Plastic Money - What is plastic money & its benefits

It may sound strange but plastic money is a real term in finance. Here is what you should know about it

Money is an indispensable part of our lives. But where did the need for money arise from? You may recall learning about a barter system, in which commodities were traded for goods, followed by an age when gold and silver coins were introduced. As humanity progressed, we began to use paper notes and coins for commercial transactions. With time, we also used technology to pay for commodities.

The use of plastic money came through technology. Plastic money is your debit or credit card, although it can also refer to the wire transfers of funds from one bank to another. Let us get a more holistic idea of what plastic money is.

What do you mean by plastic money?

Cards are increasingly being used in place of actual cash. Plastic money refers to these cards. Debit and credit cards represent plastic money. Plastic money has made it easier for us to carry out transactions in our daily lives. It has replaced cash payments across the world and established itself as a necessary form of instant money. It has made it simpler for us to buy items with some of the best credit cards in the market, which we could not otherwise afford.

Benefits of plastic money

Plastic money comes with many benefits, including:

1. Cashless living

Plastic money has not only made our lives easier but has also alleviated the hassles that come with carrying currency. Some of the best credit cards allow us to move around the world without worrying about carrying cash.

2. Better security

One advantage of using credit or debit cards is the decrease in robberies and crimes. Hacking a card's PIN is difficult and necessitates the knowledge of certain procedures. As a result, credit and debit cardholders can be reasonably confident of the security of their funds.

3. Financial freedom

Credit cards allow a person to make a transaction and pay for it even when they do not have the funds. It is incredibly beneficial especially when you are short on cash. Credit cards also reduce the need to rely on others for financial assistance in an emergency. You can use the credit card to fund your requirement and later payback in instalments. Further, a credit card is easy to get. All you need to do is meet your bank’s credit card eligibility criteria, and the card is yours.

4. Ease of doing transactions

Credit cards and debit cards can help make online payments, fund transfers, and other transactions with ease. It is incredibly simple to make payments with plastic money from any location. Furthermore, several online businesses provide discounts when paying using credit and debit cards.

5. Exciting deals and discounts

Every credit and debit card providers offers deals and discounts on shopping. They can help you save more and earn cashback on purchases.

6. Saving on travel

Travelling can be expensive without plastic money. Credit and debit cards provide lounge access and incredible deals on travel bookings. You cannot enjoy the same benefits while using cash, making plastic money a must if you are travelling.

Drawbacks of plastic money

Plastic money also has some downsides, such as:

1. Does not work everywhere

There may be certain venues and stores where only cash is accepted. For example, buying products from a small merchant or buying vegetables or newspapers.

2. Can land you in debt

If a person is not careful with plastic money, they can often overstep their spending limit and spend more than they can repay. This can land them in debt.

If you are in the market for credit and debit cards and want to transition from cash to plastic money, look no further than IDFC FIRST Bank. You will receive unsurmountable benefits if you use cards from IDFC FIRST Bank. From unlimited lounge access to huge discounts, the world is your playing field with IDFC FIRST Bank. So, wait no more; get your card from IDFC FIRST Bank today! Use our mobile banking apps to unlock the benefits of our manifold cards.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.