Why does the country issue credit cards?

What is the purpose and significance of issuing credit cards?

Under the condition of market economy, there is demand and market, which will inevitably lead to corresponding products, and enterprises can find new profit growth points. With the diversification of people's financial needs, traditional bank loans will inevitably choose to adapt to market demand, and credit cards will become derivatives of traditional bank credit. Traditional bank credit is difficult to dominate. Since the reform and opening up, China's economy has developed rapidly in quantity and quality, and the per capita income of residents has increased substantially, which directly leads to the continuous strong consumer demand, among which the number of low-and middle-income people is huge. With the change of consumption concept, more people want to get short-term demand for micro-credit and put forward higher requirements in security and efficiency. On the other hand, the harsh conditions and high threshold of traditional loans and credit loans will shut many people out; Mortgage-secured loans are affected by many factors, such as the property right transaction system and the property status of the applicant, which have many procedures and low efficiency and are difficult to meet the needs of small and medium-sized individual consumers. The credit card happens to have the characteristics of natural credit, small amount and high efficiency. So banks issue credit cards to adapt to consumption and the market.

The upgrading of products is also for enterprises to seek new profit growth points to maintain their survival and development, and banking is no exception. Banks are also enterprises. Pursuing profits and enhancing core competitiveness are related to the survival of enterprises. Banks can obtain the following practical benefits when issuing credit cards: 1. Interest and penalty interest II. Various fees or commission income. Annual fee, loss reporting, SMS and other service fees.

From the perspective of invisible interests, it can achieve the purpose of staking a horse, attracting new customers, consolidating old customers, gathering popularity and reducing resource loss. From a macro point of view, according to the deployment of financial inclusion project proposed by the Central Economic Work Conference, major banks vigorously issue credit cards, which is also a great beneficial supplement to solving the financing problem of low-and middle-income people, and also stimulates domestic demand and activates the market.

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Why do banks issue credit cards?

As a special financial commodity and modern financial tool, credit card is an internationally accepted advanced settlement means, payment tool and novel consumer credit method, which is increasingly favored by people. The issuance of credit cards gives banks a new means to win deposits from special merchants and credit card customers, which is conducive to expanding bank transfer settlement business and increasing the source of bank credit funds, thus obtaining more interest and accelerating social mobility. In addition, due to the use of credit cards, cash transactions are changed to transfer settlement, which replaces a certain amount of currency circulating in the market, reduces the circulation of currency, and reduces the annual funds used by the state for currency printing, allocation, transportation, warehousing and delivery. With the issuance and use of credit cards, cardholders can avoid the inconvenience and risk of carrying a lot of cash, and at the same time, they can easily obtain bank loans through overdraft. As a special merchant, special merchants can provide goods and services to cardholders with confidence because of the credit guarantee of the credit card issuer, thus expanding the sales volume of goods, reducing the workload of collecting money and counting money, and simplifying the process of payment, bookkeeping and settlement.

There are three ways to make profits from credit cards: one is the huge overdraft interest of credit cards. The Measures for the Administration of Bank Card Business stipulates that credit card overdrafts will be compounded monthly, and quasi-credit card overdrafts will be charged with simple interest monthly. The overdraft interest rate is five ten thousandths of the daily interest rate, so the annual interest rate is as high as 18.25%, which is much higher than the current ordinary loan interest rate. The second is the handling fee extracted from the special merchants. According to the regulations, commercial banks charge not less than 2% of the transaction amount for hotels, restaurants, entertainment, tourism and other industries, and1%of the transaction amount for other industries; The third is the annual fee for credit cards. Different commercial banks charge different annual fees for credit card holders, ranging from tens to hundreds of yuan.

Why do we use credit cards?

Because credit cards have many functions, you can directly "swipe your card" to pay. It is very convenient to deposit a sum of cash in the local card-issuing bank before going out, and then take the card to the bank connected to the destination network to withdraw it. Moreover, the issuing bank also allows short-term credit within the prescribed amount.

With credit cards, people are very convenient to shop and settle accounts, and they no longer have to worry about carrying a lot of cash with them.

The issuance and promotion of credit cards reduces the circulation of money and cash, saves manpower, material resources and financial resources for designing, printing, transporting, storing and counting cash, and is also beneficial to the country.

Do you know how credit cards come from? Credit cards originated in America 19 15. The earliest institutions that issued credit cards were some department stores, restaurants, entertainment industries and gasoline companies.

In order to attract customers and sell goods, some shops and restaurants in the United States selectively distributed a credit chip similar to a metal badge to customers within a certain range, and later evolved into a card made of plastic as proof of customers' purchase and consumption, and launched the service of selling goods on credit with the credit chip. Customers can buy goods on credit in these chip shops and their semicolons, and pay on time. This is the prototype of credit card.

Credit card shopping

Why do banks issue a large number of credit cards now?

Why do banks issue a large number of credit cards now?

Large domestic enterprises have closed down, and huge loan funds cannot be recovered; Alipay, WeChat? Third-party order-taking institutions seize business opportunities; High returns of P2P financial institutions; Online merchant bank, Tencent Financial Empire, JD.COM, Baidu Finance, Wang Jianlin? Everyone is grabbing soup! The banking industry is under siege?

(A) the benefits of issuing credit cards

Country:

1, pulling and promoting the development of national economy from the perspective of consumption;

2. Promote the rapid development of the financial industry;

3. Effectively slow down the wealth loss caused by inflation and currency depreciation.

Bank:

1, effectively dispersing the risk of bank loans;

2. Increase the income of banks.

Personal:

1, interest-free use of credit cards;

2. Personal fund reserve bank; 3. Create personal credit value; 4. Credit card personal finance function; 5. Other value-added service functions.

(2) Credit card repayment method:

1, full repayment method;

2. Repayment by installment;

3. Repayment by others;

4. Revolving repayment method;

5. Crowdfunding repayment method;

6. Withdrawal and repayment methods;

7. Comprehensive repayment method;

8. Other circumstances.

(3) Three elements of credit card application:

1, assets are not equal;

2. Different credit;

3. Differences in repayment ability.

(4) Credit cards should not touch high-voltage lines;

1, frequently overdue;

2. Illegal cashing;

3. Illegal card use;

4. Malicious overdraft;

5. Credit card.

(V) Highlights of the credit card market:

1, the threshold for starting a business is low and the income is high;

2. Credit services, credit card financing and financial services-higher vocational education;

3. Three-dimensional profit structure model;

4. It is a tool project for individuals and teams to solve financial difficulties;

5, strong compatibility with all walks of life, easy to be a team;

6. Strong income regeneration ability;

7. Large market demand space is an inevitable trend of development.

(VI) Benefits and risks of bank cards, taking 654.38+10,000 as an example.

The loan profit is 6000/ year, and the risk concentration is uncontrollable;

Credit card profit is 9000/ year, and the risk is decentralized and controllable;

The promulgation and implementation of the Credit Information Law will protect the credit card products of banks and regulate all kinds of bad behaviors in the use of credit cards based on the law. 4.3 billion credit cards will be issued in 20 16.

(7) Credit card-the bank in the pocket.

Are we short of money or credit?

The essence of money is credit-how is credit established?

1. Lending relationships occur frequently; 2. Only when you use it will you have credit, but when you don't use it, you will have no credit. 3. Abide by the spirit of contract;

4. Give others (banks) a positive impression; 5. Benefits

(10) Benefits brought by credit card:

(1) Spend tomorrow's money and do today's work;

(2) Easy to carry, no need to carry a lot of cash;

(3) Spending points can be exchanged for gifts, and getting the "first bucket of gold" for credit card financing;

(4) Understand consumption habits and consumption structure through monthly bank statements, and control consumption;

(5) Make rational use of the longest interest-free period of 5 1 day, and let the bank's money make money for us, which is the "second bucket of gold" brought by credit cards;

(6) The best tool for short-term financing;

(7) Establish good personal credit and accumulate personal credit records;

(8) Pre-authorization is available, so it is more convenient to stay in a hotel;

What is the purpose of banks issuing a large number of credit cards?

The real purpose of banks issuing credit cards in large quantities is to "make money". Banks recruit a large number of card clerks, issue a large number of credit cards and give them away for free. Banks do this for their own interests, otherwise they are also businesses that open the door to do business, and banks cannot do business at a loss. They just use a lot of credit cards to raise fish and catch big fish for a long time. People who use cards are fish, and banks are fishermen.

Banks issue a large number of credit cards for the following purposes:

(1) Earn credit card interest

With the massive issuance of credit cards, many people now have three credit cards in their hands; Let the cardholder spend in advance from the credit card, overdraw the consumption, and then encourage the cardholder to pay by installments. Once the cardholder repays the loan in installments, it will generate interest. Banks use cardholders to make money by installment. This is the main reason why banks issue a large number of credit cards.

(2) Earn credit card fees

Anyone who has used a credit card knows that if you want to withdraw cash from a credit card, you need to charge a certain income handling fee, and there is a minimum charge standard; The income handling fee for cash withdrawal varies from bank to bank, and most banks charge 1% of the cash withdrawal amount, which is one of the main reasons why banks issue a large number of credit cards.

(3) Earn an annual credit card fee

I believe everyone knows that credit cards are free, but as long as they are activated, they are free. Generally, the annual fee for ordinary credit cards is one year 20 yuan, with gold card 100 yuan and platinum card1000 ~ 4,000 yuan. Think about it, I pay an annual fee of 20 yuan according to the most common credit card. 1 100 million credit cards, the annual fee income is as high as 2 billion yuan, which is earned in vain. However, cardholders need to swipe their cards six times a year if they want to avoid the annual fee. Even if the credit card is spent six times, the bank still has commission income from POS machines, so it is a sure bet for the bank to issue credit cards.

(4) Earn dividends from POS machines.

The cardholder takes the card and swipes it through the POS machine. Although the user doesn't have to pay the card-swiping fee, the POS will receive a certain fee from the merchant, and the bank that swipes the card through the POS machine will also receive dividends, that is, commissions, which are generally 30% of the card-swiping amount; This is also the real reason why banks give away POS machines for free.

(5) Earn other expenses.

The most typical ones are credit card replacement fees, overdue payment fees, SMS fees, other value-added fees, credit card consumption and other expenses, which are all bank income.

In short, in the final analysis, the purpose of large-scale bank issuance is to make profits, that is, to make money. Otherwise, why should banks spend huge costs to issue credit cards? Do you really want to give it to users for free? Don't even think about it The real purpose is to think about the user's money.

Let's talk about why the country issues credit cards first.