Use of Plastic Money
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Technology has changed the way we deal with money. With the introduction of debit and credit cards, also known as ‘Plastic Money’, we can have easy access to funds from anywhere. Even though these payment cards prove to be very convenient, they have many issues as well.
Despite being accessible anywhere, cards are not a complete replacement of cash. A good example can be small retail outlets. We often go to these small general stores for quick shopping. But most of these shops don’t have machines to pay through cards and we need to have cash. Hence such places limit the accessibility of payment cards.
Even places with the facility of payment through cards can at times be an issue. For example, last week I and my cousins decided to eat at a famous ice-cream parlour. But unfortunately, their payment card machine stopped working. What made the situation worse was the fact that none of us had enough cash even when we pitched in everything from our wallets. To resolve it, one of us rushed back home to get some cash. Now, this was not only embarrassing but time-consuming and very inconvenient as well.
Using a card means you need to manage it very carefully. Losing it can be a disaster because you’ll have to report it and travel back and forth to the bank to get one again. Moreover, if stolen or lost, and you don’t immediately report it, you’ll be losing a serious amount of money!
Another serious problem that comes with the usage of cards is impulsive buying which leads to overspending. Most of us don’t realize spending out of our limits because the transaction does not involve physically counting cash. This way we may buy things we were not supposed to just because it looks good to the naked eye. This is because if we don’t leave the house with a set amount we end up losing self-control. For example, if you leave your house with Rs. 5000 it’s impossible to spend even a penny more (unless you’re willing to go back to your house to get more cash). But with cards, it will be very convenient to spend out of limits.
Above all, what most of us aren’t aware of is that some banks impose various fees on cardholders. These include monthly use charges, major overage fees, and others. Sometimes this may add up to a large amount.
Hence despite being created for efficiency, plastic cards have disadvantages. A preferred way out of this would be to have a card and keep it safe for important usage. But to completely replace cash with cards is a big NO!
