UNIVERSITY OF MUMBAI

“To study the satisfaction level of consumer towords plastic money”

A Project Submitted to
University of Mumbai for partial completion of the degree of Bachelor of
Accounting & finance
Under the Faculty of Commerce \
By
Miss. Kavita S Sahu
Roll no. 72037
Under the Guidance Teacher
Prof. Harshada Salunkhe

J.K COLLEGE OF SCIENCE &COMMERCE

PLOT NO 22, SECTOR -5 OPP GHANSOLI STATION, GHANSOLI
March 2024
 Declaration
I the undersigned Miss. Kavita S Sahu here by,
declare that the work embodied in this project work titled
“To study the satisfaction level of consumer towords plastic
money
” forms my own contribution to the research work
carried out under the guidance of Prof. Harshada Salunkhe
is a result of my own research work and has not been
previously submitted to any other University for any other
Degree/ Diploma to this or any other University.

Wherever reference has been made to previous works of

other, it has been clearly indicated as such and included in
the bibliography.

I, here by further declare that all information of this

document has been obtained and presents in accordance
with academic rules and ethical conduct.

KAVITA SAHU

Certified by

Prof. Harshada Salunkhe Dr. Shraddha M. Bhome

( Project guide) ( Principal)
 Acknowledgement
To list who all have helped me is difficult because they are so
numerous and the depth is so enormous.

I would like to acknowledge the following as being idealistic

channels and fresh dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for

giving me chance to do this project.

I would like to thank my Principal, Dr. Shraddha M. Bhome, for

providing the necessary facilities required for completion of this
project.

I would also like to express my sincere gratitude towards my

project guide.
Dr. Satakshi Sharma whose guidance and care made the project
successful.

I would like to thank my College Library, for having provided

various reference books and magazines related to my project.

Lastly, I would like to thank each and every person who directly or
indirectly helped me in the completion of the project especially my
Parents and Peers who supported me throughout my project.
 INDEX

Chapter Title Page

No. No.
1 Introduction
1.1 Introduction of the 06
study
1.2 Historical background of the study 07-35

2 Research Methodology
2.1 Objectives 36-37
2.2 Hypothesis 38

2.3 Scope of the study 39

2.4 Limitations of the study 40

 2.5 Significance of the study 41

2.6 Statement of the study 42

2.3 Sample size 43

2.4 Data collection 44

2.5 Tabulation of data 45

3 Literature review 46-51

4 Data analysis, Interpretation and 52-71

presentation
5 Conclusion and suggestions 72-73
6 Annexure 74-78
 INTRODUCTION

The plastic money generally a credit or debit card with a magnetic strip
many people carry in their wallets or purses in the result of complex
banking process. Holders of a valid card have the authorization to purchase
goods and services up to a pre-determined amount it’s called a credit limit.
In particular these are required to appear on a credit card are name of
the customer. 16 digit card number validity date, the name of the issuing
bank, signature panel, magnetic strip and personal identification number.
Plastic money is known as polymer money, which is made out of
plastic. It is a new and easier way of paying for goods and services. Plastic
money was introduced in the 1950’S and now an essential form of ready
Money which reduces the risk of handling a huge amount of cash .

WHAT IS PLASTIC MONEY?

Plastic money includes credit cards, Debit cards, ATMs, smart cards etc.
The former covers the emergence of plastic money, different types of
plastic cards, their growth in India. Plastic money are alternative to the
cash or standard money.
Plastic money is much more convenient to carry around as you do not
have to carry a huge some of money with you. Plastic money is used to
refer to the credit cards or debit cards that we use to make purchases in
our everyday life. It is also much safer to carry it a long or to travel with it
,as if it is stolen one can consult the bank where service you are using and
get it blocked, hence saving your money from getting stolen or even lost.
 Now a days even developing countries like India are encouraging the
use of these plastic money more than cash due to these reasons. Further
more these credit and debit cards also have plastic used in their making
and that is where the name, plastic money has originated from.
1.1 Background of the problem
Plastic money has its roots in the United States of America and its origins can be
traced to the Second World War [SWW]. The evolution of the various types
of plastic
money as we know them today already begun with the introduction of the
vouchers system of payment that was used during the Second World
War[SWW]. Here in Kenya the adaption by banks and subsequent use by
various consumers has led to the various plastic monies becoming an
integral part of the banking system in Kenya.
In this study the aim is to focus on the manner in which the plastic money
has transformed operations in banks in terms of the revenue that can be
attributed to various forms of plastic money and to answer the question “is
plastic money a necessary evil’’? The various forms of plastic money in
Kenya today ranging from Automated Teller Machine cards to credit cards
including connect cards have definitely had an impact on banks.
A contrast can be drawn between banks that have a wide range of plastic
money to those that have limited or non-existent use of plastic money.
Credit and debit card overdraft loans account for one of the highest rates
of consumer debt growth. Credit card and debit card lending is based on
pre-authorized lines of credit that can be taken down as the consumers
take cash or make purchases from merchants who accept credit cards.
Plastic money may be held responsible for inflation, huge increase in
personal indebtedness, the destruction of the basic virtues of thrift
spending and the growth of the acquisitive society. Has this really been
good for commercial banks in Kenya? This study aims to fill the gap begging
an answer.
The term is used predominantly in reference to the hard plastic cards we
use every day in place of actual bank notes. In detail, plastic money refers
to plastic cards for example the credit card. Naim (1995) states that credit
card is a contract whereby the card issuer is committed to credit a certain
amount of money for someone who is the cardholder in order to meet his
or her personal purchases from shops that are associated with the issuer of
the card with a contract to accept the fulfillment of cardholder’s purchases
and that is the final settlement after each specified period.
According to (Al- Zubaidi, 2002) credit card was defined as a card that gives
the holder the right to deal with many shops that are consistent with the
issuer of the card to accept the granting of the credit for the cardholder to
pay off his purchases, who will repay the value of purchases to the bank
through 25 days from the date of the purchase.
The customer pays no interest to the bank for this service if the payment
was done during the period but if he or she bears an interest of 1.5% on
the remaining balance without a payment, the seller earns a commission of
between 3-5% from the seller of the total value of the invoice.
The Automated Teller Machines (A.T.M), works in conjunction with plastic
cards.A.T.M is an Electro-mechanical device that permits authorized users,
typically using machine-readable plastic cards (ATM cards) to withdraw
cash from their accounts and/or access other services, such as balance
enquiries, transfer of funds or acceptance of deposits.
ATMs may be operated either on-line with real-time access to an
authorization database or off-line. Another type of plastic money is the
smart card. These store personal, medical and financial information within
a computer chip implanted in the card. The financial information may
contain a section that will hold a certain shilling value that can be reduced
by use, like a debit or charge card, in POS or ATMs. The ATM can re-charge
the amount available as the account balances increase.

1.1.2 Financial Performance

Financial performance is a subjective measure of how well a firm can use
assets from its primary mode of business and generate revenues. This term
is also used as a general measure of a firm's overall financial health over a
given period of time, and can be used to compare similar firms across the
same industry or to compare industries or sectors in aggregation. Some
useful measures of financial performance are coined into what is referred
to as CAMEL. The acronym "CAMEL" refers to the five components of a
bank's condition that are assessed: Capital adequacy, Asset quality,
Management, Earnings, and Liquidity. A sixth component,
a bank's sensitivity to market risk was added in 1997; hence the acronym
was changed to CAMELS,(Gilbert, Meyer and Vaughan 2000).
One of the benefits banks derive from electronic banking products and
service delivery for example the use of credit cards, debit cards, A.T.M
cards, is improved efficiency and effectiveness of their operations so that
more transactions can be processed faster and most conveniently, which
will undoubtedly impact significantly on the overall performance of the
banks. Despite the potential benefits of ICT and e-commerce, there is
debate about whether and how their adoption improves bank
performance. There are positive impacts of e-banking on bank turnover
and profitability and to a lesser extent on employment, most notably when
e-commerce is part of larger business strategies of bank. The use of plastic
money can contribute to improved bank performance, in terms of
increased market share, expanded product range, customized products
and better response to client demand. It continues to influence banks
activities and their income structure. Among the activities that may be
subject to stronger pressures for change are those that, up to today, have
remained relatively insulated from ICT developments. This applies mainly
to some retail banking activities that are suitable for standardization, and
also to developments in remote banking Kariuki, ( 2005)

ABSTRACT
The utilization of plastic money in India is in solid surge. In the middle of
April-June 2011-12, the debit card spending ascended by 30% against
Rs16,948 crore a year ago wherein platinum card spending has expanded by
45% contrasted with Rs8,065 crore a year ago, according to the information
discharged by Reserve Bank of India. The dispersion of plastic money has
expanded because of the way that saving money division has turned out to
be more forceful. Besides, duplication of clients is an essential region of
worry for the business which can overstate the quantity of
dynamic clients. The present paper makes an endeavor to comprehend the
eventual outcomes of retreat on plastic money industry and its effect on
shopper
inclinations. The paper appropriately examines the adequacy of the cards
among the Indian shopper and the variables impacting the card decision.
Essential information was gathered through a very much organized survey
with the example size of 150 respondents in Jammu locale. Factors
identified with socioeconomics, for example, age, wage level and
occupation were chosen for the examination. The outcomes demonstrate
that the clients are moving from debit card to check card more than couple
of years. The investigation additionally uncovered that for practical saving
money exchanges, banks are currently focusing on influencing their clients
to move their debit card exchanges from ATM to Point of offer.

Keywords: Technology, Money, Exchanges, 'Plastic Cash', Plastic

Money, Organizations, ATM, etc.
 HISTORY

The Beginnings
With a history of “plastic money”, you cannot ignore charge cards. Charge
cards laid the groundwork for debit and credit cards. Company-issued
charge cards can be found as far back as the early 1900’s. These cards
mainly just kept customers loyal to the company.

With hundreds of millions of plastic cards in circulation today, these Plastic

cardshave become a way of life. India alone is home to millions of
them.Initially positioned as a status symbol these plastic cards have caught
on in a big way amongst the educated population of the country.
Extending credit to their customers has always been an extremely
common practice .However in the early 1940s, when individual retail
merchants in America found it more and more difficult to afford credit to
these patrons, financial institutions came into the picture.
1946 -The earliest plastic card was called Charge - It and was invented in
1946. It revolvedaround a system of credit developed by John Biggins a
credit consultant at Flatbush National Bank, Brooklyn,New York. This
"card" allowed the customers to charge localretail purchases. The
merchant deposited the same at Biggins Bank. The bank reimbursedthe
merchant and collected payment from the customer.
1951 -The Franklin National Bank in Long Island New York issued the first
official credit card .
In 1951, a Mr. Frank McNamara had just finished dinner in a New Yor
restaurant
when ,to his acute embarrassment, he discovered that he had left his
wallet in another suit.While talking the restaurant owner into letting him
pay the bill the next day, an idea for anew credit card was already being
concocted in his mind. Within a few months he formeda company called
Diners Club and convinced 27 restaurants and 200 people to join it.
History of plastic
money :
1)1946:
The first card charge : It was introduced by banker John Biggins
in Brooklyn USA in 1946. Whenever the customer used this card for
purchase at local merchant. The charge was deposited by the merchant to
Biggins bank. The bank reimbursed the merchant and retrieved payment
from the customer.

2)1951:
Mr. Frank Me Namara had just finished dinner in a New York
restaurant and then they realised that he had left his wallet in another
suit. While talking the restaurant owner agreed to pay the bill next day
and then he had an idea of inventing a new credit card. Few months later
they informed a company named dinner’s club and convinced 200 people
and 27 restaurant.
3)1958:
American express saw this as a competition to traveller’s cheque
division and came out with its own charge card in 1958 .Within three
months they managed more than half of the card holders.
4)1960:
In 1960 Bank of America came up with its own card known as Bank
America card originally the Visa card started as the Bank of America card
program and was never intended to go National or International for that
matter. In 1965 bank of America begin a licensing program with banks
around California. After enough banks subscribed to the program, Bank of
America was able to create a joint venture bank association. This
eventually rolled out an International scale and Bank America changed the
name of their cards to visa international. They also created a domestic
America version named VISA USA.
5)1966:
Croker National Bank ,Wells Fargo and bank of California came
together and launched the Interbank Card Association (ICA) in 1966.3
years later Master charge changed their logo and came out with the iconic
red and orange overlapping circle. However, it was not until 10 years later
when Master card we know today. The 80s were also a revolutionary
decade for Master cards.
6)1980:
Discover card was the revolutionary card in 1980s. It is
specifically presented sears and roebuck and company customers with a
new credit card option. This card was the first of its kind to have no annual
fee, cash back and high credit limits. They only problem was that since it
was associated with sears, other retailers. Were weary of a accepting it, as
they would be helping their competition separating from sear made
discover more attractive for other merchants to adopt the card.
7)1990:
With the adoption of new technologies such as mobile
platforms this presents numerous opportunities for vendors and
customers. In 1990 number of new plastic cards has been introduced.
They are as follows:
• Chip and pin :
One of the more disruptive changes to plastic money came with
the adoption of chip and pin technology. This system has become a
standard with credit and debit cards, it is preferred to the magnetic stripe
chip and pin technology makes and much more secure and personal
information is very hard to steal because of the encrypted chip.
Types of plastic money
1) Charge Card
A charge card carries all the features of credit cards. However, after using
a charge card you'll need to pay off the whole amount billed, by the due
date. If you fail to do so, you're possible to be considered a defaulter and
can sometimes have to pay up a steep late payment charge.The internet
has given credit card users additional purchasing power. These cards were
issued in limited locations and only accepted by the businesses that issued
them. The credit cards have evolved into a safe and secure manner to
purchase goods and services.

2) 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
rely upon the network of MasterCard or Visa.

3) MasterCard and Visa

MasterCard and Visa are international non-profit organizations dedicated
to promote the growth of the card business across the globe. They have
designed a vast network of merchant institutions so that customer’s world
wide might use their respective credit cards to make various
purchases.visa and Master card.
4) Debit Cards
Debit card is a magnetically encoded plastic card issued by banks which
has replaced money and cheques. It permits the customers to pay for
goods and services without carrying cash with them. In some cases, debit
card is multipurpose which can even be used as ATM for withdrawing
money and to check account balances. It is
issued free of cost with the savings or current account. Debit card is one of
the best online-payment tool through which the amount purchase is
immediately subtracted from customer.
process of cheques, due to which sometimes merchants have to suffer. There are
presently 2 ways in which debit
cards transactions are processed
1. Onlinedebit (also known as PIN)
2. Offline debit (also known as signature debit)

5) ATM Cards
These cards are typically used at ATM machines (ATMs) to withdraw
money, make deposits, or transfer funds between accounts. ATM card is
used by inserting the card into an ATM machine and enter a personal
number, or PIN, for security. The system checks the account for adequate
funds before allowing any transaction. The ATM cards is generally used for
withdrawal of cash or depositing cash in account.

Types of Debit Cards

 1. PIN-only cards: PIN-only debit cards are linked to your bank
account and can be used for cash transactions and fund transfer, buy
from retailers and pay bills online or by phone. The card holder is
required to enter a secure PIN for every transaction to establish
identity and maintain security.
2. Dual-use cards: Dual-use debit cards are both signature- and PIN
enabled, and tied directly to your bank account. You can verify your
identity either by signing or entering your PIN.
3. EBT cards: Electronic Benefits Transfer (EBT) cards debit cards
provided by a state or government agency to users who qualify for food
stamps, cash payments, or other benefits. EBT cards can be used to make
purchases at participating retailers or to withdraw cash from and ATM,
depending on the type of program.

4. Prepaid cards: Prepaid cards are not linked to a specific account, but
provide access to funds deposited directly on the card by you or a third
party. In effect, they work as a store-credit or gift card.Except prepaid
cards, all other types of debit cards are linked to a bank account, typically
a checking account but some savings accounts also offer linked
"convenience" cards.

ADVANTAGE OF DEBIT CARD

There is certainly quite a lot to be said for the convenience of using a
debit card as well as some distinct benefits:

 Safer than Cash – Carrying around large amounts of cash is never a good
idea, but then again heading for a night out or to go shopping with just £20
in your wallet is simply not going to cut it most of time. As ATM machines
can be found almost anywhere these days then a debit card allows you to
only get out cash if you really need to while you use it to pay for many
other purchases instead.
 Online Shopping and Bill Pay – Because a debit card can be used in the
same way as a credit card it means that cardholders can take advantage of
all the great online shopping opportunities that are out there as well as
make regular bill payments online in many cases – saving you the hassle of
paper checks, stamps and trips to the Post Office.
 Easier to Keep Track of Spending – Many people have done this at least
once – written a paper check and then forgot to record the transaction in
their check register. The end result is often very expensive (and often
embarrassing) in terms of bounced check fees and overdraft charges.
Debit card transactions are posted right away online – even credit
transactions that do not “clear” immediately – so it is much easier to keep
a daily eye on what you are spending and how much money you have left!
 Great for Those Without a Credit Card – If you have poor credit – or no
credit at all – getting a credit card can be hard and that can potentially
prevent you from doing all kinds of things like renting a car or booking
travel arrangements. Since a debit card can be used in lieu of a credit card
in most situations these days they can really help people who are still
trying to build their credit out.
 Teaching Tools – Those under the age of eighteen cannot apply for a
credit card of any kind and even when they do reach their 18th birthday
the rules governing credit cards are much tighter than they once were and
getting a student credit card is much harder than it once was. There are a
growing number of prepaid credit cards that are specifically designed for
teens though and using one can be a great way to learn all important
money management skills – as well as being “cooler” than having to pay in
cash.
 Less Loss Potential – If a £20 note falls out of your pocket chances are it is
gone forever. If you lose a debit card however once you report the loss to
the bank within 48 hours the most the law says you can be held
responsible for is £50 and in fact many debit cards are covered by either
VISA or Mastercard’s zero liability policy.

Debit Card Disadvantages

The downsides associated with debit card use mainly revolve around the
fees charged but there are one or two other disadvantages as well:
 More Fees: There are potentially quite a few fees involved in regular debit
card use that can add up quite quickly. The largest of these fees tends to
be the charges you incur when you use an ATM to withdraw cash – if you
use an ATM that does not belong to your card issuer’s network then you
may be charged two fees – one by your own bank and one by the ATM
owner and these days these fees when combined can be as high as $5 per
withdrawal. Monthly fees and PIN transaction fees can add up as well.
Many of these fees can be avoided though if you shop around carefully as
some debit cards offer a much better value in terms of fees than others.
 Dealing with Problem Transactions – Sometimes people are faced with a
dilemma when making larger purchases or purchases online – which
should they use, their credit card or their debit card? In one respect paying
with a debit card may be a better idea as the item is paid in full. On the
other hand though if there is a problem with a transaction or you need to
return an item getting your money back on a debit card can be a lengthy
and confusing process, whereas if you had opted to use a credit card the
transaction would simply be reversed and you would not be “out” the
money.
 Recurring Transactions – As people spend more and more time on the
Internet they tend to sign up for all kinds of services that have a monthly
charge attached to them – everything from a TV service like Netflix to
music services like Spotify and 101 things in between. Most of these
services accept a debit card as readily as they accept a debit card. The
danger is though that you will forget that one of these payments is due
and the charge will be made when you do not quite have enough money
in your bank account to cover it and you will be tied up with overdraft fees
and cancelled subscriptions, something that would probably not be an
issue with a credit card.

In the end how and when they use a debit card is up to the individual.
With some careful shopping around you can find debit cards that have
lower fees attached to them and there are ways you can minimize the
fees you are charged – asking for cash back when making a debit card
purchase instead of withdrawing money from an ATM for example. Life
without a debit card can be rough these days so using them occasionally is
almost a must, and can be quite beneficial if you use it sensibly.
 How do debit cards work?
When you open a checking account at a bank or credit union, you usually get a debit
card.
A debit card lets you spend money from your checking account without writing a check.
 You can use your debit card to buy things in a store
 You can use it at an ATM to get cash
When you pay with a debit card, the money comes out of your checking account
immediately. There is no bill to pay later.
Types of Credit Cards

1. The Standard Credit Card: These are general purpose credit

cards with revolving balance (i.e. credit is used up when purchases are
made, and is open
again once the bill is paid). Standards cards are usually starter credit cards,
usually for applicants with little or no credit history who meet the minimum
required criteria.

2. Reward Credit Cards: These cards offer several rewards programs

in the form of cash, points or discounts, and are intended to influence
your spending. Reward cards usually come with an associated annual
fee and a lot of fine print; the key is to make sure the rewards earned
exceed the annual fee.

3. Secured Credit Cards: Also known as pay-as-you-go cards, their

primary purpose is to give people with bad credit history a chance to
reestablish credit. The user first deposits a "secure" amount into a savings
account — that makes for the credit line. The credit limit is usually a
percentage (50%-100%) of this amount. These cards come with an annual
fee and a high APR.

4. Charge Cards: Charge cards do not have a present spending

limit and balances must be paid in full at the end of each month.

5. International Credit Cards: If one has noticed, most cards have

"Valid only in India and Nepal" printed on them. An International card is
valid in India as well as anywhere in the world. Which means that you
spend in foreign currency on the card but pay back in Indian Rupees on
your return .

How do credit cards work?

If you’re successful in applying for a credit card, you’ll receive the card in the post.
Separately you will receive a personal identification number (PIN) to go with the card.
Once you have your card and PIN, you need to activate the card, often online, for it to be
ready to use.
You’ll be able to use your credit card to make purchases before paying back the balance, or
part of what you owe, each month. There is usually a minimum monthly payment you
should make to avoid any fees, but if you pay your balance back in full every month you
can avoid paying interest at all.
This means that if they’re used sensibly, credit cards can almost function like an
interest free loan. However, it you don’t make your payments on time you could face
charges as well as high interest rates. Using your credit card responsibly can provide
big financial benefits.
Difference Between Credit Cards vs Debit
Cards – Which Is the Right Way to Go?

Benefits of Debit Cards

1. Limits
While some debit cards may allow an accidental overdraft and charge you
a fee, it’s impossible to significantly overspend your account with a debit
card. With a credit card, you can lose track of your spending and go
overboard. With most debit cards, however, if you try to spend more than
you have in your account, the purchase simply won’t go through.

Built-in limits mean that if the money isn’t in your account, you can’t
spend it. As debit cards become even more popular, some banks will let
you choose whether or not you’ll be allowed to make the occasional
overdraft or if you want the protection of never being allowed to go
beyond your monthly income.
2. Generally Low (or No) Fees
Many banks offer debit cards for free, and as long as you don’t break the
terms of the card holder agreement, like minimum balances, you won’t
face any fees.

At retail stores that allow it, most debit cards give you a chance to add a
cash back charge to your purchase so you can get cash from your account
from a cashier. It’s more of a convenience than anything else, but it can
save time and ATM fees in the long run.

3. Rewards or Automatic Savings Programs

Because of increased competition from no-fee credit cards, debit card
companies and banks have been stepping up their rewards programs.
Some even offer programs that help you save money in small increments
over time, which means your daily spending can benefit your savings
account.

4. Protection from Fraudulent Use

Debit cards offer much more protection from theft than cash does. First, it
lessens the need for you to carry cash in your wallet. This is an obvious
advantage.

Next, some would say that using a debit card is more secure than using a
credit card. Inputting your PIN virtually verifies the purchase for the
retailer, and makes it very difficult for identity thieves to use your card.

Finally, if you do lose your wallet or are a victim of identity theft, debit
cards add a level of security and an ability to track the expenditures of
the perpetrators. Hopefully your bank can help recover your card and
assist the authorities in catching criminals.

5. Limited Liability from Theft

Further, on top of the ability to track fraudulent use, debit cards limit your
liability from theft or robbery, as most cards have a limit on the amount
the card holder is responsible for in this type of circumstance.
6. No Interest
Since you can’t carry a balance, you’ll never pay interest on debit card
purchases.

Drawbacks of Debit Cards

1. Overdraft Fees
If you choose the option to have permission to overdraw your account in
an emergency, then when you spend beyond your balance you’ll be on
the hook for a hefty amount of money. For example, if you’re out of gas a
day before payday and you put $10 worth of gas in your car, but your
account can’t cover the cost, your bank is going to charge you a penalty.

Worse, they may put a “hold” on your account. This hold can be for an
amount that far exceeds the ten bucks you used to put gas in your tank. If
you don’t have a lot of money in that account, the overdraft bank
fees probably won’t be as bad as extended credit card debt, but they’ll be
a burden nonetheless.

2. Watching Your Balance

If you use your debit card, you always need to be sure of the available
spending limit that you have. You’ll need to take responsibility for
manually monitoring this number.

To prevent expensive overdraft charges, you’ll have to take the time to

check up on your account balances to avoid overdrawing the account.
Your bank isn’t going to do it for you.

3. Reduced Rewards
In most cases, rewards on debit cards aren’t as valuable as those on
comparable credit cards. Credit card companies are much more profitable
than their debit counterparts. This means that debit rewards are normally
significantly less valuable than credit cards, and it will take longer to earn
them.
4. No Credit Score Help
Debit cards don’t help you build your credit history, because they’re a
form of cash payment, not a credit instrument.

5. Less Protection
Carrying a debit card is safer than carrying cash, but debit cards don’t
carry the same fraud protection that credit cards do. Generally, your bank
has a limit on the amount of protection that they will offer you in a fraud
case. In some circumstances, even though you are protected, you could
be on the hook for hundreds before the protection kicks in.

For instance, if you pay for something with a debit card online and the
company goes bust before you get your product, you probably won’t be
able to recover your cash. On the other hand, a credit card company
would be able to refund your money. Credit cards have built-in
protection programs to shield you from these instances; debits cards, for
the most part, do not.

Similarly, if a dispute arises between you and a vendor, you have dispute
rights if you paid with a credit card. These rights basically don’t exist with
debit cards and you’ll need to respond quickly to unauthorized
transactions in your bank account.

6. Other Security Issues

Personally, I think that debit cards are unsafe. I do not feel comfortable
entering my PIN in any public place. If someone sees me entering this
code and can later somehow get access to my account number, then I
have just opened myself up to all kinds of fraud opportunities.

Additionally, many debit card machines are simply unsafe to use.

Criminals have hacked into these machines in the past to access personal
banking information. If you frequently use your debit card, pay close
attention to bank ATM machine skimmer hacks and fraud.
Benefits of Credit Cards
1. Escaping Fees and Interest
Many credit cards don’t have annual fees, and if you pay the balance in
full on a monthly basis, you will not incur interest or penalties. This
means you get all the advantages of credit card use without paying for
them, as long as you keep your spending within your means.

2. Robust Rewards
Talk about getting something for nothing! When used wisely, credit cards
offer amazing rewards programs, like travel rewards for bonus airline
miles and cash back on purchases. If you charge all of your purchases and
pay your balance in full, then those rewards will add up very quickly.
Before you know it, you could be getting a chunk of cash back or a free
flight, at no cost.

It’s up to you to pick the best for your needs. Some of my favorites are:

 Chase Freedom
 Discover More
  Citi Platinum Select
3. Automatic Payments
Companies, from utilities to subscriptions services, usually allow you to
set up recurring payments from a credit account. This is a great way to
make sure you never miss a payment. You also don’t need to monitor the
everyday account balance on your card to keep from overdrafting, like
you would with a debit card. This makes it much easier to set up recurring
payments without the threat of overspending.

4. Ultimate Fraud Protection

You will have more protection if you use a credit card than if you pay for
something with your debit card. Most credit cards offer 100% protection
from fraud or theft. If you’re the victim of identity theft or credit card
fraud, you won’t be liable for the fraudulent charges.

For example, if you’re ever overcharged, if an item you ordered never

arrives, or if you pay for services that are never rendered, you always
have the option to dispute that particular charge (by using a credit
card chargeback) with your credit card company.

Also, if there is an error on your credit card statement, you can often fix
it without taking on any added expenses. While a debit card immediately
takes the funds out of your account, cutting you off from your cash, a
credit card delays the transaction in a way, buying you time to dispute a
charge and rectify possible fees before you have to pay them.

5. Building Credit
Your credit score is extremely important, and your judicious use of a
credit card can help you build up your score. In fact, responsible use can
mean that you get the best rates on a loan for a large purchase, which
could save you thousands of dollars down the road. Using a credit card for
daily expenses and paying it in full on a monthly basis is a great way to
build up your positive credit history.

6. Extended Warranties
Most credit cards offer additional extended warranties on the items you
purchase – on top of any standard manufacturer’s warranty. This could
come in handy if an item you buy with a credit card breaks after the
standard warranty expires.

Drawbacks of Credit Cards

1. Overspending
We’ve all heard the stories. If you let your credit card spending get out of
hand, you can easily find yourself firmly entrenched in debt. If you can’t
keep your spending in check, you can easily end up paying interest,
costing you a great deal of money over time.

Impulse buying is more prevalent with credit cards because you have a
large amount of credit at your disposal. Most people tend to overspend
when using a credit card. With debit cards, you can basically only spend
what you have in your account.

2. Annual and Hidden Fees

Some cards come with annual fees, and you still may find some hidden
fees. It’s tough to avoid new and old types of credit card fees including
late fees, over-limit fees, balance transfer fees, and card replacement
fees.

If you’re choosing a rewards card or an exclusive credit card, pay close

attention to the associated costs. Remember, it’s not just the annual fee.
You need to look out for fees that come with accessing your rewards too.
Airline rewards, for example, can come with charges and limitations that
affect your bottom line.

3. Credit Trouble
If you miss a payment, your credit will suffer. Paying your card late or
missing a payment is the worst thing you can do. Not only will your score
suffer, but you’ll also end up paying interest and penalties.

Additionally, if you ever go over your limit, your credit score could take an
immediate hit. Same thing if you pay a bill late. These are all things that
can hurt your credit score.
4. Limited Acceptance
While carrying a credit card is safer than carrying cash, it does come with
limitations. Even today, some restaurants and stores are still cash only.
Some stores only accept certain cards in an effort to keep their own costs
down. Unlike debit cards, you normally can’t take your credit card to an
ATM and withdraw cash without paying high cash advance interest rates.

5. Security
Yes, there are security issues, even with well-protected credit cards.
Believe it or not, some businesses still print receipts with your full account
number on it. Also, keep in mind that quite often, paper copies of these
receipts are stored in-house at a lot of retail businesses. This could open
you up to identity theft opportunities from the employees of these
businesses. Check your receipts to make sure your full number isn’t on
there and watch out for other credit card scams and fraud as well.

6. Costs to Businesses
What about the cost to the businesses processing these payments?
Typically, a debit card transaction only costs the bank about 17 cents to
process. A credit card transaction, meanwhile, can cost as much as $1.50
per transaction. Should this matter to you? Most definitely, because
retailers and restaurants pass these costs on to you, the consumer
MERITS and DEMERITS List of Plastic Money

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. It was in the 1950s the concept of plastic money
came into being. When we say plastic money, it includes debit cards, ATM
cards, credit cards, prepaid cards, smart cards and so on. 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. This
articles deals in general about the main merits and demerits of polymer
money.

Merits list Plastic money

Cash vs Plastic money; which one will you go for? If you are the one who
always forgets your PIN number, cash is the best option for you. As saving
the PIN in mobile is not a good idea. What if mobile gets lost? We need to
think about all possibilities as it is our hard earned money. There are many
advantages of carrying plastic money. The convenience, the quality of
cards when compared to bank notes, difficulty to duplicate easily like
notes etc are a few to name. You need to get a better idea of the
advantages,
isn't it? Let us learn in detail the advantages of using plastic money instead
of cash.

Cards fit into the wallet easily: It is essential that we need to have some
sort of money in hand always as we never know when a need arises. But
carrying a lot of cash in hand is not at all a wise idea. Also, who would
want to carry a lot of cash in hand and make their wallet bulge out. In such
situations, plastic money comes for help. Your wallet will remain perfect
and your cash needs will also be sorted out. If required you can take cash
using plastic cards. Also, it is safe when you have a card with you as even if
it is lost, you can always call the bank and ask them to block it. This avoids
misusing the card by any. But when it is cash, you are not left with that
option and you will end up losing your money. Cards are waterproof hence
you don't have to get panicked even if water spilled over your wallet. They
are strong and durable.

Crime rates will decrease: We are living in a world where thefts and
crimes are on the increase. Keeping cash in hand is not a safe thing to do.
It will not give you peaceful nights. So be practical and opt for plastic
money. You do not have to worry when someone runs away with your
wallet, as long as you only have plastic money in it. The guy needs, PIN
number to use it hence he can't take the cash or swipe it. As soon as you
know that you are pickpocketed, you can call the bank and ask them to
block or cancel the card. If it was actual cash in its place, then it is easy for
the thief. He can easily take the cash and throw the wallet somewhere.
But with plastic money, his job has become a difficult one. He needs to
know cracking techniques to find the PIN number to use the cards. Hence
worries associated with theft will be less in case of plastic money. Another
merit is that the fingerprints on a plastic card are more clear than that on
bank notes.

Provides credit facility: How about having a card that provides you a
credit facility? That sounds good right? With the advent of credit cards
you can purchase anything today and you are given sufficient time to pay
for it. Only with plastic money, you avail this credit facility. The advantage
of having this facility is that you need not go behind people to borrow
money in case of emergencies, instead, you can use the card in your
hand. Also,
you get ample amount of time to repay the amount. It is like a best buddy
who helps you in case of financial needs. Purchase today and pay later,
isn't that a benefit you are getting? This factor is one of the main reasons
why people are attracted towards credit cards.

Tracking transactions becomes easy: Having a track of your daily or

monthly transactions is always good. By using the plastic money you are
automatically keeping a track of all your transactions. You can verify it
later if required. When we are using bank notes, we might forget later for
what we spend it, unless you have the habit of noting down every cash
transaction you make. This is not the case with plastic cards. The banks
normally send the statement of debit or credit card to its customers on a
monthly basis which will have the list of all your transactions for that
particular month. This transaction history might help us at times when we
misplace a bill. We can show the transaction details to prove that we have
made a purchase. Also, for us to have a check of our expenses or any
particular transaction made in the past, these statements are useful.

0% Installment options: Certain credit cards provide its customers the

facility to convert their purchases from selected outlets to installment
options of 3, 6 or 12 months at 0% interest rate. The customer is given the
option to select the period of installment which cannot be changed later.
If you have selected 6 months installment plan and paid it off within 5
months, then you will have to pay an extra fee. Therefore, be careful and
pay only according to the installment period selected. It is an amazing
facility offered by the banks as it helps you to purchase that thing you wish
today and pay in equal installments within a period of specific time. Will
you avail this facility if you are using cash? A big No is the answer.
Therefore, this is indeed an advantage of plastic money.

Convenience of making payments from home: In olden days when there

was no plastic money, we need to go personally to each place to make a
payment be it utility payments or booking tickets. But now you can pay at
your own convenience sitting at home with the use of plastic money. For
example, you need to go to the travel agency to pay cash for your ticket,
instead, you can book your ticket online. Also when a travel agency is
involved, they charge commission or fee but when you are booking the
ticket directly from the airline's website, you are saving on it. Plastic cards
can also be used for online purchases. We can see many online shops
coming up these days. If you find something interesting on a website and
would want to have it, you can always purchase it anytime using plastic
money. Another advantage is that certain websites do not charge you the
service fee if you are making payment through plastic money as the
payment is done upfront. A service fee will be charged in cash on delivery
option. Plastic money can be used 24 * 7 for online purchases.

Is internationally acceptable: One of the main advantages of plastic

money is that the same card can be used locally as well as internationally.
For example, you can get rid of the hassle of converting the cash into the
currency of the country you are planning to travel. If you have an
international debit or credit card, you can make your purchases with that
card itself. So the problem of running out of cash will not happen even if
you are abroad and that helps you to have a safe journey without worrying
about the cash and budget. Sometimes we end up not buying something
that we actually like due to insufficient cash but when you have a credit
card with you, you can always purchase it and pay later. Especially from
abroad as it is not practically possible to visit the country again to buy
stuff.

DEMERITS LIST OF PLASTIC MONEY

Like everything, plastic money also has its own merits and demerits. We should wisely use it
keeping all the below points in mind. If you are clever, you can make use of the cards but not
everyone can be clever. So for those who are not well aware of the cards and its disadvantages
should always be careful to avoid themselves being in trouble. Many people play with cards
and might not end up paying a single penny as interest. Never follow them as not everyone is
smart with cards and we might end up losing money.

Just plastic money won't help always: Plastic money is not a complete replacement for cash.
In certain places, we need cash itself. While buying fish from the market or when paying to the
newspaper boy, we need cash itself as they do not carry POS machine to swipe the plastic
money. Similarly, we pay money at religious places for offerings, there also they do not take
plastic money. Unless we have the facility to use plastic money everywhere, we cannot replace
cash completely. Still, there are small retail shops which do not take plastic money. In villages,
hardly we find any shops that accept plastic money. It makes us necessary to carry some cash
always for our safety.

Plastic Money is also not 100% safe: There is a certain amount of risk involved in transactions
which involves plastic money as well. Especially when doing online shopping. We are exchanging
the details relating to our card over the internet which is not always a safe place.
Some websites are just set up to steal our financial information and loot money thereby. We
should not fall in to such scams and hackers. One should be a smart online shopper in this
world.

Minimum purchase requirements: One of the major disadvantages of using plastic money is
that one needs to make a minimum purchase in order to swipe their card. For instance, if the
minimum purchase is Rs. 50.00; and we have purchased items for only Rs. 40.00, you can't use
your card for this transaction unless you purchase for Rs. 50.00. In this case, you will have to
purchase something unnecessary to make it Rs. 50.00. If we had sufficient cash in hand, we
could have avoided spending extra Rs. 10.00

Service charge in certain cases: When we are using plastic money instead of cash, in certain
cases the bank charges a service charge for the purchase of certain items. For instance, in some
countries, the service charge is levied on card transactions when you purchase gold from
jewelry. When paying cash, this additional charge will not be taken.

Card too can get damaged: Imagine a situation wherein you have made a purchase and when
at the counter you realize that your card is damaged or when trying to swipe, the transaction is
not getting proceed due to some chip error or damage. You will definitely wish if you had some
cash in hand. These cases occur only when plastic money is used. It might be a rare case but
the possibility cannot be completely ignored.

Interest, for non payment: A credit card allows you to purchase today and pay for at a later
period of time. It gives you a credit period, but if we fail to make the payment within the
due date, interest will be charged. When we are using cash, we are not taking any credit
from the bank, hence non-payment does not occur.
 Chapter .2

Research Methodology
Objective

- To study the benefit of debit card .

- To understand the importance of plastic money in daily life of consumers.

- To evaluate the satisfaction level of consumers towards plastic money.

Hypothesis
H0: There is no significant satisfaction of consumers towards
plastic money.
H1:There is significant satisfaction of consumers towards plastic money.
Scope of the study :

It is rightly said that plastic money is a need for an hour. It is seen

that now a days usage of plastic money has increased. Previously people
were very much involved in doing cash transactions. But now plastic
money plays an important role in our economy. After demonetisation that
is on 8th November 2014 plastic money gained significant importance
because of our honourable Prime Minister Narendra Modi. It was a great
initiative taken by him to take out all black money from the economy.
Usage of plastic money is necessary to educate people and make our
Nation cashless economy Plastic money makes transactions easy and
comfortable so that middle class people can also make use of these cards.
Through my study I came to know that there is a very much scope in the
usage of plastic money and there is also a need to use plastic money
because plastic money can be used any where and any time. In the survey
conducted by me I came to know that the need and importance of using
plastic money .
Limitations of the study:

• This study is limited only to Navi Mumbai.

• Data collected may not be accurate due to limited respondents.
• The study does not encourage poor people whose income is
less 1000 per month

Significance of the study

 The importance of plastic money should be convenient and save
time of the customer.
 Increase purchasing power and need not to carry hard cash .
 Customer spend an average of 68.5% more when they pay with
a credit card instead cash . This increase the sale of retailers.
 Bank earn interests and also charge late payment fees .
Statement of the study

“ To study the satisfaction level of consumer toward Plastic

money”.

Sample size

The respondent where collected all is group including

Student,Business,service, Govt.employee
The sample size of 103 respondents.
Data collection

Primary data : primary data refers to the first-hand information

primary data is collected during the survey with the help of
Questionnaire.
Research Approach: Survey method
Research Instrument: Questionnaire

Secondary data : secondary data is collected from published source .

Journal ,report, Books and Internet etc.

Tabulation of data
The data is represented by .
 Pie Diagrams
 Chart Diagram
 Table
Chapter . 3

Literature

Review
INTRODUCTION
Banking has gone through massive transformations in the past decades.
This is a universal fact that banking sector forms the core of any economy.
Banking system captures an important place in a nation’s economy. A
banking institution is indispensable in a modern society. The Banking
sector in India has always been one of the most preferred areas of study.
In this decade, this sector has emerged as a sunrise sector in the Indian
economy.
In this chapter, review of literature has been done for various important
components of banking sector like internet banking, mobile banking,
electronic payment systems, plastic money,
banking sector reforms, technology in banking, ATM banking, etc. The
literature review is one of the important academic requirements. A lot of
work has been done in various areas of banking sector. The following
literature review highlights various aspects related to innovative
interventions like Internet Banking, Mobile banking, ATM services, RTGS &
NEFT services, Plastic Money, role of technology, banking sector reforms
and other important factors related to innovation in banking.

REVIEW OF LITERATURE
1. Subhani in 2008 conducted a study on ‘Plastic Money/Credit Cards
Charisma for Now and Then’. The study was based to find out the charisma
of plastic money, its usability and affordability and its impact on its
preference to use. The research found that thepreference to use of plastic
money/ credit card has its pros and cons with its usability and affordability.
According to the consumer behavior, plastic money is a form of
conditioning and acts as a stimulus which qualifies a consumer to spend.
The study shows that the preference to go for plastic money has a positive
attitude that it is easy to use. The perception of credit card usability is
associated with a psychological phenomena that people are likely to spend
less with credit card and spend more with the same amount of cash on
hand in the same budget and this precept also linked with the consumer
self convenience.
2. Lowenstein and Hafalir in 2012 conducted a study on “The Impact of
Credit Cards on Spending”. The study focused on two types of customers:
one who carry debts and the one who do not carry debt. The one who
carry debt are known as the Revolvers and the one who do not carry debt
are called the convenience users. The study measured the impact of
payment with credit card as compared to cash by an insurance company
employees spending on lunch in a cafeteria. It was found that there was
change in the payment medium of people from cash to a credit card when
an incentive to pay with a credit card was given. It was then found out that
credit cards do not increase spending. However, the use of credit cards has
a differential impact on spending for revolvers and convenience users.
Revolvers spend less when induced to spend with a credit card, whereas
convenience users display the opposite behavior.
3. JiaLokeYiing (2007) Review of network Economics, December, 6 (4). In
his study “Determinants of merchant participation in credit card payment
scheme" aimed at establishment of the determinants of merchant
participation in credit card payment schemes. It is also found that a
merchant’s personal background, type of business and total value of sale
play an important role in determining a merchant’s acceptance of cards in
making payments and it is also found that customer’s usage of credit
cards and other merchants’ acceptance of credit cards in payments have
influenced a merchant’s choice significantly. Findings suggest that non-
pecuniary strategic factors are the strong drivers and barriers to a
merchant’s involvement in credit card payments services as compared to
the monetary factors.

4. Telyukova and Wright (2005) and Zinman (2007) show that

consumers maintain balances in their low-interest-bearing bank
accounts for liquidity reasons, even while carrying high-interest credit
card debt. The authors suggest that a rational consumer may pay
interest on credit card debt to avoid some of the expected costs
associated with not holding precautionary or transactions balances.
5. Zinman (2007a) and Klee (2006) have shown that individuals who
carry revolving credit card balances are significantly more likely than
convenience users to adopt debit.

6. Mandeep Kaur and Kamalpreet Kaur(2008), in their article,

“Development of Plastic Cards Market: Past, Present and Future Scenario
in Indian Banks” conclude that Indian banking sector is accepting the
challenge of information technology as all the groups of bankers have now
recognized it as essential requirement for their survival and growth in
future Despite the strong advances in epayments, an estimated 90 percent
of personal consumption expenditure in India is still made with cash which
indicates the tremendous growth potential of this business. So this can be
considered as mere beginning which indicates the bright future prospects
of plastic card market in India.

7. Alvares, Cliford (2009)The article reports on the problem regarding

fake currency in India. It is said that the country's battle against fake
currency is not getting easier and many fakes go undetected.It is also
stated that counterfeiters hitherto had restricted printing facilities which
made iteasier to discover fakes. According to chief economist Soumendra
K. Dash, the solutionto the problem is to provide people incentive to use
plastic cards and make cashless transactions.

8. Vimala V. and Dr. Sarala K.S., (2013).” Stressed on the Usage and
perception of plastic money among the customers of BOI” with emphasis
of the awareness level, perception and usage of new innovative services in
regards to plastic money.
9. Sushma Patil, 2014 Anupama Sharma (2012)in her research paper .
“plastic card frauds and the countermeasures:towards a safer payment
mechanism” have thrown light on the number of frauds increased
considerably in the usage of plastic cards as in case of plastic card frauds
the most affected parties are the merchants of goods and services as they
haveto bear the full liability for losses due to frauds, the banks also bears
some cost especially the indirect cost whereas the cardholders are least
affected because of. limited consumer liability and concluded that all
these losses can be dealt with by making the prudent use of the new
technology and taking the respective counter measures.

10. Tabrez Haq and Bushra Malik, (2014).”Consumer response towards the
usage of plastic money” with emphasis on increase of shift of plastic
money in India by consumers from Credit cards to Debit cards -The
distribution of plastic money has increased due to the fact that banking
sector has become more aggressive. Moreover, duplication of users is an
important area of concern for the industry which can exaggerate the
number of active users. The present paper makes an attempt to
understand the after effects of recession onplastic money industry and its
impact on consumer preferences. The paper duly investigates the
acceptability of the cards among the Indian consumer and the factors
influencing the card choice.

11. Nirmala. R. Sonu (2015): ANALYSIS OF THE USE OF PLASTIC

MONEY
highlighted the advantage of instant transaction as one of the major
factors favoring the use of plastic money over real money by the
population today. It has already been highlighted by the study that
convenience of not carrying cash and ease of transaction is one of the
major psychologically influencing factors that encourage the use of plastic
money instead of real money. Additionally, the results of the study have
also stressed upon the convenience and ease of use while paying or
shopping by plastic money.
The saving of time and the fact that the plastic money seems to be more
portable also seems to further the cause of a possible change in the
scenario of money usage in the economy. On the other hand, Security
comes forward as a major cause for concern for the population using
plastic money. Therefore, it is easy to conclude that the population is
ready as ever to use plastic money at a greater level due to its high levels
of ease and convenience.
Chapter 4.Data Analysis ,Interpretation
and Presentation.
1. Gender

Choise % Count
Male 48.54 50
Female 51.46 53

Chart Title
count%

50
male
48.54

53
female
51.46

Interpretation: The response obtained for the question, ”plastic money

consumer towards’ has been presented of the above chart . the male
respondent are 48.54 and female respondent are 51.46.
2. Age
Choise % Count
18-35 78.64 81
35-50 18.45 19
Above50 2.91 3

%
above50 3%

35-50
18%

18-35
79%

Interpretation: The response of the question for age group has been
presented of above chart .The age 18-35 was responded 78.64% and 35-
50 responded 18.45% and above 50 was responded 3%.
3. occupation

choices % count

student 55.34 57

Business 14.56 15

service 17.48 18

Govt.employee5.83 6

other 6.8 7

%
govt.employee 6%
other
7%

service 17%
student 55%
business 15%

Interpretation: The respondent of questionnaire should be profession will

be student are 55% response and business person should be 15%and
service are17%
and 6% are government employee will be response and other person
should 7% response of plastic money .

4. Monthly income

choices % count

>20000 63.11 65
25000-35000 28.16. 29
35000-50000 6.8. 7
above50000 1.94 2

>2000025000-350035000-50000above50000
Interpretation: Interpretation :The respondent of questionnaire should
be no income will be are 63% because more respondent are students and
0-20000 should be 28% ,40000-60000 should be 7%and above 60000
should be 2%

5. Do you use plastic money?

choices % count
yes 84.4787
No 15.5316

Chart Title

count

0 20 40 60 80 100

Noyes
Interpretation: The people use plastic money will be answer yes should
be 84.47% and plastic money do you use should be response no will be
15.53%.

6. If yes, which type of plastic money do you money use?

Choise %. Count
Debit card 38.83 40
Credit card. 27.18 28
ATM card. 29.14 30
Prepaid card 1.94 2
Any other card. 2.91 3
 %

debit cardcredit card ATM cardprepaid cardany other card

Interpretation:many of respondence answer will yes do you use plastic

money but different types of plastic money used Debit card
was38.83%,Credit card is 27.18%,ATM should be use 29.14%,prepaid card
will be use 1.94%,and any other card should be 2.91% thise type of plastic
money use of public .

7. According to you which is the most convenient way of payment?

Choise % count
Cash 36.89 38
Card 43.69 45
Both 19.42 20
 Chart Title

cashcardboth

Interpretation :According to responded should be convenient way of

payment will be cash payment was 36.89%,card way of payment should
be 43.69% and both was using way of payment19.42%.
 8. Do you know the difference between debit card and credit card?

Choise % Count
Yes 73.8 76
No 26.2 27

Chart Title
80

70

60

50

40

30

20

10

0 % count

yesNo

Interpretation:The difference between of debit card and credit card will

be know of people should say yes 73.8% and people should say No
26.2%.

9. How do you pay utility bills?

Choise % count
Cash 23.30 24
Card 52.43 54
 Both 24.27 25

Chart Title

both

card

cash

0 10 20 30 40 50 60

count%

Interpretation: Responded say different way pay bill in cash Payment

23.30%,card way of pay utility bill was 52.43% and also both way
payment of bill will be 24.27% do you pay utility bill.

10. while purchasing luxury goods how do you do the payment?

 Choise % count
Cash 27.18 28
Card 51.46 53
Both 21.36 22

both

card

cash

0 10 20 30 40 50 60

count%

Interpretation:The customer purchase luxury goods and payment should

be pay in cash is 27.18% , 51.46%should be using a card way to pay bill
and both option will be use 21.36%.
 11. Do you find plastic money to be the safest mode of transaction?

Choise % count
Yes 70.87 73
No 29.13 30

no 29%

yes 71%

Interpretation: The plastic money to be safest mode of transaction will

response to customer should yes 70.87% and not safe mode transaction
will give response 29.13% answer No.
 12. why do you prefer plastic money ?

Choise % count
Easy way of payment 26.21 27
Any time any where 56.31 58
Transaction
Any other reason 17.48 18

Chart Title
70

60

50

40

30

20

10

0
choise % count

Series1Series2Series3Series4

Interpretation: Do you prefer plastic money customer should say1. easy

way of payment 26.21%.2.Any time any where transaction 56.31%3.any
other reason 17.48%should prefer plastic money.
13. why do you not prefer plastic money?

Choise % count
Lack of knowledge 43.69 45
Lack of trust 21.36 22
Any reason 34.95 36

any other reason

lack of trust

lack of knowlege

0 10 20 30 40 50 60 70 80 90100

%count
Interpretation:people should say do not prefer plastic money was
response 1.lack of knowledge43.69% 2.lack of trust 21.36%3.any reason
should be 34.95% that type of response of customer give.

14. Do you find credit card more expensive as many expenses are
charge to it ?
Choise % Count
Yes 73.79 76
No 26.21 27

Chart Title

0 10 20 30 40 50 60 70 80

noyes
Interpretation : Majority of the sample agrees and feels Credit Card is
expensive as many other charges are charged on it. 74% of the sample
strongly agrees that cards is the reason they opt for plastic money.

15. Which type of money do you consider more reliable and secured?
Choise % Count
Paper money 49.51 51
Plastic money 51.49 52

Chart Title
52.5

52

51.5

51

50.5

50

49.5
Axis

49

48.5

48
paper money plastic money % count
49.51 51
51.49 52
 Interpretation : :50% customers will use plastic money because its more
reliable and secured and 50% customer use paper money.

16. Do you think more use of plastic money?

Choise % Count
Yes 74.76 77
No 25.24 26

Chart Title
90

80

70

60

50
Axis

40

30

20

10 % count
yes 74.76 77
0 no 25.24 24
Interpretation: majority of customers are use the plastic money. 75%
customers are think that use of plastic money is more and 25%
customers are think that use of plastic money is less.

17. Do you think after demonetisation the usage of plastic money has
increase ?
Choise % Count
Yes 85.44 88
No 14.56 15
 Chart Title
100

90

80

70

60

50

40
Axis

30

20

10

% count
yes 85.44 88
no 14.56 15

Interpretation : :After demonetisation the usage of plastic money has

increased for this question customer will response should be yes 85% and
15% No.
Chapter 5: conclusion and suggestion
CONCLUSION
There is no doubt that the plastic money is rising up in the market.
The day will come when all the transaction will be done through plastic
money, yet there are more further technologies which have been
implemented in Japan and US but India is still growing in its first phase. The
day will come when all the train tickets would be purchased by credit cards.
People will storekeeping bunch of cards in their pockets instead of
currencies. The day will come when the cinema tickets will be purchased
through credit cards.
Thus in these growing phenomenon theredoesn‘t seems any declination
instead it growing at a higher rate.THIS END WILL ONLY INCREASE .In the
last two years, spending pattern through plastic money has changed
drastically. Travelling, dining and jewellery are the top three purchases
that Indians make through credit cards. Two years ago, 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. Consumers were
not only more open to the possibility of owning a financial card, but were
also more than willing to use their cards to settle dues. The status symbol
aspect of owning and using cards, too, played its part in bringing about
such robust growth over the space of a single year.
At last it is concluded that plastic money has a very bright future in
the coming years because of the increasing trend of ecommerce. 21st
Century banking has become wholly customer-driven & technology driven
by challenges of competition, rising customer expectations & shrinking
margins, banks have been using technology to reduce cost & enhance
efficiency, productivity & customer convenience. Technology intensive
delivery channels like net banking, mobile banking, etc have created a win-
win situation by extending great convenience. & multiple options for
customer. From educating customers about credit cards there is a need to
educate them about the differentiating factors of the cards. Because visa
and master card are advertising regularly and thereby increasesawareness.
The strategy should be to emphasize on its differentiating characteristics.
They also need to identify potential customers and target those using
mailers. As internet is growing at a fast rate the net users can be targeted
by having interactive sites.
Chapter 6: Annexure
 Questionnaire :
Name of respondent :
1) Gender :
• Male
• Female
2) Age :
• 18-35
• 35-50
• Above 50
3) Profession :
• Student
• Business
• Service
• Government employee
• Others
4) Monthly income :
• No income
• 0-20,000
• 25000-35000
35000-50000
• Above 50000
5) Do you use plastic money ?
• Yes
• No
 6) If yes, which type of plastic money do you use ?
• Debit card
• Credit card
• ATM card
• Prepaid card
• Any other card
7) Do you know the difference between Debit card and Credit card ?
• Yes
• No
8) According to you which is the most convenient way of payment ?
• Cash
• Card
• Both
9) What type of payment do you prefer for household expenses ?
• Cash
• Card
• Both
10) How do you pay your utility bills ?
• Cash
• Card
• Both
11) While purchasing luxury goods how do you do the payment ?
• Cash
• Card
• Both
12) Do you find plastic money to be the safest mode of transactions ?
• Yes
• No
13) Why do you prefer plastic money ?
• Easy way of payment
• Any time any where transactions
• Any other reason
14) Why do you not prefer plastic money ?
• Lack of knowledge
• Lack of trust
• Any reason
15) Do you find Credit card more expensive as many other expenses
are charged to it ?
• Yes
• No
16) Which type of money do you consider more reliable and secured ?
• Paper money
• Plastic money
17) Do you think more use of plastic money ?
• Yes
• No
18) Do you think after demonetisation the usage of plastic money has
increased?
• Yes
• No
Bibliography
 Books referred
 Digital banking
 Organization of commerce and business management text book

 Journal
 Political and economic weekly

 Website
 http//slideshare.net/mobile
 http//www.scribd.com