of authority in favor of the Bank authorizing encashment of the security.
Promotion Mix:
Effective marketing communication is very important for any kind of organization. This component plays three vital roles: providing needed information & advice, persuading target customers of the merits of a specific product, and encouraging them to take action at specific times. NBL is trying to take different promotional steps to promote its various products along with credit cards.
Integrated Marketing Communication/Promotion Mix of National Bank: NBL blended its promotional tools as follows:
a) Advertising:
Advertising is any paid form of non-personal communication about an organization, products, and service, on idea by an identified sponsor. While opening new branch NBL do advertising for letting more people acknowledge.
Advertising platforms of NBL
Print & broadcast ads
Brochures & booklets
Directories
Symbols & loges
Billboards
b) Sales Promotion:
It involves extra value or incentives to the sales force or ultimate customers and can stimulate immediate sales. NBL often goes for consumer oriented sales promotion. Sales promotion of NBL
Premium & Gifts
Fairs & Trade shows
Rebates
Low-interest financing
rade in allowance
c) Publicity/Public relation:
Publicity usually comes in the form of a news story, editorial or announcement about an organization or it product/service. Credibility is the advantage of this medium. Public relation is the management function, which evaluates public attitudes. NBL goes for both publicity & public relation.
Charitable donations
Company magazines
Seminars
Annual reports
Publications
d) Interactive/Internet marketing:
NBL is now playing more concentration on internet marketing. Interactive media allow for a back and forth flow of information whereby users can participate in and modify the form and content of the information they receive in real time. As Internet service bank cannot spread their interactive marketing in the country but they can provide online services.
e) Social Involvement:
Under its rural Credit Program, NBL, with joint collaboration of the Barendra Bahumukhi Unnayan Katripakkha, has been providing improved technology, irrigation facility, agricultural equipments, etc. though disbursement of small credit to the farmers of three districts (Rajshahi, Naogaon, Chapai Nawabgonj) of Rajshahi Division. A total of TK.133.70 million has been disbursed among 24,473 farmers under the program up to 31 December 2009. The rate of recovery is 95%. Besides, NBL disbursed TK.144.78 million and TK.32.05 million among small and medium entrepreneurs respectively under the Agro based Industries & Technology Development Project (ATDP) for setting up of agro based industries and extension of agricultural technology.
Under the Loan Portfolio Guarantee Scheme (LPGS) of the USAID, NBL has been providing loans for setting up of small and medium scale industries. Under this scheme, the USAID has approved 1 million dollar equivalent to TK.69.15 million which will remain effective as risk guarantee for loans disbursed by NBL. NBL will be able to provide credit facilities up to 2 million dollar equivalent to TK. 138.30 million under the Scheme.
Out of its deep sense of responsibility toward the society, the Board of Directors of NBL established the National Bank Foundation in 1989. Under financial assistance of this Foundation, the National Bank Public School and College has been established at Moghbazar, Dhaka. At present, a total of 892 students are studying in the school section from class-1 to class-10, while there are a total of 234 students at the college section. A total of 107 students appeared at the SSC examination from this school in 2009, which came out 100 percent successful.
NBL is always conscious and active to attend to its commitments to the society. NBL’s name has been intimately associated with sports and cultural activities in the country. NBL has been providing financial assistance to different institutions and sports organizations. To support expansion of culture, the Bank also provides patronization to cultural minded institution/individuals. Besides, the Bank stands as a friend by the side of helpless people in times of calamities. Thus, as a token of sincere fellow feeling and sympathy, NBL distributed winter clothes among the cold strike destitute people in northern region of the country from its own funds and with one day’s salary of the Officers and Executives of the Bank.
The bank is well aware of the socio-economic condition of the country. The bank has emphasized to expand its operation in rural areas to help boost the agriculture and rural economy. National Bank opened 15 branches in 2009 of which ten are located in rural areas. The bank provides collateral free loans to marginal farmers. The bank also undertook a pilot project to distribute loans among farmers and weavers of Sirajgonj district affected by twin floods in August 2008.
Moreover, the bank has introduced collateral free festival small business loan and NBL small business loan to cater the need of small traders. Beneficiaries of this scheme are mostly from rural areas. The schemes are playing important role in changing the living standard of the small businessmen.
Comparison of Charges & Fees:
Annual / Renewal Fee (Principal Card):
IFIC
NBL
SEBL
Principal Card
Gold
Classic/ Silver
Gold
Classic/ Silver
Gold
Classic/ Silver
Local
2000
1000
1500
700
2500
1300
International
$ 80
$ 35
$ 35
$ 20
$ 80
$ 50
Replacement Fee:
IFIC
NBL
SEBL
Principal Card
Gold
Classic/ Silver
Gold
Classic/ Silver
Gold
Classic/ Silver
Local
500
300
500
500
500
350
International
$ 20
$ 20
$ 15
$ 15
$ 15
$ 15
Late Payment Fee:
IFIC
NBL
SEBL
Principal Card
Gold
Classic/ Silver
Gold
Classic/ Silver
Gold
Classic/ Silver
Local
100
100
300
200
500
350
International
$ 10
$ 10
$ 10
$ 10
$ 15
$ 15
Cash Advance of Credit Limit:
IFIC
NBL
SEBL
Principal Card
Gold
Classic/ Silver
Gold
Classic/ Silver
Gold
Classic/ Silver
Local
60%
50%
50%
International
PIN Replacement fee:
IFIC
NBL
SEBL
Principal Card
Gold
Classic/Silver
Gold
Classic/Silver
Gold
Classic/Silver
Local
200
200
500
500
500
500
International
$ 10
$ 10
$ 10
$ 10
$ 10
$ 10
NBL vs Other Banks: