Demerara Bank Limited yesterday became the first institution in Guyana to offer full service VISA cards as a principal member of the global payments company.
At Demerara Bank’s 20th anniversary celebration held at the Pegasus Hotel last evening, Jerret Morgan on behalf of the VISA unit highlighted the benefits associated with being a principal VISA member and the advantages to customers in utilising the new service.
Morgan stated that the bank is aware that there will be challenges in issuing non prepaid credit cards in Guyana and as such the bank will be issuing cards to credit-stable individuals in the beginning. He stated that this did not mean that the bank was ruling out any individual and that the process took into account the limitations in Guyana such as discrepancies in addresses and the lack of a fully functioning credit system.
He said that all customers applying for VISAs have the ability to secure a card which entails putting up a certain percentage of the available credit limit as a hold or collateral with the bank. That money is held in a non-accessible account by the bank but earning interest. Should customers default on their monthly payments the bank would pay any deficit from the funds on hold.
Morgan noted that the interest rates attached to the two credit cards offered, the VISA Classic and the VISA Signature are 23% and 19% respectively. Additionally cash advances will attract a 21% interest rate per annum for the Signature and 25% for the Classic. He said that the interest rates are in keeping with regional standards.
The credit limits range from $100,000 to $1 million for the Classic card and $2 million and over for the Signature. Morgan encouraged customers to apply with their current credit history in mind. He noted that during the Christmas season customers routinely build their credit by purchasing from places such as Singers and Courts and that while the Credit Bureau is in the process of being set up people are building credit all along.
While the bank will face challenges Morgan said that moving forward and testing the waters was necessary. He stated that Demerara Bank, Guyana’s first indigenous bank has played it very safe in the past, but that this new venture was looking ahead.
During his presentation Morgan elaborated on the VISA brand and all that comes along with it inclusive of fraud protection and the various insurances offered such as travel and accident.
Chief Executive Officer of the Bank, Pravinchandra Dave stated that as online shopping becomes more and more the norm, the credit card needs to be a service provided by Guyanese banks. He noted that consumers routinely turn to online entities for cheaper goods and that Demerara Bank wanted to be at the forefront of this evolution in consumerism.
Bank representatives were present to sign persons up for cards. Customers will need to provide Taxpayer Identification Number certification, proof of address, a national ID and demonstrate a stable source of income.
President Donald Ramotar, Chairman of the Board of Directors, Dr Yesu Persaud and Finance Minister, Dr Ashni Singh all spoke at the event prior to a few persons being presented with cards.
