In the world of finance, the term "plastic money" is not a joke. The following is an overview of everything you need to know about it
Money is a need in our daily life. But from whence came the requirement for monetary resources? There was a time when things were exchanged for commodities using a barter system. After that, gold and silver coins were introduced. For business transactions, we began using paper notes and coins. As time passed, we began to make purchases using our credit cards instead of cash.
The term "plastic money" can apply to both your debit or credit card and the money you move from one bank to another via wire transfer. Let's take a look at plastic money from a more complete perspective.
What is "Plastic Money"?
The usage of credit and debit cards is on the rise. These cards are referred to as "plastic money." Plastic money may be found in debit and credit cards. In our daily lives, plastic money has made it easier to conduct transactions. If you don't have cash, you can't use it. As a result, we've been able to purchase products that we otherwise would not have been able to afford with some of the greatest credit cards available.
Plastic money has several advantages:
Among the numerous advantages of using plastic money are:
1. Living a cashless lifestyle:
Plastic money has not only made our lives simpler, but it has also eliminated the inconveniences that come with carrying currency. Some of the greatest credit cards allow us to travel across the world without having to worry about bringing any cash with us.
2. Improved protection:
The reduction in robberies and other crimes is one benefit of paying with a credit or debit card. Hacking a credit card's PIN is complicated and involves familiarity with certain steps. The safety of credit and debit card funds is thereby assured, and this gives cardholders some peace of mind.
3. The ability to make one's own decisions regarding one:
It is possible to make a transaction and pay for it using a credit card even if you don't have the money to do so. It is really handy especially when you are low on funds. Credit cards help lessen the need to rely on others for financial support in the event of an unexpected financial crisis. If you need money, you may use a credit card to get it, and then pay it back over time. Furthermore, credit cards are readily available. Simply fulfil your bank's credit card eligibility requirements and you'll be able to get your hands on a card.
4. Ease of transaction processing:
Credit cards and debit cards can assist conduct online payments, cash transfers, and other activities with ease. It is quite simple to make payments with plastic money from any place. In addition, many online merchants provide discounts to customers who pay with a credit or debit card.
5. Exciting offers and reductions:
The majority of credit and debit card companies provide specials and discounts to their customers when they purchase online. Spending less and earning cashback are two of the many benefits you may obtain from using them.
6. Spending less on a trip:
Without plastic money, travelling may be pricey. Using a credit or debit card gives you access to lounges and great travel offers. When travelling, plastic money is a must because you can't get the same conveniences when paying with cash.
Plastic money's drawbacks
There are various disadvantages to using plastic money, such as:
It does not operate in all places:
It is possible that some businesses and establishments may not accept credit or debit card payments. Purchasing items from a small business owner, such as fruits and vegetables or newspapers, is one such example.
Has the potential to put you in debt:
When using plastic money carelessly, it's easy to go over your budget and incur debts you don't have the means to repay. They may end themselves in debt as a result.
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