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PLASTIC MONEY

There has been a growth on electronic payment due to the shift in technology, growing access to internet among the customers and convenient modes of delivery and payment. Plastic money also known as Plastic cards act as a vital tool for every day transaction of people today. The various Plastic cards include ATM cards, Debit Card,ATM cum Debit Card, Credit Cards, Smart Card, Charge Cards, Co-branded cards, add on cards and so on. ATM Cards Automated Teller machine (ATM) cards are capable of doing variety of functions. It can perform both cash and non-cash transactions in secured environment. -ATM Cash Transactions includes deposits and withdrawals -Non cash transactions incude * Providing Mini Statement of last five transactions. In some banks up to last ten transactions * Balance enquiry * Stop Payment instructions * Transfer of funds between acounts * Requisition of Cheque books,drafts etc. * Bill payments ( electricity bills,Telephone bills etc) Debit Card: The bank issues debit card only if the person has an account in the bank.This card is useful to make payment from Member Establishments (ME) who have arrangements with the card issuing bank or agency.They check the balance and deduct the amount from the bank balance online. When a debit card is issued to make the payment,the total amount charged is instantly reduced from the bank balance of the account holder. All credit and debit cards are affiliated to two major issuers-VISA and Master Card.Master Card and VISA are global non-profit organizations who promote the growth of the card business throughout the world.They have built vast network of Member Establishments so that customers can use the cards worldwide for their debit and credit purchases. Debit Cum ATM Card: This is most common nowadays. The same debit card can be used to draw cash from the ATM and also make payment to the shops for purchases. This is two in one card.

Credit Cards: This card enables the client to obtain goods or services from the various shops having arrangement with the issuing agency even if there is no balance in his/her savings or current account.The bank assumes that the loan will be repaid by the customers at later date.The credit card holder has to make payment for the dues before the due date. Otherwise late payment fee is levied in the next billing statement. Normally ,a limit of the credit will be fixed by the bank for the amount of purchases to be made by the customer based on the net worth of the customer. Charge cards: A Charge card has all features of credit card. But, after using the charge card the entire payments of the bills has to be made by the due date. If it is failed to be done, then the client is likely to be considered as a defaulter and he has to pay a steep late payment charges. But in case of Credit cards, the client is not declared as a defaulter if he misses to pay by due date..In such case,a late fee is levied in the next billing statements of the credit card holder. AMEX (American Express) and Diners Club card are well known branded charge cards.They have their own merchant establishments and tie ups and does not depend on the network of Master card or VISA. These cards are typically meant for the high income group categories and companies. These cards are not acceptable at many outlets. But wide variety of special privileges are enjoyed by the AMEX card holders and Diners Club Cardholders. Smart Cards: A smart Card contains an electronic chip which is used to store Cash. This is most useful to pay for small purchases for example in Fairs, coffee shops etc. No identification, signature or payment authorization is required for using this card. The exact amount of purchase is deducted from smart card during payment. Currently, this product is available in very developed countries like US. Affinity Card: The card issuer has a tie up with popular organizations and institutions which are often non-profit organizations like Stan chart Cricket Cards or City WWF card. When a card is used, a certain percentage is contributed to the organization or institution by the card issuer. Photo Card: When a Photo is imprinted on the card,it helps to identify the user of the credit card and is considered to be safer. In many cases,Photo card can also be used as identity card. Global Card: Global cards can be used as credit cards instead of cash and traveler cheques while traveling abroad to foreign countries for business or personal reasons.

Add On Cards: It is a privilege offered to the spouse, parents, Children or other family members of the original card holder.Normally, an issuing bank permits two add on cards per credit card. All expenses incurred on add on card are billed to the primary card holder. Petro Card: Some Petroleum companies allow customers to pay for the fuel through electronic medium.It offers a scheme of gifting the points to the customers,when they pay for the fuel using petro card.It is convenient, secured and speedy mode of transaction. Co-branded credit cards like IOC-Citi bank and HPCL-ICICI bank are the co-branded petro cards avaiable in the market. Today, the Indian mode of payment has shifted from currency to electronic mode.This is due to the high money valued transactions and more risk involvement. The new electronic payment and settlement act should follow the strict norms for banks and merchants to make secure payments and prevent money laundering as the transactions through plastic money will be increasing and increasing in the near future. Important Steps involved in processing of credit cards Includes: Verification of the document This is only the primary stage of credit card processing. In this step the documents you supply when you applied for a credit card is verified. In this modern era presenting a false document to get the benefits of credit card has become very common. So it is important that the credit card issuing organization pays special attention to verify the address and income as provided in the documents submitted with the application to make sure that it doesnt provide a credit card to an inadequate person. Verification of the credit scores An important role is played by this step to find the right person who deserves a credit card. To accomplish this step the credit score of the applicant should be verified and also his/her credit history. This step will also determine the limits of the credit card. The person in charge will check the previous credit records of the applicant from the credit bureau and provide the updated information to the institution for further processing. Verification of the Security Security plays an important role of setting the credit limit in case of secured credit cards. The officials in charge submits a file related to the security that contains details like the value of the property, confirmation of the ownership of the property and also the presence or absence of liabilities on the property. Submitting the credit card to the applicant This is the last step where the credit card is give to the applicant. This step alone takes a day or two after the completion of verification. Processing of credit card is beneficial for an organization to evaluate the authenticity of the documentation submitted by the applicant. The vigor of card processing allows you realize the authenticity of the credit card issuers, which helps to avoid scams.