INTRODUCTION

Banking has evolved a long way from the days of the medieval money lenders counting coins on the bench to the present scenario, where it is hard to trace the trail of money from the beginning to the end. The trail starts right from the small saver leaving a few rupees in his local bank to the billions of rupee loans raised by a syndicate banks and financial institutions, capable of financing projects in any country in the world. Still, these banking majors are heavily dependent upon their retail home base of savers and borrowers. Most of the bankers began focusing on this retail market segment as global competition intensified in late seventies and early eighties. The debit card has emerged from the shadow of its older sibling, the credit card. Over the past decade, debit card has grown from accounting for 274 million transactions in 1990 to 8.15 billion transactions in 2002, to challenge the credit card as the preferred payment card. As it stands, the debit card industry is a multi-billion dollar engine that helps drive bank profits and point-of purchase consumer sales - but is also beginning to redefine traditional payment options in the business and government sectors, such as food stamps, benefits, and payroll. The debit card has arrived and is here to stay. And yet, though it remains poised for growth, the debit card has also reached a crossroads. A recent settlement has cost VISA and MasterCard approximately $3 billion, and has dramatically reduced the fees they can charge for signature-based debit purchases. The effects of the settlement reach into every layer of the industry - from rewards incentives, to marketing programs, to future fee arrangements, and future growth. Consumer preferences for PIN- or signature-based debit will certainly influence how things unfold, and whether either debit card option will suffer or bloom in the short, mid, or long term. Credit cards, one of the banking products that cater products to the needs of retail segment has seen its number grow in geometric progression in recent years. This growth has been

strongly supported by the development in the field of technology, without which this could not have been possible. The history of phenomenal growth in the credit cards segment traces way back to in 1950, the time when “Dinar Club” was established .The card provided select members with credit at 22 restaurants in New York and collected a commission for paying the bills promptly. The credit card industry got a further boost with the arrival of American express began selling their card as a prestige to hotels,restaurants,shops or airlines in America and slowly expanded the network across the world. The success of these two players attracted many other banks to join the credit card business. The entire breed of new players saw a fresh opportunity of granting unsecured loans at high interest rates to those credit cardholders who did not pay their bills on time. These banks were not so concerned with collecting commissions from shops but were thriving on high interest income from those who did not pay their bills on time. It’s not that only the card numbers have increased, but even the types of cards on offer have seen a surge. Today the domestic card industry is flooded with different types of cards ranging from gold, silver, global, co-branded credit cards, smart to secure ….the list is endless. Foreign banks have shouldered the major responsibility of increasing the card base and adding value-added services to the card products in the past. This is also evident from the fact that the market share of these foreign banks is estimated to be well over 70%. But the scenario has changed dramatically in the last of couple of years with the entry of State Bank of India (SBI), a domestic major in the banking sector. More and more nationalised banks and private sector banks like ICICI and HDFC Bank are aggressively launching credit card with value added features. Although at present the card market is mainly limited to India’s relatively bigger cities and tourist locations only, there is also a potential in smaller cities. Domestic banks, owing to their vast network and reach to smaller cities, can easily tap this potential. They would be better off, penetrating into smaller cities and bringing credit card to the masses rather than cannibalising other foreign banks’ existing cardholder base.

The efforts of these banks to increase the card base is going to be wholeheartedly supported by the residents of these smaller cities with their higher disposable income, changing lifestyle, increasing travel and the growth in the entertainment sector. Over the years, Indians have been averse to credit cards. This is primarily because they believed that spending through credit is a sure shot way of getting into the debt trap. Of course, movies highlighting the sad state of a borrower did not exactly help matters. And even the local kirana shops have the famous lines Aaj Nagad, Kal Udhari (cash today, credit tomorrow). But the situation is not actually that scary. And it is all about right timing. Credit cards can be a useful tool at the hands of savvy consumers who can effectively use the benefits offered by cards. It is important to know that credit card is a financial tool that needs to be used responsibly. While it ensures cash flow, it is not advisable for customers to borrow for a longer period of time. Use it effectively and take good advantage of the time line and clear your debts, without any additional costs. Plastic Money: the Currency of Modern India Indian consumers have never had it so good. The soiled notes are definitely out. Carrying cash is no more `a pain in the neck' as consumers are relying more on the `plastic card' which gives them money on credit. Plastic money basically means debit cards and credit cards which is having a magnetic stripe, logo, signature of the cardholder made of plastic. Credit Cards have finally arrived in India. The card industry which is growing at the rate of 20% per annum is flooded with cards ranging from gold, silver, global, smart to secure….the list is endless. From just two players in early 80s, the industry now houses over 10 major players vying for a major chunk of the card pie.

Currently four major bishops are ruling the card empire---Citibank. The bank's credit card business has grown by 8 per cent over the last two years. one of the late entrants in the card market.8 million cards with almost 25-30 % growth in new cardholders.8 million card users. The global bigwigs have already established themselves as the `bankable brands' in the metros.5 million cards so far. Standard Chartered Bank. Malaysia. Among the nationalized banks. while Hongkong Bank has 0. According to a study conducted by State Bank of India. Indonesia. ATM. SBI's card issue so far is to the tune of 0. according to a survey conducted by MasterCard international in the Asia pacific region comprising of Korea. The industry. is expected to double by the fiscal 2003. SBI is currently sharpening its marketing The bank is putting its best foot forward to compete with global card majors like Citibank and Standard Chartered Bank. Eighty percent of those who participated in the survey were . According to bank officials. SBI. which is catering to over 3. having issued 1.debit cards are the flavour of the season The credit card business may have fallen short of expectations. HSBC and State Bank of India (SBI). The credit card market in India. which started out in 1981. has managed to grab over 8 per cent of the market share from the bigwigs like Citibank and Standard Chartered Bank. is on the verge of an unprecedented boom. the market has virtually grown to over 3. The card will offer its members reward points on every international spend which can be redeemed for free fuel in India. Plastic money is getting popular.28 million cards. However.22 million.3 million credit card customers. which is leading the card empire recently launched a co-branded credit card in partnership with Indian Oil Corporation. Citibank is the dominant player. they are trying to tap the co-branded card market which has vast potential for growth. Citibank. Between 1987 and 2000.28 million which is expected to In a bid to tap the lower middle class segment. but the debit card seems to lend issuers and payment systems a cause for hope.67 million. SBI tops the list with 0. in a bid to move to greener pastures. Philippines and Thailand. followed by Bank of Baroda at 0. Stanchart follows way behind with 0.

According to Jeff Portelli. The concept of debit cards has been a slow starter in India. which has made availability low.000 points of sale. Maestro (MasterCard’s debit card offering) has grown from zero to 70 m cards in the Asia pacific region since its launch six years ago. the card is available through Citibank. these fears are expected to be alleviated in future.either the owners of a card or desired to own an ATM card. Maestro is issued in 16 Asia Pacific markets and is accepted at over 35. the annual fee attached to these cards adds to the perception that consumers are asked to pay for their own money. . In India. Today.000 ATMs and more than 220. Besides. Debit cards are currently offered by only a handful of banks. Times Bank and HDFC Bank. However as the market get cracking. 50% owned one and 30% wish to own a card.

by signing a sales receipt As it is popularly known. No need to carry cash. or they may hand it to the merchant who will do so. the amount will be instantly debited to the account. one can always use it at any of the bank ATMs as a normal ATM card. Whenever to make payments. Debit cards are more readily accepted than checks.3 lakh Visa/PLUS ATMs and equally strong Mastercard/ Cirrus ATMs in over 140 countries worldwide. So you needn't carry traveller's cheques or foreign exchange the next time you travel Debit Card can be used at any merchant location displaying the Visa or Mastercard logo or at any ATMs displaying the Visa/PLUS or Mastercard/Cirrus logo. especially at the time of traveling. • . Check approval or to show identification at store is not required.DEBIT CARDS A debit card is a plastic card which provides an alternative payment method to cash when making purchases. There are around more than 5. however. No interest charges are to be paid by debit cardholders. All the purchases and cash withdrawals will be in the currency of the country are in. a checkbook or traveler's checks. its functionality is more similar to writing a cheque as the funds are withdrawn directly from either the cardholder's bank account (often referred to as a check card). the customer may swipe or insert their card into the terminal. Physically the card is an ISO 7810 card like a credit card. occasionally. Depending on the store or merchant. it is an ATM card on the move. The transaction is authorized and processed and the customer verifies the transaction either by entering a PIN or. Besides that. The Debit Card gives the freedom to access the Savings or Current Account at merchant locations and ATMs. Advantages of Debit Card • • • • Debit Card is often easier to get than a credit card. while account will be debited in rupees. or from the remaining balance on a gift card.

Traveling with your Debit Cards The reverse side of the debit card will display the names or symbols of the various ATM systems that will accept the card. . however. Meanwhile. don't work or were misrepresented. Debit Card Problems can be worse than Credit Card Problems When an improper charge appears on the credit card it can not automatically out the money and simply need to work with the credit card issuer to have the charge removed from the bill. • More chances of lose or misuse of debit card than a credit card. per-transaction costs or penalties— for dropping below the required minimum balance are charged by debit card holders. When obtaining funds at an ATM in a foreign country the funds dispersed will be in the currency of the country going to visit. Debit card can be used at any ATM in the world as long as the ATM displays one of the same system names or symbols that is on debit card.. Disadvantages of a debit card • • Enough money is required in bank account to have debit card. Bank won't put money back into your account for items that are never delivered. Once the amount is paid for purchase. if something goes wrong with the purchase.• Debit card processing fee for the merchant are generally lower than credit card fees. the funds are automatically taken from the account and customer is burdened with attempting to get the money back. • Bank fees—such as monthly service charges.. he may experience cash flow problems and the legitimate checks could bounce. When an improper charge occurs with a debit card.

A credit card is different from a debit card in that it does not remove money from the user's account after every transaction. which requires the balance to be paid in full each month. In contrast. Credit card in India became popular with the introduction of foreign banks in the country. as specified by the ISO 7810 standard. Most credit cards are the same shape and size. Credit cards in India is gaining ground. a credit card allows the consumer to 'revolve' their balance. More Expensive Merchandise: Credit cards entice customers to purchase more expensive merchandise than they had originally planned to buy. A number of banks in India are encouraging people to use credit card. The concept of credit card was used in 1950 with the launch of charge cards in USA by Diners Club and American Express. In the case of credit cards. Benefits of Accepting Plastic • More Sales: Studies show that credit card customers spend 2 1/2 times more than customers who only carry cash. at the cost of having interest charged. the issuer lends money to the consumer (or the user) to be paid to the merchant.CREDIT CARDS A credit card is a system of payment named after the small plastic card issued to users of the system. retail stores and other businesses issue these. Impulse Buying: Credit cards give customers freedom to spend for previously unplanned purchases. which can be used more than once to borrow money or buy products and services on credit. Basically banks. It is also different from a charge card (though this name is sometimes used by the public to describe credit cards). Credit cards are financial instruments. Credit card however became more popular with use of magnetic strip in 1970. • • .

It has complicated terms and conditions. Cost much more than other forms of credit. Cash shoppers buy heavier on paydays and just before holidays. It damages the credit rating if payments are late. they tend to look for and read those ads first. 3.• Competitive Weapon: Credit card customers are often less conscious of slight price differences and will seek out businesses that offer credit card payment options. 4. Allow to build up more debt than actually handled by customer. . • Steadier Sales: Credit smoothes out business peaks. • Enhanced Advertising: Since customers are more likely to shop at businesses where they have credit card acceptance. 2. Disadvantages On the other hand. credit cards can 1. credit card customers buy whenever the need arises • Customer Loyalty: Research shows customers who spend more on credit tend to return to the same business again. if not paid on time. such as a line of credit or a personal loan.

he can over withdraw the account." Debit means "subtract. If you select "debit. At check-out. Before swiping the card through the reader. credit cards are used in stores for purchases. Using a credit card is somewhat like taking out a loan from a bank or other financial institution." With a credit card. Some systems will allow to use the debit card even when don't have enough money in the account to cover the purchase." In case of debit card the amount is automatically subtracted from checking or saving account. the card reader electronically contacts the bank and subtracts the amount from the account. income. debts and ability to pay." then enter your Personal Identification Number (PIN)." the credit receipt is given to sign and credit charges will appear on the next charge account bill. However.” pay now. Customer have to pay back the credit used each month. if the customer is not careful in watching the daily account balance. Some cards are dual-purpose credit/debit cards. . select a "credit" or "debit" button on the reader. If he pays back less than the full amount owe each month. The credit card company sets the total amount that can charge based on your credit history.DIFFERENCE BETWEEN A DEBIT CARD AND A CREDIT CARD A debit card looks like a credit card. it works more like cash or a personal check. This can result in hefty overdraft fees. he is to pay interest on the amount not paid back. you "pay later. If select "credit. The money in bank account limits how much the customer can spend.

it future prospects of credit card and debit card in India. smart cards were introduced in Europe in the early 1970’s as stored value cards for payphones. consumer satisfaction level in case of both cards. Consumer perception regarding credit cards and debit cards is very much different as it is precisely in a defined sector. It also includes consumer preference among debit card and credit card. Kevin (May 1998) in his article “Credit Card And Debit Cards: What New? Where To?” stated that trends have changed and forces have impact on the card issuer. Kansas state university in the study “College Student Using The Credit Card” stated that there is a need to determine whether college students are responsible with their credit cards.Elliot (Jan 98) in his article “Smart Card Based Electronic Commerce: Characteristics And Roles” stated that the origin of smart cards began when consumer requirements for convenience and security out spaced the capabilities of magnetic stripe cards. This study was concerned with the problem faced by the credit cardholders.together with emerging digital signature laws and the development of biometric techniques . These early smart cards were disposable and were an effective means to reduce losses.  Swift.can bring a range of services to life on a single piece of silicon. Role of online commerce or payment over the internet .REVIEW OF LITERATURE  Cunningham Julie (Nov 98).  Loebecke S . Providing increased data storage and added security. . Today's advanced contact less and dual-interface smart card technologies .

In four-party systems. In the case of credit and debit cards. card-issuing banks. and merchant acquiring banks. Alternatively. The convergence of the internet and various consumer and other electronic technologies in combination with a desire on the part of companies in a number of industries to forge new alliances and offer enhanced services has established a role for electronic cash. using the services of a multi-party network such as MasterCard. Fumiko and Weiner Stuart E. Payment card systems take one of two principal forms.  Chakravorti .Sujit (June 2003) in his article “ Theory of Credit Card Networks: A Survey of the Literature” stated that Credit cards provide benefits to consumers and merchants not provided by other payment instruments as evidenced by their explosive . merchants. or a domestic debit card network. They may be three-party systems: Cardholders. Visa. and technological changes that will have an effect on credit and debit card products.  Hayashi. Credit and debit card industries are examples of two-sided markets. and looks at the forces that will impact the card issuers. each of whom needs the other in order for the market to operate. demographic. they may be four-party systems: cardholders. The distinguishing Feature of two-sided markets is they contain two sets of end users. This study takes those trends as the end –point. the interchange fee is an instrument that networks can use to achieve a desired Balance of cardholder. (sept 2005) in their article “Competition and Credit and Debit Card Interchange Fees” stated that there is a bridge between the theoretical and empirical literatures on interchange fees.and forecasting its future and the resulting impact on the card economy through the year 2002. economic. the two end-user groups are cardholders and merchants.The report takes a different viewpoint from many studies of the industry which examined trends from the issuers viewpoint. and how together they will reshape the industry landscape and result in a credit/debit card industry that will look far different in the year 2002 that it does today. merchants. for example. American Express. and a single financial institution that offers proprietary network services. It offers insight into the combination of industry.

Focusing on interrelated bilateral transactions. Utility payments will soon be made through debit cards. Credit cards As well as convenient. The debit card can be used to withdraw cash from ATMs of other banks depending on whether the debit card-maker has a Visa or a Maestro tie-up. "There is tremendous potential for debit cards. That’s why study is focused on consumer perception regarding the plastic money. But after considering the review of literature it is seen the whole payment process of processing these cards is not safe and customer are facing many problems relating to plastic money. Need of the study is to get to know about the comparative analysis of plastic money. either at the ATMs or at the counters. Bankers and analysts see tremendous scope for growth in debit cards. Cops and robbers. It will soon be substituting cheques. Reputation boosting. People are using these cards on a vast scale. Visa and MasterCard both confirmed yesterday that they had been notified of the breach and had in turn notified several banks and credit card companies of the potential data compromise. Recently. credit cards offer . Corporate might. There are many ethical issues and challenges in the market of plastic money which is required to be studied. They declined to say how many companies have been notified. This study is concerned with the Seven perks of plastic money Convenience. Openness to negotiations. Scope of study: the following are the areas covered by plastic money: ATM cards are slowly being transformed into value-added debit cards. The float. accessible credit. credit card networks have come under scrutiny from regulators and antitrust authorities around the world.growth in the number and value of transactions over the last 20 years. Budgeting technology. several theoretical models have been constructed to study the implications of several business practices of credit card networks NEED AND SCOPE OF THE STUDY Need of the study It is rightly said the plastic money is need of hour.

r.t credit and debit cards. . OBJECTIVES OF STUDY Primary objectives • To know the perception of people towards plastic money. To find out the market leader among the various banks/ companies issuing credit and debit cards To know the problems faced by respondents using plastic money. To study the satisfaction level of consumers towards plastic money. which is necessary for both monitoring personal expenditures and the tracking of work-related expenses for taxation and reimbursement purposes. Secondary objectives • • • • • To know the importance of plastic money in the daily life of consumers’ w.consumers an easy way to track expenses. To study the benefits of debit card and credit cards.

collecting data and evaluating the data and at last carefully testing the conclusions to determine whether they fit he formulated hypothesis or not. it consists of defining and redefining the problems. This study will be having an exploratory research which is based on discovery of ideas and insights. It’s more qualitative rather than quantitive. formulating the hypothesis or suggestions solutions . The different research designs available are: • • Exploratory research: it generally emphasis on discovery of ideas and insights.e. Large samples gives more reliable results than the . SAMPLE SIZE:-Sample size: this refers to the number of respondents to be selected from the universe to constitute a sample. A research design is the arrangement of conditions for collections and analysis of data in a manner that aims of data in manner that aims to combine relevant the research purpose with economy in procedure. Descriptive research: it is concerned with determining the frequency with which something occurs or extent relationship between two variables. how the study can be carried out and what techniques can be used. It is the careful investigation and enquiry in a systematic manner in order to find solution to find problems in research. RESEARCH DESIGN: Research design states the conceptual structure within which research is to be conducted.RESEARCH METHODOLOGY Research methodology deals with the method of study i.

 Questionnaire: The second tool used for study is questionnaire. In the study. METHODS OF DATA COLLECTION: PRIMARY DATA: Primary data is that data which is collected for the first time and thus happens to be original in character. the necessity of credit cards. Formula for calculating weighted average is ∑WiXi/Wi. TOOLS OF ANALYSIS:  Diagrams and Tables: Various graphs and tables are used to describe the performance of different credit cards and debit cards.small samples. Various questions regarding the purposes of plastic money and the various procedures for obtaining credit cards. .  Pie chart and percentage: Pie charts and percentage are also used as a tool for analysis. market leader among various companies issuing credit and debit cards. which are given to respondents who are the regular users of plastic money. Weighted average means finding out the average by assigning the weights to different factors. increasing relevance of plastic money among consumers. Sampling technique: the technique used for my study is convenient sampling that consists of questionnaire. primary data will be collected from direct source of information like customers with the help of questionnaire survey and personal interview. which includes both debit and credit card holders. So the sample size of 70 respondents was taken into consideration in case of research work.  Weighted Average: Weighted average method is also used to analyze the comparison between plastic money.

LIMITATIONS The limitations of a study are:  The result are based on primary data.  The present study is based on the data from Delhi city only and thus might not be true for all other areas. so its very difficult to decide which bank has upper edge in plastic money. .  There was lack of time. measurement and analysis of data.  Findings are not justified because each market player have their unique characteristics of debit cards and credit cards.  The accuracy of the result is also limited to the reliability of methods of investigation.  The data collected may or may not be accurate because of the biasness from respondent side.

of respondents 44 % age of respondents 63% .DATA ANALYSIS AND INTERPRETATION 1: To know about respondents who are using the plastic money. of respondents 70 0 %age of respondents 100% - Interpretation: From the above figure it can be interpreted that 100 respondents who are taken for the study are using plastic money and hence it can be said that majority respondents now a days are using plastic money. Respondents were asked to explain that which card they possess and the results are as follows: Options Debit card No. Respondents were asked whether they use plastic money or not .The results are as follows: Options Yes No No. 2: Card possessed by respondents.

Respondents were asked to explain that how many no. Respondents were asked to explain that how many no. of debit card owned by them and the results are as follows: Options 1 2 More than 2 None No. about 31% of the respondent are using two debit cards from different companies. of credit card owned by them and the results are as follows: Options 1 2 More than 2 None No. 4: No. as credit card is little expensive than debit card so people mostly prefer debit card.Credit card Both 8 18 11% 26% Interpretation: From the above data collected we can interpret that that people mostly have debit card. of respondents 15 7 6 42 %age of respondents 21% 1% 1% 60% . Some people have both debit card and credit card 3: Debit cards of different companies/banks owned by respondents. of respondents 28 22 12 8 %age of respondents 40% 31% 17% 12% Interpretation: The above chart reveal that mostly people have one debit card. but still people have applied for their credit card also. of credit cards of different companies/banks owned by respondents.its clear that people are satisfied with their debit card.

5: Companies /bank card owned by the respondents. Respondents were asked to explain which company/bank card owned by them. and 21% own 1credit card. But still people have knowledge about these cards. People usually like to have credit card with whom they have account. of respondents 13 31 16 10 % age of respondents 19% 44% 23% 14% . Respondents were asked to explain the time period for which they are using them.Interpretation: From the above information it can be interpreted that 60% of the respondent have no credit card from different companies. The result are as follows: Options Less than 1 yr Between 1yr-3yr Between 3yr-5yr More than 5 yr No. 6: Time period of using the debit card/credit card/both. The result are as follows: Options HDFC Bank ICICI Bank SBI PNB AXIS Bank Any other No. after that respondent prefer HDFC BANK and PNB. of respondents 11 8 18 8 7 18 %age of respondents 16% 11% 26 % 11% 10% 26% Interpretation: From the above data it’s clear that people mostly prefer SBI to get the plastic money.

8: Card which is more beneficial. plastic money become a trend from the last few years. 7: Purpose for using the card. Respondents were asked to explain the purpose of using the card. Respondents were asked to explain which card is more beneficial according to them. 4 %use it for going for hotel and restaurants. So the plastic money is used by the respondent everywhere. The result are as follows: Options Debit card Credit card Both No. and then for shopping. of respondents 24 35 3 4 4 %age of respondents 34% 50% 4% 6% 6% Interpretation: From the above table it is clear people mostly prefer debit cards about 28% of the respondents feel that credit card and debit card both are beneficial.Interpretation: The above data reveals that mostly people are using plastic money from 1 to 3 yrs and rest are using between 3-5 year. The results are as follows: Options Shopping Withdrawal of money restaurant Petrol filling Any other(like going for movies etc) Interpretation: It is clear that mostly people use the card for the purpose of withdrawl. . of respondents 39 11 20 % age of respondents 56% 16% 28% No.

714286 4 0 1 0 258 70 3.057143 3 2 1 2 281 70 4.685714 4 4 1 4 214 70 3.NO.257143 4 4 1 4 170 70 2. DISSATISFIED RATING SUB-TOTAL TOTAL RESPONDENT MEAN MEAN 12 38 5 190 24 4 96 8 3 24 0 2 0 13 34 5 170 29 4 116 7 3 21 0 2 0 14 15 5 75 28 4 112 20 3 60 6 2 12 15 11 5 55 30 4 120 25 3 75 4 2 8 16 7 5 35 16 4 64 25 3 75 18 2 36 17 23 5 115 34 4 136 6 3 18 5 2 10 18 30 5 150 30 4 120 9 3 27 0 2 0 19 10 5 50 3 4 12 18 3 54 25 2 50 20 6 5 30 14 4 56 11 3 33 36 2 72 21 14 5 70 43 4 172 9 3 27 4 2 8 0 1 0 310 70 4.385714 4 1 1 1 260 70 3.014286 4 1 1 1 298 70 4.771429 3 0 1 0 277 70 3. SATISFIED RATING SUB-TOTAL SATISFIED RATING SUB-TOTAL NEUTRAL RATING SUB-TOTAL DISSATISFIED RATING SUB-TOTAL V.957143 4 .42857 4 0 1 0 307 70 4.428571 2 3 1 3 194 70 2. V.Q.

The statement that debit cards are easy to carry People agree to the statement that debits cards are easy to carry because there is no threat the hard cash and they can be easily fit into their wallets as well as their pockets. 17.The statement that Credit cards provide Convenience in paying the bill People agree to the statement that Credit cards provide Convenience in paying the bill because first of all they are very to easier to carry and secondly you don’t have to count their currency note and you can easily get your work done just by swiping the card . 13. 16. 14.The statement that over draft facility is one of the benefits of Credit cards People are neutral to this statement because only 11% of people are using credit card and they strongly believe if they use overdraft facility and if they are not able to repay the money then they will be charged with certain amount of interest. 15. The any time acess is one the major benefits of debit card People agree to the statement that any any time access is one of the major benefits of debit card because peple don’t have to carry cash and moreover huge availabity of 24x7 ATM’S all over the world. and majorly if in case of shortage of cash.The statement that Credit cards provide prestige to holder . one can easily pay the bill through credit card.12.The zero interest charge is one the major benefits of debit card People agree to the statement that zero interest charge is major benefits because people dnt have to shead out their money for paying interest to bank and extra bank charges to the bank from their savings.as they are very light in weight.

the annual fee depends upon the card and services which are attached to the card.The statement that banks charges high fee for providing the card facility The people are neutral to the statement because a nominal charges are deducted for using a debit card and for using the credit card. The statement that there are unnecessary formalities involved while using the card People disagree to the statement that there are unnecessary formalities involved while the card because one can easily get the card by filling just a single form and one can easily get the card at his doorstep and if he asks for the services. The after sale sevices of bank after issuing you the card? People are satisfied with the after sales service of the bank after issuing the card because the cards are issued for a period of 5-10 yrs.it may vary from rs 250 to rs2500. 19. 21.People agree to this statement because their purchasing power increases at the time of shopping and they don’t have to go to the ATMs again and again to withdraw cash for paying their bills 18. The statement that fear of losing the cards is there People agree to the statement that fear of loosing the card is very much there because the plastic money is so small in size that one can easily loose it.so there is no issue of renewing the card again and again.there is also a difficulty in tracking once the card is lost. moreover the system is also very transparent and customers themselves keep the track of their spendings and various charges that are attached to the card. 20. .

 Plastic money has a rapid growth in the coming years.FINDINGS Following are the findings that are drawn from the study:  Respondent taken for this study are those who are using the plastic money in their daily life.plastic money is mostly preferred at the time of shopping.  Mostly people agreed that debit card provide the facility of anytime access. .  The growth credit card in India is still very slow.  Respondents mostly prefer the plastic money of bank SBI and HDFC  44% using the cards for the last 3 years and the trend of plastic money have emerged from the last few years. Only 11% of the respondents have credit card.  62% of the respondents believe that plastic money is the currency of modern India.  Credit card is convenient way to pay agreed by most of the respondents.  Cardholders have to fulfill the unnecessary formalities while obtaining the card.  People have less craze for credit card.  Mostly people use the cards for shopping and withdrawl of money .  Credit card provide prestige to holders having the tie up with the famous card companies it provides the sense of pride. Companies are going really hard to increase the sale of credit cars.  Debit card is more beneficial according to 56% respondents..  According to weighted average method the respondents highly satisfied that the debit card is easy to carry and credit card provide convenience to pay.  40% of respondents own one debit card and 63%owns two debit cards. Anytime you can withdraw your money.

Travelling.CONCLUSION In the last two years. the number of financial cards in circulation will register a compounded annual growth rate of nearly 51 per cent so the satisfaction of consumers has also increased. Debit cards. spending pattern through plastic money has changed drastically. Consumers were not only more open to the possibility of owning a financial card. According to projections for the 2003-2008 period. in particular. it was jewellery and apparel purchases that formed the largest chunk of purchases through plastic money. Fuel accounts for a very small portion of credit card purchases as these are largely paid through debit cards. Security relating to card should be first priority for each bank/company. There are many ethical issues and challenges for plastic money issuing banks/companies. but were also more than willing to use their cards to settle dues. At last it is concluded that plastic money has a very bright future in the coming years because of the increasing trend of e-commerce. played its part in bringing about such robust growth over the space of a single year. . Consumers are preferring these cards mostly for shopping online E-commerce has given a better way to use the plastic money. proved immensely popular. The status symbol aspect of owning and using cards. dining and jewellery are the top three purchases that Indians make through credit cards. too. Two years ago.

 The whole procedure of obtaining the plastic money needs to be authentic.  The unnecessary formalities should be reduced in order to obtain the plastic money. Companies should provide security to the cardholders.  The interest charges on credit cards should be reduced so that people are encouraged to use it in regular routine  More facility should be provided to the cardholder in order to satisfy them completely. magazines and hoarding to have maximum reach because the respondents perceive these as important promotional tools.  More outlets should be provided where the cards can be easily accepted.RECOMMENDATIONS  Various offers and discounts should be provided on the plastic money so that all the users feel satisfied with their card choice.  Advertisements should be given through TVs.  There should be more sales executives to reinforce new customers.  Companies should reduce the amount of the annual fee charged on the cards .

.htm  http://www. article “Smart Card Based Electronic Commerce Characteristics And Roles” Jan’ 98  Swift. Mumbai.gov/boarddocs/speeches/2001/20011205/default.Sujit . New Delhi.BIBLIOGRAPHY  Kothari C.Nov 2007 • WEBSITES dSettlementSystems/retail.article “Competition And Credit And Debit Card Interchange Fees” . Kansas State University .  E. .article “Credit Card Crisis In South Korea” 2003  Chartered financial analyst . Financial Services.S Elliot.pdf  http://www.article “Ethical Issues And Challenges” .article “An Introduction To The Economics Of Payment Card Networks”  Chartered financial analyst . article “Credit Card and Debit Cards: What New? Where To?” .article “Theory Of Credit Card Networks: A Survey Of Literature “June 03 2003  Hunt Robert .R.rba. 4th edition. • ARTICLES  Cunningham Julie. “Research Methodology: Research and Techniques”. 5th edition.au/PaymentsSystem/Publications/BISCommitteeOnPaymentAn .Sept’2005  Chakravorti .htm  http://www. Himalaya Publishing House. Kevin.gov.May’ 1998  Hayashi fumiko and weiner Stuart E.article “College Student Using The Credit Card” Nov’ 98  Loebecke.gordan and Natrajan. Vishwa Prakshan.com/pfsuser/cards/creditcard/cc_home.icicibank.federalreserve.

com/cgi-bin/webscr? cmd=xpt/cps/account/VDCFrequentlyAskedQuestions-outside  http://finance.paypal.indiamart.html .direct. http://www.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/BankAccou ntsAndBankingProducts/DG_10035158  http://www.com/investment_in_india/plastic_money.

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