Mumbai, June 21: Credit-card wars are hotting up. As part of an aggressive campaign to counter Citibank's recently launched global card, Standard Chartered Bank (StanChart) will launch a programme that will enable the bank's cardholders (global) to exchange reward points earned on card-spends for products from Hindustan Lever Ltd (HLL), Gillete, Sony Music, Addidas, as also hospitality from the Taj group of hotels, the Oberois, and Wellcome group. StanChart has also decided to waive the entrance free for applicants who are rival bank's cardholders for a period of six months on `Gold Standard', `Executive' and `Classic' cards."We will reward card-spend, be it India or abroad, through the issue of `reward plus' points. Points accumulated by card-members can in turn be redeemed against products that will feature in an exclusive rewards catalogue", StanChart's head-consumer banking (India) Harpal Duggal said.
StanChart, which has claimed an issuance of 130,000 global cards since its launch three months ago,is also stressing on the fact that its offering operates on both Visa International's and MasterCard International's networks. Citibank's (gloabl card), it might be recalled, is to operate exclusively on Visa International's network for the initial six months.
Both StanChart and Citibank have gone all out to woo customers: the former by waiving the entrance fee for the first three months; and the latter with an offer reducing the annual fee by 50 per cent if used domestically by end-September, and 100 per cent in case of overseas-spends.
In this latest card-war, StanChart has taken the lead by offering a global card across the board with Citibank, which always had a global card, but with a higher eligibility threshold, following suit. Further, while StanChart has dropped the interest rate to 1.75 per cent, Citibank continues to hold it at 2.95 per cent.
Industry watchers, howewer, point out that global-card offerings by both StanChart and Citibank are more marketing ploys rather than "functionalutlities" as overseas card-spend limit (in dollars) is carved out of the "umbrella" one. Others like HSBC, with a global card in their stable, have thus far not announced an across-the-board offering.
StanChart
* Reward deal on HLL, Gillette, Sony Music, Adidas; hospitality at Taj, Oberoi Hotels & Wellcome group
* Global card on both Visa and MasterCard
* Access to both Visa and MasterCard ATMs worldwide
* Gold Standard, executive and classic
* Lower annual fee on Classic at Rs 700
* 6.5% discount on international air travel; 3.5% on domestic
* Tie-up with Cox & Kings
Citibank
* Free air miles with Cathay Pacific; hospitality at Holiday Inn; free `Global One' calling card.
* Global card only on Visa & access only to Visa ATMs for first six months
* Only Gold and Classic
* 50% off in first years fee's if used in India before end-September; 100% overseas
* 7% discount on international air travel; 3.5 per cent for domestic.
* Tie-up with Travel House
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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