What is Plastic Money

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Money is an essential part of our lives. But how did the need for money arise? You may recall learning about a barter system in which commodities were traded for goods, which was followed by an era in which gold and silver coins were introduced. Click here to know about esic payment online.

Plastic money came about as a result of technological advancements. Plastic money refers to your debit or credit card, but it can also refer to wire transfers from one bank to another. Let’s take a broader look at what plastic money is.

What do You Mean by Plastic Money

Cards are increasingly being used instead of cash. These cards are referred to as plastic money. Plastic money is represented by debit and credit cards. Plastic money has made it easier for us to conduct transactions in our everyday lives. 

The Advantages of Plastic Money

There are numerous advantages to using plastic money, including:

1. Cashless living

Plastic money has not only made our lives easier, but it has also reduced the hassles associated with carrying cash. Some of the best credit cards allow us to travel the world without carrying cash.

2. Better security

One advantage of using credit or debit cards is that robberies and crimes are reduced. Hacking a card’s PIN is difficult and requires knowledge of specific procedures. As a result, credit and debit cardholders can be reasonably confident that their funds are secure.

3. Financial freedom

Credit cards enable a person to conduct a transaction and pay for it even if they do not have the necessary funds. It is extremely useful, especially if you are short on cash. Credit cards also reduce the need to seek financial assistance from others in an emergency. You can fund your requirement with a credit card and then pay back in instalments. 

Furthermore, obtaining a credit card is simple. All you have to do is meet your bank’s credit card eligibility requirements, and you’ll have the card.

4. Ease of doing transactions

Credit and debit cards can make it easier to make online payments, fund transfers, and other transactions. Making payments with plastic money from any location is extremely simple. Furthermore, several online merchants offer discounts when paying with credit or debit cards.

5. Exciting deals and discounts 

Every credit and debit card provider provides shopping deals and discounts. They can assist you in saving more money and earning cashback on purchases.

6. Saving on Travel

Traveling without plastic money can be costly. Credit and debit cards provide access to lounges as well as incredible discounts on travel bookings. You can’t get the same benefits if you use cash, so plastic money is a must if you’re travelling.

Drawbacks of Plastic Money

Plastic money also has some drawbacks, including:

1. Does not work everywhere

Certain establishments and stores may only accept cash. Purchasing goods from a small merchant, for example, or purchasing vegetables or newspapers.

2. Can land you in debt

If a person is not cautious when using plastic money, they will frequently exceed their spending limit and spend more than they can repay. They may end up in debt as a result of this.

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