Consumer Behavior towards Plastic Money
Meaning: Plastic money is a term that is used predominantly in reference to the hard plastic cards we use every day in place of actual bank notes. They can come in many different forms such as cash cards, credit cards, debit cards, pre-paid cash cards and store cards. A credit card is a method of payment and it can make payments on behalf of cash. And you can use your credit card in any time to buy a product or a service and it will be the standard payment method to your merchant or service provider. But it should be an acceptable credit card for that merchant or service provider. And you can get cash withdrawals using your credit card and normally we called it a Cash Advance. So a credit card is a legal payment method and it’s designed on a standard to accept by the merchants and other banks like a check or a paper money or a coin. You can see cardholder’s name, credit card number and expire date in face side of a credit card and the signature on its backside. There are three kinds of payment cards based on their payment method. Those are credit card, Debit card and the Charge card.
Definition: A phrase used for credit cards, especially when such cards used to make purchases. The "plastic" portion of this term refers to the plastic construction of credit cards, as opposed to paper and metal of currency. The "money" portion is an erroneous reference to credit cards as a form of money, which they are not. Although credit cards do facilitate transactions, because they are a liability rather than an asset, they are not money and not part of the economy's money supply.
Types of plastic money: There are various types of plastic money available and they are stated as follows: Credit Card Debit Card Charge Card Cash Card Store Card
1. Credit Card: While using a credit card there is no need to pay your hard money to merchant or to Credit Card Company instantly. That transaction amount will paid by credit card company to merchant and then one can pay it to credit card company in next month or during your billing period. Credit card company offer the facility of paying your payments during given period and in installments. To the installments Credit Card Company adds their monthly interests and then one have to pay the balance with their interest monthly. The previous month bill including the interest was the subject of the loan in the following month. A credit card has the provisions of the limit that applied to all the member depended on the card type (Silver, Gold and Platinum), minimum amount to pay from the total balance of the bill (like 5%, 10%) and if not paid that amount then fall due that was determined. And if not paid during the billing due date bill amount would subjected to the late payment fee as big as certain percentage from minimum amount and sometimes it will be a fixed amount for a month.
2. Debit Card: To use a debit card you may have a bank account with the credit card company or the bank, because this transaction proceed as like the cash transaction, because of this only if this card holder had the enough available balance to cover the transaction amount can transaction could be only carried out, after the transaction, transaction amount directly credited from the card holders account and debited to merchant’s account in the very same time. If you use a debit card you can do card transactions if have the balance in your account for the transaction and when you did a sale transaction using the card it is a cash transaction by not using cash but the paying off or payment was carried out by means of reduce (debiting) from the balance of the account of the credit card holder and then increase (Crediting) the account of the merchant as much as the transaction to the manager of the bank.
3. Charge Card: When use a charge card, it could be used as the payment implement of a trade transaction of product or the service. Then the cardholder has to set off the entire outstanding amount fully at the end of that month or in the following month with or without the additional charges and fees. Normally, the charge card don’t have the provisions of the credit limit and card holder has to do full payment of all the transactions before the next statement and without used percentage the interest, but card holder not paid full outstanding amount then he has to pay a additional charge called delay fine for his next statement. 4. Cash Cards: A card that will allow you to withdraw money directly from your bank via an Authorized Teller Machine (ATM) but it will not allow the holder to purchase anything directly with it. 5. Store Cards: These are similar in concept to the Credit Card model, in that the idea is to purchase something in store and be billed for it at the end of the month. These cards can be charged at a very high interest rate and can are limited in the places they can be used, sometimes as far as only the store brand that issued it.
Introduction:
Plastic money is the alternative to the cash or the standard 'money'. Plastic money is used to refer to the credit cards or the debit cards that we use to make purchases in our everyday life. Plastic money is much more convenient to carry around as you do not have to carry a huge sum of money with you. It is also much safer to carry it along or to travel with it as if it is stolen one can consult the bank whose service you are using and get it blocked hence saving your money from getting stolen or even lost. Nowadays even developing countries like India are encouraging the use of this plastic money more than cash due to these reasons. Furthermore these credit and debit cards also have plastic used in their making and that is where the name 'plastic money' has originated from.
An overview on plastic money:
Look in your wallet. If you are like an average middle class, living in a metropolitan you probably must have at least one thin plastic card that you use to pay for things at many merchants. Take out one of those cards. The card you picked is about 33/8” long, by 21/8” wide, weighs about a fifth of an ounce, has a magnetic stripe on the back and has a 13 to 16 digit account number embossed on the front. It is called a payment card. Once cardboard, now plastic, the card itself may become an anachronism. The plastic note is same as paper but the only difference is that they are made of plastic. They are more secured as compared to that of paper notes. In traveling and shopping people used to carry huge cash which was much unsecured and also increasing crime rate. Then the cards were introduced in the world to resolve the issue of carrying huge cash. These cards are known as Plastic Money. The usage of plastic money (Cards) has increased in the mode of payment of huge amount and time by time there are lots of different types of plastic money introduced which enhanced the features of plastic money. Now the world is getting globalized so every card is accepted everywhere with the power of VISA which interconnect the different countries.
Advantages and Disadvantages of Plastic Money
Advantages of plastic money
Plastic Money is a must need of our busy life. Today it is very easy to carry money without having a lot of cash or gold. Keep Credit or Debit cards and forget the cash money. This is a new idea of present life-style which has made money transition so easy that anybody can carry it with him or her in a pocket. Today plastic money is the best alternative of the cash. It is also safer to traveling with a plastic money card than cash. If it is stolen you may contact to bank immediately and can block your money from getting stolen. It gives you also better option as extra purchasing capacity, protection of money and much more. 1. Purchasing Power: Credit or Debit cards made it easier to purchase things. Now we don’t have any need to carry hard cash in a large amount. Plastic money is accepted everywhere, anytime. 2. Time Saving: Through a credit card or debit card you can purchase anything from anywhere without spend money on fare or cash transition. Just provide your card details to seller store or companies and finalize your order. Now you don’t have need to worry about time wastes. Use internet for minimum time consuming. 3. Extra Safety: While you are not carrying cash, how can it be lost? But if your card has lost, just contact to your bank or financial institution, which provide you cards. It will block the account and nobody can draw a single coin without your permission. So it is 100% safe without any tension. 4. Credit Limits: You get an extra amount to spend with your card. This extra spent money you can return before a fix time schedule or you will have to pay a little interest. So there is no problem to having less money. Just use money without any tension.
5. A need of emergencies: Think, that you have no time to go to bank or someone to get money, what will you do? Definitely you will use your credit or debit card which will give you confidence for your difficult time. We can say it a true friend which help us in need. 6. Additional features: Mostly credit card offer additional benefits, as discount from some particular stores, bonus in airline fare, free insurance policies and much more. This discounts and bonus encourages you to purchase more things as it is good for us Now we can see the importance of credit cards and debit cards as plastic money. Plastic money has made life easier, simpler and fast then before.
Disadvantages of Plastic Money: We can’t ignore the necessity of plastic money in our life. This is the one among most important needs of our life. Plastic money or credit/debit card was a new idea in its starting but it was welcomed by the people because of its usability and benefits. There is no doubt that credit/debit cards are useful and essential for us but they have some disadvantages as their uses. To be habitual of cards may be harmful. Here we will read about disadvantages of plastic money. 1. Over Budget: Plastic money gives us an easy and extended purchasing capacity which results in an extra and unwanted buying. These cards give us discounts and bonus also on particular stores or items, which encourage us to get them and we use our hard earned money for a non-required thing, which affects our budget and we can’t handle our monthly budget system.
2. Increased Debt and High Interest Rates: Credit Card provider financial institutions and companies charge high interest rates (may be 10% to 25%) on extra money if you fail to pay off up to the fix date of the month. This interest is their earning, for which they give you extra buying limits then your money. This is not a good idea that you owe loan on high interest rates and spend it in unnecessary things or purchasing. This is complete money wastages. 3. Fraud: Credit cards can be stolen. A thief may be use them directly or to get their information (which is required in money exchange). In today’s technical intelligence it is also possible to get a clone of any credit card or debit card, which works like original and they can be give you a heavy financial loss. So be aware from credit cards fraud as they are like stolen your money from your pocket without your information. How to avoid disadvantage of Credit Cards As we have discussed earlier that credit cards has disadvantages as well as advantage. We can’t stop the use of credit cards but we can keep precautions to ignore any possibility of harm of misuse of cards. Likewise:
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Remember, credit cards is not a money generating machine, it is a facility, so use it as a help. Don’t be slave of purchasing. Keep track of your purchase and spending. Before spending money from credit card think for a minute that it is necessary or not. If it is not necessary, then deny its buying. Don’t cross your budget limits. Don’t forget to repay the loan from credit cards, otherwise you will have to pay more money which will also affect your budget, so it is good to repay before due date to avoid any interest charges. If you lose your credit card of wallet, report it your credit card provider company and ask them to stop the functioning of card to avoid any theft of money from your account. Don’t give your credit cards details on online or someone else if it is not trusted. Your card details may be stolen from websites so deal with only trusted and well prestigious companies websites. Have a habit to check your credit card statement regularly. It will help you to make sure about your purchasing.
Data Analysis
Q1. Which card do you have? Table 1
Sr. No. 1 2 3 4 Responses Credit Card Debit Card ATM Card Specific Outlet Card Total Number of respondents 2 6 2 0 10 Percentage of responds 20% 60% 20% 0% 100
Credit Card Debit Card ATM
Observation: It is observed that 60% people prefer debit card as compared to other cards and no one prefer holding specific outlet card.
Q2. According to you, which is the most convenient way to pay? Table 2
Sr. No. 1 2 3 4 Responses Cash Card Both No Comments Total Number of respondents 1 5 4 0 10 Percentage of responds 10% 50% 40% 0% 100
5 4 3 2 1 0 Cash Card Both
Observation: It is observed that 50% of the population prefers card and 40% of people prefer both forms and only 10% prefer cash payment.
Q3. How do you prefer to pay your utilities bills? Table 3
Sr. No. 1 2 3 4 5 6 Responses Cash Card Cheque DD ECS Other Total Number of respondents 4 3 3 0 0 0 10 Percentage of responds 40% 30% 30% 0 0 0 100
Cash Card Cheque DD ECS Other
Observation: It is observed that 40% of people prefer cash for paying utility bills and 30% people prefer card and cash mode and no one prefer DD and ECS service.
Q4. How do you make payment for purchases of household consumables? Table 4
Sr. No. 1 2 3 4 Total Responses Cash Card Cheque ECS Number of respondents 5 3 2 0 10 Percentage of responds 50% 30% 20% 0 100
5 4 3 2 1 0 Cash Card Cheque
ECS
Observation: It is observed that 50% of the population prefer cash for purchasing household consumables and 30% prefer card and only 20% prefer Cheque and no one prefer ECS.
Q5. How do you make payment for purchases of luxury and Durable goods? Table 5
Sr. No. 1 2 3 4 Total Responses Cash Card Cheque ECS Number of respondents 1 5 4 0 10 Percentage of responds 10% 50% 40% 0 100
5 4 3 2 1 0 Cash Card Cheque ECS
Observation: It is observed that 50% of people prefer card for purchasing luxurious and durable goods whereas 40% people prefer cheque and only 10% people prefer cash.
Q6. While travelling, According to you which is the preferred way of payment?
Table 6
Sr. No. 1 2 3 4 5 Responses Cash Card Travelers Cheque Cheque DD Total Number of respondents 5 5 0 0 0 10 Percentage of responds 50% 50% 0 0 0 100
6
5
4
3
2
1
0 Cash
Card
Travelers Cheque
Cheque
DD
Observation: It is observed that 50% of the population prefer cash and card while travelling.
Q7. Do you find use of credit card/Plastic money to be safest modes of transaction? Table 7
Sr. No. 1 2 3 Responses Yes No No Comments Total Number of respondents 8 2 0 10 Percentage of responds 80% 20% 0 100
9 8 7 6 5 4 3 2 1 0 Yes No No Comments
Observation: It is observed that 80% of the population believes that credit cards are the safest mode of transaction and 20% believe that plastic money is not safe.
Q8. Do you find Credit Card to be expensive as many other charges are charged on it? Table 8
Sr. No. 1 2 Total Responses Yes No Number of respondents 7 3 10 Percentage of responds 70% 30% 100
Yes No
Observation: It is observed that 70% of the population find Credit Card to be expensive as many other charges are charged on it and 30% believe that its not expensive.
Q9. Do you find it cheaper and Beneficial as it gives you one Month Credit for Payment? Table 9
Sr. No. 1 2 Total Responses Yes No Number of respondents 5 5 10 Percentage of responds 50% 50% 100
6 5 4 3 2 1 0 Yes No
Observation: It is observed that 50% of the population find the use of credit card cheaper and Beneficial as it gives you one Month Credit for Payment and remaining 50% find that it is expensive
Q10. Which you consider more reliable and secured? Table 10
Sr. No. 1 2 3 4 Responses Paper Money Plastic Money Both No Comments Total Number of respondents 2 5 3 0 10 Percentage of responds 20% 50% 30% 0 100
Paper Money Plastic Money Both No Comments
Observation: It is observed that 50% of the population consider plastic money and 20% consider paper money where as 30% consider both paper and plastic money reliable and secured.
Q11. Which can be carried and kept easy and has more life? Table 7
Sr. No. 1 2 Responses Paper Money Plastic money Total Number of respondents 1 9 10 Percentage of responds 10% 90% 100
10 9 8 7 6 5 4 3 2 1 0 Paper money Plastic money
Observation: It is observed that 90% of the population believes that plastic money is carried and kept easily and has more life and only 10% believe that paper money is carried and kept easily and has more life.
Q12. Due to Duplicity of Paper money are you shifting to Plastic Money? Table 8
Sr. No. 1 2 Total Responses Yes No Number of respondents 7 3 10 Percentage of responds 70% 30% 100
Proper evaluation of performance
Yes No
Observation: It is observed that 70% of the population shifted to plastic money due to duplicity of Paper money and 30% said that there was no reason for shifting.
Q13. Which Type of security measurement you expect for stopping misuse of Plastic Money? Table 9
Sr. No. 1 2 3 4 Responses Password Photo Card Pin Biological Imprints Number of respondents 3 1 2 Percentage of responds 30% 10% 20%
4 10
40% 100
Total
4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 Password Photo Card Pin Biological Imprints
Observation: It is observed that 40% of people want biological imprints as a security measurement for stopping misuse of Plastic Money and 30% of people want password and 20% of people want PIN facility and only 10% of people photo Card.
Q15. Do you think that there should be any limit on daily/monthly transaction value? Table 10
Sr. No. 1 2 3 Responses Yes No No Comments Total Number of respondents 6 3 1 10 Percentage of responds 60% 30% 10% 100
Yes No No Comments
Observation: It is observed that 60% of the population thinks that there should be limit on daily / monthly transaction value and 30% of people said there should be no limit and only 10% said no comments.
Q15. Do you think that plastic money will penetrate in society more in future? Table 10
Sr. No. 1 2 Responses Agree Disagree Total Number of respondents 7 3 10 Percentage of responds 70% 30% 100
Agree Disagree
Observation: It is observed that 70% of the population thinks that plastic money will penetrate in society more in future and only 30% said that it won’t penetrate in society more in future.
Q16. Do you think that more credit card / Debit card transaction in country over cash transaction will help to crab black money circulation in economy? Table 10
Sr. No. 1 2 3 Responses Yes No No Comments Total Number of respondents 6 2 2 10 Percentage of responds 60% 20% 20% 100
Yes No No Comments
Observation: It is observed that 60% of the population thinks that more credit card / Debit card transaction in country over cash transaction will help to crab black money circulation in economy.
Q16. If you are financial minister of the country, what would you prefer on higher proportion? Table 10
Sr. No. 1 2 3 Responses Paper Money Plastic Money Both in equal ratio Total Number of respondents 2 2 6 10 Percentage of responds 20% 20% 60% 100
paper money plastic money both in equal ratio
Observation: It is observed that 60% of the population said that if they were financial minister of the country, they would prefer both paper money and plastic money in equal ratio.
Limitations
I have restricted my project on ‘Plastic Money’ to credit card, debit cards and ATM cards only It has been restricted to the extent of individual’s only. Survey has been conducted on micro level basis to know the preferences of plastic money. Only 10 customers of different banks have been considered for undertaking the study and the findings of the study have been listed out
Conclusion
From the study it is concluded that, now-a-days plastic money is not only restricted to the rich or the upper middle class people but even the lower middleclass people are taking the benefits of the plastic cards available. Hence it cannot be denied that it is much more convenient to carry a plastic card rather than cash. This is the most important strength of plastic cards. The
s u r v e y h a s t o l d t h a t t h e c u s t o me r p r e f e r t h o s e b a n ks wh i c h p r o v i d e q u a l i t y services so the quality services are the basic strength for bank. The easy procedure for obtaining a debit or credit card is also strength of plas tic card. Inflation is a p o s i t i v e p o i n t f o r b a n k s a s d u e t o i n c r e a s e d i n f l a t i o n i s p u r c h a s i n g p o w e r i s decreasing and people are more inclined towards use of credit card.
QUESTIONNAIRE
NAME: AGE:
GENDER: INCOME:
Q1. Do you have?
Q2.According to you, which is the most convenient way to pay?
Both NO comments Q3. How do you prefer to pay your utilities Bills? Cash
Q4. How do you make payment for purchases of household consumables?
Q5. How do you make payment for purchases of luxury and Durable goods?
Q6. While travelling, According to you which is the preferred way of payment?
Q7. Do you find use of credit card/Plastic money to be safest modes of transaction? No No comments Q8.Why you do not prefer plastic money? [Answer this question only if answered No in Question 7]
es by Bankers
Q9.Why you do not prefer Paper money [answer this question only if answered Yes in Question. 7]
Q10. Do you find Credit Card to be expensive as many other charges are charged on it? No Q11. Do you find it cheaper and Beneficial as if gives you one Month Credit for Payment? No
Q12. Which you consider more reliable and secured?
Q13. Which can be carried and kept easy and has more life? Plastic money Q14. Due to Duplicity of Paper money are you shifting to Plastic Money? No Q15.Which Type of security measurement you expect for stepping misuse of Plastic Money?
Q16.Do you think that there should be any limit on daily/monthly transaction value? No No comments Q17. Do you think that plastic money will penetrate in society more in future? Disagree Q18. Do you think that more credit card/Debit card transaction in country over cash transaction will help to crab black money circulation in economy?
Q19. If you are financial minister of the country, what would you prefer on higher proportion? Plastic money
Q20. Where do you see the Future of Cash & Credit card/Debit Card? ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
doc_464641058.docx
Meaning: Plastic money is a term that is used predominantly in reference to the hard plastic cards we use every day in place of actual bank notes. They can come in many different forms such as cash cards, credit cards, debit cards, pre-paid cash cards and store cards. A credit card is a method of payment and it can make payments on behalf of cash. And you can use your credit card in any time to buy a product or a service and it will be the standard payment method to your merchant or service provider. But it should be an acceptable credit card for that merchant or service provider. And you can get cash withdrawals using your credit card and normally we called it a Cash Advance. So a credit card is a legal payment method and it’s designed on a standard to accept by the merchants and other banks like a check or a paper money or a coin. You can see cardholder’s name, credit card number and expire date in face side of a credit card and the signature on its backside. There are three kinds of payment cards based on their payment method. Those are credit card, Debit card and the Charge card.
Definition: A phrase used for credit cards, especially when such cards used to make purchases. The "plastic" portion of this term refers to the plastic construction of credit cards, as opposed to paper and metal of currency. The "money" portion is an erroneous reference to credit cards as a form of money, which they are not. Although credit cards do facilitate transactions, because they are a liability rather than an asset, they are not money and not part of the economy's money supply.
Types of plastic money: There are various types of plastic money available and they are stated as follows: Credit Card Debit Card Charge Card Cash Card Store Card
1. Credit Card: While using a credit card there is no need to pay your hard money to merchant or to Credit Card Company instantly. That transaction amount will paid by credit card company to merchant and then one can pay it to credit card company in next month or during your billing period. Credit card company offer the facility of paying your payments during given period and in installments. To the installments Credit Card Company adds their monthly interests and then one have to pay the balance with their interest monthly. The previous month bill including the interest was the subject of the loan in the following month. A credit card has the provisions of the limit that applied to all the member depended on the card type (Silver, Gold and Platinum), minimum amount to pay from the total balance of the bill (like 5%, 10%) and if not paid that amount then fall due that was determined. And if not paid during the billing due date bill amount would subjected to the late payment fee as big as certain percentage from minimum amount and sometimes it will be a fixed amount for a month.
2. Debit Card: To use a debit card you may have a bank account with the credit card company or the bank, because this transaction proceed as like the cash transaction, because of this only if this card holder had the enough available balance to cover the transaction amount can transaction could be only carried out, after the transaction, transaction amount directly credited from the card holders account and debited to merchant’s account in the very same time. If you use a debit card you can do card transactions if have the balance in your account for the transaction and when you did a sale transaction using the card it is a cash transaction by not using cash but the paying off or payment was carried out by means of reduce (debiting) from the balance of the account of the credit card holder and then increase (Crediting) the account of the merchant as much as the transaction to the manager of the bank.
3. Charge Card: When use a charge card, it could be used as the payment implement of a trade transaction of product or the service. Then the cardholder has to set off the entire outstanding amount fully at the end of that month or in the following month with or without the additional charges and fees. Normally, the charge card don’t have the provisions of the credit limit and card holder has to do full payment of all the transactions before the next statement and without used percentage the interest, but card holder not paid full outstanding amount then he has to pay a additional charge called delay fine for his next statement. 4. Cash Cards: A card that will allow you to withdraw money directly from your bank via an Authorized Teller Machine (ATM) but it will not allow the holder to purchase anything directly with it. 5. Store Cards: These are similar in concept to the Credit Card model, in that the idea is to purchase something in store and be billed for it at the end of the month. These cards can be charged at a very high interest rate and can are limited in the places they can be used, sometimes as far as only the store brand that issued it.
Introduction:
Plastic money is the alternative to the cash or the standard 'money'. Plastic money is used to refer to the credit cards or the debit cards that we use to make purchases in our everyday life. Plastic money is much more convenient to carry around as you do not have to carry a huge sum of money with you. It is also much safer to carry it along or to travel with it as if it is stolen one can consult the bank whose service you are using and get it blocked hence saving your money from getting stolen or even lost. Nowadays even developing countries like India are encouraging the use of this plastic money more than cash due to these reasons. Furthermore these credit and debit cards also have plastic used in their making and that is where the name 'plastic money' has originated from.
An overview on plastic money:
Look in your wallet. If you are like an average middle class, living in a metropolitan you probably must have at least one thin plastic card that you use to pay for things at many merchants. Take out one of those cards. The card you picked is about 33/8” long, by 21/8” wide, weighs about a fifth of an ounce, has a magnetic stripe on the back and has a 13 to 16 digit account number embossed on the front. It is called a payment card. Once cardboard, now plastic, the card itself may become an anachronism. The plastic note is same as paper but the only difference is that they are made of plastic. They are more secured as compared to that of paper notes. In traveling and shopping people used to carry huge cash which was much unsecured and also increasing crime rate. Then the cards were introduced in the world to resolve the issue of carrying huge cash. These cards are known as Plastic Money. The usage of plastic money (Cards) has increased in the mode of payment of huge amount and time by time there are lots of different types of plastic money introduced which enhanced the features of plastic money. Now the world is getting globalized so every card is accepted everywhere with the power of VISA which interconnect the different countries.
Advantages and Disadvantages of Plastic Money
Advantages of plastic money
Plastic Money is a must need of our busy life. Today it is very easy to carry money without having a lot of cash or gold. Keep Credit or Debit cards and forget the cash money. This is a new idea of present life-style which has made money transition so easy that anybody can carry it with him or her in a pocket. Today plastic money is the best alternative of the cash. It is also safer to traveling with a plastic money card than cash. If it is stolen you may contact to bank immediately and can block your money from getting stolen. It gives you also better option as extra purchasing capacity, protection of money and much more. 1. Purchasing Power: Credit or Debit cards made it easier to purchase things. Now we don’t have any need to carry hard cash in a large amount. Plastic money is accepted everywhere, anytime. 2. Time Saving: Through a credit card or debit card you can purchase anything from anywhere without spend money on fare or cash transition. Just provide your card details to seller store or companies and finalize your order. Now you don’t have need to worry about time wastes. Use internet for minimum time consuming. 3. Extra Safety: While you are not carrying cash, how can it be lost? But if your card has lost, just contact to your bank or financial institution, which provide you cards. It will block the account and nobody can draw a single coin without your permission. So it is 100% safe without any tension. 4. Credit Limits: You get an extra amount to spend with your card. This extra spent money you can return before a fix time schedule or you will have to pay a little interest. So there is no problem to having less money. Just use money without any tension.
5. A need of emergencies: Think, that you have no time to go to bank or someone to get money, what will you do? Definitely you will use your credit or debit card which will give you confidence for your difficult time. We can say it a true friend which help us in need. 6. Additional features: Mostly credit card offer additional benefits, as discount from some particular stores, bonus in airline fare, free insurance policies and much more. This discounts and bonus encourages you to purchase more things as it is good for us Now we can see the importance of credit cards and debit cards as plastic money. Plastic money has made life easier, simpler and fast then before.
Disadvantages of Plastic Money: We can’t ignore the necessity of plastic money in our life. This is the one among most important needs of our life. Plastic money or credit/debit card was a new idea in its starting but it was welcomed by the people because of its usability and benefits. There is no doubt that credit/debit cards are useful and essential for us but they have some disadvantages as their uses. To be habitual of cards may be harmful. Here we will read about disadvantages of plastic money. 1. Over Budget: Plastic money gives us an easy and extended purchasing capacity which results in an extra and unwanted buying. These cards give us discounts and bonus also on particular stores or items, which encourage us to get them and we use our hard earned money for a non-required thing, which affects our budget and we can’t handle our monthly budget system.
2. Increased Debt and High Interest Rates: Credit Card provider financial institutions and companies charge high interest rates (may be 10% to 25%) on extra money if you fail to pay off up to the fix date of the month. This interest is their earning, for which they give you extra buying limits then your money. This is not a good idea that you owe loan on high interest rates and spend it in unnecessary things or purchasing. This is complete money wastages. 3. Fraud: Credit cards can be stolen. A thief may be use them directly or to get their information (which is required in money exchange). In today’s technical intelligence it is also possible to get a clone of any credit card or debit card, which works like original and they can be give you a heavy financial loss. So be aware from credit cards fraud as they are like stolen your money from your pocket without your information. How to avoid disadvantage of Credit Cards As we have discussed earlier that credit cards has disadvantages as well as advantage. We can’t stop the use of credit cards but we can keep precautions to ignore any possibility of harm of misuse of cards. Likewise:
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?
?
?
Remember, credit cards is not a money generating machine, it is a facility, so use it as a help. Don’t be slave of purchasing. Keep track of your purchase and spending. Before spending money from credit card think for a minute that it is necessary or not. If it is not necessary, then deny its buying. Don’t cross your budget limits. Don’t forget to repay the loan from credit cards, otherwise you will have to pay more money which will also affect your budget, so it is good to repay before due date to avoid any interest charges. If you lose your credit card of wallet, report it your credit card provider company and ask them to stop the functioning of card to avoid any theft of money from your account. Don’t give your credit cards details on online or someone else if it is not trusted. Your card details may be stolen from websites so deal with only trusted and well prestigious companies websites. Have a habit to check your credit card statement regularly. It will help you to make sure about your purchasing.
Data Analysis
Q1. Which card do you have? Table 1
Sr. No. 1 2 3 4 Responses Credit Card Debit Card ATM Card Specific Outlet Card Total Number of respondents 2 6 2 0 10 Percentage of responds 20% 60% 20% 0% 100
Credit Card Debit Card ATM
Observation: It is observed that 60% people prefer debit card as compared to other cards and no one prefer holding specific outlet card.
Q2. According to you, which is the most convenient way to pay? Table 2
Sr. No. 1 2 3 4 Responses Cash Card Both No Comments Total Number of respondents 1 5 4 0 10 Percentage of responds 10% 50% 40% 0% 100
5 4 3 2 1 0 Cash Card Both
Observation: It is observed that 50% of the population prefers card and 40% of people prefer both forms and only 10% prefer cash payment.
Q3. How do you prefer to pay your utilities bills? Table 3
Sr. No. 1 2 3 4 5 6 Responses Cash Card Cheque DD ECS Other Total Number of respondents 4 3 3 0 0 0 10 Percentage of responds 40% 30% 30% 0 0 0 100
Cash Card Cheque DD ECS Other
Observation: It is observed that 40% of people prefer cash for paying utility bills and 30% people prefer card and cash mode and no one prefer DD and ECS service.
Q4. How do you make payment for purchases of household consumables? Table 4
Sr. No. 1 2 3 4 Total Responses Cash Card Cheque ECS Number of respondents 5 3 2 0 10 Percentage of responds 50% 30% 20% 0 100
5 4 3 2 1 0 Cash Card Cheque
ECS
Observation: It is observed that 50% of the population prefer cash for purchasing household consumables and 30% prefer card and only 20% prefer Cheque and no one prefer ECS.
Q5. How do you make payment for purchases of luxury and Durable goods? Table 5
Sr. No. 1 2 3 4 Total Responses Cash Card Cheque ECS Number of respondents 1 5 4 0 10 Percentage of responds 10% 50% 40% 0 100
5 4 3 2 1 0 Cash Card Cheque ECS
Observation: It is observed that 50% of people prefer card for purchasing luxurious and durable goods whereas 40% people prefer cheque and only 10% people prefer cash.
Q6. While travelling, According to you which is the preferred way of payment?
Table 6
Sr. No. 1 2 3 4 5 Responses Cash Card Travelers Cheque Cheque DD Total Number of respondents 5 5 0 0 0 10 Percentage of responds 50% 50% 0 0 0 100
6
5
4
3
2
1
0 Cash
Card
Travelers Cheque
Cheque
DD
Observation: It is observed that 50% of the population prefer cash and card while travelling.
Q7. Do you find use of credit card/Plastic money to be safest modes of transaction? Table 7
Sr. No. 1 2 3 Responses Yes No No Comments Total Number of respondents 8 2 0 10 Percentage of responds 80% 20% 0 100
9 8 7 6 5 4 3 2 1 0 Yes No No Comments
Observation: It is observed that 80% of the population believes that credit cards are the safest mode of transaction and 20% believe that plastic money is not safe.
Q8. Do you find Credit Card to be expensive as many other charges are charged on it? Table 8
Sr. No. 1 2 Total Responses Yes No Number of respondents 7 3 10 Percentage of responds 70% 30% 100
Yes No
Observation: It is observed that 70% of the population find Credit Card to be expensive as many other charges are charged on it and 30% believe that its not expensive.
Q9. Do you find it cheaper and Beneficial as it gives you one Month Credit for Payment? Table 9
Sr. No. 1 2 Total Responses Yes No Number of respondents 5 5 10 Percentage of responds 50% 50% 100
6 5 4 3 2 1 0 Yes No
Observation: It is observed that 50% of the population find the use of credit card cheaper and Beneficial as it gives you one Month Credit for Payment and remaining 50% find that it is expensive
Q10. Which you consider more reliable and secured? Table 10
Sr. No. 1 2 3 4 Responses Paper Money Plastic Money Both No Comments Total Number of respondents 2 5 3 0 10 Percentage of responds 20% 50% 30% 0 100
Paper Money Plastic Money Both No Comments
Observation: It is observed that 50% of the population consider plastic money and 20% consider paper money where as 30% consider both paper and plastic money reliable and secured.
Q11. Which can be carried and kept easy and has more life? Table 7
Sr. No. 1 2 Responses Paper Money Plastic money Total Number of respondents 1 9 10 Percentage of responds 10% 90% 100
10 9 8 7 6 5 4 3 2 1 0 Paper money Plastic money
Observation: It is observed that 90% of the population believes that plastic money is carried and kept easily and has more life and only 10% believe that paper money is carried and kept easily and has more life.
Q12. Due to Duplicity of Paper money are you shifting to Plastic Money? Table 8
Sr. No. 1 2 Total Responses Yes No Number of respondents 7 3 10 Percentage of responds 70% 30% 100
Proper evaluation of performance
Yes No
Observation: It is observed that 70% of the population shifted to plastic money due to duplicity of Paper money and 30% said that there was no reason for shifting.
Q13. Which Type of security measurement you expect for stopping misuse of Plastic Money? Table 9
Sr. No. 1 2 3 4 Responses Password Photo Card Pin Biological Imprints Number of respondents 3 1 2 Percentage of responds 30% 10% 20%
4 10
40% 100
Total
4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 Password Photo Card Pin Biological Imprints
Observation: It is observed that 40% of people want biological imprints as a security measurement for stopping misuse of Plastic Money and 30% of people want password and 20% of people want PIN facility and only 10% of people photo Card.
Q15. Do you think that there should be any limit on daily/monthly transaction value? Table 10
Sr. No. 1 2 3 Responses Yes No No Comments Total Number of respondents 6 3 1 10 Percentage of responds 60% 30% 10% 100
Yes No No Comments
Observation: It is observed that 60% of the population thinks that there should be limit on daily / monthly transaction value and 30% of people said there should be no limit and only 10% said no comments.
Q15. Do you think that plastic money will penetrate in society more in future? Table 10
Sr. No. 1 2 Responses Agree Disagree Total Number of respondents 7 3 10 Percentage of responds 70% 30% 100
Agree Disagree
Observation: It is observed that 70% of the population thinks that plastic money will penetrate in society more in future and only 30% said that it won’t penetrate in society more in future.
Q16. Do you think that more credit card / Debit card transaction in country over cash transaction will help to crab black money circulation in economy? Table 10
Sr. No. 1 2 3 Responses Yes No No Comments Total Number of respondents 6 2 2 10 Percentage of responds 60% 20% 20% 100
Yes No No Comments
Observation: It is observed that 60% of the population thinks that more credit card / Debit card transaction in country over cash transaction will help to crab black money circulation in economy.
Q16. If you are financial minister of the country, what would you prefer on higher proportion? Table 10
Sr. No. 1 2 3 Responses Paper Money Plastic Money Both in equal ratio Total Number of respondents 2 2 6 10 Percentage of responds 20% 20% 60% 100
paper money plastic money both in equal ratio
Observation: It is observed that 60% of the population said that if they were financial minister of the country, they would prefer both paper money and plastic money in equal ratio.
Limitations
I have restricted my project on ‘Plastic Money’ to credit card, debit cards and ATM cards only It has been restricted to the extent of individual’s only. Survey has been conducted on micro level basis to know the preferences of plastic money. Only 10 customers of different banks have been considered for undertaking the study and the findings of the study have been listed out
Conclusion
From the study it is concluded that, now-a-days plastic money is not only restricted to the rich or the upper middle class people but even the lower middleclass people are taking the benefits of the plastic cards available. Hence it cannot be denied that it is much more convenient to carry a plastic card rather than cash. This is the most important strength of plastic cards. The
s u r v e y h a s t o l d t h a t t h e c u s t o me r p r e f e r t h o s e b a n ks wh i c h p r o v i d e q u a l i t y services so the quality services are the basic strength for bank. The easy procedure for obtaining a debit or credit card is also strength of plas tic card. Inflation is a p o s i t i v e p o i n t f o r b a n k s a s d u e t o i n c r e a s e d i n f l a t i o n i s p u r c h a s i n g p o w e r i s decreasing and people are more inclined towards use of credit card.
QUESTIONNAIRE
NAME: AGE:
GENDER: INCOME:
Q1. Do you have?
Q2.According to you, which is the most convenient way to pay?
Both NO comments Q3. How do you prefer to pay your utilities Bills? Cash
Q4. How do you make payment for purchases of household consumables?
Q5. How do you make payment for purchases of luxury and Durable goods?
Q6. While travelling, According to you which is the preferred way of payment?
Q7. Do you find use of credit card/Plastic money to be safest modes of transaction? No No comments Q8.Why you do not prefer plastic money? [Answer this question only if answered No in Question 7]
es by Bankers
Q9.Why you do not prefer Paper money [answer this question only if answered Yes in Question. 7]
Q10. Do you find Credit Card to be expensive as many other charges are charged on it? No Q11. Do you find it cheaper and Beneficial as if gives you one Month Credit for Payment? No
Q12. Which you consider more reliable and secured?
Q13. Which can be carried and kept easy and has more life? Plastic money Q14. Due to Duplicity of Paper money are you shifting to Plastic Money? No Q15.Which Type of security measurement you expect for stepping misuse of Plastic Money?
Q16.Do you think that there should be any limit on daily/monthly transaction value? No No comments Q17. Do you think that plastic money will penetrate in society more in future? Disagree Q18. Do you think that more credit card/Debit card transaction in country over cash transaction will help to crab black money circulation in economy?
Q19. If you are financial minister of the country, what would you prefer on higher proportion? Plastic money
Q20. Where do you see the Future of Cash & Credit card/Debit Card? ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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