The money plastic is the term that groups the credit cards and debit cards, and the like other similar substitutes the cash .
The money plastic owes its name to the material from which it is drawn up . Its use is widespread today and is accepted as a means of payment in multiple stores.
Advantages and disadvantages of plastic money
Among the advantages of plastic money we have:
- Reduces the risk of loss or theft of cash. If the user is assaulted, for example, he can call his financial institution and report the fact to prevent purchases with his money .
- Provides greater comfort to the person. Instead of carrying many coins or bills to make a transaction, you should only charge one card.
- It allows regulators to have greater control of capital movements. All plastic money, in general, has entered the financial system and its origin can be monitored.
However, there are also some disadvantages:
- The user can spend without realizing the impact on their savings. When the discharge is less tangible, the buyer tends to be less diligent. This is particularly noticeable on credit cards .
- The use of cards implies an additional expense, especially in the case of credit cardsthat charge interest. In addition, payment of different types of commissions is required , and some only for the fact of carrying the plastic money .
Types of plastic money
Among the main types of plastic money we have:
- Debit cards: They allow transactions to be made from the funds that the user has in a bank account. If the saver does not have enough capital, the operation is denied.
- Credit cards: When the person uses this tool, your financial institution is lending you money. The return can be programmed in one or several installments, and interest must also be paid.
- Walletcards : These are prepaid cards that are loaded with money to subsequently make various small payments. One of its main advantages is the control over spending.