Q.2 Describe various type of plastic money.



Plastic money are the alternative to the cash or the standard ‘Money'.•Plastic money is the generic term for all types of bank cards, credit cards, debit cards, smart cards,etc.
First payment cards was introduced in the USA, in1920.•Diners Club and American Express launched the world first plastic cards in the USA, in 1950.•First credit card was introduced by Diners club in1951.•Citibank and HSBC were the pioneers in the Indian credit card market in the 1980.
Types of Plastic Money
1. Debit Cards
Debit Cards are electronic plastic cards that are used as a substitute for cash. Debit cards are directly linked to a cardholder’s bank account
2. Credit Cards
Any card that may be used repeatedly to borrow money or buy products and services on credit.
3. Smart Cards
A smart card contains an electronic chip which issued to store cash. This is most useful when you have to pay for small purchases, for example bus fares and coffee. No identification, signature or payment authorization is required for using this card.
4. Charge Cards
A charge card carries all the features of credit cards. However, after using a charge card you will have to pay off the entire amount billed, by the Due date. If you fail to do so, you are likely to be considered a defaulter and will usually have to pay up a steep late payment charge.
5. Photo cards
If your photograph is imprinted on a card, then you have what is known as a photo card.
6. Global Cards
Global cards allow you the flexibility and convenience of using a credit card rather than cash or travelers checks while traveling abroad for either business or personal reasons.