Vishal Project Plastic Money

Topic :- plastic money Group F:Group leader:- Jyoti saharan Coordinator:- Surinder kumar Members:- Vikas sharma Mandeep kaur Vishal beri Kuljinder kaur

Meaning of Money:Money means more than the coin, paper or plastic to acquire goods and services. Money is linked to complex emotions, feelings and behaviors. Each person has "money messages" that are based on past experiences, what you observed and what you were taught. These money messages reflect the attitudes, perceptions and expectations that influence your financial behaviors today. If you think about your childhood, what do you recall about your household, the people and the community around you? What kind of housing, food, and clothing did you have? Did most families have several generations living together in a house? Even if money was scarce, did you always have food on the table? Did you only wear new, named-brand clothing or was using second-hand clothes acceptable? Did you have more than one television in the house?

Types of Money :2. 3.

Basically there are two types of money Paper Money Plastic Money

Paper Money:Currency in the form of government notes and bank notes Cash in the form of banknotes currency in paper form, such as government and bank notes, as distinguished from metal currency.

Plastic Money:Plastic money or polymer money, made out 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 risk of handling a huge amount of cash. It includes debit cards, ATMs, smart cards, etc.

Plastic Money (cont.) As we know many types of plastic money is available in the market such like credit cards, debit cards, add-on cards, charge cards, cobranded cards, affinity cards or Diners Club cards. More and more Indians are using them as a convenient mode of payment. The Plus point of plastic money is that you won't have to carry your cash around all the time. You have no fear to be theft. And its easy to use

Types of plastic Money:credit Plastic Money is of various forms it could be: A. CARDS B. CURRENCY

TYPES OF CARDS:Credit card Debit card Charge card Amex card Smart card Photo card Master card & visa Diner club card Global card Co-branded card

INFRASTRUCTURE FOR CARDS:Computer systems for processing capacity (security) Large number of skilled personnel Facility to handle card, statement, payment collections & dispute resolution. Create point of sale infrastructure to accept cards.

What is the credit card ? A credit card is plastic money that is used to pay for products and services at over 20 million locations around the world. All you need to do is produce the card and sign a charge slip to pay for your purchases. The institution which issues the card makes the payment to the outlet on your behalf; you will pay this 'loan' back to the institution at a later date.

How to use Credit Cards ? 1. Separating business and personal spends may provide better finance management option 2. Since Card is like cash - Not to carry the ATM – PIN along the card - Always check the amount on the sales slip and terms and conditions on the invoice before signing the slip - Not to use the card at unknown website - Report lost card instantly - Not to part with the card number, expiry date to strangers

How to use Credit Cards (cont.) 3. Maintain Card statements - Review the monthly statement before destroying them - Ideally the card sales slips and invoices should be retained for 6 months - Subscribe to the internet banking facility for easy access to the statement - Balance in the card account can also be obtained from the ATM and call center. - Inform any mismatch on the statement to the bank 4. Payment date - Diaries the payment due date and pay on or before the date - Subscribe to internet banking and opt for the payment alert

How to use Credit Cards (cont.) 6. To contact the bank - Use the call center - Use the PIN for standard information as well as to perform transactions through call centers - Use the internet banking and leave queries - Drop letter at the ATM or mail to the Card Centre 7. Avail the benefits - Monitor the reward points from the statements, Internet banking and call center. - Redemption can be done using internet, call center and letter

What is a Debit Card ? Debit cards are substitutes for cash or check payments, much the same way that credit cards are. However, banks only issue them to you if you hold an account with them. When a debit card is used to make a payment, the total amount charged is instantly reduced from your bank balance. Don't borrow on your credit card! Here's why A debit card is only accepted at outlets with electronic swipe-machines that can check and deduct amounts from your bank balance online.

What is a Charge Card? 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. When you use a credit card you are not declared a defaulter even if you miss your due date. A 2.95 per cent late payment fees (this differs from one bank to another) is levied in your next billing statement.

What is an Amex Card? Amex stands for American Express and is one of the wellknown charge cards. This card has its own merchant establishment tie-ups and does not depend on the network of MasterCard or Visa. Credit cards: Remember these dos and don'ts This card is typically meant for high-income group categories and companies and may not be acceptable at many outlets. There are a wide variety of special privileges offered to Amex cardholders.

What is the Diners Club Card?  Diners Club is a branded charge card. There are a wide variety of special privileges offered to the Diners Club cardholder. For instance, as a cardholder you can set your own spending limit. Besides, the card has its own merchant establishment tie-ups and does not depend on the network of MasterCard or Visa. However, since this card is typically meant for high-income group categories, it may not be acceptable at many outlets. It would be a good idea to check whether a member establishment does accept the card or not in advance.

.

What is a Global Card? Global cards allow you the flexibility and convenience of using a credit card rather than cash or travelers cheque while traveling abroad for either business or personal reasons.

What is a Co-branded Card? Co-branded cards are credit cards issued by card companies that have tied up with a popular brand for the purpose of offering certain exclusive benefits to the consumer. A debit card with a difference For example, the Citi-Times card gives you all the benefits of a Citibank credit card along with a special discount on Times Music cassettes, free entry to Times Music events, etc.

What are MasterCard and Visa? MasterCard and Visa are global non-profit organizations dedicated to promote the growth of the card business across the world. They have built a vast network of merchant establishments so that customers worldwide may use their respective credit cards to make various purchases.

What is a Smart Card? A smart card contains an electronic chip which is used 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. The exact amount of purchase is deducted from the smart card during payment and is collected by smart card reading machines. No change is given. Currently this product is available only in very developed countries like the United States and is being used only sporadically in India.

What is a Photo Card? If your photograph is imprinted on a card, then you have what is known as a photo card. Doing this helps identify the user of the credit card and is therefore considered safer. Besides, in many cases, your photo card can function as your identity card as well.

Advantages Offer free use of funds, provided you always pay your balance in full, on time. 2. Be more convenient to carry than cash. 3. Help you establish a good credit history. 4. Provide a convenient payment method for purchases made on the Internet and over the telephone. 5. Give you incentives, such as reward points, that you can redeem

Disadvantages :1. Cost much more than other forms of credit, such as a line of credit or a personal loan, if you don't pay on time. 2. Damage your credit rating if your payments are late; 3. Allow you to build up more debt than you can handle; 4. Have complicated terms and conditions