In 1999, while I was a marketing executive in L&T, a young salesman approached me and tried to sell me a SCB credit card. That time I was as an aspiring fresher just out of college and awed by the corporate world and had seen my bosses DGM, GM level flash out such cards at exotic hotels and shops and obviously wanted one for myself with some uniqueness. I saw that opportunity in these pamphlets, which featured the classic card, photo card and picture card. Of course there was gold card too but that is still too far-fetched idea for me. So this article is about classic card and the details are placed, which besides a good read is also kind of “advice” article and I leave the readers to draw their own conclusions.
The Salesman – interface of the company to you :
Don’t just take what the salesman gives you. For instance, I was told that SCB is first to come with rewards bonus point program, wherein they offer 1 point for every purchase of Rs. 100 on their card. The salesman offered me a Parker pen (worth Rs.250) for giving him names of 5 potential customers. I gave him 10, but never got the pen and did not see the chap again. After about 20 phone calls at my office, home (in my presence and even in my absence) and 3 personal visits, I got my card. I found in their booklet that SCB offers 1 point for purchase worth Rs. 125 and NOT Rs. 100. CONNED! One thing that I learned in marketing was “you can play with words and select the words carefully but never LIE”. And yet here is a classic case of a marketing fellow (him) fooling another marketing fellow (me). The other attitude I abhor is when the guy when faced with a series of “NO” says with a sheepish grin, “Get the card and keep it in your pocket for a month, without using it. Cancel the card when first monthly statement comes”. The reasons are obvious but I expect more professional approach from a cash rich bank like SCB which is famous for takeovers and acquisitions (ANZ for instance). The sales staff are likely overworked, underpaid and pressurized with impossible targets. Tsk…Tsk..!
The Fee – another interesting aspect :
SCB offers classic card for Rs. 700 (annual fee) + Rs. 100 (joining fee). Though photo cards are quite common, the uniqueness lies in the picture card where nearly 60% of the card is covered with the photo you provide them. However, it comes at an additional Rs. 100. So I got my first card – an SCB classic picture card for Rs. 900 – no discounts, no special offers – JUST MY IGNORANCE!
How much do you expect the second year fee (renewal)? Well, Rs. 700, considering that now there is no joining fee and since the card normally has expiry period of two years, it means no physical replacement. So the Rs. 100 for replacement card should not be applicable. OUTZATT!! It’s Rs. 850. Does that surprise or shock you? Well the annual fees are Rs. 750 (why the Rs. 50 more?) + Rs. 100 for the picture card (Again…why?????)
Its ironical, I am not being too optimistic nor too naïve, but abroad the credit card scenario is quite different. Its plastic economy and the cards are as good as free, but Indian market is still to mature to such a level. Also with so much competition, the fees are expected to be lesser, but here I was seeing an increase, which my sanity fails to understand. Also talking of competition, HSBC in its promotional offer gave me a card for Rs. 350 (actual joining fee Rs. 700) and no joining fee (actual Rs. 300). Citibank offers their silver card for Rs. 500 and gives a silver coin to its members.
So between an SCB card for Rs. 850 and HSBC card for Rs. 350, what is the right choice baby? I got SCB card for Rs. 250……..Surprises!! But I’ll give you my secret, and you can take cues from here. I faxed their HQ in Bangalore a stinger letter, where I mentioned the above competition, the fruitlessness of their bonus point scheme (loss of a point for every Rs. 400/- worth of purchase) and the fact that I has paid all bills in full, promptly before the due date. Cheeez..they called up immediately and offered a waiver of Rs. 350 and plus I redeemed my bonus points worth Rs. 250. So remember, no phone calls, no retaliation and you may land up paying a minimum of Rs. 350 more in second year. Also (in the first year the card cost you much more (Rs. 550 in my case) if there is no introductory offer.
Priviledges – know them beforehand :
SCB offers many features which are actually better vis-à-vis competition. Some of them are listed.
Access to all SCB ATMs + other ATMs supporting VISA/MasterCard, HSBC, Citibank, HDFC and Cirrus ATMs. They claim 450, 000 ATMs worldwide. (HSBC claims 550, 000 ATMS + all above). Please use this facility only in emergencies and avoid it as a rule. Because there is interest charged to this amount (3%) and there is a service charge too.
Discount of 3.5% on domestic flights and 6.5% on international flights through M/s. Cox & Kings India Ltd. Tele-ticketing and home delivery is a “free” feature.
Revolving credit facility allows members to pay a minimum amount of 5% of bill and rest is forwarded for next month. BEWARE! This is good only if one is broke in the current month, cause an interest of 3% is charged in next bill.
Credit period: Maximum of 50 days and minimum of 20 days.
Free personal accident insurance of 4 lakhs for air accident (HSBC – 6 lakhs), and 2.5 lakhs for other accidents (HSBC- 3 lakhs).
If baggage checked in does not arrive within 3 hours for international flights and 6 hours for domestic flight, then an SCB card holder can claim US $500 (HSBC $600).
If any goods purchased against card are damaged or lost due to fire/theft then one can claim Rs. 15, 000 (HSBC – Rs. 30, 000).
Nil lost card liability (only for photo and picture cards) and free credit enhancement (on submission of latest salary slip -- that shows any raise.
Petrol against card with discount and credit card counters are other benefits.
All the above needs some host of documents and proofs, FIR lodged in police stations etc.
In all of the above features above, HSBC seems to score but SCB has some unique points:
Card holders can claim Indian rupee equivalent of $500 for loss of passport, visa and $85 for loss of tickets (of course proof required).
For flight delays and missed onward flight due to late incoming flight SCB members can claim US $300 if delay exceeds 12 hours.
If the plane is hijacked (and you are not thrown out – dead or alive) for more than 12 hours, then you can claim $250 per hour for a maximum of 36 hours.
These phenomenon are rare ones and if you are not a frequent flyer these benefits don’t mean anything…….do they? There is however, an innovative scheme that may prove useful. It is called “INSTABUYS” which is first of its kind and totally unique. In this scheme, a card holder can make a purchase of high value items in select shops and you can avail an EMI billing option (at a low rate).
Besides these, there are several other offers like discounts in hotels (stay + food), clubs, tours and travels but most of these options are extremely ill-suited for classic card holders … (eg. Discount for a couple at Royal Lounge, Taj).
So inky, pinky ponky, which card do you want?
Ameet (~achougoo)