What Is Chip Card?Achip cardis a standard-size plasticcredit cardwith both an embedded microchip and a traditional magnetic strip. The embedded chipmakes thecardextremely difficult to counterfeit or copy. Chip security will soon become the standard in the United States, and you can currently enjoy greater card acceptance in more than 130 countries including Canada, Mexico and the United Kingdom, where chip cards are already standard.

History:Chip card technology has been used around the world since the 1990s. Bank of America has been issuing chip cards in the U.K. and Canada for several years.The chip-and-PIN system, also known as the EMV standard for Europay,MasterCardand Visa, the originators of the standard was first established in 1999 and has since almost completely replaced the magnetic-strip standard in Europe. Chip-and-PIN cardsare also replacing conventional "magstripe" cards in Asia, South America, Canada and Mexico.While most card-issuing companies and banks in the United States still issue magnetic-stripe credit cards, many of these organizations are moving toward the adoption of the EMV standard.

Explore Visa Chip Cards:Visa chipcardsare a major advancement in cardsecurity technology. Get the latest in chip technology with Visa's chip card. Use yourVisa cardat the exact same merchants you do now and once the merchant has upgraded its payment terminals to accept chip, simply insert the card into the reader instead of swiping. Visa chip cards have an embedded microchip that stores and generates the information required to authenticate, authorize and process transactions.

Visa Chip Card Advanced Security:Pay with confidence your Visa chip card comes with the comprehensive security and protection benefits you've come to expect from Visa.

Internationally Accepted:Chip cards are already standard in many countries and having one can enhance acceptance when youtravelabroad.

How It Works:Using a Visa chip card is simple. Here's how it works:

Rather than swiping your card,insertthe chip portion into theterminalwith the chipfacing up. Leave the card in the terminal until the transaction is complete. If you remove the card too soon, the transaction will end and your purchase will not be processed. Follow the on-screen prompts. When your transaction is complete, remove your card.

Compatible with Non-Chip Terminals:Visa chip cards also have amagnetic stripeon the back, so you'll still be able to complete your transaction even if the merchant does not have a chip-reading terminal.

Bank Alfalah Consumer Finance: Chip Card Re-carding Exercise:Consumer Finance Group (CFG) is well under way launching re-carding exercise, starting 9"December, 2013. The key benefits of this exercise are: Chip cards provide greater security at the time of transaction, as the embedded microchip is virtually impossible to be copied. CFG will benefit from the additional income from levy of one-time chip issuance cost of Rs.500/, Rs.750/- and Rs.1,000/- for classic, gold and platinum card holders

The Re-carding Plan: This will be a 12 month exercise, in which a total of 218,528 cards will be upgraded to chip. Cards excluded from re-carding are:

All status code marked cards Cards withheld for more than one year Card, where limits reduced to one All Visa Mini cards Cards to be re-carded as per the priority schedule below: 1. All cards having regular expiries in the re-carding month. These cards, totaling 43,388, will be re-carded every month, during the re-carding exercise.

2. Customers categorized as good spenders, having an average spend over 15,000 per month, for last six months, totaling 46,120, to be re-carded in first six months 3. Other active cards to be re-carded in first eight months of re-carding schedule, totaling 65,649

4. Cards withheld for less than one year, to be re-carded in last two months of re-carding schedule, numbering 21,000 5.Other cards that do not fall in any of the above categories, to be re-carded between the eighth and eleventh month, numbering 42,371

Recardig MonthGood Spenders (Classic/Gold)Good Spenders (Platinum)Good Spenders (Total)RegularTotalActive CardsOther CardsWithheldTotal Recarding

2013127,680-7,6801,8109,4908,510--18,000

2014017,680-7,6802,44610,1267,874--18,000

2014027,680-7,6802,1009,7808,220--18,000

2014035,8101,8707,6802,2019,8818,135--18,016

2014045,8301,8707,7001,7999,4998,519--18,018

2014055,8301,8707,7003,57411,2746,753--18,027

201406---6,4956,49511,505--18,000

201407---5,2115,2116,1336,657-18,001

201408---5,3215,321-12,679-18,000

201409---5.2515,251-13,749-19,000

201410---3,4493,449-9,2866,26519,000

201411---3,7313,731--14,73518,466

Total40,5105,61046,12043,38889,50865,64942,37121,000218,528

Cards Production:Product team to forward re-carding file to I.T on weekly basis: The data file to be validated for any replacements. The work flow, along with key activities, is as follows:

Dispatches CardsMailingEmbossingUploads Embossing filesI.T

Forwards re-carding file to I.T

Product

Runs Card Production

1. Customers whose cards are to be re-carded each month, to be sent welcome note one month prior to delivery of chip card, apprising about card upgrade and one-time chip card issuance fee.2. At the time of card dispatch, another note to be sent to the customers, briefly reiterating benefits of chip card, card activation procedures and emphasizing them to return their old Credit Card. 3. Information about upgrade be placed at Bank Alfalah website, hoardings and standees (to be placed at Card Centers and key branches).4. SMS for activation after 15 days of card delivery.5. BDU to make out-bound calls to customers to activate the chip cards

Customer complaints: There are essentially two touch points for customers launching complaints:

Call Center: Call center agent to first inform customer about chip benefits. If customers insists upon waiver he would then be offered remission, based on spend. Those customers who still do not agree will be offered special waivers. Call center is to share feedback on a weekly basis with business team.

Waiver on month spend

Enhanced Security One-time Issuance Fee Apprise Customer about special waiver BDU to inform about approval of waiver

Classic (Rs. 5,000) Gold (Rs. 10,000) Platinum (Rs. 20,000)

Special WaiverFeatures

Customer Services: C/S to forward all waiver requests for one-time chip issuance fee to Business Development Unit (BDU). BDU to engage customer the same way, as explained, in the above 3 steps.

Return Cards/Mailing: Courier Company to make three attempts to deliver the card, before returning the same to the mailing department. Mailing Department makes another attempt to contact the customer, before card is placed in safe custody. After lapse of 60 days in safe custody, mailing department should make another attempt to contact the customer. If the customer is still not contactable, the card should be forwarded to embossing department for shredding.

Risk Mitigation & Controls: Currently CFG has exclusive arrangements with one Courier company. In wake of the huge number of card embossing, during the re-carding exercise, and consequent dispatch of plastic, CFG has taken on board another Courier company. This will on one hand balance the work load and on the other mitigate financial and reputational risk that may ensue from high volumes of plastic issuance. Activation Strategy: All card activations primarily done through the landing of calls on Call Centre. Old plastic to remain active till the time new plastic is not activated by customers. After pre-determined cool-off time of 30 days, dedicated staff from BDU to make out-bound calls to customers who have not activated the cards.

Features: Chip card acceptance is rapidly growing worldwide Safer, faster and secure Embedded microchip is encrypted Virtually impossible to be copied or counterfeited

Chip Card Fees: Classic/Silver: Rs.500 (Basic) and Rs.500 (Per Supplementary) +FED Gold Card: Rs.750 (Basic) and Rs.750 (Per Supplementary) +FED Platinum Cards: Rs.1000 (Basic) and Rs.1000 (Per Supplementary) +FED

Process for the Reversal of Chip Card Fee:Waiver can be benefitted by spending of below mentioned amount as per card category, within 30-Days time after activation of card. Classic card Rs.5,000 Gold card Rs.10,000 Platinum Cards Rs.20,000If customer call again after spending ,officer can simply generate an IDM in V5.Category Id: Alternate Channels Sub Category: Chip card reversal fees User Assigned: Tehmina KhurramCustomer request for reversal of chip maintenance fee as cm has done spending of Rs.5000(it should be according to category of card)If customer is not agreed on spend based reversal then following IDM will be updated in V5. Category Id: Alternate Channels Sub Category: Chip card reversal fees User Assigned: Tehmina Khurram

Customer request for reversal of chip maintenance fee as not agreed with spend based waiver

Replacement of Visa Mini Card:There will be NO replacement of Visa Mini cards and replacements/renewals of MINI card have been stopped and these (Visa Mini) products have been stopped/revoked with immediate effect.

Chip Card Activation Process Flow: Confirm possession of both cards from the customer. (In case customer dont have the card possession of OLD card but owing the liabilities that his/her OLD card is in own safe custody than chip card can be activated) Inform customer that previous card would be blocked once the new card is activated. Rest of the card activation process is remaining same as per current procedure of Activation. Card exception file with 07 of the previous card will be marked by the officer (In case the previous card is lost, the Chip Card will be activated and exception will be marked with Lost-41/Stolen-43)

Memo line in Card Pro V 5 will be updated as Old plastic card exception uploaded with 07/41/43 as Chip card activated I D Customer will be informed to drop the previous card in BAL drop box after cutting into two vertical halves.

Work Codes:Work codes for chip card have already been in cooperated in work code list. So Chip Card work codes can be selected accordingly.The above mentioned coding format is based on:DigitCode

1st 1 for Visa

2nd 6 for chip cards

3rd 2nd digit of previous product code

4th 4th digit of previous product code

Chip Product Codes:

Product DescriptionChip Product Code

VIP CUSTOMERS1611

BANK ALFALAH STAFF GOLD CARD1612

BANK ALFALAH VISA GOLD1613

GOLD CARD JEWELLERS1618

AWAMI VISA1621

BANK ALFALAH STAFF CLASSIC1622

BANK ALFALAH VISA CLASSIC1623

BANK ALFALAH STAFF CLASSICBLUE1624

BANK ALFALAH CLASSIC BLUE1625

WOMEN EXCLUSIVE STAFF VISA1626

WOMEN EXCLUSIVE VISA CUSTOMER1627

CLASSIC CARD JEWELLERS1628

VISA STUDENTS CARD1629

WARID TELECOM STAFF MEMBERS1633

BANK ALFALAH VISA PLATINUM1651

BANK ALFALAH PLATINUM STAFF1652

VIP PLATINUM1654

BANK ALFALAH VISA GOLDTest 1116

BANK ALFALAH VISA CLASSIC Test 1216

BANK ALFALAH VISA PLATINUM Test 1516

Plastic Face Codes:Card Design/Plastic face codes have also been entered in system for chip cards. There is only one design per card type so the other designs will not be used on chip cards: VCC1: Visa Classic Chip Cards VGC1: Visa Gold Chip Cards VPC1: Visa Platinum Chip CardsCard Activation Scenarios:

CNIC Expiry: Chip card bearing expired CNIC should be activated and customer should be informed to send new CNIC within 30 days of activation. IDM should be assigned to BDU in all such cases in sub category "card activation" and assigned user "Syeda Mehwish Kazmi "

Collection Issues/Monitor Code: Chip card not to be activated for ageing 2 or 30DPD and subsequent buckets unless account is normalized or block code is removed.

Address Change But Customer Is Not Willing To Provide: Card to be activated if mailing address is same but if mailing address has been changed and customer not willing to provide address card should not be activated.

Address EV/IV Pending Or Negative: Chip card not be activated where EV/IV of addresses is pending or negative.

Left Job/Resigned: Chip card to be activated if mailing address is of home but card not to be activated if mailing address is of office.

Age Above 65 Years And Not Interested In CCP: Chip card to be activated for customers above 65 years.

Age Above 75 Years: Chip card not to be activated for customers above 75 years. IDM should be assigned to Sales in sub category "complaints" to assigned user "Zeeshan Murtaza".

Non Listed Number: Chip card not to be activated.

Card Possession Not Confirmed: Chip card not to be activated.

Suspicious Call: Chip cards not to be activated if customer sounds suspicious (voice mismatch, someone else is trying to get card activated, etc.)

Ageing: Chip card to be activated in case ageing is "01"

Card Blockage Scenarios:

Lost/Stolen: Card should be marked L if lost and S if stolen. Both L and S are permanent blockage.

O-5: Marking the cards O5 means deactivating the cards on temporary basis. Cards can be blocked O-5 as per below mentioned scenarios: When cards are captured in the ATM machines. If any Family Member having Card Possession. If someone else found the card somewhere and confirmed card possession. If card has been left at merchant by customer. If two cards have been exchanged at merchants.

O-7: Card should be marked O-7 in the below mentioned scenarios: If customer is reporting that his card has been misused. If customer has doubt that his card can be misused. Death Case: If any of the family member called from the listed number and reported that customer has been expired.

Other Blockage Scenarios:

Old Valid Card Lost/Stolen/Misused and Chip Card Is In Transit: Previous cards exception should be uploaded with L, S or 07 and new chip card should be marked O-5. Inform customer that when you receive yournew chip card please call at helpline for the card activation and can get the card activated.

Old Valid Card Lost/Stolen/Misused and Chip Card Is Received: Previous cards exception should be uploaded with L, S or 07 and new chip card should be marked O-5. If customer does not agree to activate the new chip card then card should be marked O-5 and inform customer that when you make a decision for card activation please call at helpline and can get the card activated.

Old Valid Card Is In Possession Of Customer Whereas New Chip Card Got Lost/Stolen: Officer should give permanent blockage option i.e. L-if lost & S-if stolen of the new chip card and the replacement card will be issued against the same and take exception with 07 of previous card.

Facilites Available On Chip Card:1.Fabolous Rewards Points: Alfalah chip card provides rewards on spending. For every spending of Rs.50, customer will earn 1 reward point which is redeemable against countless product offerings to choose from.2.Step-by-Step(SBS) Installments Plans: It allows customer to purchase countless home and lifestyle products through credit card and allows you to repay the transaction amount in Equal Monthly Installments(EMI).3.Free CIP Lounge Access: Alfalah Gold card customers can enjoy complimentary CIP Lounge access for their international travel from Karachi, Lahore and Islamabad Airports.4.Balance Transfer Facility: With credit card customers have opportunity to pay off balances which they owe to other banks through Bank Alfalah Credit Cards ,on an affordable transfer rate.5.Cash Advance Facility: Alfalah Credit Cardss cash advance facility allows customer to withdraw instant cash upto 50% of your credit limit from any ATM worldwide.6.Free Travel Accidental Insurance: If customer purchases an airline ,train or bus ticket through your Alfalah Credit Card ,they are automatically covered against any unforeseen accident during travel.7.E-statement facility: customers can enjoy receiving of monthly statements electronically via mail.8.SMS Alert: By subscribing our SMS facility ,customer can keep track of every transaction.9.COP(credit on phone): customer can also avail cop on credit cards.10.Bill Payment Facility: Bank allows customer to pay their utility and mobile bills through credit card.

11.Auto Debit Facility: If customer has account with Bank Alfalah ,then he can avail Auto debit facility to make monthly payments (minimum or full).12.Mobile Top-ups: Customer can avail mobile top-ups for any telecommunication company through Alfalah credit card.13.Credit Cover Premium: With credit cover customers are insured against any unfortunate temporary or permanent disability or death.

FAQs for Chip Card:Q1.What is a Visa chip card?Chip cards are regular plastic credit cards with an embedded microchip. The chip contains information that is encrypted and generates dynamic values for each transaction, making it harder for a criminal to copy or counterfeit the card and, therefore, less attractive to steal, providing greater security and peace of mind. A chip card also has a magnetic strip on the back of the card since there are merchant locations that still do not have chip readers. Q2.Are Visa chip cards safer to use than magnetic strip cards?Yes, Visa chip cards provide a higher level of security when used at a chip-reading terminal, because the technology in the chip makes it difficult to copy or counterfeit.Q3.Can customer return chip card & get strip card back again?No , customer cant return chip card in order to obtain strip card again because its beyond BAFL defined procedure, since strip card technology is archaic thats why BAFL has launched chip cards with encrypted microchip.Q4.How will I know if my card has a chip? When you receive your new card you will see a small gold shaped square on the top left hand side of your card.Q5.Can I use my Visa chip card for all the same things as my old card?Yes, you can still make purchases as you always have by entering the card number or swiping your card at merchant locations that do not yet have chip readers. You can also continue to use your card for online payments and at ATMs.Q6. How much is my credit limit?Your credit limit is the maximum amount of credit approved in writing by Alfalah VISA. It is the amount that can be accessed through your credit card account. It also appears on your monthly statement.Q7. How is my credit limit assigned?The credit limit assigned to you is based on your income, net worth and credit worthiness determined from the information provided by you to us.Q8.What I will do if I want a chip card issued before my current card is renewed? Inform the customer that renewal cards are already upgrading into chip cards. But if cm wants chip card before expiry, that case would be treated as a replacement case and charges will be apply of chip issuance fee as per category.

Q9.What charges are applicable to get Alfalah Visa Chip Card?A One Time Chip Issuance Fee would be applicable when a Chip Card is issued. The amount payable would reflect in the customers billing statement.Rs.500 for Classic Card + 16% excise dutyRs.750 for Gold Card + 16% excise dutyRs.1000 for Platinum Card + 16% excise dutyQ10.Would supplementary cards be charged a Chip Issuance Fee?Yes, all supplementary cards would also be charged a chip issuance fee in addition to the basic cardholder. For example: If a Classic cardholder with two supplementary cards is issued chip cards, The Basic account holder would be charged Rs.500/per card. The total fees applied would be Rs.1500 in this case plus FED 16%Q11.Will bank charge one time chip fee on every renewal year when new plastic will emboss?No. One time chip fee will only be charged the first time you are issued a chip card.Q12.Will I be charged the one time chip fee if I lose my credit card and ask for a replacement.One time chip fee will only be applied if it is the first time you are being issued a Chip Card. If a replacement is requested Card replacement fee would apply.

Q13. What do I do if I encounter a problem with my Card Account?If at any time, you face a problem regarding your Alfalah VISA Card, please call our 24-Hour Phone Banking Service 111-225-111 or for Visa Platinum or Titanium at 0800-22225; or write directly to Bank Alfalah Consumer Finance Division,FB-6 ,Awami complex 1-4 ,Usman Block,Graden town ,Lahore.

Q14.Define different scenarios to levy service charges.Cash Advance / BTF: Bank Alfalah cardholders can avail our Cash Advance Facility up to 50% of their credit limit. Bank Alfalah also offers an easy and convenient way to settle their payments on all their existing credit cards with our Balance Transfer Facility (BTF). The service charges on both the aforementioned facilities are taken from the date of transaction (the customer is either a Transactor (explained below) or Revolver (explained below)).Example: If a customer avails cash advance or BTF of Rs.10,000 on 10-09-2014 and pays the entire Rs. 10,000 on 16-09-2014, he /she will also be charged with a 5 day service charge on Rs. 10,000. In case of partial payment, please see the details under the heading Revolver.Transactor: Transactions other than cash advance / BTF and fees are called retail transactions. Transactor is the cardholder who pays off all his/her liabilities (mentioned in monthly statement) within the due date and no services charges is levied on such an account.Example: If a cardholder shops for Rs.10,000 in a month and pays the entire amount of Rs.10,000 within the due date, being the Transactor no service charges will be imposed, if there is no BTF and cash transactions / Call & Pay.Revolver: Revolver is the cardholder who does not make the full payment within the due date or even makes partial or minimum payment . For a first time revolver, service charges will be levied on all transactions appearing in the current statement and previous months statement from the date of the transactions. For a second time revolver, service charges will be levied on the balance carried forward from the billing cycle date and on all transactions from transactions dates appearing in the statement. Any SBS installment will be treated as a retail transaction and services charges will be levied.Example: If a cardholder shops for Rs.10,000 in a month and pays Rs.5,000 by the due date, the Bank will first charge him/her on Rs.10,000 till the date of partial payment i.e Rs.5,000. And from the date of partial payment onward, charges will be on remaining Rs. 5,000.SBS/Installment Plan: Bank Alfalah cardholders can convert any transaction with the amount of Rs.3,000/- and above to a step by step (SBS) payment plan. It gives the cardholder the flexibility to convert his/her large payments into small-equally monthly installments. The customer is billed with principal and service charges separately on every month.

Q15. How and where do I make my monthly payments?You can make your monthly payments by:

1. Paying cash over the counter at any Bank Alfalah branch.2. Sending a cheque / pay order / draft in the name of Bank Alfalah Credit Cards by mail or through the Drop Box at Bank Alfalah Branches. Charges will be charged on all cheques that are returned unpaid. Please indicate your name and card number on the reverse side of the cheque.3. Auto debit for Bank Alfalah Customers (minimum balance or the total amount).4.Internet Banking5.BAL ATMQ16. What should I do if my address is changed?You can inform us of your new mailing address by either sending a signed written request to Bank Alfalah Credit Cards, or by sending us the completed address change form on the reverse side of your monthly statement. Customer can also call at 111 225 111 from listed numbers.Q17. What should I do if my Card is lost?If your Card is lost or stolen, please report it to our 24-Hour Phone Banking Service immediately.Q18. What if I have a discrepancy / error on my monthly statement?If you notice any error or discrepancy in your monthly statement, report the matter to our 24-Hour Phone Banking Service immediately and confirm it in writing to our Customer Services within 7 days of your statement receiving date. In order to check statement entries and keep track of all your transactions, retain all your sales slips and printed receipts.Q19. Can I exceed my assigned Credit Limit?Yes, in case of medical emergencies or travel purposes you can exceed your assigned credit limit with the prior approval of the Bank .In case, you exceed the limit without the Banks prior approval, and your card will be subject to Excess Limit Charges as per the Schedule of Charges.Q20. IS CHIP CARD ISSUED TO ALL CUSTOMERS?Chip Cards are not be issued in following conditions:1) All Status Code(C, V, D, and S) marked cards.2) Cards withheld for more than 1 year 3) Card, where limit is reduced to 1 4) All Visa Mini Cards

Q21. HOW WOULD CHIP CARD CHARGES BE REVERSED?Call center agent has to inform customers about chip card benefits. If customer insists for reversals then spend based waiver should be offered. Spend based waiver:1) Classic (Rs.5, 000) 2) Gold (Rs.10, 000)3) Platinum(Rs20, 000) For those customers who still do not agree then officer will update customer request for special wavier.

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