Please send the answer of objectives and aims of money.

(05-08-2016, 01:52 PM)Guest Wrote: Please send the answer of objectives and aims of money.

ims and objectives on plastic money

5 different kinds of plastic money
Credit card

Cashless payment with a set spending limit
Payment takes place after the purchase
Great flexibility thanks to installment facility
Most well-known credit cards: American Express, MasterCard, Visa
Charge cards

Cashless payment without a set spending limit
Payment takes place after the purchase
No credit or installment facility
Most well-known charge cards: American Express, Diners Club
Debit card

Card is directly linked to the cardholder’s bank account
Transaction is debited immediately from bank account
No credit or installment facility
Most well-known debit cards: Maestro, Postcard
Customer card/store card (PLCC)

Card with payment and credit function
Can only be used at specific retailers
Well-known customer cards: myOne, Globus, Media Markt
Prepaid card/gift card

Card is topped up with credit before use
No credit or installment facility
Open system (American Express, Visa, MasterCard) or closed system (can only be used at specific retailers)

Do you know about the different types of plastic money available in the market today? Be it 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.

Here is an FAQ on the most popular plastic cards used in India.

What is a credit card?

A credit card is plastic money that is used to pay for products and services at over 20 million locations around the world. All you need to do is produce the card and sign a charge slip to pay for your purchases. 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.

What is a debit card?

Debit cards are substitutes for cash or check payments, much the same way that credit cards are. However, banks 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.

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A debit card is only accepted at outlets with electronic swipe-machines that can check and deduct amounts from your bank balance online.

What is a charge card?

A charge card carries all the features of credit cards. However, after using a charge card you will have to pay off the entire amount billed, by the due date. If you fail to do so, you are likely to be considered a defaulter and will usually have to pay up a steep late payment charge.

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 your next billing statement.

What is an Amex card?

Amex stands for American Express and is one of the well-known charge cards. This card has its own merchant establishment tie-ups and does not depend on the network of MasterCard or Visa.

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This card is typically meant for high-income group categories and companies and may not be acceptable at many outlets. There are a wide variety of special privileges offered to Amex cardholders.

What are MasterCard and Visa?

MasterCard and Visa are global non-profit organisations dedicated to promote the growth of the card business across the world. They have built a vast network of merchant establishments so that customers world-wide may use their respective credit cards to make various purchases.

What is a smart card?

A smart card contains an electronic chip which is used to store cash. This is most useful when you have to pay for small purchases, for example bus fares and coffee. No identification, signature or payment authorisation is required for using this card.

The exact amount of purchase is deducted from the smart card during payment and is collected by smart card reading machines. No change is given. Currently this product is available only in very developed countries like the United States and is being used only sporadically in India.

What is the Diners Club card?

Diners Club is a branded charge card. There are a wide variety of special privileges offered to the Diners Club cardholder. For instance, as a 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.

What is a photo card?

If your photograph is imprinted on a card, then 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.

What is a global card?

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

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

What is an affinity card?

The card issuer ties up with popular organisations/ institutions which are often non-profit organisations (Citi-WWF card or the Stanchart-Cricket cards) to offer an affinity card. When the card is used, a certain percentage is contributed to the organisation /institution by the card issuer.

What is an add-on card?

An add-on card allows you to apply for an additional credit card within the overall credit limit. You can apply for this card in the name of family members like your father/ mother/ spouse/ brother/ sister/ all children above 18 years of age. Your billing statement would reflect the details of purchases made using the add-on card. You are liable to make good all the payments for the purchases made using the add-on card(s).