Plastic Money

Using plastic cards in place of physical cash is now a common phenomenon. These cards are called plastic money. Debit cards & credit cards are good examples of plastic money. Plastic money has provided us with the ease of conducting transactions in our day to day life. It has definitely replaced cash transactions to a great extent all over the world and has emerged as an essential form of ready money. It has made it too easy for us to buy things we normally could not afford and in such a scenario it is important to understand the merits and demerits of plastic money.

Plastic money has not only provided us with convenience, but it has also eliminated the inconvenience that is caused by carrying cash. For instance, when the job of a working executive involves a lot of inter-state travel he/she has to entail numerous expenses like travel, stay, food etc. In such a case it is not only troublesome to carry money but also there is a risk of theft.

With credit or debit cards being used, one benefit is the reduction in robberies and crimes. It is very difficult to hack the PIN of a card, for which a person needs to know specific techniques. Thus the credit & debit cardholders can be sure about the safety of his/her money to some extent. Also if the card is stolen, the credit or debit cardholder can ask the bank to block the card to prevent its misuse.

With the advent of credit cards, an individual can avail of the benefits of a credit facility and pay at a later date. This kind of benefit is not available when cash is being used for making purchases. Also, credit cards eliminated the need to depend on people to borrow money in case of emergencies and financial needs.

Owning an international debit or credit card provides international acceptability and the ease to make purchases with that card itself rather than facing the inconvenience caused by the conversion of currency.

Plastic money eliminates the problem of fake currency notes.

Credit cards and debit cards can be used easily for making online payments, transfer of funds and various other transactions. It is very easy to make payments from any place through plastic money. Further, some online retailers also provide discounts on making payments through credit and debit cards. There are several places where there is a need for cash only. For instance purchasing utilities from a small retailer or for payments to the milkman, newspaper boy, etc. Still, not everyone knows how to use technology. Further religious places like temples generally accept cash as offerings. Thus plastic money cannot completely replace cash and thus cannot be used everywhere.

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