Page 1 of 7
European Journal of Business &
Social Sciences
Available at https://ejbss.org/
ISSN: 2235-767X
Volume 07 Issue 03
March 2019
Available online: https://ejbss.org/ P a g e | 516
Plastic Money: Risks and Benefits
RUMAN
Assistant Professor, Faculty of Commerce,
S.D. (PG) College, Panipat
ABSTRACT
Most of us use plastic money today, but it is necessary that we clearly understand the merits
and demerits of it. Only then we will be able to use cards carefully and wisely. This paper
gives you a brief idea of the main advantages and disadvantages of plastic money.
Technology has changed the way we deal with money giving us more convenience and easy
access to funds from anywhere. It all started with a simple credit card that allowed you to
make purchases today and pay later. Further, technological advancements lead to a new trend
where most banks gave you one ATM card or debit card which can be used for withdrawing
money as well as for making purchases or payments – offline as well as online.
However, plastic money has its share of issues that one must be careful about. Plastic money
definitely provides an alternative in some cases and compliments cash as a medium.
Key Words: Plastic money, debit cards, credit cards
INTRODUCTION
Plastic money aka polymer money is made out of plastic and has formed an important part of
our daily life these days. It is easier to deal with cards than cash. Yes, the advantages of
plastic money over cash have made it a best friend of many. It was in the 1950s the concept of
plastic money came into being. When we say plastic money, it includes debit cards, ATM
cards, credit cards, prepaid cards, smart cards and so on. The main advantage of plastic money
is that it avoids the necessity to carry huge cash and is also difficult to mutilate. The
disadvantage being there are still many among us who do not know how to use a plastic card
wisely. This articles deals in general about the main merits and demerits of polymer money.
Page 2 of 7
European Journal of Business &
Social Sciences
Available at https://ejbss.org/
ISSN: 2235-767X
Volume 07 Issue 03
March 2019
Available online: https://ejbss.org/ P a g e | 517
BENFITS OF PLASTIC MONEY
Cards fit into the wallet easily: It is essential that we need to have some sort of money in
hand always as we never know when a need arises. But carrying a lot of cash in hand is not at
all a wise idea. Also, who would want to carry a lot of cash in hand and make their wallet
bulge out. In such situations, plastic money comes for help. Your wallet will remain perfect
and your cash needs will also be sorted out. If required you can take cash using plastic cards.
Also, it is safe when you have a card with you as even if it is lost, you can always call the
bank and ask them to block it. This avoids misusing the card by any. But when it is cash, you
are not left with that option and you will end up losing your money. Cards are waterproof
hence you don't have to get panicked even if water spilled over your wallet. They are strong
and durable.
Crime rates will decrease: We are living in a world where thefts and crimes are on the
increase. Keeping cash in hand is not a safe thing to do. It will not give you peaceful nights.
So be practical and opt for plastic money. You do not have to worry when someone runs away
with your wallet, as long as you only have plastic money in it. The guy needs PIN number to
use it hence he can't take the cash or swipe it. As soon as you know that you are pick
pocketed, you can call the bank and ask them to block or cancel the card. If it was actual cash
in its place, then it is easy for the thief. He can easily take the cash and throw the wallet
somewhere. But with plastic money, his job has become a difficult one. He needs to know
cracking techniques to find the PIN number to use the cards. Hence worries associated with
theft will be less in case of plastic money. Another merit is that the fingerprints on a plastic
card are clearer than that on bank notes.
Provides credit facility: How about having a card that provides you a credit facility? That
sounds good right? With the advent of credit cards you can purchase anything today and you
are given sufficient time to pay for it. Only with plastic money, you avail this credit facility.
The advantage of having this facility is that you need not go behind people to borrow money
in case of emergencies; instead, you can use the card in your hand. Also, you get ample
Page 3 of 7
European Journal of Business &
Social Sciences
Available at https://ejbss.org/
ISSN: 2235-767X
Volume 07 Issue 03
March 2019
Available online: https://ejbss.org/ P a g e | 518
amount of time to repay the amount. It is like a best buddy who helps you in case of financial
needs. Purchase today and pay later, isn't that a benefit you are getting? This factor is one of
the main reasons why people are attracted towards credit cards.
Tracking transactions becomes easy: Having a track of your daily or monthly transactions
is always good. By using the plastic money you are automatically keeping a track of all your
transactions. You can verify it later if required. When we are using bank notes, we might
forget later for what we spend it, unless you have the habit of noting down every cash
transaction you make. This is not the case with plastic cards. The banks normally send the
statement of debit or credit card to its customers on a monthly basis which will have the list of
all your transactions for that particular month. This transaction history might help us at times
when we misplace a bill. We can show the transaction details to prove that we have made a
purchase. Also, for us to have a check of our expenses or any particular transaction made in
the past, these statements are useful.
0% Installment options: Certain credit cards provide its customers the facility to convert
their purchases from selected outlets to installment options of 3, 6 or 12 months at 0% interest
rate. The customer is given the option to select the period of installment which cannot be
changed later. If you have selected 6 months installment plan and paid it off within 5 months,
then you will have to pay an extra fee. Therefore, be careful and pay only according to the
installment period selected. It is an amazing facility offered by the banks as it helps you to
purchase that thing you wish today and pay in equal installments within a period of specific
time. Will you avail this facility if you are using cash? A big No is the answer. Therefore, this
is indeed an advantage of plastic money.
Convenience of making payments from home: In olden days when there was no plastic
money, we need to go personally to each place to make a payment be it utility payments or
booking tickets. But now you can pay at your own convenience sitting at home with the use of
plastic money. For example, you need to go to the travel agency to pay cash for your ticket,
instead, you can book your ticket online. Also when a travel agency is involved, they charge
