Study Of Merits And Demerits Of Plastic Money Aims And Objectives Pdf

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study of merits and demerits of plastic money aims and objectives pdf

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Plastic money or money, made out ofplastic, is a new and more natural way of paying for goods and services.

Lost Password? Free Academic Seminars And Projects Reports study of merits and demerits of plastic money based on experiences of people aims and objectivs.

Introduction Plastic money aka polymer money is made out of plastic and has formed an important part of our daily life these days. It is easier to deal with cards than cash. Yes, the advantages of plastic money over cash has made it a best friend of many.

1. Introduction 2. Objectives 3. Need for the Study 4.

Plastic cards, or what is described as plastic money, happen to be the best-known method of payment in this day and age. Most of us did not grasp how quickly that little piece of plastic took its place in our lives. We realize all too well that online creditcards work as an expedient payment option to pay for our many purchases. Imagine stashing money in all your pockets as against merely a little plastic rectangle.

Additionally, at present going around with a large quantity of cash on you is not a wise choice in terms of safety. The safety issue assumes even greater significance when you are visiting someplace far.

Money is easy to spot and pick-pockets and thieves are able to use nicked money equally easily because these funds are not traceable. Most times, people find using online creditcard their way out of an otherwise hopeless situation. Several people found themselves purchasing airline tickets on-line, reserving a hotel room, or renting a car. Then again, there are times when you require some more ready money at once.

In these kinds of emergency situations, you can switch to using credit by using your creditcards online. Generally, credit card online give a maximum of fifty days of interest free use of your credit. Likewise, some merchants state, in their product promotion, that you have the ability to get yourself a high-priced article e. USD 6, today and pay for it in a particular number of even installments.

Accordingly, you can handle your finances efficiently so as to remit your periodic payments and do so without any additional charges for interest. A lot of individuals look at your credit report which lists your credit history and is created and updated using information from banks, merchants and other creditors to.

Potential employers, insurance establishments, mortgage organizations, and several other institutions will attempt to get an idea of your character by going through this factual data. Possessing a creditcards online and availing of it wisely will help create a positive credit history.

Nor do you need to use up large chunks of your time waiting in lengthy queues in a bank branch, or spend time drawing money from an automatic teller machine when instead you can always take your credit card wherever you go, and that takes care of all your financial needs.

Several online creditcard have travel insurance that is, insurance to cover problems associated with traveling built into them as an inherent function. Consequently, if you are among those that are often on the move, this feature might be a tangible plus point. Even so, you must make sure to confirm if this travel insurance provides adequate coverage for you.

In addition, carefully go over the terms and conditions that come with such insurance. Misplaced baggage is something which is almost always taken care of with such insurance. Analysts attributed this growth largely to the rapidly increasing user base of debit cards.

Though initially, there were only two players, HDFC and Citibank , the debit card market base grew considerably through and reached the 3 million mark in March The usage figures indicated a very healthy growth of the market in future, as seven out of 10 cardholders were reportedly using their card regularly.

The annual spending through. The growth of debit cards was all the more impressive considering the fact that credit cards, introduced in the country in the early s, had managed to reach the 10 millionuser base level only in Thus, the debit card user base had reached one-third of the credit card user base in just around one-tenth of the time. Also, smart cards introduced in the late s, had become very popular, especially in the financial services, banking, healthcare, transport and telecommunication businesses.

The demand for co-branded cards during was a further indication of the fact that the Indian market had finally realized the potential of plastic money. The first credit card was introduced by Diners Club in Visa introduced its first credit card, BankAmericard in , which went on to become a great success acquiring universal merchant acceptance.

Visa's card base. MasterCard International was established in the s. In , Visa debit cards reached the 48 million mark in the Asia Pacific region, while the MasterCard debit card base touched the 37 million mark. MasterCard's credit card base touched 80 million during the period. The internet has given credit card users additional purchasing power. Banks have options like cashback rewards, saving plans and other incentives to entice people to use their cards.

Debit cards allow people the convenience of cards without the worry of racking up debt. The convenience, security and rewards offered by credit and debit cards keep shoppers using their cards as opposed to cheques or cash.

Credit Card Origins The first credit cards were issued by individual stores and merchants. These cards were issued in limited locations and only accepted by the business that issued them. While the cards were convenient for the customers, they also provided a customer loyalty and customer service benefit, which was good for both customer and merchant.

It was not until that the Dinners Club card was created by a restaurant patron who forgot his wallet and realized there needed to be an alternative to cash only. This started the first credit card specifically for widespread use, even though it was primarily used for entertainment and travel expenses. In American Express changed all that with the first card made of plastic.

American Express created a system of making an impression of the card presented at the register for payment. Then that impression was. Several American Express cards till operate like this as of It was not until the late s that American Express began allowing people to pay their balance over time with additional card options. Bank Card Associations In , Bank of America created a card that was a general purpose card or "open loop" card.

These "closed loop" agreements limited cards like Diners Club and American Express to certain merchants,. Two systems emerged as the leaders--Visa and Master Card. However, today there is little difference between the two and most merchants accept both card associations. Debit Cards Emerge The Visa association of cards took credit cards to a new level in when they introduced debit cards. These cards linked consumers to their checking accounts. Money was now drawn from a checking account at the point of sale with these new cards and replaced check writing.

This helped the merchants check that money was available and made it easier to track the customer if the funds could not be obtained. Consumers liked the convenience of not having to write checks at the point of sale, which made debit cards a safe alternative to cash and checks.

The Future There were almost 29 million debit card users as of , with a projected However, online services like PayPal are emerging as a way for people to pay their debts in new, secure and convenient ways. Technology also exists to have devices implanted into phones, keys and other everyday devices so that the ability to pay at the point of sale is even more convenient. All we need to do is produce the card and sign a charge slip to pay for our purchases. The institution which issues the card makes the payment to the outlet on our behalf; we will pay this Loan back to the institution at a later date.

Debit card Debit cards are substitutes for cash or cheque payments, much the same way that credit cards are. However, banks only issue them to us if we hold an account with them. When a debit card is used to make a payment, the total amount charged is instantly reduced from our bank balance. Don't borrow on your credit card! Here's why A debit card is only accepted at outlets with electronic swipe-machines that can check and deduct amounts from your bank balance online.

Charge card A charge card carries all the features of credit cards. However, after using a charge card you will have to pay off the entire amount billed, by the due date. If you fail to do so, you are likely to be considered a defaulter and will usually have to pay up a steep late payment charge.

When you use a credit card you are not declared a defaulter even if you miss your due date. Amex card Amex stands for American Express and is one of the well-known charge cards. This card has its own merchant establishment tie-ups and does not depend on the network of MasterCard or Visa. Credit cards: Remember these dos and don'ts.

This card is typically meant for high-income group categories and companies and may not be acceptable at many outlets. There are a wide variety of special privileges offered to Amex cardholders. Dinner club card Diners Club is a branded charge card. There are a wide variety of special privileges offered to the Diners Club cardholder.

For instance, as a cardholder you can set your own spending limit. Besid es, the card has its own merchant establishment tie-ups and does not depend on the network of MasterCard or Visa.

However, since this card is typically meant for high-income group categories, it may not be acceptable at many outlets. It would be a good idea to check whether a member establishment does accept the card or not in advance. Global card Global cards allow you the flexibility and convenience of using a credit card rather than cash or travelers cheque while travelling abroad for either business or personal reasons. Co-branded card.

Co-branded cards are credit cards issued by card companies that havetied up with a popular brand for the purpose of offering certain exclusive benefits to the consumer. They have built a vast network of merchant establishments so that customers worldwide may use their respective credit cards to make various purchases.

Smart card A smart card contains an electronic chip which is used to store cash. This is most useful when you have to pay for small purchases, for example bus fares and coffee.

No identification, signature or payment authorization is required for using this card. The exact amount of purchase is deducted from the smart card during payment and is collected by smart card reading machines. No change is given. Currently this product is available only in very developed countries like the United States and is being used only sporadically in India. Photo card If your photograph is imprinted on a card, then you have what is known as a photo card.

Doing this helps identify the user of the credit card and is therefore considered safer. Besides, in many cases, your photo card can function as your identity card as well.

Adavantages and disadvantages of Plastic Money

Plastic money or money, made out of plastic, is a new and more natural way ofpaying for goods and services. Technology has changed the way we dealwith the purchase of goods and services in daily life. Plastic Money is one of the mostcommon reasons for it. Plastic money is also not completely safe: When we are making an online purchase througha form of plastic money there a certain degree of risk involved as we share our bankdetails and other financial information on the internet which is not always a safe place. Plastic money aka money is made out of plastic and has formed an important partof our daily life these days. It is easier to deal with cards than cash.

Plastic cards, or what is described as plastic money, happen to be the best-known method of payment in this day and age. Most of us did not grasp how quickly that little piece of plastic took its place in our lives. We realize all too well that online creditcards work as an expedient payment option to pay for our many purchases. Imagine stashing money in all your pockets as against merely a little plastic rectangle. Additionally, at present going around with a large quantity of cash on you is not a wise choice in terms of safety. The safety issue assumes even greater significance when you are visiting someplace far. Money is easy to spot and pick-pockets and thieves are able to use nicked money equally easily because these funds are not traceable.

study of merits and demerits of plastic money

Chaudhary Faculty guide, INC. An expanding economy, a growing middle class and technological innovations are contributory factors for this. The industry is focusing on the retail side of the market, with a CAGR of 23 percent in the past five years.

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Nawaf Gantare December 10, Economics 4 Comments. Plastic money or polymer money, made out of plastic, is a new and more natural way of paying for goods and services. Plastic money was introduced in the s 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. Plastic money refers to credit cards; we use them whenever we want and pay later with interest, of course. It makes it too easy for us to buy things we usually could not afford, which makes it easier to get into debt.

To study the merits and demerits of plastic money based on experiences of people. Objectives of the project are as follows. 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. Merits :- 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.

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