Introduction:

Plastic Money
Plastic money is a term used to represent the hard plastic cards used in day to day life in place
of actual banknotes. They come in several forms such as debit cards, credit cards, store cards
and pre-paid cash cards. The plastic cards began to be used widely after 1970 when the
specific standards were set for a magnetic strip. In 1981, the concept of Credit cards was
introduced in India and was on the verge of an exceptional boom.

Today the domestic card industry is applied with different types of cards from gold, silver,
global, smart to secure, co-branded credit cards, etc. the list is endless. There is enormous
growth potential in the domestic card industry.

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. creditcards online will continue to be used for the multiple
advantages they offer us.

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. online creditcard dealings
however, are detectable and carry an audit trail as well.

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.

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 evaluate you,
consequently it`s crucial that your credit report is as good as possible. 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.

There`s no need to get anxious over whether you`ve adequate money on your person or
whether you don`t. 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.

You may treat your online creditcards as an additional supplier of money when abroad - and
this whenever you don`t wish to avail of your prepaid visa mastercard as your first source of
funds, in order to avoid paying commission on out-of-country transactions. Therefore, when
you find yourself strapped for money or travelers` checks you can bank on your charge cards
as a fallback option. With such a plethora of useful features when you`re under financial
stress, it is a convenience that you cannot (rather mustn`t) avoid. Indeed, online credit card is
really an essential commodity in today`s global environment.
Payment cards

Payment cards are part of a payment system issued by financial institutions, such as a bank,
to a customer that enables its owner (the cardholder) to access the funds in the customer's
designated bank accounts, or through a credit account and make payments by electronic funds
transfer and access automated teller machines (ATMs). Such cards are known by a variety of
names including bank cards, ATM cards, MAC (money access cards), client cards, key cards
or cash cards.

There are a number of types of payment cards, the most common being credit cards and debit
cards. Most commonly, a payment card is electronically linked to an account or accounts
belonging to the cardholder. These accounts may be deposit accounts or loan or credit
accounts, and the card is a means of authenticating the cardholder. However, stored-value
cards store money on the card itself and are not necessarily linked to an account at a financial
institution.

It can also be a smart card that contains a unique card number and some security information
such as an expiration date or CVVC (CVV) or with a magnetic strip on the back enabling
various machines to read and access information. Depending on the issuing bank and the
preferences of the client, this may allow the card to be used as an ATM card, enabling
transactions at automatic teller machines; or as a debit card, linked to the client's bank
account and able to be used for making purchases at the point of sale; or as a credit card
attached to a revolving credit line supplied by the bank.

Most payment cards, such as debit and credit cards can also function as ATM cards, although
ATM-only cards are also available. Charge and proprietary cards cannot be used as ATM
cards. The use of a credit card to withdraw cash at an ATM is treated differently to a POS
transaction, usually attracting interest charges from the date of the cash withdrawal. Interbank
networks allow the use of ATM cards at ATMs of private operators and financial institutions
other than those of the institution that issued the cards
.

All ATM machines, at a minimum, will permit cash withdrawals of customers of the
machine's owner (if a bank-operated machine) and for cards that are affiliated with any ATM
network the machine is also affiliated. They will report the amount of the withdrawal and any
fees charged by the machine on the receipt. Most banks and credit unions will permit routine
account-related banking transactions at the bank's own ATM, including deposits, checking
the balance of an account, and transferring money between accounts. Some may provide
additional services, such as selling postage stamps.

For other types of transactions through telephone or online banking, this may be performed
with an ATM card without in-person authentication. This includes account balance inquiries,
electronic bill payments, or in some cases, online purchases.

ATM cards can also be used on improvised ATMs such as "mini ATMs", merchants' card
terminals that deliver ATM features without any cash drawer.These terminals can also be
used as cashless scrip ATMs by cashing the receipts they issue at the merchant's point of sale.
Types of Plastic Cards
Debit Card

With a debit card (also known as a bank card, check card or some other description) when a
cardholder makes a purchase, funds are withdrawn directly either from the
cardholder's account bank, or from the remaining balance on the card, instead of the holder
repaying the money at a later date. In some cases, the "cards" are designed exclusively for use
on the Internet, and so there is no physical card.
The use of debit cards has become widespread in many countries and has overtaken use of
cheques, and in some instances cash transactions, by volume. Like credit cards, debit cards
are used widely for telephone and internet purchases.
Debit cards can also allow instant withdrawal of cash, acting as the ATM card, and as
a cheque guarantee card. Merchants can also offer "cashback"/"cashout" facilities to
customers, where a customer can withdraw cash along with their purchase. Merchants usually
do not charge a fee for purchases by debit card.

Credit card

A credit card is linked to a line of credit (usually called a credit limit) created by the issuer of
the credit card for the cardholder on which the cardholder can draw (i.e. borrow), either for
payment to a merchant for a purchase or as a cash advance to the cardholder. Most credit
cards are issued by or through local banks or credit unions, but some non-bank financial
institutions also offer cards directly to the public.

The cardholder can either repay the full outstanding balance or a lesser amount by the
payment due date. The amount paid cannot be less than the ”minimum payment,” either a
fixed dollar amount or a percentage of the outstanding balance. Interest is charged on the
portion of the balance not paid off by the due date. The rate of interest and method of
calculating the charge vary between credit cards, even for different types of card issued by
the same company. Many credit cards can also be used to take cash advances through ATMs,
which also attract interest charges, usually calculated from the date of cash withdrawal. Some
merchants charge a fee for purchases by credit card, as they will be charged a fee by the card
issuer.

Charge card

With charge cards, the cardholder is required to pay the full balance shown on the statement,
which is usually issued monthly, by the payment due date. It is a form of short-term loan to
cover the cardholder's purchases, from the date of the purchase and the payment due date,
which may typically be up to 55 days. Interest is usually not charged on charge cards and
there is usually no limit on the total amount that may be charged.[citation needed] If payment
is not made in full, this may result in a late payment fee, the possible restriction of future
transactions, and perhaps the cancellation of the card.
ATM card

An ATM cards is any card that can be used in automated teller machines (ATMs) for
transactions such as deposits, cash withdrawals, obtaining account information, and other
types of transactions, often through interbank networks. Cards may be issued solely to access
ATMs, and most debit or credit cards may also be used at ATMs, but charge and proprietary
cards cannot.

The use of a credit card to withdraw cash at an ATM is treated differently to an POS
transaction, usually attracting interest charges from the date of the cash withdrawal. The use
of a debit card usually does not attract interest. Third party ATM owners may charge a fee for
the use of their ATM.

Fleet card

A fleet card is used as a payment card, most commonly for gasoline, diesel and other fuels at
gas stations. Fleet cards can also be used to pay for vehicle maintenance and expenses, at the
discretion of the fleet owner or manager. The use of a fleet card reduces the need to carry
cash, thus increasing the security for fleet drivers. The elimination of cash also helps to
prevent fraudulent transactions at the fleet owner's or manager's expense.

Fleet cards provide convenient and comprehensive reporting, enabling fleet owners/managers
to receive real time reports and set purchase controls with their cards, helping to keep them
informed of all business related expenses. They may also reduce administrative work or
otherwise be essential in arranging fuel taxation refunds.

Gift Card:

A gift card also known as gift certificate, or gift voucher or gift token in the is a prepaid
stored-value money card, usually issued by a retailer or bank, to be used as an alternative to
cash for purchases within a particular store or related businesses. Gift cards are also given out
by employers or organizations as rewards or gifts. They may also be distributed by retailers
and marketers as part of a promotion strategy, to entice the recipient to come in or return to
the store, and at times such cards are called cash cards. Gift cards are generally redeemable
only for purchases at the relevant retail premises and cannot be cashed out, and in some
situations may be subject to an expiry date or fees. American Express, MasterCard, and Visa
offer generic gift cards which need not be redeemed at particular stores, and which are widely
used for cashback marketing strategies. A feature of these cards is that they are generally
anonymous and are disposed of when the stored value on a card is exhausted.
Magnetic stripe:

Magnetic stripes started to be rolled out on debit cards in the 1970s with the introduction of
ATMs. The magnetic stripe stores card data which can be read by physical contact and
swiping past a reading head. The magnetic stripe contains all the information appearing on
the card face, but allows for faster processing at point-of-sale than the then manual alternative
as well as subsequently by the transaction processing company. When the magnetic stripe is
being used, the cardholder will have been issued with a PIN, which is used for cardholder
identification at the point-of-sale, and a signature is no longer required. The magnetic stripe is
in the process of being augmented by the integrated chip

Smart card

A smart card, chip card, or integrated circuit card , is any pocket-sized card with embedded
integrated circuits which can process data. This implies that it can receive input which is
processed — by way of the ICC applications — and delivered as an output. There are two
broad categories of ICCs. Memory cards contain only non-volatile memory storage
components, and perhaps some specific security logic. Microprocessor cards contain volatile
memory and microprocessor components. The card is made of plastic, generally PVC, but
sometimes ABS. The card may embed a hologram to avoid counterfeiting. Using smart cards
is also a form of strong security authentication for single sign-on within large companies and
organizations.

EMV is the standard adopted by all major issuers of smart payment cards.
Advantages Of Plastic Money

Convenience: Plastic money provides an easy way to make financial transactions without
carrying cash. It also provides the benefits of anywhere and anytime banking.

Check Counterfeiting: The proposed plastic currency notes will reduce the chances of
counterfeiting.

Long life of Plastic Currency Notes: The proposed plastic currency notes will have the life
of five years as against one-year life of paper currency notes.

Check on Black Money: It is possible to trace the financial transactions done through cards.
Developing a culture of plastic money will make it easy for the government to trace black
suspected black money sources.

Supports Growth of E-commerce: The use of cards has supported the growth of e-
commerce. Growth of e-commerce enhances cost-effectiveness and alternative channels to
improve economic growth.

Power of Purchasing: Debit or Credit cards made it easier to buy things. Now we do not
have any need to carry money in a large amount. Plastic money is accepted at any time and
everywhere.

Time-Saving: one can purchase anything from any place through a credit card or debit card
without spending money on fare or cash transaction. You have to provide your card details to
seller store or corporations and settle your order. It saves time in the transaction by debit and
credit card.

Safety: In case, if an individual loses the cards, then he/she may contact the bank or financial
institution, which provide the cards. The financial institution or bank will block the account
and no-one can draw a single penny without your permission.
Disadvantages Of Plastic Money

Shops using other Vendors: Numerous shops accept credit cards of a specific company
only. In this situation, money is the only mode of payment for those who use a credit card of
another company.

Less Availability: There are several cases where the firms do not let their cards to be utilized
in specific areas wherever they have a regional dispute.

An issue with Magnetic Strip: The Credit card consists of the magnetic strip that can get
worn out due to extensive use of it. If it happens while travelling, and credit card is the only
form of money with the person, then he/she must wait till the time they receive a new card.
The new card may take a minimum of forty-eight hours to get active.

Increased Debt and rates of high-interest: Credit Card from Corporations and financial
institutions charge high-interest rate on more money if the person fails to pay off till the fixed
date of the particular month. These interests are the earnings, for which they provide the
additional shopping for limits then the money. It is not a good idea to owe loan on high-
interest rates and spend it in necessary things or purchasing.

Fraud: In the case of stolen credit cards, the thief may use it directly to get the information.
In today’s world, it is possible to get a clone of any debit or credit card, which works like
original and can be a substantial loss. Thus be aware of the frauds of credit cards.