Indians Wary Of Overspending Via Cards: Survey

The 5 per cent service charge levied by the government may be a new deterrent on the increasing use of credit cards. Indians, by nature, are not too comfortable with the use of plastic money as they fear they cannot rein in their spending once they start using credit cards, according a suvery.

The latest Asian Ideals Survey by MasterCard International in 13 Asia/ Pacific markets including India, says 29 per cent of Indians fear spending too much resulting in losing control over spending, while 15 per cent feared some unauthorised person using the card, 11 per cent feared inconvenience of losing the card, while 9 per cent feared mounting of debts.

 

The findings of the survey also make clear that Internet banking has a long way to go in Asia. Virtually three out of four respondents or 74 per cent say they prefer face-to-face interactions with bankers. However, it seems that the Internet or e-mail is preferred over the regular mail and fax as it seems speed and convenience is making a difference. All the markets surveyed chose the personal interaction followed by interactions on phone 39 per cent, 17 per cent through the net and only 7 per cent through the regular mail or fax.

Indians, its seems, are more comfortable buying shares and mutual funds on a face-to face basis. Around 46 per cent preferred this mode, while 30 per cent it over the phone and 23 per cent preferred Internet.

Face-to-face interaction is still preferred by 58 per cent while lodging a complaint and by 56 per cent in the case of error in a bank transaction/statement. However, the telephone is used most often for reporting a lost or stolen card (58 per cent) and checking account balance (42 per cent).

Also 87 per cent of Indians make it a point to check their monthly bank statements with a very fine comb. Regionwise, 29 per cent of the survey claimed that they do not inspect their monthly bank statements. Around 58 per cent from China and 33 per cent from Korea do not go through their monthly statements.