Write about the following topic:

Nowadays plastic money replacements such as

credit and debit cards are extremely popular,
even more than banknotes and coins.
Discuss the advantages and disadvantages of this.
Give reasons for your answer and include any relevant examples from
your own knowledge or experience.

Write at least 250 words. 

Model Answer:
Electronic transactions are gradually replacing the traditional banking
system and the use of banknotes is being supplanted by credit and
debit cards. The transformation towards a cashless society might be
slow, but steady and widespread. This paradigm shift has both
positive and negative consequences and this essay deals with both of
them.

Primarily, electronic transactions and plastic card payments are more

convenient and are processed on the go. People neither have to carry
a bulk amount of cash nor write a check - which usually takes a
couple of days to clear the payment. The electronic payment system
is global in nature and hassle-free. Consequently, the eCommerce
industry has flourished and many individuals have their own online
business without any brick and mortar shop. For instance, nowadays
it has become pretty easy to shop with a VISA or a Master card,
virtually from anywhere in the world. Personally, I hate standing in a
long queue to pay my utility bills, and my cards let me do it from
home - a time saver indeed.

On the contrary, the trend does not come without negative aspects. Although we can use
these cards due to technological advancement, the risks of using plastic money, however,
pertain to this technology. The primary threat to such payment mode is cybersecurity and
hacking. For example, once a credit card is cloned or its sensitive data is hacked, the owner
would suffer a great financial loss. A technology giant like Facebook has failed to protect its
user data, for example, and the misuse of user data is a global concern. The same goes for
plastic cards and online payment systems that have the same vulnerability.

To conclude, despite some adverse effects, the use of plastic money for making and receiving
payments is the need of the hour. It provides a plethora of advantages but we have to be
careful of its use.
[Written by - Fahad Arif]

Tips:
Advantages of using plastic money (i.e. credit and debit
cards):

1. The convenience of doing transactions from home.

2. Has global acceptance.
3. These cards easily fit into our wallet.
4. Reduce the risk of carrying a huge sum of money.
5. Facilitates online payments.
6. Enable small business owners to run business 24/7.
7. Offer credit facility and instalment facility.
8. The risk of theft and loss is minimised.
9. Support the growth of eCommerce.
10. Less time to process the transaction.

Disadvantages of using plastic money (i.e. credit and debit

cards):

1. Not accepted by small vendors.

2. Sometimes the payment is rejected due to technical problems.
3. Such cards may impose high interests on the owner.
4. Plastic cards often are responsible for the impulsive shopping
habits of people.
5. Vulnerable to hacking, data theft, misuse and fraud.
6. High-value transactions are often not possible.
7. Sometimes impose additional service charges.