Due to rapid revolutionize Essay

1.0 Introduction

Due to rapid revolutionise in the field of Information Technology ( IT ) many things have been changed, distances have been reduced. Now with the aid of IT you can order online to buy books, jewellery, gifts. For accomplish these undertakings client normally use Credit Card for payment intent.

In Pakistan from last few old ages the usage of recognition card is really common. If we go back few old ages behind the usage of recognition card was non common. With the transition of clip Bankss improve their Customer attention public presentation and offering different merchandise installations in order to ease the clients. Now a twenty-four hours? s people normally avoid maintaining the hard currency with them because of larceny opportunities. They normally use recognition card in replacing of hard currency.

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1.1 Background of Study

The recognition cards market in Pakistan has witnessed important growing in footings of figure of recognition cards, recognition card disbursement and recognition card receivables? with the former growth at over 30 per centum per annum over the last three old ages and the latter at over 60 per centum. The industry is expected to go on turning at a rapid gait as more Bankss enter the market and aim farther geographic parts across the state. Pricing and sweetenings associated with go arounding recognition card merchandises in Pakistan are get downing to go more advanced. However, until the market develops across a broader scope of sections, loaners in this market could be constrained by the deficiency of available information ( i.e. , recognition hazard profiles ) and hiting theoretical accounts required to measure recognition worthiness. General enlargement of the recognition card credence web will besides be cardinal to growing.

Pre-tax net incomes in the Pakistan recognition cards market are estimated to hold reached $ 32 million in 2006, up 15 per centum from the old twelvemonth. Net incomes are expected to turn a farther 72 per centum before the terminal of 2008 as all gross watercourses maintain healthy pull ) in the consumer finance industry and a short-run continuance of high rising prices may motivate farther dependance on recognition cards installations. growing. Demand for recognition, following an aggressive stage of growing ( both push and

1.2 Aims

The aim of my surveies is to reply some of the undermentioned Questions that the jobs can be pointed out and be noted by the concerned governments. sing Credit Card by inquiring different inquiries from various/general populace so

  • Do all of the Bankss provide same installation on recognition card?
  • Do they supply standard Customer attention service?
  • What are the major benefits the Bankss gives to recognition card clients?
  • What is the procedure or process if any client submit or paid the check after due day of the month. How many charges/interest client have to pay on last entry

1.3 Significance

This research is for Employees/Businessman/Lowe salaried individual public consciousness, to allow them take Credit card and usage is sagely so that to allow them how they can acquire comfort by utilizing the recognition card. The research is traveling to assist the Banks Credit Card a Facility or a Burden which offer recognition card installation to measure their Credit Card Process, public presentation, what they have and what hey need to better more in order to ease the Customer ; what they are supplying what deficiencies they have in their services. Credit Card a Facility or a Burden

2.0 Literature Review ( LR )

Recognition cards are now an of import and built-in portion of the fiscal and payment systems of modern societies. They are used both as a convenient payment medium in topographic point of hard currency and cheques and as a agency of obtaining short-run go arounding recognition. In some of the rich, economically developed states of the universe, recognition card ownership is so widespread among consumers that penetration rates are nearing 100 per cent. In many parts of the underdeveloped universe excessively, recognition cards are going progressively available. In Pakistan, the recognition card market has grown significantly over the past decennary. In the late 1990s/early 2000 period, the recognition card market in the state was reported to be turning at about 160 per cent per twelvemonth.

The recognition card was the replacement of a assortment of merchandiser recognition strategies. It was foremost used in the 1920s, in the United States.

The construct of utilizing a card for purchases was invented in 1887 by Edward Bellamy and described in his Utopian novel Looking Backward. Bellamy uses the expressed term “ Credit Card ” eleven times in his novel ( Chapters 9, 10, 11, 13, 25 and 26 ) and 3 times ( Chapters 4, 8 and 19 ) in its subsequence, Equality Mathews and Slocum ( 1969 ) and Slocum and Mathews ( 1970 ) sort recognition card holders into two classs, based on their? usage? of recognition cards. The first group is labeled? installment users? because they elect to pay an sum less than their monthly balance and by turn overing over portion of the debt, they accordingly pay involvement charges. The 2nd group is labeled? convenience users? .

Kinsey ( 1981 ) sought to place if there was a relationship between the fiscal and demographic features of families and the figure of recognition card histories that they maintained. Families with really high incomes were found to keep the largest figure of recognition cards. Other features, which were found to hold a important influence on the figure of cards held, were topographic point of abode, usage of checking and nest eggs histories and attitude towards recognition. of card ownership. The findings were compared with a similar set of informations acquired in card they owned, the frequence of card use and the chief advantages and disadvantages Hawes ( 1988 ) established the demographic features of cardholders, the types of 1971.

Lee and Hogarth ( 1998 ) examined recognition card involvement rates associated with hunt for information about involvement rates.

Harmonizing to Godwin ( 1998 ) , a consumer ‘s penchant sing the usage of recognition is considered to be the motivation for taking between present and future ingestion. Lindley et Al. ( 1989 ) identified the features of consumers who held recognition cards and established the types of disbursement for which they used their recognition cards. This survey, merely like that of Hawes ( 1988 ) , was longitudinal. The findings suggested that the growing in figure of families which possess recognition cards had slowed since 1971, connoting that the market had become more concentrated.

Credit Card a Facility or a Burden found a important a important The Grecian survey of Meidan and Davos ( 1994 ) developed 15 properties which were considered utile in finding what influences consumers when choosing a recognition card. Worthington ( 1998 ) remarks that recognition cards are an increasing key in easing the distribution and bringing of a broad scope of fiscal services.

Worthington and Edwards ( 2000 ) note that recognition card issue provides an ideal chance for companies ( card issuers or Bankss ) to organize relationships with new clients, where no old banking relationship existed.

Bei ( 1993 ) , Canner and Cynark ( 1986 ) , and Steidle ( 1994 ) relationship between holding a positive general attitude toward recognition usage. Bei ( 1993 ) and Steidle ( 1994 ) showed that instruction was negatively related to being a recognition card six-gun.

Chakravorti ( 1997 ) concluded that based on underlying inducements versus other payment instruments, consumers should ever utilize their recognition cards to do payment and payoff their balances in full by the due day of the month

Chakravorti and Emmons ( 2003 ) concept a Diamond-Dybvig theoretical account to analyze the effects of inducements to convenience usage and its impact on six-guns that use recognition cards. They assume competitory markets for goods and recognition card services. They besides assume that all consumers are indistinguishable ex ante and hold entree to recognition cards without fees. They differentiate themselves from the literature by sing the benefits of long-run recognition. They consider the possible subsidisation of recognition card use costs from finance charges. Furthermore, they endogenously derive costs and benefits of card use. Harmonizing to ( Garman & A ; Forgue, 1997 ) a recognition card is both a payment tool and a convenient beginning of recognition Canner ( 1988 ) found that both higher educated and lower educated people were six-guns as opposed to convenience users.

( Duca & A ; Whitesell, 1995 ) claimed that consumers can maximise the public-service corporation of their ingestion by utilizing their recognition cards as beginnings of recognition recognition cards has centered on the development of user profiles and geographic expedition Research onof wide economic issues. Economic research has been directed towards foretelling consumer demand and utilize via a figure of economic parametric quantities such as finance charge and ingestion. Further work has explored the effects of recognition card usage on the money supply, banking, and retailing. A figure of behavioural surveies analyzed recognition card ownership and recognition card usage.

Several economic experts at the Federal Reserve Board have addressed assorted facets of recognition card ownership and use. Avery et Al. ( 1986 ) have presented the consequences of a 1983? Survey of Consumer Finances? ( and a 1984 update ) in which recognition cards were treated simply as one of several signifiers of payment methods. Findingss from these documents farther supported the strong positive correlativity between income, instruction, wealth, urbanicity, Credit Card a Facility or a Burden and? middle-age? and recognition card usage. Their drumhead place was that? different agencies of payment have different utilizations that vary over socioeconomic categories? Lindley et Al. ( 1989 ) examined the alterations over clip in consumers ‘ determinations to possess and utilize recognition cards. Their findings are consistent with the behaviour expected in a market nearing impregnation.

Martell and Fitts ( 1981 ) applied quadratic discriminant analysis in an effort to spot the relationship between demographic, socioeconomic, and attitudinal variables and whether or non a respondent used a bank recognition card.

Ausubel ( 1991 ) argues that the ground for the downward rigidness of recognition card involvement rates and supranormal net incomes is the failure of competition in the recognition card market. He partially attributes this failure to myopic consumers who do non anticipate liability and involvement payments on their outstanding balances. Brito and Hartley ( 1995 ) , nevertheless, argue that consumers carry high-interest recognition card debt non because of nearsightedness, but because low-interest bank loans involve minutess costs.

Durkin ( 2000 ) recognition cards, has increased comparative to income over past three decennaries. When and other signifiers of funding Credit cards allow consumers to attempt involved with obtainingdebt ( Canner and Luckett 1992 ) . than taking the clip to use for a loan with a lower involvement rate. As a consequence, recognition cards account for a significant and turning portion of consumers ‘ attracts many consumers to pay high involvement on outstanding recognition card balances, instead a loan from a fiscal establishment. This convenience borrow within their recognition bound without dealing costs, which includes all the clip and ( Brito and Hartley 1995 ) . consumers use recognition cards as a manner of funding, recognition cards compete with bank loans reported that the revolving constituent of consumer recognition, most of which is generated by theCredit cards besides serve as an open-ended, easy available recognition beginning. Credit Card a Facility or a Burden

3.0 Problem Statement

The Problem Statement for this peculiar research work can be defined in the undermentioned words.

? Make these Credit Card games functioning as a comfort and installation to users or proved as a load? Credit Card a Facility or a Burden

4.0 Theoretical Model

The frame for this survey includes the cardinal variables that are: consciousness sing Credit Cards among people, easiness of usage, convenience, installation of retreating money in Credit, menaces of being stolen easy, over-drawing menace.

In this research work, Credit Card Usage is the Dependent Variable while its characteristics and menaces are Independent.

4.1 Inventory of Variables

  • Dependant
  • Credit Card
  • Mugwump
  • Awareness
  • Ease of Use
  • Convenience
  • Overdrawing Facility
  • Overdrawing Burden
  • Menace of being stolen easy

4.2 Direction of Relationss

  • Credit Card use if Positively or Directly related to degree of Income.
  • recognition Credit Card is Negatively or Inversely related to Overdrawing Burden. If
  • Credit Card Usage if Positively or Directly related to Overdrawing Facility. If the Card will be use on occasion than it will be Facility for the client. Card will be use more often than it will be burden for the Person.
  • Credit Card is Negatively or Inversely related to Threat of Being Stolen easy. If the Credit Card will be use Frequently for ordinary shopping and for Online Shopping than the opportunities of Menace of being stolen will be increased.

4.3 Explanation of established relationship among variables

Use of CCs is a dependent variable, depending on consciousness, easiness of usage, convenience and other independent factors.

Credit Card a Facility or a Burden

  • Recognition Card games are positively related to Awareness. If people are more cognizant about recognition cards, its installations, proper usage so its use is certain to increase. Knowing more and complete about Credit Card utilizing, people can utilize it more safely, right and bask all its installations.
  • Ease of serviceability of recognition cards is positively related to Credit Card use. Easier it is to utilize a recognition card ; more are the opportunities that recognition card users will increase. The installation of transporting 1000s of Rupees in merely a card, the easiness of shopping anyplace from card, the easiness of on-line minutess etc are some of the attractive facilitates offered by Credit Cards.
  • The convenience of utilizing recognition card anyplace around the Earth is another installation offered by Credit Cards. Such comfortss are besides positively related to Credit Cards.
  • the opportunities of its increased clients. related to Credit Cards. The more overdrawing installation a CC offers, more are history is one of the greatest attractive forces of Credit Cards. It is besides positively The installation of pulling or passing money more than what you have in your
  • Overdrawing is non merely a installation but a load every bit good. Peoples may retreat money more than they have in their history but when it comes to payment of that sum, they have to pay some excess charges in add-on to the original sum. This factor is negatively related to recognition cards.
  • Peoples avoid maintaining Credit Card games because they are more prone to theft. If you lost your recognition card it means you lost your bank history. The individual holding your Milliliter might pass over out the whole bank history before you can stop dead or call off you card. Therefore, it a large hurdle in popularity of CCs. This factor is negatively related to recognition cards.

4.4 Inventory of Proposition in consecutive Order

  • Recognition Card games are positively related to consciousness.
  • Recognition Card games are positively related to the easiness of usage.
  • Recognition Card games are positively related to convenience.
  • Recognition Card games are positively related to overdrawing installation.
  • Recognition Card games are negatively related to overdrawing load.
  • Credit Card a Facility or a Burden
  • Recognition Card games are negatively related to menace of being stolen.

5.0 Hypothesis

Following are the hypothesis derived from the survey work:


  • Recognition Card games have NO relationship with overdrawing load.
  • Recognition Card games have NO relationship with convenience.
  • Recognition Card games have NO relationship with consciousness.
  • Recognition Card games have NO relationship with the easiness of usage.
  • Recognition Card games have NO relationship with menace of being stolen.
  • Recognition Card games have NO relationship with overdrawing installation.
  • Recognition Card games have some relationship with convenience.


  • Recognition Card games have some relationship with overdrawing load.
  • Recognition Card games have some relationship with consciousness.
  • Recognition Card games have some relationship with the easiness of usage.
  • Recognition Card games have some relationship with menace of being stolen.
  • Recognition Card games have some relationship with overdrawing installation.


I Tested the First Two Hypothesis which are in Bold text. Why non others?

  • Credit Card a Facility or a Burden
  • Credit Card a Facility or a Burden

6.0 Research Design

6.1 Classification of Research

In this research, the intent of survey is descriptive because significant information is known about job that how this research job has been solved in the yesteryear.

6.2 Data Collection Technique

A combined research scheme based on publication schemes is carried out in the research by utilizing structured questionnaires and interviews as primary informations aggregation methods.

6.3 Population

Population of my survey consists of all recognition card users in offices, establishments, Banks, Corporate & A ; stores located in Rawalpindi Saddar.

6.4 Sample

A sample of 30 people was selected from the population utilizing random sampling ( Convenience ) technique. 20 were Male and 10 were Females.11 respondents were self employed workers and 03 are pedagogues of establishments, 02 were Directors of two different companies. 07 were physicians of different infirmaries while 07 were Bankss personal offering recognition card services.

6.5 Tools of Data Collection

Interview agenda and questionnaires both are pre-designed list of inquiries to be used for communicating with the respondents. In the instance of interview agenda, the list of inquiries will be asked from the respondent. Questionnaire will besides be provided to the respondents to be filled out.

Credit Card a Facility or a Burden

7.0 Data Collection, Data Processing and Analysis

7.1 Data aggregation

As a information aggregation method I had used the questionnaire method, the questionnaire was filled by different recognition card users in the market and offices. The information was arranged through Microsoft excel & A ; SPSS package ; variable were tested statistically to do them reliable. Graphs were drawn with the aid of excel to disrupt the response of respondents. In following Sessionss these information have been provided. Respondents are interviewed face to face or sometimes on phone if s/he is non available for meeting. Questionnaires are presented to the respondents and they are asked to make full them in.

7.2 Data Processing & A ; Data analysis

Data processing will get down with the redaction and cryptography of the information. Editing would affect look intoing the information aggregation signifiers for skips, discernability, and consistence in categorization. The redacting procedure corrects jobs such as interviewer mistakes prior to the informations are transferred to a computing machine. Analysis is the application of concluding to understand and construe the information that have been collected. The appropriate analytical technique is to be determined by the research design, and the nature of the informations collected.

Credit Card a Facility or a Burden

8.0 Findingss

8.1 Feel of informations

In? feel of informations? , I calculated frequences distribution on the information to cognize about the tendency. You can see the consequence of findings in annexure in appendices. Pie charts are used to hold clear thought about the informations.

8.2 Goodness of the informations

good and consistent. The trial is done utilizing 17 inquiries trial. The consequence shows that the Chronbach alpha for information is 0.937 which means that information is In? goodness of informations? , I checked the dependability of the informations by seting Chronbach Alpha Credit Card a Facility or a Burden

9.0 Conclusions & A ; Recommendations

9.1 Decision

The Conclusion which I have derived from my research is that Users have consciousness of the Credit card and most of the Users daily use the Facility of Credit card. The Credit Card users normally Compliant that Bank which is offering the installation of Credit Card they normally charge different involvement or some Hidden charges which is ever included in the Monthly measure.

The Credit Card is acquiring Popular in Pakistan and Mostly users prefer the Plastic Money alternatively of maintaining big sum of Cash. Plastic Money now a twenty-four hours is the safest manner to maintain.

Another Point which truly irritates the Credit Card users is that the Many Credit Card User done go for online Shopping means Users hesitate to purchase on-line things. There are many ground behind this one major ground is deficiency of Security and Users are afraid of drudge or stolen of Credit Card figure. Insecurity and Lack of consciousness is the large hurdle that most of the users non travel for online Shopping.

9.2 Recommendations

Recognition Card Bankss must revise their regulations of issue of cards to increasecustomers.

All the Bankss which are offering the installation of Credit Card should do one Policy that merely recognition card will be issue to merely those Customers who? s Salary will be or should be & gt ; 15,000. It has been observed that some Bankss offer the recognition card to those clients whose wage is & lt ; 15,000. They should to the full analyse whether this Credit card user can bear the Expense of Credit card from his or her monthly wage or non.

There should be a complete info page on bank ‘s web site for Credit card users on how to manage & amp ; protect their card better.

There should be an easy process to stop dead your Credit Card in instance if it? s lost.

Customer Service of most of the Banks is still hapless. They should better their Customer services in order to retain the Credit Card users.

The Banks should give awareness how to utilize the Credit Card for on-line shopping. And on which trusted Sites they prefer for the online shopping. Credit Card a Facility or a Burden

10.0 Mentions

  • Bei, L. ( 1993 ) . Determinants of consumer recognition card refund forms. Consumer Interests Annual,
  • Chien, Y. & A ; DeVaney, S. A. ( 2001 ) the effects of recognition attitude and socioeconomic factors on recognition card and installment debt, The Journal of Consumer Affairs, 35 ( 1 )
  • Zhu, L. Y. & A ; Meeks, C.B. ( 1994 ) Effects of low-income households ‘ ability and willingness to utilize consumer recognition on subsequent outstanding recognition balances, The Journal of Consumer Affairs,
  • Lindley, J. T. , Rudoph, P. & A ; Selby, E.B. ( 1989 ) Credit card ownership and usage: Changes over clip.
  • Worthington, S. , ? The cashless society? , International Journal of Retail and Distribution Management, Vol. 23
  • Barker, T. and Sekerkaya, A. ( 1992 ) , ? Globalization of recognition card use: the instance of a developing economic system? . International Journal of Bank selling Vol.10
  • Wasberg, C.A. , Hira, T.K. and Fanslow, A.M. ( 1992 ) `Credit card use and consumer debt of families ‘ , Journal of Consumer Studies and Home Economics,
  • Murdy, S. ( 1995 ) `College pupils and recognition cards ‘ , Credit World, Vol. 83,
  • Garcia, L. ( 1980 ) `Credit cards: An interdisciplinary study ‘ , Journal of Consumer Research,
  • Ausubel, L.M. ( 1991 ) ? The failure of competition in the recognition card market, ? American Economic Review,
  • Brito, D.L. and P.R. Hartley ( 1995 ) ? Consumer reason and recognition cards, ? Journal of
  • Chakravorti, S. and W.R. Emmons ( 2003 ) , ? Who pays for recognition cards? ? Journal of Political Economy, Consumer Affairs,
  • Wright, J. ( 2002 ) ? Why do houses accept recognition cards? ? Roneo, University of Auckland.
  • Calem, Paul and Mester, Loretta, ? Consumer Behavior and the Stickiness of Credit? Card Rates. ?
  • Nejdet Delener, Herbert Katzenstein, 1994, Credit Card Possession and Other Payment Systems
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