What is Plastic Money? Uses and Limitations

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 debit cards, ATMs, smart cards, etc.

The plastic note is the 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 the crime rate. Then the cards are introduced in the world to resolve the issue of carrying huge cash. Now the world is becoming globalize so every card is accepted everywhere with the power of VISA which interconnects the different countries.

Plastic Money Types

Uses of Plastic Money

  1. Offer free use of funds, provided the customer to pay the full balance in time.
  2. It is more convenient to carry than cash.
  3. It helps in establishing a good credit history.
  4. Provide a convenient payment method for purchases made on the Internet and over the telephone.
  5. Give incentives, such as reward points, that we can redeem.

Limitations

  1. Cost much more than other forms of credit, such as a line of credit or a personal loan, If the customer does not pay on time.
  2. Damage customer credit rating if the payment is late.

Advantages

  1. Globalization.
  2. Quick service.
  3. Security.
  4. Less Botheration.
  5. Add-On-Facility.
  6. Home and Online Shopping.
  7. Educations level of customers.
  8. Monthly income of the customer.
  9. Low bank charge.
  10. The reputation of the bank.