Plastic money Essay

flexible currency is a term that is employ predominantly in reference to the hard plastic greenbacks we employment every day in place of actual bank nones. They asshole come in mevery different forms such as interchange cards, trust cards, account cards, pre-paid cash cards and store cards.IntroductionA slang phrase for course identification cards, especially when such cards employ 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 ill-considered reference to credit cards as a form of money, which they argon non. Although credit cards do facilitate transactions, beca workout they are a obligation rather than an asset, they are not money and not part of the rescues money supply.Plastic money is the alternative of cash or the standard money. Plastic money is mathematical function to refer to the credit cards, debit cards that we use to make purchase s in our everyday life. Plastic money is much more convenient to carry around as you do not have to carry a huge several(prenominal) of money with you. It is also much safer to carry it along or to motivity with it as if it is stolen one piece of ass consult the bank whose service you are apply and get it blocked hence saving your money from acquire stolen or even lost.Plastic money or polymer money, made appear of plastic, is a new and easier way of paying for goods and services. Plastic money was introduced in the 1950s and is now an essential form of ready money which reduces the luck of handling a huge amount of cash. It includes debit cards, ATMs, smart cards, etceteraNowadays 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 piddle plastic money has originated from. AnonymousIn nows materialistic wo rld, every one is running croupe money or you can say that the whole world is running behind money. In addition, these days, things have become costlier and with out hard cash it is fractious to make any outright purchase, if you are an impulsive buyer. Nevertheless, with Plastic currency, i.e. Payment tease, you can do it without carrying any money on you. there is no burden of carrying a bunch of notes, no fear of loosing or forgetting the wallet at home. Welcome to the age of Plastic Money. divers(prenominal) Types of Plastic Money.Cash Cards A card that willing take on you to withdraw money today from your bank via an Authorized Teller auto (ATM) but it will not allow the holder to purchase anything direct with it. acknowledgement Cards Again this card will permit the card holder to withdraw cash from an ATM, and a credit card will allow the user to purchase goods and services directly, but unlike a Cash Card the money is basically a high involvement loan to the card holder, although the card holder can avoid any interest charges by paying the balance off in adept each month.Debit Cards This type of card will directly debit money from your bank account, and can directly be used to purchase goods and services. While there is no official credit installment with debit cards per se, as it is linked to the bank account the terminus ad quem is the plant of what is in the account, for instance if an overdraft facility is available indeed the limit will be the extent of the overdraft.Pre-paid Cash Cards 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 overstep up however some cards, usually marketed as Gift Cards are not re-useable and once the credit has been spent they are habituated of.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.AdvantagesYou dont have to carry cash.You can have your jobs equalise directly deposited into the bank. You can buy what you want without having the money right then to buy the item as long as you do not go over the cards limit. In unexpected financial emergencies, cards can be used to pay for what you need. Wise use is beneficial to your credit report.DisadvantagesThey encourage overspendingYou can get in too much debt, leading to filing bankruptcy.Cards often have supernumerary or hidden fees and high interest rates. Using credit and debit cards puts you at higher risk of identity theft than using cash. Cards might be lost.