CREDIT card competition breeds novel ideas. From this week,Manhattan Card Company, the listed spin-off credit card operation of Chase Manhattan Bank in Hong Kong, has a special offer on the card's annual fee. A waiver, calculated on a monthly basis, will be given, but on certain conditions. Customers have to use the card for purchase, make the payment by electronic channels and draw on the credit facility during a month before they can be eligible for a month's waiver of the fee. It is understood that the bank wants to divert card holders from crowding bank branches to settle card payments. By using the card and making repayments through any of the 24-hour card payments services, such as auto-pay, payment by phone banking and automated teller machines, holders will get a half annual fee waiver for the month. To encourage drawing down on the credit facility, card holders who maintain a debit balance of $5,000 or above, including some unsettled balance brought forward by the previous month's statement, get the other half fee waiver. ''The 'no annual fee programme' is introduced with the aim of enhancing card member satisfaction and rewarding card member loyalty,'' said Stephen Chu, managing director. of the company.