Upload
shiva-moturi
View
3.911
Download
1
Tags:
Embed Size (px)
DESCRIPTION
Uses of plastic money and its advantages
Citation preview
PLASTIC MONEY& IT’S ADVANTAGES
BYM.SHIVA
PLASTIC MONEY
A PLASTIC MONEY is generally a credit or debit card with a magnetic strip many people carry in their wallets or purses is the end result of complex banking process
BIRTH OF PLASTIC MONEY
• It all began in the year 1951• New York based bank called Franklin national bank
Who can be the (credit & debit) card holder
A person who earns a salary of Rs.60,000/- per annum is eligible for card He should have a savings current account
A statement of annual or monthly income
He is considered credit worthy up on to Certain limit depending up on incomeassets and expenditure
Advantages of plastic money to banks
Store feesInterest feesLate payment feesHigh annual feesReduced work at branches due to reduced handling of cash, and clearing transaction
Advantages of plastic money to Customer
Convenience- It can save you time & trouble
Instant cash- cash advances are quick & convenient
Record keeping- CC statement can help you track your expenses
Purchasing power-cards made it easier to purchase things. Now we don’t have any need to carry hard cash in a large amount.
Credit Limits-You get an extra amount to spend with your card. This extra spent money you can return before a fix time schedule
Mostly credit card offer additional benefits, as discount from some particular stores, bonus in airline fare, free insurance policies and much more
Advantages of plastic money to merchants
Higher spending- Consumers spend an average of 68.5% more when they pay with a credit card instead of cash
Greater reliability-With the benefit of a merchant account, you could have guaranteed payments without fear of bounced or missing checks
Faster than invoicing- Invoice payments could potentially take up to 90 days and require more administrative time than card payment
Makes you more competitive: A
recent survey found that 29% of customers preferred to pay for retail purchases with credit cards, while notably fewer (24%) preferred to use cash