What is meant by plastic currency?

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.

What is plastic money short answer?

Answer: Plastic Money is the term used to indicate Credit cards & Debit cards. Before the advent of Credit cards and Debit cards a major portion of the business transactions were carried on through cash. Since the cash is replaced by plastic cards (whether Credit card or Debit card) it is called plastic money.

What is meant by paper and plastic money?

Paper money- Paper money is a representative money which is generally issued by the central bank of the country and is backed by reserve of gold and foreign exchange. Plastic money- plastic money on the other hand is the name given to all plastic cards like debit card and credit card issued by bank.

Is money a plastic currency?

Banknotes or currency notes have been traditionally printed on paper made from cotton rags. Although this material is still used all over the world, it is gradually being replaced by notes of polymer or plastic.

What is plastic money introduction?

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 an essential form of ready money which reduces the risk of handling a huge amount of cash. It includes debit cards, ATMs, smart cards, etc.

What is the importance of plastic money?

In other words Plastic Money is a term refers to hard plastic cards which can be used as actual bank notes. These are of different types such as credit cards, debit cards, cash cards, pre-paid cash cards, ATM cards and store cards. Electronic facilities and equipments are provided by banks for using such cards.

What are the types of plastic money?

There are different types of plastic money available in the market today. Such as Credit cards, Debit cards, add-on cards, charge cards, co-branded cards, affinity cards or Diners Club cards. More and more Indians are using them as a convenient mode of payment.

Why is plastic money used?

Polymer banknotes were first issued in 1988 by Australia, which now uses polymer exclusively and is about to launch a new series of notes, starting with the $5 bill in September. And polymer notes weigh less than paper ones, so even their transportation and distribution are easier on the environment.

Who uses plastic money?

Move to plastic Polymer is now used in over 20 countries as diverse as Australia, Canada, Fiji, Mauritius, New Zealand, Papua New Guinea, Romania, and Vietnam. The Bank of Canada began its move to polymer banknotes in 2011, after assessing the environmental impact of producing paper and plastic bills.

What does it mean to use plastic money?

Currency madeof plastic. Plastic money / Currency: It is a term increasingly being used to refer to all forms of credit cards, debit cards, retailer cards, diner cards and other types of plastic cards which we use daily instead of actual currency notes.

What’s the difference between plastic and real currency?

Answer Wiki. All debit cards, credit cards, forex cards ,prepaid cash cards,store cards which use in place of bank notes or actual currency for promoting digital transaction is known as plastic currency . this currency is made of plastic or polymer form .this currency is highly durable and lasting in nature .

Why are currency notes made out of plastic?

These notes would be prepared from plastic or polymer substrate. Difficult to imitate / Security: The most important reason behind the launch of plastic currency note is that it is to prevent counterfeiting i.e. fake currency. Paper notes are easier to imitate and when in wrong hands leads to negative impact on economy.

What does it mean to have a plastic credit card?

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.