A PROJECT ON

“ A study on the plastic money”

(BANKING AND INSURANCE)
Semester VI
(2023-2024)
MR. JITESH RAJMAN YADAV
Roll No. 70

Submitted to
University of Mumbai
Project Guidance by
DR.ANITA DAKSHINA

Satish Pradhan Dnyanasadhana College, thane

Arts, Science and Commerce

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 Satish Pradhan Dnyanasadhana College, thane

Arts, Science and Commerce

CERTIFICATE

OF

PROJECT WORK

This is to certify that Mr. JITESH RAJMAN YADAV Of B.Com (BBI) Semester VI Roll
No.70 has undertaken and completed the project work titled “ A study on the plastic
money” during the academic year 2023-24 under the guidance of Dr. Anita Dakshina
submitted on “SATISH PRADHAN DNYANSADHNA COLLEGE” to this college in
fulfillment of the curriculum of Bachelor of Commerce (BBI), University of Mumbai.

This is bonafide project work & the information presented is true & original to the best of our
knowledge and belief.

Dr. Anita Dakshina

PROJECT GUIDE COURSE CO-ORDINATOR

Dr. Bhushan Langi

Principal. External Guide

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 DECLARATION

I the undersigned here Mr. JITESH RAJMAN YADAV by, declare that the work
embodied in this project work titled “A STUDY ON THE PLASTIC MONEY”
forms my own contribution to the research work carried out under the guidance
of Dr. Anita Dakshina is a result of my own research work and has not been
previously submitted to any other University for any other Degree/ Diploma to
this or any other University.
Wherever reference has been made to previous works of others, it has been clearly
indicated as such and included in the bibliography.
I, here by further declare that all information of this document has been obtained
and presented in accordance with academic rules and ethical conduct.

Mr. JITESH RAJMAN YADAV

Name and Signature of the learner

Certified by

Dr. ANITA DAKSHINA

Name and signature of the Guiding Teacher

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 ACKNOWLEDGEMENT

I owe a great many thanks to a great many people who helped and supported me
doing the writing of this book.
I take this opportunity to thank the University of Mumbai for giving me chance
to do this project.
I would like to thank my Principal, Dr. Bhushan Langi for providing the
necessary facilities required for the completion of this project.
I take this opportunity to thank our Coordinator ________ for her moral support
and guidance.
My deepest thanks to lecturer, Dr. Anita Dakshina the Guide of the project for
guiding & correcting various documents of mine with attention care. He has taken
pains to through my project and make necessary corrections as and when needed.
I would like to thank my College Library, for having provided various reference
books and magazines related to my project. I also extended my heartfelt thanks to
my family and well-wishers. Lastly, I would like to thank each person who
directly or indirectly helped me in the completion of project especially parents
and peers who supported me throughout my project.

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 Index
Particular

1 Introduction

2 Review literature
.

3 Research and Methodology

4 Data analysis and Interpretation

5 Finding

6 Suggestion

7 Conclusion

8 bibliography

9 Appendix

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 INTRODUCTION TO PLASTIC MONEY

1.1 INTRODUCTION

Concept of 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 am essential form of ready money which reduces the risk of handling a huge
amount of cash. It includes credit card, debit card, ATMs, smart cards, etc. This assignment on
plastic money is divided into two portions titled Concept and Experience. The former
covers the emergence of plastic money, different types of plastic cards, their growth in India.
Plastic money are the alternative to the cash or the standard ‘money’. Plastic money is used to
refer to the credit cards or the debit cards that we use to make purchases in our everyday life.
Plastic money is much more convenient to carry a huge some of money with you. It is also
much safer to carry it along or to travel with it is if it is stolen one can consult the bank whose
service you are using and get it blocked hence saving your money from getting stolen or even
lost.
Nowadays, even developing countries like India are encouraging the use of these plastic
money more than cash due to these reasons. Furthermore these credit and debit cards also have
plastic used in their making and that is where the name plastic money has originated from.
Plastic money is a term used to represent the hard plastic cards used in day-to-day life in
place of actual banknotes. Plastic money refers to the hard plastic cards we use every day in
place of actual bank notes. For example, ATM cards like credit card and debit card are
electronic generated card that acts as plastic money at the time of buying of goods and services.
Debit card is used to withdraw money from your bank account at the time of payment for
something and credit card is used to generate credit in the name of your bank account for the
purpose of electronic payment.
Today, the domestic card industry is applied with different types of cards from gold,
silver, global, smart to secure, co-branded credit cards, etc. the list is endless. There is enormous
growth potential in the domestic card industry.

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1.2 MEANING
Plastic money means the credit cards and plastic cards which have silicon chips and
a specially printed set of character. These cards are used for making payments at ordinary shops
and at ATM (Automated teller machine)

1.3 DEFINITIONS :

A slang plastic for credit card, especially when such cards used to make purchase. The
“plastic” portion of this terms refers to the plastic consideration of credit cards, as opposed to
the paper and metal of currency. The “money” portion is an erroneous reference to credit cards
as a form of money, which they are not. Although credit cards do facilities transactions, because
they are a liability rather than an asset, they are not money and not part of the economy’s money
supply.

1.4 HISTORY :
The first card was introduced in the year 1967 by Barclays in London followed by
Chemical Banks in New York in the year 1969. The major significant event was the
introduction of a magnetic stripe along with personal identification numbers.
Another significant event in the history of plastic money was the introduction of a
hardware security module of a hardware security module in order to make secure payments by
using microprocessor technology in the year 1973. After this smart cards were introduced in
the late 1970s and came in demand during the mid-1980s.
While a history of “ plastic money”, you cannot ignore charge cards charge cards laid
the groundwork for debit and credit cards. Company issued charge cards can be found as far
back as the early 1900’s. These cards mainly just kept customers loyal to the company.
The history of Credit Cards and Debit cards have evolved into a safe and secure
manner to purchase goods and services. The Internet has given credit card users additional
purchasing power. Banks have option like cash-back rewards, savings plans and other
incentives to entire people to use their cards.
Debit cards allow people the convenience of cards without the worry of racking up
debt. The convenience, security and rewards offered by credit and debit cards keep shoppers
using cards as opposed to checks or cash.

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1.5 CREDIT CARD ORIGINS

The first credit cards were issued by individual stores and merchant. These cards were
issued in limited location and only accepted by the business that issued them. While the cards
were convenient for the customers, they also provided a customer service benefit, which was
good for both customer and merchant. It was not until 1950 that the Dinners Club Card was
created by a restaurant patron who forgot his wallet and realized there needed to be an
alternative to cash only.

This started the first credit card specifically for widespread use, even though it was
primarily used for entertainment and travel expenses. The first Diner’s Club Cards were made
out of cardboard or celluloid.

In 1959 American Express changed all that with the first card made of plastic. American
Express created a system of making an impression of the card presented at the register for
payment. Then that impression was billed to the customer and due in full each month. Several
American Express cards still operate like this as of 2010.

It was not until the late 1980s that American Express began allowing people to pay their
balance over time with additional card option. Bank Card Associations In 1966, Bank of
America created a card that was a general purpose card or “open loop” card. These “closed
loop” agreement limited cards like Diners Club and American Express to certain merchants,
unlike the new “ open loop” cards.

The new general purpose system required interbank cooperation and additional
regulation. This created additional safety features and began building the credit card system of
today. Two systems Emerged as the leaders play—Visa and Master Card. However today there
Is little difference between the two and most merchants accept both card associations.

1.6. DEBIT CARD EMERGE

The visa association cards took credit cards to a new level in 1989 when they
introduced debit cards. These cards linked customers to their checking accounts. Money was
now drawn from a checking account at the point of sale with these new cards and replaced
check writing.

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 This helped the merchants check that money was available and made it easier to track
the customer if the funds could not be obtained. Consumers liked the convenience of not having
to write cheque at the point of sale, which made debit cards a safe alternative to cash and
cheque.

Then in future there were almost 29 million debit card users as of 2006, with a projected
34.4 million users by 2016. However online services like PayPal are emerging as a way for
people to pay their debts in new, secure and convenient ways. Technology also exist to have
devices implanted into phones, keys and other everyday devices so that the ability to pay add
the point of sale is even more convenient.

1.7 PLASTIC FRAUD

State-of-the-art thieves are concentrating on plastic cards.

The past, this type of fraud was not very common. Today, it is a big business for
criminals. Plastic cards bring new convenience to your shopping and banking, but they can turn
into nightmares in the wrong hands. This pamphlet describes credit and debit cards and some
common schemes involving card fraud with tips to help you avoid them.

The following are the types of frauds

1. Stolen cards at the Office
2. Extra Copies of Charge Slips
3. Discarded Charge Slips
4. Unsigned Credit Cards
5. Loss of Multiple Cards
6. Strange Requests for Your PIN Numbers
7. Legitimate Cards 8. Altered Cards
9. Counterfeit Cards

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 1.8 ADVANTAGES AND DISADVANTAGES

 ADVANTAGES :-

1. Plastic money, unlike paper money, will not burn easily and can resist higher
temperatures than paper money.
2. You have no fear to be theft.
3. And its easy to use.
4. Paper money also picks up dirt and stains more easily than plastic money.
5. Plastic money is the debit and credit cards.
6. Plus point of plastic money is that you won’t have to carry your cash around all the
time.
7. It also doesn’t tear after time as paper does nor does it rip and tear.
8. Give you incentives, such as reward points, that you can redeem.
9. Be more convenient to carry than cash.
10. Provide a convenient payment method for purchases made on the Internet and over the
telephone. 11. Help you establish a good credit history.

 DISADVANTAGES :-

1. Cos much more then forms of credit, such as line of credit or a Personal loan, if you
don’t pay on time.
2. Damage your credit rating if you payments are late;
3. Allow you to build up more debt than you can handle;
4. have complicated terms and conditions;
5. Paper money also picks up dirt and stains more easily than Plastic money.
6. I can’t really see any advantages to have paper money, unless it is cheaper to make.

Its disadvantage is that, some extra money will be deducted for the bank services.

It’s around 2.5% of the money you spent.

1.9 TECHNOLOGY AND INFRASTRUCTURE

One of the most important features that plastic money offers is the technology
associated with this business. Although a third world country, with lot of insecurities and
almost no infrastructure, Pakistan has no exception when it comes to credit card business. There
is approximately 3000 Point of Sale Terminals (POST) present on merchants site connected
with bank host system. Inter-city connectivity is accomplished through X.25 networks.

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Perhaps, it is the most important time in the history of Pakistan as the parameters of its
Infrastructure are coming into existence.
There is immense need of reliable wide area connectivity and this market is so huge
and lucrative that it can accommodate many more industry giant.

1.10 TECHNOLOGIES

purchase. The “plastic” portion of this terms refers to the plastic consideration of credit cards,
as opposed to the paper and metal of currency. The “money” portion is an erroneous reference
to credit cards as a form of money, which they are not. Although credit cards do facilities
transactions, because they are a liability rather than an asset, they are not money and not part
of the economy’s money supply.
1.11 EMBOSSING

Originally charge account identification was paper-based. In 1959 American Express

was the first charge card operator to issue embossed plastic cards which enabled cards to be
manually imprinted for processing, making processing faster and reducing transcription errors.
Other credit card issuers followed suit. The information typically embossed are the bank card
number, card expire date and cardholder’s name. Though the imprinting method has been
predominantly superseded by the magnetic stripe and then by the integrated chip, cards
continue to be embossed in case a transaction needs to be processed mutually. Cards conform
to the ISO/IEC 7810 ID-1 standard, ISO/IEC 7811 on embossing, and the ISO/IEC 7812 card
numbering Standard.

An example of the reserve side of a typical debit card :

1. Magnetic stripe
2. Signature stripe
3. Card Security Code

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 Magnetic stripes started to be rolled out on debit cards in the 1970s with the
introduction of ATMs. The magnetic stripes stores card data which can be read by
physical contact and swiping past a reading head. The magnetic stripe contains all the
information appearing on the card face, but allow for faster processing at point-of-sale
than the then manual alternative as well as subsequently by the transaction processing
company. The magnetic stripe is in the process of being augmented by the integrated
chip.

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 1.12 TYPES OF PLASTIC MONEY

1. Credit card
2. Debit card
3. Charge card
4. Amex card
5. Dinner club card
6. Global card
7. Co-branded card
8. Master card & Vida
9. Smart card
10. Photo card

Credit card

Credit card is a plastic body that is used to pay for products and services at over 20
million location around the world. All you need to do is produce the card and sign a charge
sleep pay for your purchase. 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.

Debit Card

Debit cards are substitutes for cash or check payments, much the same way that
credit cards are. However, bank 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.
A debit card is only accepted at outlet with electronic swipe – machines that can
check and deduct amount from your bank balance online.

Charge card

A charge card Carries all the features cards. However, after using a charge
card you will have to pay off the entire amount billed, by the due. If you feel to do
so, you are likely to be considered a defaulter and will usually have to pay steep
late payment charge you are next billing statement

Dinner club card

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 Dinner club is Branded charge card. There are wide variety of special privileges
leaders offered to the Dinners Club cardholder. For instance, as the 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.

Global card

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

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
Citibank credit card along with a special discount on Times Music cassettes, free entry to
Times Music events, etc.

Master card and visa

MasterCard and visa are global non-profit organization dedicated to promote

the growth of the card business across the world. They have built up vast network of
merchant establishments so that customers worldwide may use their respective credit cards
to make various purchases.

Smart 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 Citibank credit card along with a special discount on Times Music cassettes, free entry
to Times Music events, etc.

Photo card

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 If you are photograph is imprinted on a card, than 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.

A slang phrase for credit cards, especially when such cards used to make purchases.
The “plastic” portion of this term refers to the plastic construction of credit cards, as opposed
to paper and metal of currency. The “money” portion is an erroneous reference to credit cards
as a form of money, which they are not. Although credit cards to facilitate transaction, because
they are a liability rather than an asset, they are not money and not part of the economy’s money
supply.

1.13. CREDIT CARD

1.13.1 INTRODUCTION :

a credit card is a small plastic card issued to users as a system of payment. It allows
holder to buy goods and services based on holder’s promise to pay for these goods and service.
The issuer of the card grants a line of credit to the consumer or the user form which the user
can borrow money for payment to a merchant or as a cash advance to the user.

Usage of the term “credit card” to imply credit card account is a metonym. When a
purchase is made the user world indicate constant to pay by play singing a recipe with a record
of the card details and indicating the amount to be paid. Issuer agrees to pay the merchant and
the credit card user agrees to pay the card issuer.

In other words, credit card can be viewed as a payment mechanism which enables the
holder of the card to purchase goods or services without parting with immediate cash and make
a one-time payment at the end of a specific period Known as the billing cycle which is usually
a month with a provision for spreading this payment over several easy instalment.

Again this card will permit the card holder to withdraw cash from ATM, and a credit
card will allow the user to purchase goods and service directly, but unlike a cash card the money
is basically a high interest loan to the card holder, although the card holder can avoid any
interest charges by paying the balance off in full each month.

A card is a small plastic card issued to users as a system of. It allows its holder to buy
goods and service based on the holder’s promise to pay for those goods and services. The issuer
of the card creates a revolving account and grants a line of credit to consumer (or the ) from
which the user can borrow money for payment to merchant or as a cash advance to the user.

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 The credit card is built around the revolving credit concept. The card carriers a preset
limit for spending which can be utilized by the cardholder during the specific period. At the
end of the month, the holder needs to pay about 5 to 10 percent of the outstanding value of
purchase and liquidate the balance in easy installment over the next few months.

1.13.2 TECHNICAL SPECIFICATIONS :

The size of most credit cards is 85.60mm × 53.98 (3.370 in ×2.125 in) and rounded
corners with a radius of 2.88-3.48 mm, conforming to the ISO/IEC 7810 ID-1 standard, the
same size as ATM cards and other payment cards, such as debit cards.

Credit card have a printed or embossed bank card number complying with the ISO/IEC
7812 numbering standard. The card numbers prefix, called the Bank Identification Number, is
the sequence of digits at the beginning of the number that determines the bank to which a credit
card number belongs. This is the first six digits for Master Card and Visa cards. The next nine
digits are the individual account number, and the final digit is a validity check code.

Both of these standards are maintained and further developed by ISO/IEC JTC1/SC
17/WG 1. Credit cards have a magnetic stripe conforming to the ISO/IEC 7813. Many modern
credit cards have a computer chip embedded in them as a security feature.

In addition to the main credit card number, credit cards carry issue and expiration dates
(given to the nearest month), as well as extra codes such as issue numbers and security codes.
Not all credit cards have the same sets of extra codes nor do they use the same number.

1.13.3 BASIC TERMINOLOGIES

The balance outstanding at the end of a month carries a rate of interest of 2 percent to 3 percent
per month.

Parties involved :
1) Cardholder :
The holder of the card used to make a purchase; the consumer.

2) Card-issuing bank :
The financial institution or other organization that issued the credit card to the cardholder.

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3) Acquiring bank :
The financial institution accepting payment for the products or services on behalf of the
merchant.

4) Merchant account :
This could refer to the acquiring bank or the independent sales organization, but in general
is the organization that the merchant deals with.

5) Credit card association :

An association of card-issuing bank such as they Discover, Visa MasterCard, American
Express, etc. that set transaction terms for merchants, Card-issuing banks and acquiring
banks.

6) Transaction network :
The system that implements the machines of the electronic transaction. May be operated
by an independent company, and one Company operate multiple networks.

7) Affinity partner :
Some institutions lend their names to an issuer to attract customers that have a strong
relationship with the institution, and get paid a fee or a percentage of the balance for each
card issued using their name.

8) Insurance provider :
Insurers underwriting various insurance protections offered as credit card perks.

1.13.4 ADVANTAGES AND DISADVANTAGES OF CREDIT CARD

Advantage of Credit Card
The benefits of credit card can be grouped as follows :

1. BENEFITS TO THE BANK

• A Credit card he is an integrated part of banks major services these days. The credit
card provides the following advantages to the bank: the system provides an opportunity
to the bank to attract new potential customers.
• To get new customers the bank has to employee special trained staff. This gives the
bank and opportunity to find the latent talent from among existing staff that would have
been otherwise wasted.
• The more important function of a credit card, however, is simply to yield direct profit
for the bank. There is a scope and potential for a better profitability out of
income/Commission earned from the traders over.

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 • This also provides additional customer services to the existing. It enhancesthe customer
satisfaction.
• More used by the card holder and consequently the growth of banking habits in general.

1. BENEFITSOF CARD HOLDER

The principal benefits to a card holder are :

• He can purchase goods and service at a large number of outlets without cash or cheque.
The card is useful in emergency, and can save embarrassment.
• The risk factor of carrying and storing cash is avoided. It is convenient for him to carry
credit card and he has a trouble free travel and may purchase his without caring cheque
or cash.
• Month purchases can be settled with a single Remittance, thus, tending to reduce bank
and handling charges.
• The card holder has the period of free credit usually between 30-50 days of purchase.
• Cash can usually be obtained with the card, either on card account or by using it as
identification when encasings a check at the bank.

2. BENEFITS TO THE MERCHANT ESTABLISHMENT

The principal benefits offer credit card to the retailer is :

• This will carry prestigious weight to the outlets.

• Increase in sale because of increased purchasing power of the cardholder due to unbilled
credit available to the card holder.
• The retailers gain from the impulse buying and trading up the tendency to buy the bigger
or better article.
• Credit card ensures timely and certainly of payments.
• Suppliers/sellers no longer have to send reminders of outstanding debts.

DISADVANTAGES OF CREDIT CARD

The following are the common disadvantages of the credit card :

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 • Some credit card transaction take longer time than cash. transaction because of various
formalities.
• The customer tends to overspend out of immerse happiness.
• Discount and rebates can rarely be obtained.
• The card holder is responsible for charges due to loss or theft of the card and the bank
may not be party for loss due to fraud or collusion of staff, etc.
• Customers may be denied cash discount for payment through carA.5

1.13.5 USAGE

A credit card issue in company, such as a bank or credit union, enters into agreements
with merchant for them to accept their credit cards. Merchants often advertise which cards they
accept by displaying acceptance marks- generally derived from logos-- or this may be
communicated in signage in the establishment or in company material (e.g., a restaurants menu
may indicate which credit cards are accepted). Merchants may also communicate this orally,
as in “We take (brands X,Y& Z)” or “We do not take credit cards”.

The credit card Issuer issues a credit card to customer at the time or after an account has
been approved by the credit provider, which need not to the same entire as the card issuer. The
cardholders can then use it to make purchases at merchants accepting that card. When a
purchase is made, the card holder agrees to pay the card issuer. The cardholder indicates
constant to pay by signing a receipt with a record of the card details and indicating the amount
to be paid or by entering a personal identification number (PIN). Also, many merchants now
accept verbal authorization via telephone and authorization using the Internet, known as a card
not present transaction (CNP).

1.13.6 TYPES OF CREDIT CARDS • Balance transfer cards

They are a tight of temporary low-interest card that is the meant to help you consolidate your
debt. They work this wey : if you have several credit cards with a the balance, you can get a balance
transfer card. You then transfer all your credit card debt into the new card and work to pay it off. Since
the new card has low interest rate, you can quickly repay your bills. If you are in debt, a balance transfer
card can be great way to get out of debt. It offers the convenience of open bill and low rates. However,
some cards have high fees.

Also, if you run up your other cards after consolidating your debts or if you
are unable to pay off your new card in the limited time before the low interest rate
increase, you may find yourself even more in debt than before.

• Rewards credit Cards

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 They offer you points, rewards, or bonuses for every cash purchase made
with your credit card over time. As you accumulated rewards or points, you can redeem
your bonus for entertainment events, purchases, travel, and other fun prizes. Some cards
even offer customers extra automatic-enter sweepstakes and draws. Each time you use
your card, you are entered into a draw to win specific prizes. These types of cards are
really a marketing tool for card companies.

Companies know that customers love rewards and prizes and so offer these
enticements to lure customers. The major advantage of these cards is that they can help
you get more cash value for your money.
They can also be fun and rewarding for almost any credit card customer.

• Cash back Credit Cards

Cash back credit cards give you money rewards. when you make a
purchase with this type of credit card, you get some points based on the amount of
money you have spend with your credit card. When you accumulated in points, you get
cash back. In most cards, you can get back about 1% of your total purchases. These
cards are great for those who are budget-conscious as they give you some money back
from your purchases. However there are several drawbacks to those type of cards. Some
cards have low cash- back percentage rates. Some charge high fees or have limits on
how much money you can get back each year.

• Airline Credit Cards

This type of card allows you to accumulate frequent flyer points on all your credit
card purchases. If you travel a lot or love to travel, this car can help you accumulate points
for a free trip or for a discount ticket. In many cases, these cards are great because they
allow you to gather points for every purchase. However, these cards can also charge high
fees. In some cases, your points will expire if you do not use them within a specific time.
Worse, some airline credit cards make use of a point system that is not very user- friendly.
You may have to slowly accumulated an enormous amount of points to qualify for a trip.
If you do not love have to travel and if you do not use your credit card a lot, then, your
ability to get rewards you like maybe very limited.

• Credit Cards for Bad Creditors

Bad credit cards are designed for people with poor credit histories. These card
generally have very low credit limits and charge extra fees. This is because they are
designed for people who are considered for less likely to repay their debts. If you have
a bad credit rating, these types of credit cards can be a great way to rebuild your credit
history. These cards can also allow you to have credit even if you would be rejected for

19
 most other cards due to your credit history. Student credit card student credit cards
meant to attract colleges and university students. These cards often offer sign-up
bonuses for students. They are also easier to apply for, since credit card companies
recognize that students have much shorter credit histories than the average customer.

1.13.7. SECURITY

Credit card security relies on physical security of the plastic card as well as the
privacy of the credit card number. Therefore, whenever a personal other than the card owner
has access to the card or its not number, security is potentially compromised. Once, merchants
would often accept credit card numbers without additional verification for mail order
purchases. It’s now common practice to only ship to confirmed address as a security measure
to minimize fraudulent purchases. Some merchants will accept credit card number for in store
purchases, whereupon access to the number allows easy fraud, but many require the card itself
to be present, and require a signature. A lost or stolen card can be cancelled, and if this is done
quickly, will greatly limit the fraud that can take place in this way. European banks can require
a card holders security PIN be entered for in-person purchases with the card.
The Payment Card Industry Data Security Standard (PCI DSS) is the security standard
issued by Payment Card Industry Security Standards Council (PCISSC). This data security
standard is used by acquiring banks to impose cardholder data security measures upon their
merchants.
The goal of the credit card companies is not eliminate fraud, but to “reduce it to
manageable levels”. This implies that fraud prevention measures will be used only if their cost
are lower than the potential gains from fraud reduction, whereas high-cost low – return
measures will not be used – as would be expected from organization whose goal is profit
maximization.

1.14 DEBIT CARD

1.14.1 INTRODUCTION
A debit card (also known as a bank card or check card) is a plastic card that provides
an alternative payment method to cash when making purchases. Functionally it can be called
an electronic cheque, as the funds are withdraw directly from either the bank account or from
the remaining balance on the card. In some cases, the cards are designed exclusively for use on
the Internet, and so there is no physical card. In many countries to use of debit cards has become
so widespread that their value of use has overtaken the cheque and, in some instance, cash
transactions.

20
 Some cards may bear stored value with which a payment is a made, while most relay
a message to the cardholder’s bank to withdraw funds from a payer’s designated bank account.
In some cases, the primary account number is assigned exclusively for use on the Internet and
there is no physical card.

Unlike, credit and charge cards, payments using a debit card are immediately
transferred from the cardholder’s designated bank account, instead of them paying the money
back at a later date.

Debit cards usually also allow for instant withdrawal of cash, acting as the ATM card
for withdrawing cash. Merchants may also offer cashback facilities to customers, where a
customer can withdraw cash along with their purchase.

1.14.2 BENEFITS AND FEATURES OF DEBIT CARDS

Benefits of the Debit Card • Free with our bank account

Obtaining a debit card is easy. If we qualify to open a bank account, we usually get a
debit card if you bank, if our bank offers the service.

• No background check
When we are applying for a debit card, the bank does not need to look into our credit
history. All we need is the documentation to open a bank, account and money in our
bank when we use our debit card.

• Cash Withdrawals
The customer can withdraw a minimum of Rs. 100/- and maximum Rs. 10000/- per
day.

• Conveniences
A Debit card fees us from carrying a lot of cash or cheque book. In case, we are an
international traveller, we do not need to stock up on travellers checks or cash. We can
use over a debit card to withdraw cash from over 5,00,000 ATMs around the world in
over 100 countries. We can withdraw in the local currency of the country we are in,
limited only by the money we have back home in our account, and Business Travel
Quota (BTQ) limit arability.

• Fair Exchange
If we return merchandise or cancel service paid for with a debit card, the transaction is
treaded as if it were made with cash or check. Customers usually get a cash back for
offline purchases; for online transaction the amount is credited to account.

21
 • Statement of Account
A statement of transaction can be obtained from the customers branch. For example, a
mini statement containing the last four transaction and balance can be obtained at a
State Bank Group during the working hours of the customers branch.

• Banng cum Shpping Card

Your debit card can be used as ATM card at any team across the world, as will as for
making purchase at merchan locations. You can also withdraw cash from any of the
12,000 ATMs in India.

FEATURES OF DEBIT CARD

The following are features of debit card :

A. It is a combination of a cheque and ATM card. Therefore, there are no fees for using
the ATM for cash withdrawal, or as a debit card for purchases, Carte Bleue in France,
EC electronic cash (formerly Eurocheque) in Germany, Uniopay in China, Rupay in
India and EFTPOS cards in Australia and New Zealand. The use of a debit card system
allows operator to package their product more effectively.

B. The Debit card services in meant for withdrawals against the balance already available
in the designated account.

C. It is the cardholders obligation to maintain sufficient balance in the designated account

to meet withdrawals and services charges.

D. A debit card is more affordable than credit card. We just our bank account for all our
transactions. No credit period. Our bank account is debited immediately.

E. No credit check is required to get a debit card.

1.14.3 TYPES OF TRANSLATION

There are currently three ways that debit card transaction are processed :

I. EFTPOS ( also known as online debit or PIN debit),

II. Offline debit ( also known as signature debit) and III. The
electronic purse care system.

One physical card can include the functions of all three types, so that it can be used in
a number of different circumstances.

22
 Although the four largest bank card issuers (American Express Discover Card,
MasterCard, and Visa) all offer debit cards, there are many other types of debit card, each
accepted only within a particular country or region, for example Switch and Solo in the United
Kingdom, Interac in Canada monitoring customer spending.

1.14.3 KINGDOM DEBIT SYSTEM

Online debit cards require electronic authorization of every transaction and the
debits are reflected in the user’s account immediately. The transaction may be additionally
secured with the personal identification number (PIN) authentication system; some online cards
require such authentication for every transaction, essentially becoming enhanced automatic
teller machine (ATM) cards.
One difficult with using online debit cards is the necessity of an electronic
authorization device at the point of sale (POS) and sometimes also a separate PIN. Pad to enter
the PIN, although this is becoming commonplace for all card transactions in many countries.
Overall, the online debit card is generally viewed as superior to the offline debit card because
of its more secure authentication system and live status, which alleviates problems with
processing lag on transactions that may only issue online debit cards. Some online debit
systems are using the normal authentication processes of Internet banking to provide real-time
online debit transactions.

1.15.4 OFFLINE DEBIT SYSTEM

Offline debit cards have the logos of major credit cards ( for example, Visa or
MasterCard) or major debit cards ( for example, Maestro in the United Kingdom and other
countries, but not the United States) and are used at the point of sale like a credit card ( with
payer’s signature). This type of debit card may be subject to a daily limit, and/or a maximum
limit equal to the current/checking account balance from which it draws funds. Transactions
conducted with offline debit cards require 2-3 days to be reflected on users account balances.

1.14.5 DEBIT CARD

Prepaid debit cards, also called reloadable debit cards or reload able prepaid cards,
are often used for recurring payments. The payer loads funds to the cardholder’s card account.
Prepaid debit cards use either the offline debit system or the online debit system to access these
funds. Particularly for companies with a large number of payment recipient abroad, prepaid
debit cards allow the delivery of international payments without the delays and fees associated
with international checks and bank transfers. Provides include Caxton FX prepaid cards,
[Escape prepaid cards and Travelex prepaid cards. Whereas, web-based services such as stock
photography websites (Stockpot), outsourced services (odes), and affiliate networks (Media
Whiz) have all started offering prepaid debit cards for their contributors/freelances/vendors.

23
1.14.6 IMPACT OF GOVERNMENT – PROVIDED BANK ACCOUNT
In January 2016, the UK government introduced fee-free basic bank accounts for
all, having a significant impact on the prepaid industry, including the departure of a number of
firms.

1.14.7 CONSUMER PROTECTION

Consumer protection very, depending on the network used. Visa and MasterCard,
for instant, prohibit minimum maximum purchase sizes, surcharges, and arbitrary security
produces on the part of merchants. Merchants are usually charged higher transaction fees for
credit transaction, since debit network transactions are less likely to be fraudulent. This may
lend them to “steer” consumers to debit transactions. Consumer disputing charges may find it
easier to do so with the credit card, since the money will not immediately leave their control.
Fraudulent charges on a debit card can also cause problems with checking account because the
money is withdrawn immediately and may thus result in an overdraft or bounced checks. In
some cases debit card-issuing banks will promptly refund any disputed charges until the matter
camp settled, and in some jurisdictions liability for unauthorized charges is the same for both
debit and credit cards.
In some countries, like India and Sweden, the consumer protection is the regardless
of the network used. Some bank set minimum and maximum purchase sizes, mostly for online
only cards. However, this has nothing to do with the card networks, but rather with the banks
judgment of the person’s age and credit records. Any fees that the customers have to pay to the
bank are the same regardless of whether the transaction is conducted as a credit or as a debit
transaction, so there is no advantage for the customers to choose one transaction mode over
another swiping.

1.15 ATM CARD

An ATM card is any payment card issued by a financial institution that enables a
customer to access an automated teller machine (ATM) in order to perform transaction such as
a deposit, cash withdrawals, obtaining account information, etc. ATM cards are known by
variety name such as bank card, MAC (money accept client card), click card, key ward and
cash card, among others. Most payment cards, such as debit and credit cards can also function
as the ATM cards, although ATM only cards are also available. Charge and proprietary cards
cannot be used as ATM cards. The use of a credit card to withdraw cash at an ATM is treated
differently to POS transaction, usually attracting interest charges from the date of the cash
withdrawal. Interbank networks allow the use of ATM cards at ATMs out provide operators
and financial institutions other than those of the institution that issue the cards.

24
1.15.1 USES
ATM machines, at a minimum, will permit cash withdrawals of customers of the
machines owner ( if a bank-operate machine) and for cards that are affiliated with any ATM
network of machine is also affiliated. They will report the amount of the withdrawal and any
fees charged by the machine on the receipt. Most banks and credit unions will permit routine
account-related banking transactions at the bank’s own ATM, including deposits, checking the
balance of an account, and transferring money between accounts. Some may provide additional
services, such as selling postage stamps.

1.15.2 NON-ATM USES

Some ATM cards can also be used at a branch, as identification for in-person
transactions ability to use an ATM card for in-store EFTPOS purchases or refunds is no longer
allowed, however, if the ATM card is also a debit card, it may be used for a pin-based debit
transactions , or non-pin-based credit-card transaction if the merchant is affiliated with the
credit or debit card network of the card’s issuer. Banks have long argued with merchants over
the fees that can be charged by the bank for such transactions. Despite the fact that ATM cards
require a PIN for use, banks have decided to permit the use of a non-PIN based card (debit and
credit) for all merchant transactions. For other types of transactions. For other types of
transactions through telephone or online banking, this may be performed with an ATM card
without in-person authentication. This includes account balance inquires, electronic bill
payments, or in some cases, online purchase.

25
 REVIEW LITRATURE

Many empirical Studies have been conducted on the subject of ‘Plastic Money' in India and
abroad. The major emphasis of research has been on various issues like fraud, security, usage
pattern, new method of e-payment, etc. The previous work done on plastic money needs
perusal. It has been reviewed to indicate in a general way the type of work turn on this subject
in India. It is expected that the critical examination of the studies would give focus to our
problem and help to indicate the areas which have remained neglected at the hands of the
researchers. From the review of literature, it was found that hardly there was a study which
examined the perception of both users and traders on usage of plastic money. Also, many
studies concentrated on individual cards, for instance, credit or debit card and neglected the
join effect and new innovative cards like smart card, charge card and check card. In this study,
an attempt is made to include all types of cards in the analysis.

Handelsman and Munson (1989), “Switching behaviours from credit card to cash payment
among ethnically diverse retail customers” Shows that the credit card sales constitute an
important revenue source for many retailers. Their even increasing use and evolution into other
forms, such as debit and electron cards, demands that retailers gain a more complete
understanding of how they are used to diverse consumer segments. Particularly needed is a
better understanding of the propensity to switch over from credit card to cash payment and
the incentive required to initiated switching. In view of the cost to the retailer of
administering credit card payment systems, the retailer’s overall profit position may be
enhanced by converting a larger proportion of credit card sales to cash sales. Four aspects of
credit card usage and switching ethnicities are investigated, propensity to switchover from credit
card to cash payment at various levels of monetary incentive, the effects of product price on

26
propensity to switch, the frequency of credit card usage, and the preferred method of payment
of credit card balances (installment versus full payment). Several significant difference are
shown among the three ethnic groups studied (Anglo-American,
ChineseAmerican and his panic-American) in these usage behaviours at differences might even
be Review of Literature 32 extended to international comparisons involving consumers
domiciled in difference countries.

Barker (1992) In her study, Globalization of credit card usage: The case of a developing
economy investigate the attitude of Turkish consumers towards credit cards, and the approach
of card issuers by serveying show samples of 200 card holders and non card holders. The better
educated, middle aged members of the upper middle class seem to be the prime target; the most
important reason for using a credit card were “case of payment”, followed by “risk of carrying
cash”, Non holders do not carry credit cards because they do not know much about it; informal
sources of information appear to be more influential than mass media advertising in penetrating
the market; purposes that the usage and the administration of credit cards are influenced very
much by infrastructure of the country and hence, credit card companies have to modify their
marketing and administrative procedures rather than following a standardized approach.

Natarajan and Manohar (1993) “Credit-an Analysis”. A study has been attempted to know that
to what extent the credit cards are utilised by the card holders and the factors influencing the
utilization of credit cards. The study is confined to cards issued by Canara Bank. A random
sampling technique is used to collect the data. Ten components i.e.
numbers of purchases, shops, percentage of purchases, place, frequency, type of product, type
of services, cash withdrawal facilities, add on facility, insurance schemes are identified and used
for the measurement. Chi square test has been conducted to know the level of utilization. For
this, both personal and non personal factors also have been taken into consideration. Chi square
test reveals that sex, age, education qualification of card holders has no relationship with
utilization of Can Card. While occupation, income, employment status off spouse, mode of
getting card has relationship with utilization of Can Card.

27
Vora and Gidwani (1993), “Plastic at a premium” show the usage facilities and variety of cards.
The research shows that credit card is extremely useful to those people who use it as to increase
their purchasing power through the plastic card. Different cards provide the different packages
to attract the customers like teleticketing, discounts, insurance coverage and provide reward
points etc. According to Review of Literature 33 author, the card holders market has a potential
to grow to 7 million, if all taxpaying citizens are taken into account. But these manful efforts at
upgrading services can only have a limited impact as long as the Indian customers remains credit
shy. For this, they have to change their spending habits and keep their card active, so that a piece
of plastic becomes a premium card in any effective way.

George (1995), “ The card majors lead the way” shows that VISA and Master Card play an
important role in any international payment systems. Both VISA and Master Card act guarantor
of payment to merchants who are willing to accept the cards. VISA and Master Card each have
nearly 22000 banks all over the world as their members and handle several million transactions
each day. This gives them a transaction handling capability unmatched by any individual bank.
They provide a global network that allows Authorization, clearing and settlement of card
transaction, both of credit and debit card.

Sinkey (1997), On, Risk, and Hidden Assets in the Market for Bank
Credit Cards” Show that the market for credit cards has been the subject of recent attention and
Contraversy because of “High” profits earn on credit cards and substantial premiums on the
resale of credit cards receivable. This paper estimates risk-return profiles for credit card banks
and explores the role of intangible asset in determining resale premiums on credit cards
receivable. In additional, the effort on resale market of securitization and the opportunity cost
of acquiring new accounts are analyzed. Using alternative measure of risk and alternative
control groups, authors find, for the year 1989 to 1995, that Credit-Card banks earned
significantly higher return on assets but that these returns were associated with greater
risktaking.

Black and Morgan (1998), “ Risk and democratization of credit cards”. Research paper show
the dramatic in credit card charge-offs in the midst of vigorous expansion suggest that bank card
borrowers have become inherently riskier. This paper investigates how the mix of credit card
borrowers, and how those changed in recent years and how the changes affect Delinquency risk.
The new card holder seem risker along server dimensions. They tend to earn less and to result,

28
they owe result to income. This rise in debt burden almost certainly contributed to the rise in
charge offs, since debt burdens are a key determine of
Delinquency risk. Cardholders are also more likely to work at relatively unskilled due collar
jobs. This occupation shift may also have contribute to the rise in charge-offs, since Delinquency
rates are higher in these occupations, perhaps income is more cyclical.

RESEARCH METHODOLOGY

Cash back credit cards give you money rewards. when you make a purchase with
this type of credit card, you get some points based on the amount of money you have spend
with your credit card. When you accumulated in points, you get cash back. In most cards, you
can get back about 1% of your total purchases. These cards are great for those who are budget-
conscious as they give you some money back from your purchases. However there are several
drawbacks to those type of cards. Some cards have low cash- back percentage rates. Some
charge high fees or have limits on how much money you can get back each year.

3.1 Method of Data collection

Primary Data :
Data which has not been previously published i.e. the data is derived from a
new or original research study and collected directly from first hand sources by means of survey
observation or experimentation is known as Primary Data.

Secondary Data :
Data, which has already been collected, by someone or an organization for some
other purpose or research study is known as Secondary Data.

29
 The target population for this study are the users of different kinds of plastic
money, like, debit cards, credit Cards, who actively use it is their day to day life. Data have
been collected from the students, businessmen, government employees private organization
employees, etc. Primary data was collected from persons known to the researcher. The
questionnaire was given after enquiring of the usage of Cards. Hence a selective convince
sampling was indulged in. The data has been collected from both the primary and secondary
sources. Primary data has been collected from the respondents through a field survey. The
researcher adopted a face to face distribution of the questionnaire to the respondent of this study
in the scrutiny of obtaining higher response rate.
The data for the study were collected using survey questionnaire. All questionnaire
were accompanied with a covering letter stating the purpose of the study. It also guaranteed
anonymity of respondents. Right before collecting data from the final respondents, the
instrument was reviewed by an expert in the area to justify for the content validity.

30
Secondary Data was collected from various sources such as book, internet, and newspapers.
The data is collected through structured questionnaires. Preference of plastic money out of 100
respondents.

3.2 OBJECTIVE OF THE STUDY

The study is conducted to clearly spread awareness and explain the
meaning and scope and important of plastic money in working class. Primary
objective of the study is to know the perception of people towards use of plastic money.
Secondary objective are as an under. To study was conducted by selecting 100 respondents
randomly and was developed to find the following objectives :
• To study the concept of Plastic Money.

• To study the different types of Plastic Money.

• To analyzed the awareness among people regarding Plastic Money.

• To evaluate debit and credit card usage.

• To know the importance of plastic money in the daily life of working class people.

• To study the benefits of debit card and credit cards.

• To know the problem faced by respondents using plastic money.

• To study the satisfaction level of working people towards plastic money.

• To analyze satisfaction level of customers regarding the usage of plastic money.

• To identify the grievance of customers regarding the usage of plastic money.

• To access the level of adoption and use of plastic money as payment system.

31
3.3 HYPOTHESIS

Hypothesis 1 :

people are not aware of the concept of plastic money at all.

people are aware of plastic money and process at least one such card.

Hypothesis 2 :

People prefer to use cash more often for all their daily purchases.
People prefer plastic money over paper money for their daily transactions.

Hypothesis 3 :

There is no significant difference between the preference of customers using plastic money.
There is significant difference between the preference the preference of customers using plastic
money.

32
Hypothesis 4 :

There is no significant difference between the satisfaction level of customers using plastic
money.
There is no significant difference between the satisfaction level of customers using plastic
money.

Hypothesis 5 :

There is no significant impact of preference on satisfaction level of customers.

There is a significant impact of preference on satisfaction level of customers.

Hypothesis 6 :

There is an impact of usability (convenient use) of plastic money / credit card on its preference
to use.
There is an impact of affordability ( affordable use) of plastic money / credit card on its
preference to use.

33
3.4 SAMPLE SIZE :

Using a convenient sampling methodology, the researchers gathered 100 responses

for this study. Data has been collected from both primary and secondary sources.
primary data has been gathered from the respondents through a field survey. The
secondary data for the study was collected from the published journals, magazines and other
periodicals, books on research works, etc. Internet service were also used to again the latest
information through various websites.
The data was collected only from 100 peoples from working class through phone
calls, social network and different interview from them.

34
 DATA ANALYSIS AND INTERPRETATION

Gender No. Total

Male 47 47.1 %

Female 53 53. 8%

Interpretation :-

According to your survey, 47.1 % of the respondents are Male and 53.8 % are
Female.

35
 Age Group No. Total
18yrs - 25yrs 58 58.1 %
26yrs - 35yrs 16 16.1 %
35yrs – 45yrs 13 12.9 %
45yrs – 60yrs 13 12.9 %

Interpretation :-

According to the survey, 58.1 % of respondents are of the age group of 1825years.
Whereas 16.1 % of respondents fall in the category of age group of 25- 35 years.
And a 12.9 % of respondents are of the category of age group of 35-45years and 45- 60 years.

36
 No. Total
X 17 16.7%
XI 25 25 %
Graduate 33 33.3%
Post graduate 25 25%

Interpretation :-

According to the respondents, there are 16.7% people are 10th graders, 25 % are
12th graders, 33.3% are graduate, 25%people are post graduate.

37
 Occupation No. Total
Skillful Manual workers 15 15.4%
Businessmen 15 15.4%
Higher managerial 15 15.4%
officer
Supervisory and clerical 0 0
officer
Semi or unskilled 0 0
manual worker
Unemployed 19 19.2%
Other 27 26.9%

Interpretation :-

According to the survey, 15.4% are scale full manual workers, 15.4% of people
are businessmen and higher managerial officers, 19.9% are unemployed and people’s with
other occupation are 26.9% or supervisory and clerical officer are 0%, semi and unskilled
manual worker are 0%

38
 No. Total
Yes 50 50%

No 20 20%

May be 30 30%

Interpretation :-

According to the survey, 50% of the respondents do know what is Plastic Money.
And about 20% of the respondents confused about the term and around 30% of the
respondents sincerely don’t know about the term ‘Plastic Money’.

39
 Plastic Money No. Total
Credit card 7 7.1 %
Debit card 46 46.4 %
ATM Card 32 32.1 %
Specific Outlet Card 14 14.3 %

Interpretation :-

According to survey, 7.1 % of the respondents have credit card and 46.4 %
respondent 537537.7ave debit card ; 32.1 % have ATM card and 14.3 % have special outlet
cards.

40
 Convenient way to pay No. Total
Paper Money 19 19.2 %
Plastic Money 39 38.5 %

Interpretation :-

According to the survey, 79 % of the respondents claim that plastic money is the
most convenient way to pay. Whereas, 21 % of the respondents say that paper money is the
most convenient way to pay.

41
 Money No. Types
Cash 23 23.1 %
Card 50 50 %
Cheque 19 19.2 %
Others 7 7.7 %

Interpretation :-

According to survey 23.1% of the respondent times says that they prefer to
pay their utility bill with cash and 50% says that would pay with card and around 19.2% of the
respondents says that they prefer to pay their utility bill with cheque and 7.7% respondents says
that fooled prepare to pay their utility bill with others.

42
 Money No. Total

Cash 35 34.6 %

Cheque 35 34.6 %

Card 30 29.9 %

Interpretation :-

According to survey, 34.6 % claim that they would prefer to pay via cash for
their purchases towards household consumables ;
Where as , 34.6 % say they would make payment with cheque and 29.9 % say that they would
prefer to make payment with card.

43
Money No. Types
Cash 23 23.1%
Card 50 50%
Cheque 23 23.1%
ECS 1 1%

Interpretation :-

According to survey, 50 % of the respondents claim that they would make

payment towards purchase of luxury and durable products via credit card ; whereas, 23.1 %
claim that they would make purchase with cheque and other 23.1 % say they would pay by
means of cash. 1 % claim that they would make purchase with ECS.

44
 Types of payment No. Total
Cash 31 30.8%
Card 41 41%
Travelers cheque 15 15.4%
Cheque 13 12.8%

Interpretation :-

According to the survey, 41% of the respondents say that they would prefer to be
make payments while travelling by means of card; while 30.8% claim that they would pay with
cash, a mere 15% and 13% say that they would use travelers cheque and cheque.

45
 No. Total
Yes 58 57.7 %
No 35 34.6 %
No comments 8 7.7 %

Interpretation :-

According to the survey, 57.7% of the respondents consider use of credit card/
plastic money to be the safest mode of transactions.
While 34.6% strictly disagree to the statement, whereas 7.7% of the respondents are confused
about the statement.

46
 Reason No. Total
Fear of Theft 26 26.9 %
Increasing Duplicity 35 34.6 %
Wear and Tear of paper 39 38.5 %
money

Interpretation :-

According to survey,26.9% of the respondents not prefer paper of money because

of fear of Theft. While, 34.6% of the respondents not prefer paper of money because of
increasing duplicity and 38.5% of the respondents not prefer paper money because of were and
tere of paper money.

47
 Types of payment No. Total
Paper money 27 26.9%
Plastic money 62 61.5%
Both 8 7.7%
No comments 2 2%

Interpretation :-

Accordingly to the survey, 61.5% of the respondents consider plastic money to be

reliable and secured ; while 26.9% consider paper money to be more reliable and secured,
whereas 8% of the respondents prefer both and 2% of the respondents prefer no comments.

48
 No. Total

Yes 88 88.5%

No 12 11.5%

Interpretation :-

49
 According to the survey, 88.5% of the respondents consider that there should be a
limit on daily/ monthly transaction made ; while 12.5% of respondents disagree.

Reason No. Total

Instable income 24 24%
Lack of knowledge 40 40%
Malpractice by outlet 12 12%
owners
Malpractice by bankers 8 8%
Lack of Trust misuse of 16 16%
other

Interpretation :-

According to the respondents, 24% of the respondents not prefer plastic money
because of instable income and 40% of the respondents not prefer plastic money because of
lack of knowledge. While, 12% of the respondents not prefer plastic money because of
malpractice by outlet owners or 8% of the respondents not prefer plastic money because of

50
malpractice by Bankers and 16% Of the respondents not prefer plastic money because of lack
of Trust misuse of other.

No. Total
Yes 65 65.4%
No 35 34.6%

51
Interpretation :-

According to the survey results, 65.4% of the respondents agree to the statement
made and strongly believes so ; and 34.6% of them strongly disagree.

No. Total

Yes 31 30.8%

No 31 30.8%

May be 38 38.5%

Interpretation :-

52
 According to the survey, 30.8% people are agreed that they are need of the credit
period for settlement of payment.
While, 30.8% of the respondents do not want credit period settlement and 38.5% of the
respondents not confirm credit period settlement.

No. Total

Agree 69 69.2%

Disagree 31 30.8%

53
Interpretation :-

According to the survey, results 69.2% of the respondents agree to the statement
made and strongly believes so ; and 30.8% of them strongly disagree.

Period No. Total

Once a week 25 25%
Once a month 25 25%
Once in year 25 25%
Never 25 25%

54
Interpretation :-

According to the survey, 25% of the respondents visit the bank for cash
withdrawal once a week.
While, 25% of the respondents visit the bank for cash withdrawal once a month and once a
year.
25% of the respondents never go to the bank for cash withdrawal.

No. Total

Yes 75 75%

No 25 25%

55
Interpretation :-

According to the survey, 75% of the respondents can be a victim of credit/debit

card fraud, and 25% of the respondents can not be a victim of credit/debit card fraud.

22. Where do you see the future of cash and credit/debit card?
Comments :
1. Paper money will be stop and Credit/Debit card will take place majorly unless banks
stop charging interest and taxes over the cards. In a battle for survival.
2. Most developed countries already use credit and debit cards almost exclusively. It is
only in India where we are still holding on the cash transaction out of fear and
corruption.
3. In future everyone will be using plastic money.
4. It will be only method to give and take money.
5. Debit card would more preferably by people and safe to carry out so there is brighter
future which saves time as well as risk of carrying hard cash.
6. I think it will take a long journey before it get an importance.
7. Hope it will be easiest and safest mode in future.
8. The scope of the usage of plastic money is incredibly rising in today’s world, hence I
think it will go on increasing in future as well.

56
FINDING :

The purpose of the research was to study the significant difference in consumer
perception and attitude towards Plastic money based on demographic profile and
also study the awareness, consumer preference to spend and the influencing factor
behind the use of plastic money, after analyzing the responses of 100 respondents
I conclude that:-

✓ Most of the respondents approx. (75%) are aware of the term Plastic
money.

✓ It is found that most of the consumers prefer to use their plastic money to
pay for Consumer Durables items, besides that the other usage of plastic
money is to pay jewelry, Electronics, Investment, Online transactions,
Apparel/Clothing, Banking, and Electricity bills. So, most of the
consumers preferred to pay for consumer's durables items and least for
electricity bills while using plastic money.

✓ From that table inferred that maximum of the respondents are supporting
plastic money only few respondents are not supporting plastic money.

✓ From that table inferred that 26.9% respondents supports plastic money,
because of fear of theft of using paper money.

✓ From that table inferred that 36.6% respondents supports plastic money,
because of increasing duplicity in paper money.

✓ There is no significant difference in perception towards Plastic money

based on age.

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✓ Banking industry has also provided 24*7 customer services for their
customer.

✓ There is no significant difference in perception towards plastic money on

the bases of income. It means the income of the consumers is the maid
demographic factor that impacts the perception of the consumer towards
the usage of plastic money.

✓ The main influencing factors for the respondents for using plastic money
are convenient; a secure way of the transaction; reduce the time pressure
are the leading reason of using the plastic money, on the Noida (city) use
of cards also risky in some cases; likelihood of getting fake notes from
ATM or the non-availability of money are the dissatisfaction cause that
people are facing while using plastic money.

58
SUGGESTIONS :

On the basis of analysis, the following suggestions can be given to on increase the plastic card
usage:-

1. It was found that people don’t prefer to pay their utilities bills like Telephone bills,
Electronic Bills, etc. by cards. In the changing scenario of today where everything is going
paperless and cashless, there is a great need to educate and motivate the people to pay their
utility bills by Plastic money.

2. Safety measures pertaining to the fund transfer need to be increased to encourage and assure
people so that the use of Plastic money increases.

3. Safety and Plastic money is an important factor that induces its usage. Multiple level of
security to be insured like Password OTP (one time password), use of Shttp instead of http
etc.

4. Transactions charge on online transactions should be waived off to induce the people to use
Plastic cards more.

5. Subsidy on Electronic transactions can also lead to increased usage of plastic cards.

6. People should be motivated to make more use of plastic cards while travelling. Travel
Companies can give discounts to lure the customers to make the use of plastic cards.

59
-

7. It was found that people don’t prefer to pay their utilities bills like Telephone bills,
Electronic Bills, etc. by cards. In the changing scenario of today where everything is going
paperless and cashless, there is a great need to educate and motivate the people to pay their
utility bills by Plastic money.

8. Safety measures pertaining to the fund transfer need to be increased to encourage and assure
people so that the use of Plastic money increases.

9. Safety and Plastic money is an important factor that induces its usage. Multiple level of
security to be insured like Password OTP (one time password), use of Shttp instead of http
etc.

10. Transactions charge on online transactions should be waived off to induce the people to use
Plastic cards more.

11. Subsidy on Electronic transactions can also lead to increased usage of plastic cards.

12. People should be motivated to make more use of plastic cards while travelling. Travel
Companies can give discounts to lure the customers to make the use of plastic cards.

60
CONCLUSION :

Card makes economic more efficient. It helps user to do transaction whenever he wants. The
amount of black money injected every year in our Indian economy is unaccounted for and to
pervasive as we know it. Thus reforming the informal sector is a task that will require
persistence efforts and revised intellectual engagement in coming up with suitable solutions
and one of them is the mode of using a plastic money such as credit card, debit card, ATM card,
rechargeable calling card, store value card, gift card, flip card, ATM cards, etc. which help to
curb black money.

• In the last two years, spending patterns through plastic money has changed drastically.

• Traveling, dining and jeweller are top three purchases as these are largely paid through
debit cards.

• Fuel accounts for a very small proportion of credit card purchases as these are largely
paid through debit cards.

• Consumers why are not only more open to the possibility of owning a financial card,
but were also more than willing to use their cards to settle dues.

• The status symbol except of owning and using cards to play its part on brining about
such robust growth over the space of a single year.

• Consumers are preferring these cards mostly for shopping online e-commerce has given
a better way to use the plastic money.

61
 • According to projections for the 2003-2016 periods the number of financial cards in
circulation will register a compounded annual growth rate of nearly 51% and the
satisfaction of consumers has also increased.

• There are many ethical issues and challenge for plastic money issuing
banks/companies.

• At least it is concluded that plastic money has a very bright future in the coming year
because of the increasing trend E-commerce.

13. It can play a very important role and in fact a major role in the eradication of corruption in
India. These are the reasons that how are it possible :-

14. Every money transaction is maintained and recorded and also the transactions of crores and
crores of money cannot go unrecorded.

15. None of money transactions are illegal. As, all the money transfer and transaction happens
through bank accounts, none of the illegal money can be transferred.

16. .the number of fraudulent money practice are reduced as no fake paper notes can be printed
as they are not useable

62
 BIBLIOGRAPHY

 ARTICLE :

 A sarangapani and T. Manath, ' Implementation and challenge’, E- business, Volume

XIV, July 2015.
 ‘Smart IDs: A look at the whole tech jigsaw’, Electronic for you, Volume 42, No: 9,
September 2013.
 ‘The future: More Uses, More Models, More Scope', Electronic for you, Volume 42,
No:9 September 2016.
 Dr. A. Vinaygamoorthy, ' Globalisation and recent trends in Banking', Banking
Finance, Volume V, No.3 March 2015.

 NEWS PAPER:

63
  Business Line – various issues
 Economics Times – various issues

 WEBSITE :

• http://www.mbaskool.com
• http://www.studymode.com
• http://business-finance.blurti.com
• www.rbi.org
• www.wikipedia.com
• www.infosee.com
• www.indiamba.com
• www.indiabanking.com

APPENDIX
Questioners
1.Idea about plastic money? Which?
o Credit card
o Debit card

64
 o ATM card
o Others
2. Do you have ?
o Credit card
o Debit card
o ATM card
o Specific outlet card
3.According to you, which is the most convenient way to pay?
o Paper money
o Plastic money
4. do you prefer to pay your utilities bills?
o Cash
o Card
o Cheque
o Others
5.How do you make payment for purchases of household consumables?
o Cash
o Cheque
o Card
o ECS
6. How do you make payment for purchases of luxury and durable goods?
o Cash
o Card
o Cheque
o ECS

7. While travelling, according to you which is the preferred way to payment?

o Cash
o Card
o Travelers cheque
o Cheque
o DD
8.Do you find use of credit card/ plastic money to be safest mode of transaction ?
o Yes
o No
o No comments
9. Why you do not prefer paper money ?
o Fear of Theft
o Increasing duplicity
o Wear and tere of paper money
10. Which you consider more reliable and secured ?

65
 o Paper money
o Plastic money
o Both
o No comments
11. Do you think their should be any limit on daily / monthly transaction value?
o Yes
o No
12. Why do not prefer plastic money?
o Instable income
o Lack of knowledge
o Malpractice by outlet owners
o Lack of trust misuse of other
13. Do you think that more credit card/ debit card transaction in country over cash transaction will help to
crub black money in economy?
o Yes
o No
14. Do you find it cheaper and beneficial as if gives you can month credit for payment?
o Yes
o No
o May be
15. Do you think that plastic money will penetrate in society more in future?
o Agree
o Disagree
16. How often do you visit the bank for cash withdrawal?
o Once a week
o Once in month
o Once in year
o Never
17. Have you been a victim of any credit/ debit card fraud ?
o Yes
o No
18. Where do you see the future of cash and credit/debit card?
-----------------------------------------------------------------------------------------
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SUGGESTIONS :

On the basis of analysis, the following suggestions can be given to on increase the plastic card
usage:-

66
17. It was found that people don’t prefer to pay their utilities bills like Telephone bills,
Electronic Bills, etc. by cards. In the changing scenario of today where everything is going
paperless and cashless, there is a great need to educate and motivate the people to pay their
utility bills by Plastic money.

18. Safety measures pertaining to the fund transfer need to be increased to encourage and assure
people so that the use of Plastic money increases.

19. Safety and Plastic money is an important factor that induces its usage. Multiple level of
security to be insured like Password OTP (one time password), use of Shttp instead of http
etc.

20. Transactions charge on online transactions should be waived off to induce the people to use
Plastic cards more.

21. Subsidy on Electronic transactions can also lead to increased usage of plastic cards.

22. People should be motivated to make more use of plastic cards while travelling. Travel
Companies can give discounts to lure the customers to make the use of plastic cards.

67