INTRODUCATION

Plastic money made out of plastic, is a new and easier way of paying for goods and services. It 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, and Credit cards etc. .

Meaning of plastic money

What is credit cardCredit card can be termed as an unsecured personal loan offered to customers by the banks where the card-holder could purchase goods and services from authorized merchant or merchant establishments (MEs) of the bank up to a fixed limit on credit. Such credit is normally made available for a period of 30 to 45 days.

Types of credit card

Charge card - Pay late payment charges if billed amount not pay off by due date.

Amex card - Own merchant establishment tie-ups & not depend on network of master cards/visa.

Smart card - Contain electronic chip and no identification, signature or payment autthorisation is required.

Diners Club card - Branded charge cards .provide special privileges.

Photo card - Photograph is imprinted on a cards .

Global card - Allow flexibility and convenience of using a credit cards rather than cash or travelers checks.

Co-branded card- Issued by card companies that have tied up with popular brand for offering exclusive benefits.

Affinity card - Card issuer ties up with popular organisation which is non-profit organisation.

MasterCard and Visa – Global non-profit organisation dedicated to promote the growth of the card business.

Process of credit cards

ADVANTAGES AND DISADVANTAGES OF CREDIT CARD

Advantages

• Purchase Power and Ease of Purchase

• Protection of Purchases• Building a Credit Line • Emergencies• Credit Card Benefits

Disadvantages

• Purchase Power and Ease of Purchase

• Protection of Purchases• Building a Credit Line • Emergencies

What is Debit card

A debit card (also known as a bank card or check card) is a plastic card that provides an alternative payment method to cash when making purchases. Functionally, it can be called an electronic check, as the funds are withdrawn directly from either the bank account, or from the remaining balance on the card.

TYPES OF DEBIT CARD

Check CardsATM Cards

working of debit card1.Customers present the

card

2.Swipe it through electronic terminal

3.Enter the amount of purchase

4.Customers need to

sign the slip

5.Account automatically debited Finally

transaction verified

Advantages and Disadvantages of debit card

Advantages

• Obtaining a debit card is easy

• Easy to check transaction• Quicker transactions• No extra charge

Disadvantages

• Problem of overdraft fees• charge over-limit fees or

non-sufficient funds fees• lower levels of security

protection• Shorten time for fraudulent

reporting

REVIEW OF LITERATURE• Chakravorti ,Sujit (June 2003) in his article “ Theory of Credit Card Networks: A

Survey of the Literature” stated that Credit cards provide benefits to consumers and merchants not provided by other payment instruments as evidenced by their explosive growth in the number and value of transactions over the last 20 years.

• Chartered financial analyst (Nov 2007) in the article “Ethical Issues and Challenges” stated that the credit card company has to take into consideration the challenges which are thire in the markets.

• Hunt, Robert in this article “An Introduction to the Economics of Payment Card Networks” stated that how payment cards work and explains how the market for consumer payment methods differs from most other markets economists study

• Swift, Kevin (May 1998) in his article “Credit Card and Debit Cards: What New? Where To?” stated that trends have changed and forces have impact on the card issuer, and forecasting its future and the resulting impact on the card economy through the year 2002..

RESEARCH METHODOLOGY

RESEARCH DESIGN In the present study exploratory

comes descriptive research design will be followed.

RESERCH INSTRUMENTS

PRIMARY DATA Data of 50 respondents is collected

through questionnaire

SECONDARY DATA Data is collected through research

papers, journals, online article regarding consumer behavior

toward plastic money specially debit and credit card

SAMPLING PLAN Sample was selected

from panchkula area and respondents were chosen who use plastic money.

RESEARCH SAMPLE SIZE My sample size is 50.

ANALYTICAL TOOL: The data collected by me

is in the form of pie charts, tables, bar-diagrams.

Need and objective

Need of study• Need of the study is to get to know about concept of plastic money and usage of debit and credit cards

Objective of study• To know the perception of people towards plastic money.• To know the importance of plastic money in the daily life of consumers’

credit and debit cards• To study the benefits debit card and credit cards.

Limitations

The result are based on primary dataThe result are based on primary data

The data collected may or may not be accurate because of biasness from respondent side

The data collected may or may not be accurate because of biasness from respondent side

The study is based on the data from only panchkula city &Thus might not be true for all other areas

The study is based on the data from only panchkula city &Thus might not be true for all other areas

The accuracy of result is also limited to the reliability of method of investigation , measurement & analysis of

data

1: To know about respondents who are using the plastic money.

yes 100%

ANALYSIS AND FINDING

2: Card possessed by respondents

Debit card58%

Credit card28%

Both14%

56%26%

12%6%

1 2 3 None

3: Debit cards of different banks owned by respondents.

4: No. of credit cards of different banks owned by respondents.

146%

222%

310%

None22%

5: Companies /bank card owned by the respondents.

HDFC bank22%

ICICI bank28%

IDBI bank12%

CBOP bank6%

PNB bank22%

SBI bank10%

6: Time period of using the debit card/credit card/both.

Less than 1yr22%

Between 1yr-3yr26%

Between3yr-5yr34%

More than 5yr18%

7: Purpose for using the card.

Shopping37%

Withdrawal of money

24%

Hotel/Restau

rent20%

Petrol fill-ing

14%

Any other4%

8: Card which is more beneficial.

Debit card36%

Credit card34%

Both30%

9: Benefits provided by debit card

Security Free from fraud No interest charges

Anttime access Easy to carry

20 2115

6 4

18 16

11

5 6

1 2

1

6 6

14

2218

5 510

1622

Strongly disagree Disagree Neither agree Nor disagreeAgree Strongly agree

10: Benefits provided by credit cards

Easy to carry

Convenient to pay

Overdreft facility

Prestiage to holder

4

1

7

5

6

2

12

4

18

21

18

22

22

26

11

18

2

1

Strongly disagree Disagree Neither agree Nor disagree Agree

Strongly agree

11. Problems faced in processing the card

5 4 4 46 5 6 31 2

1918

1816

19 23 2027

Strongly disagree Disagree Nitheragree Nordisagree Agree Strongly agree

12. Future prospects of plastic money.

Rapid growth

Steady growth

Stagmant Can't pre-dict

Declining

Series1 0.56 0.320000000000001

0.04 0.06 0.02

5%

15%

25%

35%

45%

55%

CONCLUSION

In the last two years, spending pattern through plastic money has changed drastically in credit and debit cards specially in travelling, dining , jewellery and fuel account

Consumers were not only more open to the possibility of owning a financial card, but were also more than willing to use their cards to settle dues.

Consumers prefer these cards mostly for shopping; online E-commerce has given a better way to use the plastic money.

At last it is concluded that plastic money has a very bright future in the coming years because of the increasing trend of e-commerce.

SUGGESTION

Various offers and discounts should be provided on the plastic money .

The unnecessary formalities

should be reduced . The interest charges on credit

cards should be reduced

....

More facility should be provided to the cardholder in order to satisfy them

completely.

Advertisements should be given through TVs, magazines and

hoarding to have maximum reach.

BIBLIOGRAPHY

• Kothari C.R, “Research Methodology: Research and Techniques”; Vishwa Prakshan, New Delhi, 4th edition.

• E.gordan and Natrajan, Financial Services, Himalaya Publishing House, Mumbai. , 5th edition.

• ARTICLES • Cunningham Julie, Kansas State University ,article “College Student Using The Credit

Card” • Swift, Kevin, and article “Credit Card and Debit Cards: What New? Where To?” ,May’

1998• Chakravorti ,Sujit ,article “Theory Of Credit Card Networks: A Survey Of Literature

“June 03 2003• Chartered financial analyst ,article “Ethical Issues And Challenges” ,Nov 2007 • WEBSITES• http://www.rba.gov.au/PaymentsSystem/Publications/

BISCommitteeOnPaymentAndSettlementSystems/retail.pdf• http://www.federalreserve.gov/boarddocs/speeches/2001/20011205/default.htm

THANKYOU