Says Vijay S Mehta, chief consultant, Credit Card & Management Consultancy (CCMC): Intense competition in the card business and new methods to enhance cardholder longevity and retention is the reason card issuers are offering freebies.'' Discounts on add-on cards being a major marketing exercise with card issuers, Mehta says, ``Add-on relationships open up new vistas for drawing people into banking and personal finance services.'' Therefore, the thrust on add-on cards. Let's take a look at what credit card issuers have been doing recently to woo new customers into their folds, and to retain existing ones. HongkongBank, ANZ Grindlays, Citibank and American Express all have some scheme or the othergoing to either make supplementary cards appear attractive or to hold on to old customers by offering novelties.

HonkongBank recently sent out forms for supplementary cards to its primary members, with no joining fee. There were some extras too. HongkongBank has on offer the `Family Card' at a special fee of Rs 200 (Classic Card) and Rs 500 (Gold Card) per annum. And a HongkongBank card holder is eligible for two Family Cards at that price. Plus, the bank promises a 24-carat gold plated bracelet free with every Family Card approved till December 31. Not only that, family cardholders of HongkongBank will also get free insurance benefits and credit shield, besides the other usual benefits.

Apart from that, HongkongBank offers over 500 prizes to be won in a `prizes and surprises contest'. To qualify to enter the contest, a HongkongBank creditcard holder must use his/her card at any place up to December 31. The prizes are: a holiday for two in Australia; a PC, a Welcombreak holiday, plus 500 consolationprizes. ANZ Grindlays, which has seen many a change in its organisational structure recently, has not lagged behind in credit card marketing. The bank has been tempting its credit card holders with attractive offers in return for new customers. Till October 31, 1998, ANZ was waiving the entrance fee for all credit card applicants referred by existing cardholders of the bank. Of course the applications had to be approved by the issuer. The entrance fee waiver was not the only concession being offered to new members. Add-on cards were coming complimentary with new memberships, too.

Citibank has been building its market share aggressively through referred membership. But these days the bank is doing something different. It also focussing on `spend more' to `win prizes'. That is, if you spend a minimum of Rs 7,500 on your Citibank card between November 1, 1998, and December 31, 1998, you are eligible to participate in the `Suhana Safar' contest. And the contest is one of those routine slogan things --``Citibank and Air-India make my life a Suhana Safar because...''. The prizes to be won are two return tickets to New York (one first prize); two return tickets to London (two second prizes); two return tickets to Singapore (three third prizes), two return tickets to Dubai (four fourth prizes), one return ticket to Dubai (six fifth prizes); specially prepared Air-India portfolios of exclusive prints (200 consolation prizes).

A new player, American Express has gone a step ahead of others by distributing its forms door-to-door in several areas in Delhi. And, of course, it has announced a free supplementary card for the first year. There's no joining fee for anybody at Amex. Membership rewards are another aspect Amex is banking on to grab its share. So every time you spend on or transfer balance to your Amex credit card, you earn points towards a range of rewards, including free flights, free shopping, free dining and even exotic holidays.

Prizes, concessions, waivers and free points are all part of thegame in the credit card business in India now. But should we fall for them as customers? Replies Mehta of CCMC: ``As long as the benefits are real in nature, and not marketing gimmicks, the cards may be worth having.''

On freebies with add-on cards, Mehta says that if the benefits being offered with the add-on cards are genuine, add-on cards help develop an additional interface with the bank.

Thus, it becomes easier for the card customer to get more out of banking services, concludes Mehta.