PLASTIC MONEY AND ITS USE
| Page No
| Chapter 1 : Emergence
| Chapter 2 : Types of Plastic Money
| Chapter 3 : Future Scenario of Plastic Card
| Chapter 4 : Plastic Money by South Indian Bank
| Chapter 5 : Advantages and Disadvantages
PLASTIC MONEY AND ITS USE
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 credit cards, debits cards, ATMs, smart cards, etc. This article on plastic money is divided into two portions titled Concept and Experiences. The former covers the emergence of plastic money, different types of plastic cards, their growth in India and other related issues. The later portion covers the experiences of banks like South Indian Bank (SIB), which deal with plastic money and their importance in the market.
OBJECTIVES OF THE STUDY
The following objectives are identified:-
Primary Objective. To know the usage and adaption of plastic money.
Secondary Objectives. Secondary objectives are as under:-
- To know the importance of plastic money in the daily life of consumer’s with
reference to credit and debit cards.
- To study the benefits of debit card & credit cards.
- To find out the market leader among the various banks/ companies issuing
credit and debit cards.
- To know the problems faced by respondents using plastic money.
- To study the satisfaction level of consumers towards plastic money.
Need of the Study
It is rightly said plastic money is need of the hour. People are using these cards on a vast scale. But after considering the material available on the subject, it is seen that the whole payment process of processing these cards is not safe and customer are facing many problems related to plastic money. That is the reason why the study is being focused on consumer prescription regarding plastic money. Need of the study is to get to know about the comparative analysis of plastic money. Meaning. Plastic money refers to smart cards, which are used by individuals or corporates in place of money to get a credit value or to give debit value. In addition plastic or polymer notes are used as currency too. However, in this article, the same is not discussed.
Definition. A slang phrase for cards, especially when such cards are used to make purchases. The “plastic” portion of this term refers to the plastic construction of cards, as opposed to paper and metal currency. The “money” portion is an erroneous reference to these cards as a form of money, which they are not, although all cards do facilitate transactions.
The History of Credit Cards and Debit Cards in Banking Industry
Plastic cards have evolved into a safe and secure manner to purchase goods and services. The internet has given credit card users additional purchasing power. Banks have options like cash-back rewards, savings plans and other incentives to entice people to use their cards. Debit cards allow people the convenience, security and rewards; opposed to cheques or cash.
Credit Card Origins. The first credit cards were issued by individual stores and merchants. These cards were issued in limited locations and only accepted by the businesses that issued them. While cards were convenient for the customers, they also provided customer loyalty and customer service benefit, which was good for both customer and merchant. It was not until 1950 that the Diner’s Club card was created by a restaurant patron who forgot his wallet and realized there needed to be an alternative to cash transactions.
Plastic Becomes the Standard. The first Diner’s Club cards were made out of cardboard or celluloid. In 1959...
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