Plastic Money

4134 Words Mar 3rd, 2013 17 Pages
PLASTIC MONEY AND ITS USE

INDEX

SerNo | Subject | Page No | 1. | Chapter 1 : Emergence | 2-4 | 2. | Chapter 2 : Types of Plastic Money | 4-6 | 3. | Chapter 3 : Future Scenario of Plastic Card | 6-7 | 4. | Chapter 4 : Plastic Money by South Indian Bank | 8-9 | 5. | Chapter 5 : Advantages and Disadvantages | 9-13 |

PLASTIC MONEY AND ITS USE

CHAPTER 1

EMERGENCE

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
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Then that impression was billed to the customer and due in full each month. Several American Express cards still operate like this.

Debit Card Emerge. The Visa association of cards took credit cards to a new level in 1989 when they introduced debit cards. These cards linked consumers to their bank accounts. Money was now drawn from a bank account at the point of sale with these new cards replacing cheque writing. This helped the merchants check that money was available and made it easier to track customer if the funds could not be obtained. Consumers liked the convenience of not having to write cheques at the point of sale, which made debit cards a safe alternative to cash and cheques.

The Future. There were almost 29 million debit card users as of 2006, with a projected 34.4 million users by 2016. However, online services like PayPal etc are emerging as a way for people to pay their debts in new, secure and convenient ways. Technology also exists to have devices implanted into phones, keys, mobiles and other everyday devices so that the ability to pay at the point of sale is even more convenient.

CHAPTER 2

TYPES OF PLASTIC MONEY

Credit Card

A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder’s promise to pay for these goods and services. When a purchase is made, the user would indicate consent to pay by signing a receipt with record
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