ARTICLE:- PLASTIC MONEY

Plastic Money

Index-

a) What is plastic money ?

b) History of plastic money

c ) Feature of plastic money

d) Five different type of Plastic money

e) Credit card

f) Debit card

g) Who can be a (credit\debit) cardholder’s?

h) Difference Between Credit card & Debit card

i) Store card

j) Prepaid cash card

k) Cash card or ATM card

l) Why use Plastic money?

m) Rise in the use of Plastic money after Demonetisation

n) Precautions

o) Conclusion

 What is Plastic Money?

Plastic Money is a term is used predominantly in reference to the hard plastic cards.We use everyday in place of actual bank notes.

History of plastic money

Ø  It started in the year 1951.

Ø   New York based bank called “ Franklin National Bank ” starting providing cards.

Features Of Plastic Money

•       No need to carry cash or a checkbook.

•       It can obtain cash from the ATM.

•       Bills can be paid automatically via credit card.

•       Its quality is much better than paper money.

Five different types of Plastic Money

•       Credit Card

•       Debit Card

•       Prepaid Cash Card

•       In-Store Card

•       Cash card or ATM Card

Credit Card

•       Cashless Payments with set spending limits.

•       Payment takes place after the purchase.

•       Great flexibility – Installment facility.

•       Most well-known credit cards: American Express, Visa, Master card.

Particulars Displayed on the Credit Cards

•       Name of the customer

•       16 digit card number

•       Validity Date

•       The Visa hologram & The Visa logo

•       Name of the issuing bank

•       Signature Panel

•       PIN (Personal Identification Number)

Debit Card

•       Card is directly linked to the Card Holder bank account.

•       Transaction is debited immediately.

•       No credit & Installment facility.

•       Most well known debit cards:  Maestro, Postcard.

Who can be a (credit/debit) cardholder?

•       A person who earns a salary of Rs. 60,000 per annum is eligible for a card.

•       He should have a  saving & current account in the bank.

•       His assets liabilities on a particulars date are reported to bank.

•       He is considered credit worthily upon to certain limit depending upon his income, assets & expenditure.

Credit Card v/s Debit Card

Credit card

•       Transactions are of Credit Nature.

•       Risk of over spending.

•       Interest charged to be the holder of card in case of overdrawing.

Debit Card

•       Transactions are of Debit Nature.

•       No or less risk of over spending.

•       Only fees are charged on yearly basis for card usage.

Store Card

•       Card  with payment and credit function.

•       Can only be used at specific retailers.

•       Customers are offered product discounts, coupons, points toward merchandise or some other reward in exchange for their voluntary participation in the program.

•       Well-known customer cards: myOne, Media Market, Lifestyle and big bazar.

Prepaid Cash Card

•       Card is topped up with credit before use.

•        No credit or installment facility.

•        Open system :  (American Express, Visa, MasterCard)

Cash Card or ATM Card

•       A card that will allow you to withdraw money directly from your bank via an Automated Teller Machine (ATM).

•       It will not allow the holder to purchase anything directly with it.

•       Unlike a debit card, in-store purchases or refunds with an ATM card can generally be made in person only, as they require authentication through a personal identification number or PIN.

Why use Plastic Money?

•       Easy to carry.

•       Easy to operate.

•       Safer to carry.

•       More Security.

•       Durable.

•       Multiple functions.

Rise in use of Plastic Money  after  Demonetisation

•       There has been a rise in the use of credit and debit cards after Demonetisation.

•        37.4% Indian travelers choosing plastic money over cash for bookings and other travel-related expenditure, a survey has said.

•        With Demonetisation, the trend of cashless transactions in travel will go up, and this will have significant medium to long term agents, Yatra.com.

•        Plastic money reduces the rate of corruption. And gives accurate tax report to the Government.

Precautions

•       Don't write down your PIN number anywhere memorize it.

•        Be attentive while swapping.

•        Check your bills carefully.

•        If the card is lost, immediately inform the banker.

•        Change the PIN immediately the card is received from bank.

•        Register yourself for SMS alert whenever your account is accessed.

•        Do not allow anyone to access or use your card.

Conclusion

The cashless system is not only requirement but also a need of today society. All the online market depend on cashless transaction system. Plastic Money is less time consuming and not a trouble of carrying and trouble of wear and tear like paper money. It also helps in record of the all the transaction done. It is without doubt said that future transaction system is cashless transaction system.