PLASTIC MONEY& IT’S ADVANTAGES

BYM.SHIVA

PLASTIC MONEY

A PLASTIC MONEY is generally a credit or debit card with a magnetic strip many people carry in their wallets or purses is the end result of complex banking process

BIRTH OF PLASTIC MONEY

• It all began in the year 1951• New York based bank called Franklin national bank

Who can be the (credit & debit) card holder

A person who earns a salary of Rs.60,000/- per annum is eligible for card He should have a savings current account

A statement of annual or monthly income

He is considered credit worthy up on to Certain limit depending up on incomeassets and expenditure

Advantages of plastic money to banks

Store feesInterest feesLate payment feesHigh annual feesReduced work at branches due to reduced handling of cash, and clearing transaction

Advantages of plastic money to Customer

Convenience- It can save you time & trouble

Instant cash- cash advances are quick & convenient

Record keeping- CC statement can help you track your expenses

Purchasing power-cards made it easier to purchase things. Now we don’t have any need to carry hard cash in a large amount.

Credit Limits-You get an extra amount to spend with your card. This extra spent money you can return before a fix time schedule

 Mostly credit card offer additional benefits, as discount from some particular stores, bonus in airline fare, free insurance policies and much more

Advantages of plastic money to merchants

Higher spending- Consumers spend an average of 68.5% more when they pay with a credit card instead of cash

Greater reliability-With the benefit of a merchant account, you could have guaranteed payments without fear of bounced or missing checks

Faster than invoicing- Invoice payments could potentially take up to 90 days and require more administrative time than card payment

Makes you more competitive: A

recent survey found that 29% of customers preferred to pay for retail purchases with credit cards, while notably fewer (24%) preferred to use cash