Plastic Money Essay for Students and Children
Essay On Plastic Money: Most payments in India are made with plastic money, which is money that is paid for with a debit or credit card. In this Essay On Plastic Money, we will talk about what is plastic money, the importance of plastic money, and different types of plastic money. You can also find more Essay Writing articles about events, people, sports, technology, and many other things at Utopper.com.
Since the beginning of time, money has always been seen as an important way to exchange goods and pay for things. When we didn’t have money, we used a system called “barter” to pay for things.
500 Words+ Essay On Plastic Money in English
Money has changed over time from coins to paper bills. With the fast growth and exponential change in technology, the way people use plastic money has changed a lot. Coins and bills are hard to handle and cost a lot of money.
They are being replaced by electronic payments that can be started by different types of plastic cards. This is an exciting prospect for the 21st century. In the 1950s, plastic money was first used. It can be used instead of cash. This term refers more specifically to credit cards, debit cards, and other cards that can be used to pay for things.
What do you mean by the term “plastic money”?
Cards are being used more and more in place of cash. These cards are called “plastic money.” Plastic money is what debit and credit cards are. Plastic money has made it easier for us to buy things and pay for things every day.
It has replaced cash payments all over the world and become an important way to get money right away. It has made it easier for us to buy things we couldn’t afford without some of the best credit cards on the market.
History of Plastic Money
When the first payment card was made in the United States in the 1920s, plastic money was born. Diners Club and American Express made the first plastic card in 1950 in the United States. In 1951, the Diners Club was the first company to offer a credit card.
After 1970, when a magnetic strip was added, plastic cards became more common. At the end of the 1990s, people started using plastic cards, and by 2001, plastic money had become an important form of “ready money.”
Plastic Money in India
During the 1990s, Indian banks worked hard to make plastic money in the form of cards. When it first came out, Indian customers didn’t like it very much. Changes in consumers’ income, marital status, level of education, etc., as well as improvements in technology and a greater understanding of it, have led to changes in their preferences.
Because of these changing tastes, they have also changed how they think about and decide whether or not to buy certain products and services on the market. So, both bankers and customers are becoming more interested in and accepting of plastic cards in the market.
Credit Card
The person who has a credit card can use it against a line of credit approved by the bank or other organization that gave them the card. Most of the time, the card issuer lets the cardholder pay back the amount used in full or in part (monthly minimum repayment).
The card can be used at point-of-sale machines in stores to pay for goods or services. The card can also be used to buy things online and do business through e-commerce.
Debit Card
With a debit card, the cardholder can use an ATM to get money directly from his or her bank account. It also lets the user swipe the card at a merchant’s point of sale (POS) device to pay for goods or services.
The same card can also be used for e-commerce and online shopping. In India, the debit card market is doing well. After being introduced in the mid-1990s, debit cards quickly became popular and were used by more and more people.
ATM Card
Most of the time, these cards are used at ATMs to get cash, transfer funds, and make deposits. To use an ATM card, you put it into a machine and put in a PIN or personal number for security. Before allowing a transaction, the system checks to see if there are enough funds in the account.
Charge Card
This card is just like a credit card in every way. With a charge card, the customer can pay the full amount of the bill at the end of each billing cycle. If you don’t pay on time, you’ll have to pay high fees for being late.
Smart Card
A smart card uses an electronic chip to store cash. It is mostly used to buy small things, like tea or a bus ticket. This card doesn’t need any kind of ID, signature, or permission to make a payment. The machines that read smart cards take the exact amount of the purchase from the card when it is used to pay. It is only used in countries with a lot of money, like the US.
Co-Branded Card
Co-branded cards are credit cards that give the customers special benefits when they shop at different places. They are given out by card companies that work with well-known brands. With this kind of card, shoppers can earn points that they can use to buy more things and get discounts.
Add-On Card
An add-on card is an extra credit card that doesn’t count against the total credit limit. These are given to family members, such as the father, mother, spouse, brother, sister, and all children over the age of 18. The details of how the add-on card was bought are on the main billing statement. In India, this card is becoming an easy way to pay for things.
Issues and Challenges
Plastic cards were made so that transactions could be done quickly and easily. Even though it has different benefits for different users, some problems or threats can happen. Here are some possible problems with plastic money:
- Shops that take credit cards: Many shops only accept credit cards from a certain company. In this case, cash is the only way to pay. It’s not a good idea to have high-interest loans and spend the money on things you don’t need or as payment for people who use your credit card for another business.
- Less availability: There are times when companies won’t let their cards be used in certain areas because of a dispute in that area.
- High-interest rates and more debt: If a person doesn’t pay their credit card bill on the due date, companies and banks will charge them high-interest rates. This is how the institutions that make the cards make money (like banks).
- Fraud: If someone steals your credit card, they might use it right away to get your information. Today, you can get a clone of any debit or credit card, which works the same as the original card and is a big loss. So, customers need to know about credit card scams.
- Service charge: Sometimes, when you use plastic money to buy something, the bank will charge you a service fee.
- Card damage: The magnetic strip on the customer’s card is broken, or when they try to swipe it at the counter or ATM, the transaction doesn’t go through because of a chip error or damage. Only when plastic money is used do these things happen. Even though it might not happen very often, it is still possible.
Summary
People prefer debit or credit cards over cash in the digital age. Plastic money became more popular in the digital age. Social and technological advancements are changing the banking landscape.
The market is seeing increased availability of sophisticated technologies that can enable cashless transactions, but the perceived disadvantages, such as the need for high IT investment by various service providers, security concerns, lack of technological awareness, and the traditional mindset of Indians who prefer physical money, seem to outweigh the potential benefits.
