Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
Corporates tend to spend a lot of money for various things. They have separate budgets for specific categories like office supplies, payment of utilities, etc. ICICI Bank offers Purchase Credit Cards to companies so that they can closely monitor expenditure that they carry out under categories like office supplies, utility payments, etc. It also makes their payment process faster and more efficient. Firms that depend on manual calculation and account keeping often witness higher costs of processing and an absence of visibility in the expenditure categories. On the other hand, companies using a purchase credit card have experienced an average saving of 10% in their overall costs. This was proven by a study that was conducted by Aberdeen Group Study 2005.
ICICI Bank Purchase Card makes tracking and analysis of data easy and more convenient. This further leads to better negotiation and sourcing by the firms. Let us take a detailed look at all the other functions that are performed by the ICICI Bank Purchase Card.
ICICI Bank has different eligibility criteria for different firms in India. However, the basic requirement is that the firm should not be involved in any kind of malpractices or illegal activities.
| Type of Charge | Amount |
|---|---|
| Annual fee | Nil |
| Joining fee for primary as well as supplementary cardholders | Nil |
| Finance charges | Since this is a charge card with no revolving credit, the company will have to pay the total outstanding balance on the due date. |
| Default and late payment charges | 3% of the total outstanding balance (subject to a minimum of Rs.400) |
| Interest-free period | Up to a maximum of 45 days of credit-free period |
| Replacement card fee | Rs.100 |
| Cash advance fee | Not applicable |
| Duplicate statement fee | Rs.100 |
| Foreign currency transactions | 3.50% |
| Cheque/ECS return fee | Rs.250 |
| Outstation cheque processing fee | 0.5% of value of cheque subject to a minimum of Rs.100 |
| Â Charge slip retrieval fees | Rs.100 |
| Fuel surcharge | Not applicable |
| Railway ticket booking surcharge | 1.8% of transaction done online and 2.5% for over-the-counter tickets |
| Fees on making cash payments at bank branches | Rs.100 |
Companies can apply for an ICICI Purchase credit Card in the following ways:
A firm can enjoy an interest-free period of 45 days.
No, there is no provision of cash withdrawal facility offered by ICICI Bank Purchase Card.
Yes, the size of the firm matters to an extent.
Yes, this card helps firms to cut costs by making legitimate and reasonable negotiations.
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