What is plastic money explain the merits and demerits of plastic money?

What is plastic money explain the merits and demerits of plastic money?

Advantages of Plastic Money Eliminates the need for carrying huge cash: This eliminates the need for carrying huge load of cash which is risky and inconvenient too. Risk of Loss or Theft minimized: In case of cash there is a high risk of losing cash and a chance of cash getting stolen.

What is plastic money explain disadvantage of plastic money?

One needs to remember that plastic money is not a cash replacement and can be risky in some scenarios. Some of the disadvantages of plastic money are: 1. Smaller retail shops and businesses usually prefer cash payments and may not accept payment via cards.

What is plastic money introduction?

Plastic money or polymer money, made out of plastic, is a new and easier way of paying for goods and services. Plastic money was introduced in the 1950s and is now an essential form of ready money which reduces the risk of handling a huge amount of cash. It includes debit cards, ATMs, smart cards, etc.

How has the introduction of plastic money?

Plastic money eradicates the need for carrying vast amounts of cash. This excludes the need for carrying a huge load of cash which is risky and tiresome too. There is flexibility related to plastic money. …

Why is plastic money important?

These are important because they could potentially replace cash, Cheque and Credit Cards in most retail transactions. Despite claims of cost savings and greater effiency, consumers and merchants have been reluctant to switch from traditional methods of payment to payments using debit cards.

Which is known as plastic money?

Credit card is also known as plastic money. Credit Card is a small plastic card that is issued by financial institutions such as banks.

What is the advantage of plastic money?

The main advantage of plastic money is that it avoids the necessity to carry huge cash and is also difficult to mutilate. The disadvantage being there are still many among us who do not know how to use a plastic card wisely.

What is plastic money and its importance?

Plastic Money is a term used for all types of bank’s cards such as Credit cards, Debit cards and all types of Smart cards for E-Payments. These are of alternative to cash or standard ‘money’. Plastic Money refers to credit cards or debit cards that can be used to make purchases anywhere and any at time.

What is plastic money example?

What Is Plastic Money? Plastic money is a term that is used predominantly in reference to the hard plastic cards we use everyday in place of actual bank notes. They can come in many different forms such as cash cards, credit cards, debit cards, pre-paid cash cards and store cards.

Which is plastic money?

Plastic money is the generic term for all types of bank cards, credit cards, debit cards, smart cards, etc. They are the alternative to the cash or the standard ‘money’. Plastic money is used to refer to the credit cards or the debit cards that we use to make purchases in our everyday life.

What are the components of plastic money?

ET looks into various features of the plastic card and how consumers should be careful while using it.

• Saving card.
• Saving card.
• Small 3-digit code behind plastic cards.
• Small 3-digit code behind plastic cards.
• Decoding the card number.
• Decoding the card number.
• Expiry date.
• Magnetic Stripe.

What are the features of plastic money?

ET looks into various features of the plastic card and how consumers should be careful while using it.

• Saving card.
• Small 3-digit code behind plastic cards.
• Decoding the card number.
• Expiry date.
• Magnetic Stripe.
• Chip and pin.

What are the merits and demerits of plastic money?

It has made it too easy for us to buy things we normally could not afford and in such a scenario it is important to understand the merits and demerits of plastic money. Reduces the need to carry cash: Plastic money has not only provided us with convenience, but it has also eliminated the inconvenience that is caused in carry cash.

Which is the best definition of plastic money?

What is Plastic Money? Plastic money is a term that is used predominantly in reference to the hard plastic cards we use everyday in place of actual bank notes. They can come in many different forms such as  Cash Cards  Credit Cards  Debit Cards  Pre-paid Cash Cards  In-store cards 3. Cash Card or ATM Card 4.

When was Plastic Money introduced to the world?

Plastic money was introduced in the 1950s and is now an essential form of immediate payment, which reduces the risk of handlings a huge amount of cash. It includes Debit cards, ATMs, smart cards, etc. Credit cards, variants of plastic money, are used as substitutes for currency.

How does plastic money reduce the need to carry cash?

Reduces the need to carry cash: Plastic money has not only provided us with convenience, but it has also eliminated the inconvenience that is caused in carry cash. For instance, when the job of a working executive involves a lot of inter-state travel he/she has to entail numerous expenses like travel, stay, food etc.