KrungsriAyudhya Card is one of Thailand's top five credit-card issuers. It has issued some 700,000 cards and expects that number to increase to 720,000 by the end of the year.

"In the past few months, around 100 customers cancelled their credit-card subscriptions. At the same time, we cancelled more than that because of late payments," said Sukdee.

According to the Bank of Thailand's regulations, credit-card issuers are allowed to charge interest rates of up to 18 per cent.

However, high interest rates have increased their costs.

Sukdee, who is also president of the Credit Card Club, said the club would ask the central bank to raise the ceiling to 20 per cent.

He also said KrungsriAyudhya Card's net profit could fall short of Bt100 million this year. The company reported a net profit of more than Bt200 million last year.

Sukdee said average spending per card per month had increased from Bt5,700 to Bt5,800.

Meanwhile, KrungsriAyudhya Card recently joined forces with PrimaVest Asset Management to launch a campaign called "Invest easily with bonus points".

Under the promotion, KrungsriAyudhya Card cardholders will be able to use their cards to buy long-term equity funds (LTFs) or any of the three retirement mutual funds (RMFs) under PrimaVest's management.

In addition, cardholders will receive a bonus point for every Bt500 they spend. The points can be used to make future purchases.

LTF and RMF unit-holders also receive tax incentives.

Phuemphol Prasertlum, managing director of PrimaVest, said the company would expand this promotion to cover other mutual funds under its management next year.

"We would like to focus on LTF and RMF investors first. We'll get some feedback and then we will apply the promotion to our other funds next year," said Phuemphol.

Of KrungsriAyudhya Card's 700,000 customers, PrimaVest considers about 200,000 of them fall within the target group. The company currently has around 1,500 accounts in each of its LTF and RMF portfolios.

Earlier last year, Ayudhya JF Asset Management (AJF) launched a similar programme in connection with Krungsri GE. Under that scheme, cardholders can buy unit trusts of any of AJF's funds, though they get no bonus points.

PrimaVest and AJF have been supported by Bank of Ayudhya as a sales channel. PrimaVest is a joint venture between BBTV Equity Co Ltd, Bank of Ayudhya, Ayudhya Allianz CP Life and MeesPierson International AG.

AJF is a joint venture of Bank of Ayudhya, Ayudhya Allianz CP Life, Ayudhya Securities and Ayudhya Insurance.

Piyarat Setthasiriphaiboon, The Nation