Meaning of Money:-

Money means more than the coin, paper or plastic to acquire goods and
services. Money is linked to complex emotions, feelings and behaviors. Each
person has "money messages" that are based on past experiences, what you
observed and what you were taught. These money messages reflect the attitudes,
perceptions and expectations that influence your financial behaviors today.

If you think about your childhood, what do you recall about your
household, the people and the community around you? What kind o
f

housing, food, and clothing did you have? Did most families have several
generations living together in a house? Even if money was scarce, did you
always have food on the table? Did you only wear new, named-brand clothing
or was using second-hand clothes acceptable? Did you have more than one
television in the house?

Types of Money :-
Basically there are two types of money
2.
Paper Money
3.
Plastic Money

Paper Money:-
Currency in the form of government notes
and bank notes
Cash in the form of banknotes
currency in paper form, such as
government and bank notes, as
distinguished from metal currency.

Plastic Money:-
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.

Types of plastic Money:-

credit Plastic Money is of various forms it
could be:
A. CARDS
B. CURRENCY

TYPES OF CARDS:-
Credit card
Debit card
Charge card
Amex card
Smart card
Photo card
Master card & visa
Diner club card
Global card
Co-branded card

INFRASTRUCTURE FOR CARDS:-

Computer systems for processing capacity

(security)
Large number of skilled personnel
Facility to handle card, statement, payment

collections & dispute resolution.

Create point of sale infrastructure to accept
cards

How to use Credit Cards ?

1. Separating business and personal spends may provide
better finance management option
2. Since Card is like cash
- Not to carry the ATM – PIN along the card
- Always check the amount on the sales slip and terms and
conditions on the invoice before signing the slip
- Not to use the card at unknown website
- Report lost card instantly
- Not to part with the card number, expiry date to strangers

How to use Credit Cards

(cont.)
3. Maintain Card statements

- Review the monthly statement before destroying them

- Ideally the card sales slips and invoices should be retained for 6
months
- Subscribe to the internet banking facility for easy access to the
statement
- Balance in the card account can also be obtained from the ATM
and call center.
- Inform any mismatch on the statement to the bank

4. Payment date
- Diaries the payment due date and pay on or before the date
- Subscribe to internet banking and opt for the payment alert

How to use Credit Cards

(cont.)
6. To contact the bank
- Use the call center
- Use the PIN for standard information as well as to
perform transactions through call centers
- Use the internet banking and leave queries
- Drop letter at the ATM or mail to the Card Centre

7. Avail the benefits

- Monitor the reward points from the statements, Internet
banking and call center.
- Redemption can be done using internet, call center and
letter
Debit cards are substitutes for cash or check payments, much the same
way that credit cards are. However, banks only issue them to you i
f

you hold an account with them. When a debit card is used to make a payment, the
total amount charged is instantly reduced from your 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.
What is a Debit Card ?
Debit cards are substitutes for cash or check payments, much the same
way that credit cards are. However, banks only issue them to you i
f

you hold an account with them. When a debit card is used to make a payment, the
total amount charged is instantly reduced from your 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.
What is a 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. A 2.95 per cent
late payment fees (this differs from one bank to another) is
levied in your next billing statement.
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.

What is an 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.

Co-branded cards are credit cards issued by card

companies that have tied up with a popular brand
for the purpose of offering certain exclusive
benefits to the consumer.
A debit card with a difference
For example, the Citi-Times card gives you all the
benefits of a Citibank credit card along with a
special discount on Times Music cassettes, free
entry to Times Music events, etc.

What is a Co-branded Card?

Co-branded cards are credit cards issued by card
companies that have tied up with a popular brand
for the purpose of offering certain exclusive
benefits to the consumer.
A debit card with a difference
For example, the Citi-Times card gives you all the
benefits of a Citibank credit card along with a
special discount on Times Music cassettes, free
entry to Times Music events, etc.

What are MasterCard and Visa?

MasterCard and Visa are global non-profit
organizations dedicated to promote the
growth of the card business across the
world.
They have built a vast network of merchant
establishments so that customers world-
wide may use their respective credit cards
to make various purchases.

What is a 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.

What is a 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.
Advantages
Offer free use of funds, provided you
always pay your balance in full, on time.
2. Be more convenient to carry than cash.
3. Help you establish a good credit history.
4. Provide a convenient payment method
for purchases made on the Internet and over
the telephone.
5. Give you incentives, such as reward
points, that you can redeem

Disadvantages :-
1. Cost much more than other forms of
credit, such as a line of credit or a personal
loan, if you don't pay on time.
2. Damage your credit rating if your
payments are late;
3. Allow you to build up more debt than
you can handle;
4. Have complicated terms and conditions