Studies On The Development Of Commercial Bank Travel Credit Cards In China

With the rapid development of the business travel industry, some cities in China, travel credit cards have become a daily payment and consuming credit tool when traveling abroad. The first real and accord with international standards RMB credit card and international card of the RMB card was issued by the Guangdong Development Bank in1995, which created a precedent for the development of Chinese commercial banks to the credit card market. Travel credit card is a product line of credit cards, as well as a product of the fierce competition of the credit card market. On September15th,2004, China Merchants Bank, Ctrip and Visa International cooperation worked together to build China’s first commercial banks’travel credit card-the ctrip VISA credit card. This is the first real travel credit card in China.The main functions of travel credit card are payment, settlement, travel consumption loans, and travel cost management. Besides, it also has other functions as opening revolving loan, getting progressive payment and so on. It is a new payment tool based on the theory of consumer credit, expected revenue, off-balance-sheet management, and electronic currency. Travel credit card increased the commercial bank’s profit source of our country, and helped them to realize the changing and optimizing of the business structure and income structure. Travel credit card could drive a stagnant tourism credit business, stimulate the tourism consumption, promote the development of the tourism industry, and push China’s economic development. However, with seven years’existence, some of the issues are increasingly prominent, the travel credit card business did not meet the desired effect of the credit card issuers’ expectations. This paper starts from the status quo of China’s travel credit card, to discover existing problems, learn from the experience of the three major U.S. credit cards and put forward proposals to optimize the travel credit card business in China.The ultimate foothold of this paper is to help commercial banks in China design debit and credit in one,complete functionand and demand-satisfied travel credit card products, give the cards the CUP brand, make it take the first step forward of internationalization with the aid of the development of the business travel industry, and finally push the travel credit card of the commercial banks in China to the world.