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PLASTIC MONEY

By Sutapa Chakraborty

.Debit Card  A debit card (also known as a bank card) is a plastic card which provides an alternative payment method to cash when making purchases .  History of debit card dates back around 20 years ago which highlighted the introduction of e-commerce and alternative means of payment.

 The use of debit card boomed to 28.Cont…. like a checking account.  The debit card deducts the balance from a deposit account.4 million in 2016.8 million in 2006 and is expected to reach 34. whereas the credit card allows the consumer to spend money on credit to the issuing bank. .

Advantages  A debit card has several of the advantages of a credit card in terms of convenience and reducing the use of cash and checks.  We can't use a debit card to obtain credit.  Furthermore. This can be an advantage since you can only buy what you can afford . we don't have to worry about making regular payments or paying interest rates and penalties if we forget to make a payment. . In that sense. a debit card is more convenient than a credit card.

it is less secure than a credit card. A consumer who is not credit worthy and may find it difficult or impossible to obtain a credit card can more easily obtain a debit card. An unauthorized user may be able to clean out our account very quickly. . allowing him/her to make plastic transactions.Disadvantages   The debit card is linked to our account. This is why it is important to be especially careful when using a debit card.

Online debit ….offline debit…    Online debit cards require electronic authorization of every transaction and the debits are reflected in the user’s account immediately. . Offline debit card may be subject to a daily limit. Transactions conducted with offline debit cards require 2–3 days to be reflected on users’ account balances. Most online debit transactions are handled by regional ATM networks. and/or a maximum limit equal to the current/checking account balance from which it draws funds.. VISA and MasterCard .

500 crore worth of transactions occured during April-October of FY09. total spending through debit cards was a little over Rs 12. during the whole of FY08.Recent Trends Debit card usage rising faster than credit cards  RBI data shows that during the first seven months of the current financial year (2008-09 ). .  While nearly Rs 10. payments through debit cards crossed 80% of the total transactions recorded in 2007-08 .500 crore.

That is about 69% of last fiscal's total transactions were achieved during the first seven months of the current fiscal. .Cont.. nearly Rs 40.000 crore worth of transactions were done.  On the credit card side. against Rs 58. during April-October of FY09.000 crore done during the whole of FY08.

. One can use a visa debit card to carryout the day to day transaction.Cont…  A Visa debit card is a debit card with the Visa logo embossed on the front face of the debit card.  Debit cards can also allow for instant withdrawal of cash. where a customer can withdraw cash along with their purchase. acting as the ATM card for withdrawing cash and as a cheque guarantee card. Merchants can also offer "cashback"/"cashout" facilities to customers.