Plastic Money – Advantages & Disadvantages
                     PLASTIC MONEY – ADVANTAGES & 
DISADVANTAGES
What is Plastic Money?
Using plastic cards in place of physical cash is now a 
common phenomenon. These cards are called plastic 
money. Debit cards & credit cards are good examples of 
plastic money. 
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About Plastic Money
Plastic money has provided us with the ease of 
conducting transactions in our day to day life. It has 
definitely replaced cash transactions to a great extent 
all over the world and has emerged as an essential 
form of ready money.
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ADVANTAGES OF PLASTIC MONEY
Convenience
Plastic money has not only provided us with 
convenience, but it has also eliminated the 
inconvenience that is caused by carrying cash. For 
instance, when the job of a working executive involves 
a lot of inter-state travel he/she has to entail numerous 
expenses like travel, stay, food etc.
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Reduction in robberies and crimes
With credit or debit cards being used, one benefit is the 
reduction in robberies and crimes. It is very difficult to 
hack the PIN of a card, for which a person needs to 
know specific techniques. 
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Pay Later Facility
With the advent of credit cards, an individual can avail 
of the benefits of a credit facility and pay at a later 
date. This kind of benefit is not available when cash is 
being used for making purchases.
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International acceptability
Owning an international debit or credit card provides 
international acceptability and the ease to make 
purchases with that card itself rather than facing the 
inconvenience caused by the conversion of currency.
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DISADVANTAGES OF PLASTIC 
MONEY
Need for Cash
There are several places where there is a need for cash 
only. For instance purchasing utilities from a small 
retailer or for payments to the milkman, newspaper 
boy, etc.
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Cybercrime
When we are making an online purchase through a 
form of plastic money there is a certain degree of risk 
involved as we share our bank details and other 
financial information on the internet which is not 
always a safe place. Cybercrimes are on the rise.
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Interest Payment
While it is true that credit cards give us ample time to 
pay for purchases made through them, it can also not 
be ignored that on the lapse of that period the 
cardholder has to pay the interest amount. 
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