Recently, Citibank launched PremierMiles credit card that helps them accumulate reward points, in the form of ‘PremierMiles’.

An online news portal about business and economy – economictimes.indiatimes.com, writes about PremierMiles credit card of Citibank, “Under the programme, card members earn 10 premier miles for every 100 spent on airline ticket bookings made at airline-owned websites, airline booking counters or through the PremierMiles portal. For each non-airline spend worth 100, the card holder can earn 2.5 miles.

Upon activation, the card account is credited with 5,000 premier miles. If you incur expenses of 4 lakh using this card in a year, you will be entitled to a bonus of 2,500 premier miles. The points so earned cannot be clubbed with the frequent flyer points you may have earned.

The card membership also entitles the holder access to VIP lounges at airports across the world and offers on accommodation at hotels in the network. The card comes with a built-in overseas medical insurance and fraud protection plan.

Those wishing to obtain the card will have to shell out an annual fee of 5,000, which could be seen by some, particularly those looking for a diverse rewards programme, as trifle expensive for a primarily airline focused card. To redeem the points collected, card holders will have to visit the bank’s designated portal. They can also make their flight ticket bookings through the site.”

So, PremierMiles credit card of Citibank helps in booking air ticket specially. Card holder earns miles also from the card.

Further the news portal writes about the benefits of PremierMiles credit card, “The rewards programme is not restricted to any particular airline. Miles accumulated can be redeemed for tickets of several international and domestic airlines, including low-cost carriers.”

PremierMiles credit card of Citibank is considered as the best card after Multi-utility Cards of Corporation Bank.

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Recently, LIC announced to launch credit card protection service. According to the service, LIC credit card hold were able to report loss any of their cards from anywhere in the world to a 24-hour helpline.

About the company said in a statement to ET, “LIC Cards Services Ltd has launched Card Protection Plan for its credit card customers in partnership with CPP Assistance Services… and it safeguards all of the LIC cardholder’s payment cards – credit, debit and ATM cards.”

Further they add, “Besides, customers will be able to retrieve important details on lost/stolen documents like passport, PAN and driving license. Customers would need to purchase a membership plan offered by LIC and register their cards.”

For the service, customers have to pay an annual fee of Rs 995 and Rs 1,295. About the service charges ET quotes a statement, “The difference between the two is in the Assistance services limits and fraud protection limits provided to the consumer”.

In another article, Economic Times writes about the tips of protection of credit cards fraud, “Never write your personal identification number (PIN) on your card. Instead memorise it or keep the number separately from your card.”

“…Do not provide photocopies of both the sides of your card to anyone. This is because the card verification value (CVV), which is required for online transactions, is printed on the reverse of the card. Anyone can use the card for online purchases if the information is available with one.”

“…Before shopping online, make certain the internet shopping sites are secure. For this you should check out the encryption software it uses.”

“…Don’t give out your credit card number online unless you know and trust the company in question.”

“…Do not give any information to persons seeking credit card information over phone unless you have yourself initiated the talk. They may even claim to be a bank’s representative, but you actually don’t know who they really are.”

So, if you are going to use your credit cards, follow above mentioned suggestions to protect from fraud. We already have discussed about how to enhance online security.

Recently, crisis of credit cards came in light when ABN Amro India has chopped the credit limit of some credit card customers to a tenth. It raised the minimum amount payable to 7% of total dues from 5%.

An ABN Amro spokeswoman called the move a standard industry practice to ET, “As a responsible lender, we review card limits and take appropriate action on an ongoing basis to protect our customers and manage risk.” She had replied by an email. According to her, “The bank’s strategy could be to discourage users and get them to give up their cards or reduce their credit exposure.”

In an analysis, economictimes.indiatimes.com, an online news portal of economy and business, writes, “ABN Amro, owned by UK’s troubled Royal Bank of Scotland, or RBS, has also decided to freeze fresh retail lending, including credit card and personal loans, to arrest a pile-up of bad loans.”

On the other hand, Deutsche Bank is set to launch WorldMiles credit card against airline tickets. The card comes in two variants – Platinum and Signature.

About the card, ET writes, “While the joining fee for the Platinum variant is Rs 5,000, one will have to shell out Rs 7,500 for the Signature card. In addition, the annual maintenance fees amount to Rs 1,500 and Rs 2,500, respectively.

The card and the programme are operational on a pilot basis, and the bank is planning a full-fledged launch shortly.”

WorldMiles card allows the users to redeem points or flight miles accumulated by booking flight tickets using the card.

On the one hand, we are seeing the credit crisis that results cuts limit on cards. On the other hand, we find some advantage of WorldMiles by Deutsche Bank.

Overall, in the industry of credit cards, some banks are in the crisis while some banks are searching new market to run their business. Recently launched Corporation Bank’s Multi-utility Card was also very effective.

Recently, Corporation Bank announced to launch multi-utility cash card. The card can be used as a debit, credit and pre-paid card. The news came in light recently by a top official of Corporation Bank.

According to the statement, “Corporation Bank would be the first Indian bank to come out with a one-stop technical solution through a combo card — a fusion of credit, debit and pre-paid cards.” The statement was published in Economic Times online news paper.

Further ET includes one more statement that was said by B R Bhat Corporation Bank’s General Manager, “We are planning to launch the combo card this year. However, we are still fine-tuning our plans. There is this proposal and we will launch a pilot programme first … may be in Mumbai in the next six months. Though the combo card concept is widely accepted in developed countries, India is yet to witness its benefits by which a person can use a single card as a debit, credit, and pre-paid card. The bank has the infrastructure but the problem is there is no infrastructure at the user-end and we have to create that first. We can make the facility available at our ATMs but then there were the ATMs of other banks and Point of Sales. So, this may take some time.”

As per the statement, benefits of the combo card are possible in developed country. However, concept of multi-utility cards by Corporation Bank for Indian users would be possible in coming future.

Corporation Bank talks about problem of infrastructures also for uses of multi-utility cards. I think that if the card launches recently in India then it would be available on Corporation Bank’s ATMs only because of infrastructure problem.

Multi-utility cards of Corporation Bank will be surly a new technology for Indian users. The combo card is very unique just like mShop card.

Recently, Aditya Birla Group and SBI Card announced to offer co-branded credit cards to all customers of the Aditya Birla Group companies. In a press release the statement was released by Aditya Birla Group’s Chief Executive, Financial Services, Ajay Srinivasan, and SBI Card’s CEO, Diwakar Gupta.

Co-Branded credit cards of Aditya Birla Group and SBI Card will be available for 8-million customers of Aditya Birla Group companies–Aditya Birla Retail, Aditya Birla Financial Services Group (which includes Birla Sun Life Insurance and Birla Sun Life Mutual Funds), IDEA and Madura Garments.

Initiative for the card will be taken by the financial services arm of the Aditya Birla Group – Aditya Birla Financial Services.

Economic Times writes a statement of Srinivasan about the card, “The Aditya Birla Group already has a strong presence in the financial services business, as a significant player in the non-bank space. And we are committed to meet all the felt and unfelt financial needs of our target customer. Today, we take yet another step in that direction, with the signing of a MoU with SBI Card, to offer a co-branded credit card to the customers of the Aditya Birla Group.”

On the other hand, Gupta said to ET, “We are pleased to partner with the Aditya Birla Group…bringing new products that offer greater value to our customers has been an ongoing endeavor for us at SBI Card.”

Co-Branded credit cards of Aditya Birla Group and SBI Card will be made available across more than 2000 retail outlets of Aditya Birla Group companies. The news was published in ET online news paper.

It is not first co-branded card of SBI but the bank already have launched many co-branded credit cards. In spite of, co-branded credit cards with Aditya Birla Group will surly increase the financial strength of State Bank of India.

Recently, SBI had introduced mShop card with the collaboration of GE Capital. It is the second step of State Bank of India to introduce new co-branded card services in just 2 months.

Recently, State Bank of India Credit Card offered mShop from the SBI and GE Capital. mShop card is enabled for customers shop from over 100 merchants across the country. They can use the card by using their mobile phones.

“mShop offers SBI Card customers the convenience of transacting anytime, anywhere, while ensuring complete security of their transactions.” The statement is said by SBI card in a press release.

Diwakar Gupta who is the chief executive of SBI card said to ET, “We are delighted to launch mShop, yet another way to make life simple for our customers. mShop will further enhance our cardholders’ experience with SBI Card. It will also open up a new revenue stream for our business.” Both statements were published in the online news portal of Economic Times.

The mShop Card of SBI is a joint venture between the State Bank of India and GE Capital. The card offers wide range of payment and products services. mShop offers extensive access in payments for domestic consumers.

A customer can buy air tickets, cinema tickets and pay utility bills by using his mobile phones by mShop SBI credit card.

A customer has to just download the mShop application on mobile phones. In the initial step, the customer has to register on the application to begin shopping on the go.

Recently, Money Travel Currency Card by Reliance Group and World Travel Card by Punjab National Bank had been launched for tourists. Both cards had gotten good popularity by the tourist customers.

Now, the mShop has tried to cover the higher class people of the society. A customer life will surly be convenient by using the mShop card.

Currently, the mShop card has not a wide range of shopping and paying bills but in coming future; the card will surly introduce more and more possible areas of consumers needs on the application.

Recently, the news effectively came in light that all credit cards companies are trying to reduce rewards points.

Credit Cards issuers are much frustrated due to huge losses and more expensive while, they are getting less attractive redemption points as rewards. They are attracting to the card holders that if they use cards more often to earn the redeem points, they can get cash back or to fly somewhere.

An analyst at FBR Capital Markets, Scott Valentin said,

“To the extent that interchange is cut, you will see a pretty lineal impact on rewards. You could see rewards being 10 or 15 percent more expensive for consumers. If you have a 25,000 reward points for an airline ticket, it might go to 35,000 or 40,000”

To cut rewards or on raise fees, Michael Kon who is the analyst of Morningstar Inc said to ET,

“You either cut rewards or raise fees, because you have to have a credit card industry that is viable and generates a reasonable return.”

According to the analysts, the credit card industry is not making money until 2011. However, companies are trying to great reform in this industry.

Above analysis clearly state that banks are busy in reducing credit cards redemption points. We always see to promote banks their cards along with some great offers. Customers also are going to make their payment frequently to get some redeem points. In these conditions banks should decide to cut the charges from their clients not from their customers.

Here all things are opposite; banks are busy in reducing redemption point which is benefits of customer. They are not targeting corporate or sales offices where the credit cards being used to purchase goods very frequently.

Things are clear here, it is the collaboration of banks and corporate world. Here is nothing for a customer who uses credit cards.