PLASTIC MONEY

•WHAT’s PLASTIC MONEY???

Plastic money or polymer money, made out of plastic

A new and easier way of paying for goods and services

Introduced in the 1950s and is now an essential form of ready money

It includes credit cards, debits cards, ATMs, smart cards, etc.

WHY USE PLASTIC MONEY??

Easy to carry

Easy to operate

Safer to carry

More Security

Durable

Multiple functions

Types of Plastic money

CREDIT CARD

CASH CARD or ATM CARD

DEBIT CARD

IN-STORE CARDS

PREPAID CASH CARD

CREDIT CARD

A credit card can be viewed as a payment mechanism

which enables the holder of the card to purchase goods

(or services) without paying immediate cash; and make

a one-time payment at the end of a specified period

(known as the billing cycle which is usually a month)

with a provision for spreading this payment over several

easy installments….

CASH CARD or ATM CARD

also known as a bank card, client card, key card, or cash card

payment card provided by a financial institution to its customers which enables the customer to use an automated teller machine (ATM)

for transactions such as: deposits, cash withdrawals, obtaining account information, and other types of banking transactions, often through interbank networks

will not allow the holder to purchase anything directly with it.

In some countries, the two functions of ATM cards and debit cards are combined into a single card called a debit card or also commonly called a bank card. These are able to perform banking tasks at ATMs and also make point-of-sale transactions, both functions using a PIN.

DEBIT CARD POS

What is a debit card??

also known as a bank card or check card

is a plastic payment card that provides the cardholder

electronic access to his or her bank account(s) at a

financial institution

can be used instead of cash when making purchases

In some cases, the primary account number is assigned

exclusively for use on the Internet and there is no

physical card.

ADVANTAGES

Substitute for cheque

Convenience

Faster mode of transaction

#withdrawing cash

#making payments to third-party

#easy finalisation of a/c

Multiple functioning

-Can be used to make payments at shops,hotels,etc where a Point of Sale(POS) terminal is available

-Can be used to withdraw money from any ATM

Can be easily obtained

Security

It keeps you within budget

Accepted internationally

How to get a debit card

SAVINGS BANK A/c

Debit card in detail

(1) is the bank logo.

(2) is the EMV chip(commonly referred to as 'Chip&Pin')

(3) is the Hologram(This represents a valid card and is a sign that the card is legal)

(4) is the 16 digit card number

(5) is the logo of the card type

(6) is the expiry date

(7) is the name of the cardholder

(1) is the magnetic stripe.

(2) is the signature strip

(3) is the CVCormCVV(Card

verification code or value)code

TYPES OF DEBIT CARD SYSTEM

Online Debit System: Online debit cards require electronic authorization of every transaction and the debits are reflected in the user’s account immediately.

Offline Debit System: This type of debit card may be subject to a daily limit, and/or a maximum limit equal to the current/checking account balance from which it draws funds. Transactions conducted with offline debit cards require 2–3 days to be reflected on users’ account balances.

Electronic Purse Card System : Smart-card-based electronic purse systems (in which value is stored on the card chip, not in an externally recorded account, so that machines accepting the card need no network connectivity)

Disadvantages

Not accepted everywhere

Laws protect the consumer from fraud much less than

with a credit card.

Loss of card

No cash-NO operation

Restricted spending

Hidden fees

Record keeping is mandatory

Internet scams

PRE-CAUTIONS.... Change the PIN immediately the

card is received from bank

Don't write down your PIN number anywhere.Memorize it.

Preferably use an ATM which is within bank premises or manned

24 hrs by a security guard.

While using the online settlement,use the virtual keyboard

Register yourself for SMS alert whenever your account is accessed.

Change your PIN numbers as often as convenient.

If the card is lost,immediately inform the banker.

IN-STORE CARDS

Store cards are credit cards which can only be used to

buy goods in one particular shop or chain of shops (a

number of shops owned by the same company). The

store card is provided by a particular shop that you can

use to buy goods at that shop, and you will pay for the

goods at a later date.

PRE-PAID CASH CARD

As the name suggests the user will add credit to the

card themselves, and will not exceed that amount.

These are usually re-useable in that they can be 'topped

up' however some cards, usually marketed as Gift Cards

are not re-useable and once the credit has been spent

they are disposed of. They provide some specials

benefits or discounts to the holder of the card.

HAVE A NICE DAY………