Plastic Cards: peculiarity of using in Kazakhstani and foreign practice

     In August 2009 the value of transactions using payment cards issued by Kazakhstan issuers accounted for 196.5 billion (increase compared to August 2008 amounted to 22.7%). The number of transactions for August 2009 was 8.3 million transactions, and increased in comparison with August 2008, at 19.5%. There has also been rapid growth of volume of cashless payments (by 28.7% to 1.4 million transactions) in comparison with the increase in the number of operations on cash withdrawal (by 17.9% to 7.0 million transactions). 

     As of March 1, 2010 issue of payment cards actually implement the 19 banks and "KazPost." Second-tier banks issued payment cards of local systems: Altyn Card - JSC "Halyk Bank of Kazakhstan» and JSC «ATF Bank»; SmartAlemCard - "BTA Bank", a local card Citibank Kazakhstan - JSC "Citibank Kazakhstan", a local card Tsesna Bank - JSC " Tsesna Bank "and TemirCard - JSC" Temirbank ". In addition, the banks of Kazakhstan are manufactured and distributed by payment cards of international systems: VISA International, Europay International, American Express International, China Union Pay and Diners Club International.

     As of March 1, 2010 banks issued 7.0 million credit cards, and the number of holders of cards made ​​up - 6.6 million people. (Compared to the same period in 2009 - an increase of 18.0% and 17.3% respectively). The most common payment cards, the cards of international systems, their share was 97.6% and the local cards - 2.4%. On March 1, 2008 this ratio was 96.0% and 4.0% respectively.

     In February 2010 the value of transactions using payment cards issued by Kazakhstan issuers accounted for 185.5 billion (increase compared to February 2009 amounted to 14.9%). The number of transactions in February 2010 was 8.5 million transactions, and increased in comparison with February 2009 to 9.0%. There has also been rapid growth of volume of cashless payments (by 15.6% to 1.4 million transactions) in comparison with the growing number of withdrawal transactions in cash (by 7.8% to 7.1 million transactions). [16.] 
 

     Table 3 - Analysis of the market of plastic cards in RK

     Currently, the making of payments and money transfers through the payment system no time delays, increased efficiency and security of payments, and therefore, the payment system of Kazakhstan is the confidence of commercial banks, non-bank institutions and businesses. 
         The National Bank provides payments between banks' correspondent accounts in the second level, and daily tracking of current liquidity. Internal payments and payments between subsidiaries of a bank are held by the bank on the inside of the operating system that also provides access to the payment system of KISC. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

     CONCLUSION 

     The purpose of this writing, the course work was the study of banking plastic cards and its development prospects in Kazakhstan.

     Kazakhstan card market is very dynamic: changing leaders, new products and technologies, the same is only one thing he is rapidly expanding due to new cardholders, issuers and service points. For many commercial banks are the new plastic card line of business, effective financial instrument.

     Analysis of the Kazakhstan market of banking plastic cards shows that credit cards have long and deservedly considered one of the most important instruments in the banking business.

     During the writing operation, revealed that, in the increasing competition on the Kazakhstan market of banking plastic cards of particular importance for determining the prospects of a commercial bank and the most efficient investment of capital in their development and implementation services to gain marketing research.

     This paper describes the principles of organization of the commercial banks with plastic cards. An assessment of the commercial bank for the implementation of operations with plastic cards, which is important for banks and profitable activity.

     In this paper we set the goal and to achieve this goal, the following tasks:

     1. Considered plastic cards as a payment instrument.

     The rapid spread of bank credit cards is a strong indication that this form of payment is beneficial main categories of participants in the system.

     Cardholders. The main attractive features for cardholders are as follows:

• easy in use;
• automatic granting of bank credits;
• receiving regular information on transactions;
• opportunity to defer repayment of debt.

     However, the convenience of card only can be fully realized if there is an extensive sales and service businesses that accept the card as payment for goods and services. For example, the card companies such as VISA, MasterCard accepted by millions of outlets worldwide.

     The second advantage of cards - access to credit. Moreover, the buyer uses the loan without interest charges during the period from 4 to 8 weeks. In addition, it can delay repayment beyond the grace period by paying the bank interest.

     There are other advantages - exemptions for purchases, additional opportunities for the exchange of the purchased items, repair of lost or stolen cards, the benefits for hotel reservations, ordering tickets, etc.

     For this category of card payments have the following advantages:

• increase sales and attract new customers;
• providing credit without the use of its own funds and special accounting systems;
• risk reduction due to substitution of bank check card.

     The practice of many countries shows that advertising cards helped to attract new customers, in addition, contribute to the growth of medium size purchases through the use of bank credit. Bank cards allow small and medium-sized retail and service companies involved in the system of sales on credit.

     Banks initiated the introduction of credit and other cards, hoping to get the following benefits:

• increase in consumer loans;
• expansion of the bank's activities in remote areas;
• "Cross" the sale of additional products and services to cardholders;

• receiving additional income in the form of commission and interest income.

     Banks used a form of card funding for a rapid increase in the portfolio of consumer loans. In the case of prolongation of the loan beyond the grace period, the bank will charge interest rates that are higher on average than the percentage for any other type of loan.

     2. Keeping cards allowed the banks to overcome the spatial restrictions on attracting and servicing customers. Previously, the key factor was the location of the bank, the presence of his extensive network of offices that required large investments. The card allows the client to perform operations far from bank branches - for goods, get money in the machines, etc. The client is not geographically tied to the bank, which extends the range of users of its services.

     3. At the present stage in the Kazakhstan banking there is a hierarchy of human governing the banking sector, namely, federal constitutional laws, federal laws and laws of subjects of . Along with this, the banking law of the Kazakhstan  are widely used all sorts of regulations. [19.]

     4. Considered and studied plastic card clearing system.

     Operations with cards - a profitable business for banks. They charge fees and interest from both cardholders and merchants with.

     Operations with plastic cards have opened up new prospects for financial services customers and, accordingly, expanded opportunities for bank profits. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

REFERENCES: 

1. Plastic cards. English-Russian Dictionary of the international practice of non-cash payments based on plastic cards. / N.V. Babinova, A.I. Grizov, M. Sidorenko, edited by A.I.Grizova. - Moscow: JSC "Recon", 2001.
2. Vitvitskaya T. Electronic Money in the CIS / Business and Life, № 10/2002
3. Instruction "On the application of systems and software for cryptographic protection in the exchange of electronic payments between departments of the National Bank, as well as with the banks of the Republic of Kazakhstan» № 177 from 19.10.1999, Almaty, National Bank of RK, the collection of instructional and regulations NBK Volume IV.
4. "The rules of calculation Kazakhstan Interbank Settlement Centre in the large-value payments", Almaty, 2000.
5. Temporary user cash execution of the republican and local budgets of the Republic of Kazakhstan № 74 from 19.03.97, Almaty, Ministry of Finance of the Republic of Kazakhstan.
6. http://www.cardporttal.kz 
7. A.D. Sheremet, G. Shcherbakov. "Financial Analysis of Commercial Bank" Moscow 2004,p. 12-41.
8. Decree of President of Republic of Kazakhstan having the force of the Law "On Banks and Banking Activity", Almaty, 31 August 1995.
9. http://www.bankir.kz
10. Law "On payments and transfers" from June 29, 1998 № 237 - I LRK.
11. K. Sadvokasov "Commercial banks. Management review activities. Planning and Control", Moscow 2003 p. 13-98.
12. http://www.halykbank.kz
13. http://www.visa.com.ru
14. "Banks of Kazakhstan: Resource - analytical publication", Almaty, 2007.
15. http://www.nationalbank.kz
16. http://www.kba.kz
17. Corporate plastic cards: a tutorial, by red. Makarova G.L. - M.: Finstatinform, 2005. - 37.(p. 8-9)
18. http://www.mastercard.com
19. G.A. Marchenko, "The banking sector of Kazakhstan: Status and Prospects", Almaty, 2004., p. 2-11.