presentation on cards

Presentation onProcedure of DBBL Card Operations

Different Card Product of DBBLAudience : Foundation Course

Presented by – Md Sharif Al Kashem, VPCards Operation Division

Dutch-Bangla Bank Limited

05/01/2023 DBBL Card Division 2

Outline• Different Card Products Cards• Procedure of Card operation• Card Brands & Market information• Transaction Authorization & Settlement Flow• DBBL Card Products & Features• Debit Card processing flow diagram• DBBL Credit Card features• DBBL Credit Card Documentation and Credit Limit• International Credit Card issuance policy• DBBL Credit Card Payment Channels

Overview


Type of Cards• Credit Card -Bank’s Money

– Card is issued with a credit limit depending on credit worthiness.– Cardholder is billed after usage. He has the option for either full

or partial payment.• Debit Card - Customer’s Money

– Card issued against bank account(s). Uses depends on account balance.

• Charge Card - Bank’s Money– Card is issued with limit (usually very high limit).– Cardholder has to pay in full when bill is sent.

• Prepaid Card/Store Value - Customer’s Money– Cardholder pay in advance amount to be loaded.


Card Brands

• VISA - by VISA Inc• MasterCard - by MasterCard International• Amex – by American Express Bank• JCB – by Japan Credit Bureau• Dinners Club (DC)• China Union Pay (CUP)


Market Share - Worldwide


Total Card Volume :3.18 billion

Total Card Spending : $ 7 trillion

** without CUP volume

Transaction Flow


• Generally 5 parties are involved in transactions.

1. Cardholder

2. Card issuer

3. Payment Association (MasterCard/Visa/Amex/JCB)

4. Card Acquirer

5. Merchant/Shop/e-shop

Sometimes one party can play multiple role.

Cardholder / Customer

Issuing Bank

Payment Associations

¨

Acquiring Bank

Merchant

3-D(Domains) in Payment Txn


Issuing Bank

Merchant

Payment Associations

¨

Acquiring Bank

Issuer Domain Acquirer DomainInteroperability Domain

Payment Txn types• Chip and PIN• Chip without PIN• Mag-stripe with PIN• Mag-stripe without PIN• Key Entered (at POS)• Manual (from acquiring host)• Contact less

– Pay pass or Visa wave– NFC (Near Field Communication) Phone

• E-commerce 3D-secure transaction– Verified by Visa (VbV)– MasterCard Secure Code

• Standard E-commerce transaction

Putting it all together: Authorization


Issuing Bank

Merchant Payment Associations

¨

Acquiring Bank

Putting it all together: Settlement

Cardholder / CustomerIssuing Bank

Acquiring BankMerchant

Bank acct

MerchantPayment

Associations

¨

Acquiring Bank

1.1-100-charges(iss)%

(100-1.1-charges(acq))%

(100-2)%

100%

Payment Processing: PhasesAUTHORIZATION• Verifies that the card is active, CVV/CVV2 & PVV• Verifies Cardholder has credit• Block transaction amount in card account

SETTLEMENT• Capture authorizations in batch file• Cardholder account is charged• Commission is deposited to Merchant Account


MIP MasterCard

VAP Visa

IST SwitchProcessing of on-

us debit card txns

HOST(Banking Software)

RTPSProcessing of on-us credit

card txnsATM

NAC

POS

HSM

POS - Point of SalesATM- Automated Teller MachineNAC- Network Access Controller

HSM - Host Security ModuleVAP- VisaNet Access PointMIP - MasterCard Interface Processor

DBBL Scenario - Authorization

DBBL Card Product• All DBBL card products generic name is DBBL NEXUS• Credit Card

– EMV Visa Multicurrency Classic Credit Card (BIN- 444515)– EMV Visa Local Classic Credit Card (BIN- 444516)– EMV Visa Multicurrency Gold Credit Card (BIN- 444517)– EMV Visa Local Gold Credit Card (BIN- 444518)– EMV MC Gold Credit Card (BIN- 542128)– EMV MC Standard Credit Card (BIN- 530865)

• Debit Card– Classic Debit Card (BIN – 100001)– Visa Electron Debit Card (BIN – 444519)– Maestro Debit Card (BIN – 627959) (both local and international)– MasterCard Debit (BIN-557667)

• OD Card– Silver OD Card – Limit Tk. 10,000 to Tk. 50,000– Gold OD Card - Limit Tk. 50,000+ to Tk. 20,00,000 (additional security is required

for limit above 5,00,000)


Fees and ChargesType of Card 1st year fee Renewal Replacement Re-PIN

Classic Debit Card FREE Tk.400/- Tk.400/- Tk.200/-

Visa Electron Debit Card Tk.500/- Tk.500/- Tk.500/- Tk.200/-

Maestro Debit Card -Local Tk.500/- Tk.500/- Tk.500/- Tk.200/-

Maestro Debit Card –Int’l USD 15/- USD 15/- USD 5/- USD 2/-

Silver OD Card Tk. 1000/- Tk.1000/- Tk. 500/- Tk.200/-

Gold OD Card Tk.1500/- Tk.2000/- Tk. 700/- Tk.200/-

Visa/MC Classic Local Credit Card Tk.1000/- Tk.1000/- Tk. 500/- Tk.200/-

Visa/MC Classic Int’l Credit Card Tk.1300/- Tk.1300/- Tk. 500/- Tk.200/-

Visa/MC Gold Local Credit Card Tk.1500/- Tk.1500/- Tk. 500/- Tk.200/-

Visa/MC Gold Int’l Credit Card Tk.2500/- Tk.2500/- Tk. 500/- Tk.200/-

Supplementary Card FREE FREE Tk. 500/- Tk.200/-


In all cases 15% VAT is applicable

Software used by DBBL• DMS (Debit Card Management Software)

• Developed by DBBL Card Division

• Star CardMan (Debit Card Production Software)• IST Switch (FIS, USA)

– Debit Card Authorization– POS and ATM management

• Card Suit (by Tieto, Latvia) for Credit Card– CMS for Back Office Operation– RTPS for Credit Card Authorization

• TechTrex Card Pro –Chip card personalization


Classic Card Processing, Delivery and Customer Service through DMS


Text file generationData preparation & verificationData extract from FCR

Authorization of card PIN Generation PRE file generate

Card Embossing, Photo Printing & Personalization

PRE file received in StarCardman

Dispatch link fileFor Switch

Card Issue in StarCardman

Card authorization sheet generation Photo download from FCRUpload data in Starcardman

Auto Requisition

Generating forwarding letter for PIN delivery and

track Number for Courier Service

Card Mailer &Welcome letter printing

Deliver PIN to Branchand Card to Courier

Update courier delivery report to DMS

Sorting return cards & Deliver to branch

DMS

DMS

StarCardman

DBBL Card StatisticsSl Type of Card Number of Card Active Card

1 Classic 24,70,000 20,80,000

2 Visa Electron 9,760 5,900

3 Maestro – Local 20,845 15,600

4 EMV MasterCard Debit 11,700 6,000

5 Gold/Silver OD 1,888 1,700

6 EMV Visa Credit Card 16,190 10,700

7 EMV MasterCard Credit Card 10,100 8,100


Instant Card (Proposed)

DBBL NEXUS OD Products


Silver Gold

Limit Tk. 10,000 to Tk. 50,000 Limit >Tk. 50,000 to Tk. 20 lac

>Tk. 5,00,000 to be earned by security

Eligible customers

a) DBBL employeesb) DBBL a/c holders bearing their salary accountc) Valued customers with high net worthd) General accountholders

Required Documentations for Credit Card


Name of Document Service Holder Proprietorship Partnership Limited Company

TIN Certificate * √ √ √ √Trade License* √Salary Certificate* √VAT Registration Certificate √ √ √

Letter of Comfort √Bank Statement 03 months 06 months –

Personal and/ Company A/C

06 months – Personal and/ Company A/C

06 months – Personal and/ Company A/C

Proof of Own Residence ( copy of utility bill)

√ √ √ √

Mobile Phone √ √ √ √Land Phone Bill √ √ √ √Blue Book of own vehicle (if applicable) √ √ √ √

Other Bank’s Credit Card Bill (if applicable)

√ √ √ √

Memorandum and Article of Association √ √

Deed of Partnership √Letter of Incorporation √ √Corporate Guarantee supported by Board Resolution

√

Letter of Commencement √ √Copy of Passport/National ID √ √ √ √

An undated cheque √ √Personal Guarantee of Spouse √ √


Credit LimitSl Card Type Credit Limit

USD BDT1 Gold Multi Currency 3,001 and above 1,00,000 and above

2 Gold Local N/A 1,00,000 and above

3 Classic Multi Currency 500-3,000 10,000 -99,999

4 Classic Local N/A 10,000 -99,999Credit Limit Fixation Considerations• Monthly income • Tax Identification Number (TIN)• Ownership of a car• Ownership of a house in the municipal area • Marital Status• Land Phone• Type of Company

• Tenure of present service• Tenure of present resident• Other regular Credit Card • Bank balance• Personal suitability• National Identity

Credit Approval Authority


Type of Credit Card Limit Approval Authority

For Classic/Gold, local / MulticurrencyCredit Card

Tk.10,000/- to Tk.200,000/- or equivalent USD

(based on credit assessment) &

Any limit with Lien of 100% en-cashable instrument.

Card Division

For DBBL Gold Local/Multicurrency card

From Tk.200,001/- to Tk.5,00,000/- or equivalent USD(based on credit assessment)

The Deputy Managing Director

For DBBL Gold Local/ Multicurrency card

From Tk.5,00,001/- to Tk.20,00,000/- or equivalent USD

(covered by any security acceptable to bank)

The Managing Director

For Silver/Gold local / Multicurrency Credit Card

exceptional cases relaxing credit matrix or not secured by

collateral

The Managing Director

Credit Card Issuance Flow Diagram


Filling up Application

form

(Customer)

Documentation processing

(Credit wing)

Risk Assessment /

Credit Evaluation

Contact Point Verification

Determining Credit Limit &

Approval

Create Master file & Maintain

Credit Card production

Dispatch of credit cardCustomer will send

‘Acknowledgement slip/ over phone to activate the

card

Final Rejection/ Archive

CARD IS READY TO USE

Branches

DS A

Wal

k in

cu

stom

er

Sent back to source for review

Primary Rejection Files

Features DBBL Credit Card• Brand – Visa/MasterCard Credit Card.• Chip based card

– EMV compatible DDA card (very expensive chip & protect against counterfeit fraud)

– Multos Operating System (Most secure and expensive OS for chip card)

• No cash withdrawal fee at DBBL ATM• Lowest interest rate in the market on purchase (1.9%/m).• Maximum interest free period on purchase (50 days).• Balance transfer facility, • SMS after billing and transactions• e-Statement• Safety net/insurance cover on debt and reward point on purchase

(coming soon)05/01/2023 DBBL Card Division 25

• Eligibility : Any Bangladeshi Citizen (no age limit defined)• Purpose : Payment of fees which includes membership fee of

foreign professional and scientific intuition, fees for application, registration, admission, examination (TOEFL, SAT etc) in

connection with admission into foreign educational institutions. • Required Documentation :

» National ID or Any Photo ID» Proof of requirement of USD

• Fees: Per deposit Tk.100/- (including VAT)• Card Information : Will be provided through concealed mailers.• Target Customer : Student, Teachers & Professionals• Usability : Only in Internet and in education & professionals related

sites• Passport (no endorsement is required) or DBBL account is optional 05/01/2023 DBBL Card Division 26

Virtual Prepaid Card

Credit Card Billing Statement

• Grace Period • Transaction Types• Interest Calculation• Payment Realization Sequence

International Card Issuance Policy

• Against Travel Quota– Calendar year personal Travel Quota fix by Bangladesh Bank– USD1,500/- for SAARC countries and Myanmar– USD5,000/- for non-SAARC countries– Endorsement to the original passport would be confirmed prior to

handover the card to the customer.• Against RFCD (Resident Foreign Currency Deposit) A/C

– A Bangladeshi resident can bring in up to USD 5,000/- while returning from abroad without declaration.

– Any amount above this will require declaration in FMJ which will be deposited in A/c (RFCD) or en-cashed within 30 days.


International Card Issuance Policy• Against Exporters Retention Quota (ERQ A/C)

– Exporters may retain more or less 10% (depending on product type) of repatriated FOB value of total exports as retention quota. International Card will be issued to maximum of 3 executives (as defined by Bangladesh Bank) against Exporters Retention Quota subject to informing BB as per their format.

• Against Foreign Currency (FC A/C)– International Card can be issued to Non Bangladeshi working here against

their FC account.


Credit Card Payment Channel• Auto Debit Instruction (DBBL A/C holder)

– Card Division will debit cardholder account on or before payment due date.

– Customer can make minimum (5%) or full or any other amount between 5% and 100% of due.

• Cash at Branch– Branch will receive payment through DMS– Branch can take payment in BDT

• Customer Billed at BDT – GL #203033202• Customer Billed at USD (against Travel Quota) GL# 203033205


Credit Card Payment Channel• Fund Transfer (DBBL A/C holder)

– Branch will debit cardholder bank amount and credit collection account.

Collection accounts for credit card- Local Bill –101.110.26405- BDT paid against USD Bill (TQ) –101.110.26429- ERQ/FC/RFCD -101.110.26417

Example -


Bank A/c/Collection A/C Mode Amount Narration

105.102.1284 Dr1000.00 4445177778900697

101.110.26405 Cr

Credit Card Payment Channel• Other Bank Cheque

– Branch will input first 15 digit of card number as account number in Nikash. Local office/clearing branch will update the payment in DMS after clearing.

– Non-nikash branch will post payment in DMS after clearing.

• Foreign Demand Draft (FDD)– Card Division will receive FDD against USD payment

and send for clearing through ID.


Credit Card Payment Channel• ATM (DBBL Debit Card holder)

– Step -1: Insert your card in ATM– Step 2 : Enter your PIN– Step 3: Select “Bills/Fees”– Step 4: Select “Others”– Step 5: Select “DBBL Credit Card”– Step 6: Enter 16 digit credit card number and then press correct.– Step 7: Enter payment amount (any amount) and then press

correct.


Credit Card Payment Channel• Internet Banking(DBBL IB user)

– Login to DBBL Internet Banking from www.dutchbanglabank.com– Select “Pay Bills”– Select/fill the following options:

• Source Account : From which account you want to make payment.• Payee account : DBBL Credit Card in BDT• Customer bill Code: Credit Card number. Do not type any blank space.• Pay amount: Amount of bill you want to pay.• Bill date: Type current date• Bill Reference : Type Bill or advance• Memo: Keep it blank

– Select “Pay”

Note: Select “For more information click here” for help


Credit Card Payment Channel• Internet Banking (DBBL IB user)—cont…..• Click on “confirm” if all information are correct or you can

click “change” to edit information or “Cancel” for discard/remove payment.

• If everything is OK, you will receive confirmation message of successful payment.


DBBL POS and ATMs at a glance

2200 ATMs Nationwid

e

4500 Merchants

TK.5000 Cr /mon

TK. 36cr./mon


Banks issuing Credit/Debit Card in BD

SL. Name of the Bank MC VISA Q-Cash E-Cash Other

1 Standard Chartered Bank 2 National Bank Ltd. 3 Prime Bank Ltd. 4 The City Bank Ltd. 5 Premier Bank Ltd. 6 United Commercial Bank

Ltd.

7 Dhaka Bank Ltd. 8 South East Bank Ltd. 9 Eastern Bank Ltd. 10 National Credit &

Commerce Bank

11 AB Bank




12 Exim Bank 13 HSBC

(Associate member with Prime Bank)

14 BRAC Bank 15 IFIC 16 Jamuna Bank 17 Pubali Bank 18 Agrani Bank 19 One Bank With

Lanka Bangla

20 Mercantile Bank




21 Islamic Bank

22 Mutual Trust Bank

23 Lanka Bangla

24 Bank Asia With Lanka Bangla

25 Dutch Bangla Bank DBBL Nexus,

Maestro

MARKET CHECKComparison of Fees & Charges of some

fellow bank’s Debit Cards

Item DBBL SCB City EBL BRAC

a) Yearly fee 1st Year FreeOnward 400

600 500 500 490

b) Card Replacement Fee

400 300 300 300 300

c) PIN re-issue Fee 200 300 150 200 100

MARKET CHECKFees & Charges of Other Bank Credit Cards

Sl Item Card Type DBBL SCB Prime NBL City UCB

1 Annual / Renewal fee

Local (Silver/Gold)Int’l (Silver/Gold)

1000/15001300/2500

1500/3000$70/$120

1000/2000$40/$80

700/1500$25/$50

1000/20002000/3500

800/17001800/3000

2 Card ReplacementFee


500/500500/500

200/500$15/$15

300/500$20/$20

250/500$15/$15

200/600400/600

500/500500/500

3 Late Payment Charge

Local (Silver/Gold)Int’l ( Silver/Gold)

200/300$10/$10

300/500$15/$15

200/300$10/$10

200/300$10/$10

200/3000$10/$10

300/300$10/$10

4 PIN ReplacementFee


200/200200/200

200/500$15/$15

500/500$10/$10

500/500$10/$10

500/500$10/$10

300/300$10/$10

5 Interest rate(Purchase / Cashwithdrawal )


1.90%/2.50%2.25%/2.50%

2.50%/2.50%2.50%/2.50%

2.50%/2.50%2.50%/2.50%

2.00%/2.00%2.00%/2.00%

2.50%/2.50%2.50%/2.50%

2.50%/2.50%2.50%/2.50%

Competitive Edge of NexusPro

• 50% reduced from the annual fee for the DBBL Salary account holders

• 100% waiver on annual fee if any cardholder enjoys the same offer from any other banks.

• 100% waiver on the renewal fee if a customer makes more than 10 transactions a year.

• Lowest interest rate of 1.90% per month for purchase. • Interest free period of 50 days for purchase.

Competitive Edge of NexusPro

• Multi-currency (one card) cards can be used at both home and abroad.

• Payment can be made through auto debit, internet, ATM as well as our branches and instant updated to credit card account.

• Other bank’s credit card outstanding balance can be transferred to DBBL credit card account with zero processing fee and at the interest rate of 1.75% per month which is the lowest in the market.

Key Features of DBBL Credit Card

• 100% cash withdrawal facility with no cash advance fee from DBBL ATM –

60% of our total transaction amount is ATM cash withdrawal, for which interest calculation starts from the withdrawal date.

• 90% amount of credit limit can be transferred to CASA account only at 1% processing fee.


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