Банковское дело: современная система кредитования

- ID commercial enterprise (minimum 16 characters)

- Account number card holder (16 marks)

- The expiry date of card (4-6 digits)

- The amount of operation (5-10 characters)

Consequently, before giving the answer to request, operator dials the on-screen display from 40 to 50 characters.

To control the speed and accuracy of staff authorization center, banks have certain criteria: average response rate a bank employee on the authorization request (in seconds since a telephone call prior to answer), correct answer (by appointment on the tape), quick response, if card number in the "hot" list when you want to call the security service, etc.

 

 

Billing. Issuing Bank from time to time, usually once a month, sends the client a particular document - an excerpt from his loan account, which indicates the commission charges that the customer must pay the bank in connection with the operations, and the obligatory minimum amount of debt and new debt balance. This procedure is called billing, date of discharge – the billing date, between two dates – the billing cycle, and the document  - the billing statements.

Billing Statement contains important information for the bank and its client. First of all, the number of the card account at the bank. Client has a right to have several cards, and account number so it is necessary to verify the calculations bank. Then in the statement contained a reminder of the credit limit, installed the card account and the unused amount is a line of credit. The latter figure indicates that the fixed bank credit limit was not exceeded by the client. In the amount of the unused limit does not include those transactions that are not arrived at the bank at the time of preparation extracts. The billing cycle is usually 30 days. In addition, the bank informs the client of the end date of the billing cycle. All transactions are reported to the bank after that date will be included in calculation of the next cycle. Specify as the deadline for receipt of payment from the client on this cycle. All amounts entered after that date considered overdue, and on which the bank will charge a fee for delay.

Further, Bank reminds customers of CMI, a minimum amount of payment. Then the operation is carried out itself, which undertook a client with a credit card. First of all, the date, which must coincide with the date

on a copy of an account held by the cardholder. Next, the date

corresponding to the accounting entry on the card account with the Bank.

This date is especially important, because from her bank calculates

average daily balance of the debt needed to determine commission

collection.

Each transaction with the card is assigned a unique number for

in the event of a dispute can find all the necessary documents.

 

In a special column lists all of the trades includedIn a statement, indicating the name and address of the trade or service enterprise.

 

Client Service. This function includes all types of contacts the bank

with the client except for the analysis of creditworthiness and calling of overdue debt. Firstly, it comes to responding to requests and consideration complaint. The reasons for which a customer contacts the bank, usually associated with the following:

- Operations, challenged by the client

- Failure to obtain in time of billing statements

- Do not receive the bank transfer to pay the billing statements

- Query about the balance of outstanding debt.

Request of the first kind arises when the client receiving billing

extra, reveals in the operation that he did not commit. For example, as an

extra appeared the buying of a TV at a certain company "Alpha" in the amount of $ 1500, with which the cardholder relationship did not carry out. The Bank should identify the cause of error, referring to the original trade case signed by the client. At the same time to ascertain the truth disputed amount should be credited to a special account and it does not have that interest. Obtaining time billing account may also be the subject of the request. Usually cardholder knows the date of sending billing statements and may be concerned about the lack of it. Upon receipt of the Related Query worker the bank must verify the sending address and extracts upon the accuracy of written staff.

Another reason for opportunity of conflict - lack of credit records of

card account after maturity and transfer accounts in the category

overdue.The bank sends the customer a reminder of the need to make

payment.

However, the latter may inform the bank that the payment was made, and submit a copy of the remittance. Bank in this case should immediately take action to change the status of accounts with expired on current and find out the cause of the error.

 

The client should abstain provide an opportunity for  customer service card during the period of investigation. As reported outstanding balances on the account that such information should be given to good share of prudence. A person who unlawfully took possession of the card, can try this way to obtain information necessary for its use. According to this employee of the bank should first determine whether the request comes from the rightful owner, for example, find out the date and amount the last transaction with the card and verify the answer with the one on the bank's data.

 

 

 

 

 

 

 

 

 

 

 

     

 

 

 

 

 

 

 

 

 

 

 

2. Bank acquirer.

 

Duties of the Bank engaged in acquiring, defines its role on services trade participants card systems.

Key features:

- Processing of accounts submitted to the bank trader from trading

cards;

- Exchange of information on transactions and payment of fees for Interchange Bank in favor of Issuer;

- Consideration of applications vendors to join the payment system, analysis creditworthiness of new and existing clients;

- Marketing, help dealers to purchase equipment for plastic cards

 

Processing trade accounts is to transfer data from paper bills to

magnetic tape for the introduction of a system of information exchange and "sale" these amounts to the issuing bank (outgoing Interchange). In the commercial invoice shall first indicate if the bank account number the cardholder, his name, date of expiry of the card. At processing read only the account number, below the name of a trading company, address, and identification number. These data are incorporated in master file of the bank-acquirer, and, as a rule, are not transferred to the preparation

tape. It is further reported date of the transaction.

This date is included in tape is transferred to communications and printed on your statement for billing, directed by the cardholder. Finally, include the amount of the transaction. She is rewritten to tape and used pr calculations and dilling.

Processing trade accounts has several stages.

First trading accounts received by the Bank from the dealer, are formed into bundles of equal size and checked (correctly filled in, whether in a stack of other people's accounts of other traders. Then, the manual processing of accounts data are entered using the keyboard computer terminals.

In automated systems trading accounts are through the sensor device. Amounts are read by optical Character Recognition. If any data can not be lamenting the machine they are additionally added manually. After reconciliation of the amounts fixed machine, with the amounts of bundles before the transfer.

This control needed to detect errors. Finally, after reading and control, the amount of bills passed by the system information exchange, ibank-acquirer is reimbursed this amount from Association for the deduction of commission for the Interchange. Like all other elements of processing, processing of accounts requires strict control. Bank will credit the amount of accounts, locking people trafficker, in deposit account in the last day of filing of accounts. At the same time, compensation of this amounts through information exchange system can not be obtained until

accounts are not processed and held on systems of information exchange. So way, the bank is forced to free credit merchant processing for the period accounts. If instead of 2 days will be spent 4 or 5 days, the cost of the bank substantially will be risen.

Therefore, the administration introduced stringent standards processing time accounts. In forehead case should always bear in mind that the delay in processing means loss of money for the bank, and the acceleration of processing of invoices - win.

 

 

 

 

 

 

 

 

 

 

 

 

3. Repayments

 

In process of payments by card transactions often such situation takes place where a cardholder disputes the validity of the operation and demanded the return write-offs. The issuing bank may make such a cancellation by self initiative, without requiring the client if it finds, for example, that the time card has expired or that the expense for which you are transaction is closed. Bank-acquirer, defending the interests of the merchant may, the latter's request or on its own initiative to return the documents to re issuing bank. This is done in cases where the return is not enough documented or need additional information.

In a conflict situation, banks can independently resolve the dispute or resort to arbitration association. After receiving notice of cancellation to the contrary, the bank-acquirer credits the amount to special balance sheet account for the disputed amounts, where it will be listed until final decision. The bank shall, as soon as possible resolve the situation, as the controversial sum of the numbers on its balance sheet and it is costs of its financing. Banks set target dates for the return operation. Issuing bank determines the minimum time of receipt of claim from the owner

card until the audit trail back to the write-offs bank-acquirer. At the same time great attention is paid to documenting justification of the return, otherwise, as already mentioned, the transaction can be repeated ask to pay the bank.

 

 

 

   

 

 

 

 

 

 

 

4. Profitability of operations with the bankcards.

 

Card transactions are among the most profitable banking activities. The average revenue per unit cost in the card business is higher than

for other types of operations. The main indicators for measuring the profitability of card operations are the profit unit card loans. The calculation of this index allows us to compare profitability of operations of different banks.

 

 

 

portfolio of outstanding     income from   yield in%

loans on cards      card transactions

Bank A 2 000 000       140 000   7

Bank B 5 500 000       302 500   5,5

 

Despite the fact that the bank B to make more profit, he worked less

effectively: The amount of revenue had 5,5%,  like Bank A -7%.

Profit is the difference between income and expenditure of the bank, whose structure different for the issuing bank and the bank-acquirer.

 

Issuing bank’s main income:

- Annual interest rate

- Annual membership fee

- Commission on Interchange

- Penalty charges for breach of contract.

 

Annual interest rate on credit card will be charged to the owner

extension of the credit card when outside the grace period. Rate

fairly stable and does not change due to some changes in demand for and supply of consumer credit.

As already mentioned, not all of the outstanding loan card portfolio

yield interest, because flow of the grace period no interest is

calculated. Therefore, to apply the annual bid, it should first be multiplied by the share portfolio, on which interest is paid.

If this proportion is 65% of the portfolio, with an annual interest rate equal to 20% per annum, the real rate on this portfolio is 13%. Ave monthly billing applies a periodic monthly interest rate which is derived from the annual rate. Then, reduction of banking income has necessitated the introduction of this fee.

 

Charges for violation of card agreements include:

- Commission for the delay

- Commission for exceeding the limit

- Commission and return the couple.

 

The costs of the issuing bank for card transactions primarily include fees for resources, which the bank uses to finance the entire portfolio of card loans. In addition, the expenses include the following articles:

 

- Losses from writing off bad debts and unauthorized use cards ;

- The costs of processing operations (authentication) ;

- Costs of servicing ;

- Cost of Marketing ;

 

The structure of income and expenses of the bank-acquirer is peculiar because of specificity of its functions. The most revenue item - a discount, paid trader when depositing trading accounts at the bank. Revenue for this article equal to the product discount rate on the amount of sales on credit cards.

For example, if the average discount is rate 2,2%, then every 100

U.S. trade accounts acquirer receives 2.2 dollars, respectively.

This amount debited to the trader at the bank at the end of each month. Another channel income acquirer - proceeds from the sale or lease trader

equipment for imprinting (data transfer card merchant account) and

electronic terminals. Finally, the bank-acquirer receives revenue with

resources stored on depo merchant.

The main item of expenditure of the bank-acquirer is a commission for changes. It is paid by the issuing bank in the percentage of trading accounts. Other types of expenses acquirer are similar to those bears issuer - expenses on processing, marketing.      

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONCLUSION

 

At this time, the trend is toward the use of plastic cards with chip (smart card). Unlike magnetic stripe cards, smart cards "smarter", while the trend is toward the use of plastic cards with a chip (smart card). Unlike magnetic stripe cards, smart cards "smarter", built in them the chip has a memory and the most elementary processor that performs a certain amount of built-in commands. Payment systems based on smart cards can operate in off-line, as the system on the basis of such maps are more protected from fraud. In the world created specialized organization with aim to introduce a single billing system or what some universal standard, better than the existing ones.

The leaders of these organizations have mostly seen payment card of the future - chip (smart card). One of these organizations has developed a universal electronic system UEPS (Universal Electronic Payment System). Note that major technological principle is the implementation of UEPS transactions in retail outlets in the mode off-line at interaction of two maps - maps of the buyer and seller.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bibliography:

 

 

1. Афанасьева О.Н., Лаврушин О. И., Банковское дело: современная система кредитования. – М.: КноРус, 2007

2. Бычков В.П., Демент С.Е., Жилкина А.Н., Банковскре дело: управление кредитной организацией. М.: Дашков и К, 2008

3. Кузнецова Е.И. Деньги, Кредит, Банки. -  М.: ЮНИТИ-ДАНА, 2007

4. Peter Howells, Keith Bain. The Economics of Money, Banking and Finance, 2008

5. Laurence Copeland, Exchange Rates and International Finance, 5th edition, 2008

6. www.wikipedia.org Wikipedia, free encyclopedia

7.  www.ft.com – Financial Times Newspaper

8 http://www.MICEX.com – Moscow Interbank Currency Exchange

9 http://www.worldbank.org/ - the Worldbank

10http://en.rian.ru – Top Russian News and Analysis