Plastic Money

Topics: Credit card, Debit card, Money Pages: 4 (1141 words) Published: March 25, 2013
•Plastic money are the alternative to the cash or the standard ‘Money'. •Plastic money is the generic term for all types of bank cards, credit cards, debit cards, smart cards, etc.

The :plastic” portion of this term refers to the plastic construction of credit cards, as opposed to paper and metal of currency. The money portion is an erroneous reference to credit cards as a form of money, which they are not. Although credit cards do facilitate transactions, because they are a liability rather than an asset, they are not money and not part of the economy’s money supply.

Paper money was first used in China around the seventh century AD, only to be outlawed in 1455. The use of folding currency re-emerged in England in 1694. The biggest problem which was occurring with the paper note is the wear; the paper note has very small life due to shifting of ownership by time to time and their usage. Firstly Australia was the first who develop the plastic note which have longer life but after wore they are recycled for further utilizing. The plastic notes also secure the government for copying because paper note easily copied but plastic note cannot be copied. PLASTIC MONEY OR POLYMER MONEY WAS FIRST INTRODUCED IN 1950S

The plastic note are same as paper but the only difference is that they are made of plastic and more secured but in traveling and shopping people used to carry huge cash which was very unsecured and also increasing crime rate. Then the cards are introduced in the world to resolve the issue of carrying huge cash. Then the cards are known as Plastic Money. The usage of plastic money(Cards) has increased in the mode of payment of huge amount and time by time there are lots of different types of plastic money has introduced which enhanced the features of plastic money like we can use it to anywhere in the world and etc. Now the world is becoming globalize so every card is...
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