HSBC Thailand is introducing a new ‘strong currency’ design for its credit cards. The new design, which features a currency watermark at the centre of the card, will be available for all new cards from today and for all existing cards when they are renewe

Existing cardholders will be charged the new rate starting July, he said.

Citibank and United Overseas Bank have already applied the new ceiling rate to their new cardholders.

Citibank has charged 20 per cent since Wednesday, while United Overseas Bank (Thai) imposed the new ceiling rate on December 1.

Both banks have yet to apply the new ceiling rates to their existing cardholders, as they have to wait for their calculation system to be reprogrammed.

Citibank has 800,000 cards in circulation and United Overseas Bank has 400,000 cards.

Recently, the Bank of Thailand let credit card issuers charge 20 per cent for new customers from December 1 and for existing cardholders from July 1.

The advanced technology of foreign banks in calculating interest charges allows them to be the first movers.

Non-banks and local banks have said they would not raise their rates to the new ceiling yet, as they need to retool their billing systems.

Reisin said HSBC plans to expand its credit card base this year, particularly in the provinces, where business is expected to grow by double digits. Many channels would be tapped to promote cards upcountry, including direct sales, telemarketing and the Internet.

The bank would cooperate with upcountry partners, particularly shopping malls, as a way to attract more applications for credit cards. The most active spending on its credit cards is in shopping malls, gas stations and supermarkets.

Although this week's bombings in Bangkok have hurt spending, the impact would be short-lived. The bank sees no need to change its marketing strategy and business target this year, he added.

Somruedi Banchongduang

The Nation