Plastic Money is the term used to indicate Credit cards & Debit cards. Before the advent of Credit cards and Debit cards a major portion of the business transactions were carried on through cash.

Even though there existed a very strong banking industry the business was more dependent on cash transactions than the banking channel due to the lack of information with regard to the credit worthiness o the customers and the inherent delay in collections.

This posed a major problem for both the business community as well as the individuals. The plight of the travellers was still worse; they were forced to carry large quantities of cash wherever they went. Carrying cash in itself was a great threat than anything else. Thanks to the development in technology and computerisation, with the use of the smart cards like Credit cards & Debit a is the need to carry cash is significant!

reduced. You can shop whenever you want and you can make the payment instantly either with a Credit card or a Debit card. Since the cash is replaced by plastic cards (whether Credit card or Debit card) it is called plastic money.

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The plastic money brings with it various advantages like availing a credit facility whenever you want and paying for your purchases or making other utility payments without actually exchanging money or visiting the bank.