INTRODUCATION

Meaning of plastic money

Plastic money made out of plastic, is a new and easier way of paying for goods and services. It 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, and Credit cards etc. .

What is credit card

Credit card can be termed as an unsecured personal loan offered to customers by the banks where the card-holder could purchase goods and services from authorized merchant or merchant establishments (MEs) of the bank up to a fixed limit on credit. Such credit is normally made available for a period of 30 to 45 days.

Types of credit card

Charge card - Pay late payment charges if billed amount not pay off by due date. Amex card - Own merchant establishment tie-ups & not depend on network of master cards/visa. Smart card - Contain electronic chip and no identification, signature or payment autthorisation is required. Diners Club card - Branded charge cards .provide special privileges. Photo card - Photograph is imprinted on a cards . Global card - Allow flexibility and convenience of using a credit cards rather than cash or travelers checks. Co-branded card- Issued by card companies that have tied up with popular brand for offering exclusive benefits. Affinity card - Card issuer ties up with popular organisation which is non-profit organisation. MasterCard and Visa Global non-profit organisation dedicated to promote the growth of the card business.

Process of credit cards

ADVANTAGES AND DISADVANTAGES OF CREDIT CARD

Advantages
Purchase Power and Ease of Purchase Protection of Purchases Building a Credit Line Emergencies Credit Card Benefits

Disadvantages
Purchase Power and Ease of Purchase Protection of Purchases Building a Credit Line Emergencies

What is Debit card

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 Functionally, it can be called an electronic check, as the funds are withdrawn directly from either the bank account, or from the remaining balance on the card.

TYPES OF DEBIT CARD

Check Cards ATM Cards

working of debit card

1.Customers present the card

5.Account automatically debited

Finally transaction verified

2.Swipe it through electronic

terminal

4.Customers need to sign the slip

3.Enter the amount of purchase

Advantages and Disadvantages of debit card

Advantages Obtaining a debit card is easy Easy to check transaction Quicker transactions No extra charge Disadvantages Problem of overdraft fees charge over-limit fees or non-sufficient funds fees lower levels of security protection Shorten time for fraudulent reporting

REVIEW OF LITERATURE
Chakravorti ,Sujit (June 2003) in his article Theory of Credit Card Networks: A Survey of the Literature stated that Credit cards provide benefits to consumers and merchants not provided by other payment instruments as evidenced by their explosive growth in the number and value of transactions over the last 20 years. Chartered financial analyst (Nov 2007) in the article Ethical Issues and Challenges stated that the credit card company has to take into consideration the challenges which are thire in the markets. Hunt, Robert in this article An Introduction to the Economics of Payment Card Networks stated that how payment cards work and explains how the market for consumer payment methods differs from most other markets economists study Swift, Kevin (May 1998) in his article Credit Card and Debit Cards: What New? Where To? stated that trends have changed and forces have impact on the card issuer, and forecasting its future and the resulting impact on the card economy through the year 2002..

RESEARCH METHODOLOGY
RESEARCH DESIGN
In the present study exploratory comes descriptive research design will be followed.

SAMPLING PLAN
Sample was selected from panchkula area and respondents were chosen who use plastic money.

RESERCH INSTRUMENTS PRIMARY DATA

Data of 50 respondents is collected through questionnaire

RESEARCH SAMPLE SIZE

My sample size is 50.

ANALYTICAL TOOL:
The data collected by me is in the form of pie charts, tables, bar-diagrams.

SECONDARY DATA
Data is collected through research papers, journals, online article regarding consumer behavior toward plastic money specially debit and credit card

Need and objective

Need of study
Need of the study is to get to know about concept of plastic money and usage of debit and credit cards

Objective of study
To know the perception of people towards plastic money. To know the importance of plastic money in the daily life of consumers credit and debit cards To study the benefits debit card and credit cards.

Limitations
The result are based on primary data

The data collected may or may not be accurate because of biasness from respondent side

The accuracy of result is also limited to the reliability of method of investigation , measurement & analysis of data
The study is based on the data from only panchkula city & Thus might not be true for all other areas

ANALYSIS AND FINDING

1: To know about respondents who are using the plastic money.

yes 100%

2: Card possessed by respondents

Both 14%

Credit card 28%

Debit card 58%

3: Debit cards of different banks owned by respondents.

1
12% 26%

2
6%

None

56%

4: No. of credit cards of different banks owned by respondents.

None 22% 3 10% 2 22%

1 46%

5: Companies /bank card owned by the respondents.

SBI bank 10% PNB bank 22% IDBI bank 12%

HDFC bank 22%

ICICI bank 28%

CBOP bank 6%

6: Time period of using the debit card/credit card/both.

More than 5yr 18% Between3yr5yr 34%

Less than 1yr 22% Between 1yr-3yr 26%

7: Purpose for using the card.

Any other 4%

Petrol filling 14%

Shopping 37%

Hotel/Rest aurent 20%

Withdrawal of money 25%

8: Card which is more beneficial.

Both 30%
Credit card 34%

Debit card 36%

9: Benefits provided by debit card

Strongly disagree Disagree Neither agree Nor disagree Agree Strongly agree

5 6 1 18

5 6 2 16

10

16

22

14 22 18 1 5

11 20 21

15
No interest charges

6 4
Easy to carry

6
Security Free from fraud Anttime access

10: Benefits provided by credit cards

Strongly disagree
Neither agree Nor disagree Strongly agree

Disagree
Agree

Prestiage to holder

5 7 12 4

4 1 12 21 6

22 2 18 26 18

18 11

Overdreft facility

Convenient to pay

Easy to carry

22

11. Problems faced in processing the card

Strongly disagree Disagree Nitheragree Nordisagree Agree Strongly agree

19

23

20

27

19 1 6 5
Feeling of insecurity

18 5 4
Fear of losing card

18 2 6 4
Unnecessary formalities

16 3 4
High fee charged by bank

12. Future prospects of plastic money.

60% 50%

40%

30%

20%

10%

0%

Series1

Rapid growth 56%

Steady growth 32%

Stagmant 4%

Can't predict 6%

Declining 2%

CONCLUSION
In the last two years, spending pattern through plastic money has changed drastically in credit and debit cards specially in travelling, dining , jewellery and fuel account Consumers were 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. Consumers prefer these cards mostly for shopping; online Ecommerce has given a better way to use the plastic money. At last it is concluded that plastic money has a very bright future in the coming years because of the increasing trend of e-commerce.

SUGGESTION
Various offers and discounts should be provided on the plastic money . More facility should be provided to the cardholder in order to satisfy them completely. The unnecessary formalities should be reduced . The interest charges on credit cards should be reduced

Advertisements should be given through TVs, magazines and hoarding to have maximum reach.

BIBLIOGRAPHY
Kothari C.R, Research Methodology: Research and Techniques; Vishwa Prakshan, New Delhi, 4th edition. E.gordan and Natrajan, Financial Services, Himalaya Publishing House, Mumbai. , 5th edition. ARTICLES Cunningham Julie, Kansas State University ,article College Student Using The Credit Card Swift, Kevin, and article Credit Card and Debit Cards: What New? Where To? ,May 1998 Chakravorti ,Sujit ,article Theory Of Credit Card Networks: A Survey Of Literature June 03 2003 Chartered financial analyst ,article Ethical Issues And Challenges ,Nov 2007 WEBSITES http://www.rba.gov.au/PaymentsSystem/Publications/BISCommitteeOnPaymentAnd SettlementSystems/retail.pdf http://www.federalreserve.gov/boarddocs/speeches/2001/20011205/default.htm

THANKYOU