In this article, we will know what is plastic money and what are the advantages and disadvantages of plastic money. Technology has changed the transaction behavior of money. It all started with a simple credit card that lets you shop first and pay later. In addition, most banks have given you an ATM card or debit card that can be used to withdraw money, make online and offline purchases or make payments.
What is Plastic Money
Plastic money is a term that is mainly used to refer to the hard plastic cards we use every day in place of actual banknotes. It can come in many different forms like –
- Cash card
- Credit card
- Debit Card
- Pre-paid cash card
- In-store card
Advantages of Plastic Money
There are many benefits of plastic money, some of which are as follows –
- In the case of cash, there is a high risk of losing cash and having cash stolen. However in case of Debit/Credit card you can report the matter to the bank and block the card to avoid misuse.
- This eliminates the need to carry heavy loads of cash which is risky and also inconvenient.
- Using the card anytime and anywhere gives you the unique advantage and convenience of using it anywhere in the country or abroad.
- In case of credit cards, you have the option of making purchases on credit or paying later. Though the charges are high, it helps you in case of emergencies and contingencies.
- You can use the card for online payments, fund transfers and many other transactions.
Disadvantages of Plastic Money
There are also some disadvantages of plastic money, which are as follows –
- Cards or plastic money are not a true replacement for cash.
- In some cases, the use of the card can also be risky, such as in cases of online fraud.
- Small shopkeepers in India, plastic money is negligible in the village and countryside.
- Once the card is lost, you have to report it immediately and get the card blocked to avoid misuse. Sometimes when you are not aware that you have lost the card, there is a possibility of misuse.
- Overuse of credit cards hinders the long-term improvement of the financial condition of the customer.
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