INTRODUCTION

Plastic cards, or what is described as plastic money, happen to be the best-known

method of payment in this day and age. Most of us did not grasp how quickly that little
piece of plastic took its place in our lives. creditcards online will continue to be used for
the multiple advantages they offer us.
We realize all too well that online creditcards work as an expedient payment
option to pay for our many purchases. Imagine stashing money in all your pockets as
against merely a little plastic rectangle.
Additionally, at present going around with a large quantity of cash on you is not a wise
choice in terms of safety. The safety issue assumes even greater significance when you
are visiting someplace far. Money is easy to spot and pick-pockets and thieves are able to
use nicked money equally easily because these funds are not traceable. online creditcard
dealings however, are detectable and carry an audit trail as well.
Most times, people find using online creditcard their way out of an otherwise
hopeless situation. Several people found themselves purchasing airline tickets on-line,
reserving a hotel room, or renting a car. Then again, there are times when you require
some more ready money at once. In these kinds of emergency situations, you can switch
to using credit by using your creditcards online. Generally, credit card online give a
maximum of fifty days of interest free use of your credit. Likewise, some merchants
state, in their product promotion, that you have the ability to get yourself a high-priced
article ( e.g. USD 6,000) today and pay for it in a particular number of even installments.
Accordingly, you can handle your finances efficiently so as to remit your periodic
payments and do so without any additional charges for interest.
A lot of individuals look at your credit report (which lists your credit history and is
created and updated using information from banks, merchants and other creditors) to

evaluate you, consequently it`s crucial that your credit report is as good as possible.
Potential employers, insurance establishments, mortgage organizations, and several other
institutions will attempt to get an idea of your character by going through this factual
data. Possessing a creditcards online and availing of it wisely will help create a positive
credit history.
There`s no need to get anxious over whether you`ve adequate money on your person or
whether you don`t. Nor do you need to use up large chunks of your time waiting in
lengthy queues in a bank branch, or spend time drawing money from an automatic teller
machine when instead you can always take your credit card wherever you go, and that
takes care of all your financial needs.
Several online creditcard have travel insurance (that is, insurance to cover
problems associated with traveling) built into them as an inherent function. Consequently,
if you are among those that are often on the move, this feature might be a tangible plus
point. Even so, you must make sure to confirm if this travel insurance provides adequate
coverage for you. In addition, carefully go over the terms and conditions that come with
such insurance. Misplaced baggage is something which is almost always taken care of
with such insurance.
You may treat your online creditcards as an additional supplier of money when
abroad - and this whenever you don`t wish to avail of your prepaid visa mastercard as
your first source of funds, in order to avoid paying commission on out-of-country
transactions. Therefore, when you find yourself strapped for money or travelers` checks
you can bank on your charge cards as a fallback option. With such a plethora of useful
features when you`re under financial stress, it is a convenience that you cannot (rather
mustn`t) avoid. Indeed, online credit card is really an essential commodity in today`s
global environment.

HISTORY
In the late 1990s, the plastic cards market in India, comprising credit cards, smart cards,
debit cards, charge cards, stored value cards and others, picked up momentum like never
before, growing at an annual rate of 25%. Analysts attributed this growth largely to the
rapidly increasing user base of debit cards.
Though initially, there were only two players, (HDFC and Citibank), the debit card
market base grew considerably through 1999 and reached the 3 million mark in March
2000. The usage figures indicated a very healthy growth of the market in future, as seven
out of 10 cardholders were reportedly using their card regularly. The annual spending
through

debit

cards

in

India

reached

over

Rs

billion.

The growth of debit cards was all the more impressive considering the fact that credit
cards, introduced in the country in the early 1980s, had managed to reach the 10 millionuser base level only in 2000.
Thus, the debit card user base had reached one-third of the credit card user base in just
around one-tenth of the time. Also, smart cards introduced in the late 1990s, had become
very popular, especially in the financial services, banking, healthcare, transport and
telecommunication businesses. The demand for co-branded cards during 2001 was a
further indication of the fact that the Indian market had finally realized the potential of
plastic money.
ABOUT CREDIT CARDS & DEBIT CARDS
The evolution of plastic money dates back to the 1920s, when the first payment
card was introduced in the USA. Diners Club and American Express launched the world's
first plastic card in the USA, in 1950. The first credit card was introduced by Diners Club
in 1951. The global card market is dominated by two US-based players, Visa and
MasterCard. Visa introduced its first credit card, BankAmericard in 1958, which went on
to become a great success acquiring universal merchant acceptance. Visa's card base

increased significantly through the decades and reached the one billion mark in 2000.
MasterCard International was established in the 1970s.
In the 1990s, having covered a majority of US and European markets, Master Card and
Visa shifted their focus to the East, especially the Asia Pacific region. By 2000,
MasterCard and Visa had established their debit cards as well in the Asia Pacific region.
In 2000, Visa debit cards reached the 48 million mark in the Asia Pacific region, while
the MasterCard debit card base touched the 37 million mark. MasterCard's credit card
base touched 80 million during the period.

History of Credit Cards and Debit Cards In Plastic Money

Credit cards have evolved into a safe and secure manner to purchase goods and services. The
internet has given credit card users additional purchasing power. Banks have options like cashback rewards, saving plans and other incentives to entice people to use their cards. Debit cards
allow people the convenience of cards without the worry of racking up debt. The convenience,
security and rewards offered by credit and debit cards keep shoppers using their cards as opposed
to cheques or cash.
Credit Card Origins
The first credit cards were issued by individual stores and merchants. These cards were
issued in limited locations and only accepted by the business that issued them. While the cards
were convenient for the customers, they also provided a customer loyalty and customer service
benefit, which was good for both customer and merchant. It was not until 1950 that the Dinners
Club card was created by a restaurant patron who forgot his wallet and realized there needed to
be an alternative to cash only. This started the first credit card specifically for widespread use,
even though it was primarily used for entertainment and travel expenses.
Plastic Becomes the Standard
The first Diner's Club cards were made out of cardboard or celluloid. In 1959 American Express
changed all that with the first card made of plastic. American Express created a system of
making an impression of the card presented at the register for payment. Then that impression was

billed to the customer and due in full each month. Several American Express cards till
operate like this as of 2010. It was not until the late 1980s that American Express began allowing
people to pay their balance over time with additional card options.
Bank Card Associations
In 1966, Bank of America created a card that was a general purpose card or "open loop" card.
These "closed loop" agreements limited cards like Diners Club and American Express to certain
merchants,

unlike

the

new

open

loopcards.

The new general purpose system required interbank cooperation and additional regulations.

To

his created additional safety features and began building the credit card system of today. Two
systems emerged as the leaders--Visa and Master Card. However, today there is little difference
between the two and most merchants accept both card associations.
Debit Cards Emerge
The Visa association of cards took credit cards to a new level in 1989when they introduced debit
cards. These cards linked consumers to their checking accounts. Money was now drawn from a
checking account at the point of sale with these new cards and replaced check writing. This
helped the merchants check that money was available and made it easier to track the customer if
the funds could not be obtained. Consumers liked the convenience of not having to write checks
at the point of sale, which made debit cards a safe alternative to cash and checks.
The Future
There were almost 29 million debit card users as of 2006, with a projected 34.4 million users by
2016. However, online services like PayPal are emerging as a way for people to pay their debts
in new, secure and convenient ways. Technology also exists to have devices implanted
into phones, keys and other everyday devices so that the ability to pay at the point of sale is even
more convenient.
TYPES OF PLASTIC MONEY
Different types of Plastic money are: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 we need to do is produce the card and sign a charge slip to pay
for our purchases. The institution which issues the card makes the payment to the outlet on our
behalf; we will pay this Loan back to the institution at a later date.

Debit card
Debit cards are substitutes for cash or cheque payments, much the same way that credit cards are.
However, banks only issue them to us if we hold an account with them. When a debit card is
used to make a payment, the total amount charged is instantly reduced from our bank balance.
Don't borrow on your credit card! Here's why
A debit card is only accepted at outlets with electronic swipe-machines that can check and
deduct amounts from your bank balance online.
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.
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.
Credit cards: Remember these dos and don'ts. 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.
Dinner 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.Besid
es, 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.
Global card
Global cards allow you the flexibility and convenience of using a credit card rather than cash or
travelers cheque while travelling abroad for either business or personal reasons.
Co-branded card

Co-branded cards are credit cards issued by card companies that havetied up with a popular
brand for the purpose of offering certain exclusive benefits to the consumer. A debit card with a
difference
Master card & Visa
MasterCard and Visa are global non-profit organizations dedicated to promote the growth of the
card business across the world.
They have built a vast network of merchant establishments so that customers worldwide may use
their respective credit cards to make various purchases.
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 authorization 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.
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.
CREDIT CARD
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to
buy goods and services based on the holder's promise to pay for these goods and services. The
issuer of the card grants a line of credit to the consumer or the user) from which the user can
borrow money for payment to a merchant or as a cash advance to the user. Usage of the term
"credit card" to imply a credit card account is a metonym. When a purchase is made the user
would indicate consent to pay by signing a receipt with a record of the card details and indicating
the amount to be paid. Issuer agrees to pay the merchant and the credit card user agrees to pay
the card issuer. The credit card can be defined as A small plastic card that allows its holder to
buy goods and services on credit and to pay at fixed intervals through the card issuing agency. A
credit card is a card or mechanism which enables card holder to purchase goods, travels and dine
in a hotel without making immediate payments. The holders can use the cards to get credit from

banks up to 45days. The credit card relieves the consumers from the botheration of carrying cash
and ensures safety. It is a convenience of extended credit without formality. Thus credit card is a
passport to, safety, convenience, prestige and credit.
Advantages of Credit Card

This also provides additional customer services to the existing clients. It enhances the

customer satisfaction.
More use by the car holder and consequently the growth of banking habits in general.
The risk factor of carrying and storing cash is avoided. It is convenient for him to carry
credit card and he has trouble free travel and may purchase his without carrying cash

or cheque.
The card holder has the period of free credit usually between 30-50 days of purchase.
Availing credit with minimum formality.
The credit card saves trouble and paper work to travelling businessman.
Increases in sale because of increased purchasing power of the card holder due to unbilled

credit available to the card holder.

Credit card ensures timely and certainly of payments.
Systematic accounting since sales receipts are routed through banking channels.
Advertising and promotional support on national scale.

Disadvantages of credit card

Some credit card transactions take longer time than cash transactions because of various

formalities.
Discounts and rebates can rarely be obtained.
The cardholder is responsible for charges due to loss or theft of the card and the bank

may not be party for loss due to fraud or collusion of staff, etc
Customers may be denied cash discount for payment through card.
It might lead to spending habits and cardholders may end up in big debts
Avoid the entire cost and security problem involved in handling cash.
Losses to bad debts and reduced an additional liquidity is
It also allows him to delegate spending power to add on members
Credit card is considered as a status symbol.

DEBIT CARD
A debit card (also known as a bank card or check card) is a plastic card that provides the
cardholder electronic access to his or her bank account(s) at a financial institution. Some cards
have a stored value with which a payment is made, while most relay a message to the
cardholder's bank to withdraw funds from a designated account in favour of the payee's

designated bank account. The card can be used as an alternative payment method to cash when
making purchases. In some cases, the primary account number is assigned exclusively for use on
the Internet and there is no physical card.
In many countries the use of debit cards has become so widespread that their volume has
overtaken or entirely replaced checks and, in some instances, cash transactions. The development
of debit cards, unlike credit cards, has generally been country specific resulting in a number of
different systems around the world, which were often incompatible. Since the mid 2000s, a
number of initiatives have allowed debit cards issued in one country to be used in other countries
and allowed their use for internet and phone purchases.
However, unlike credit cards, the funds paid using a debit card are transferred from the bearer's
bank account, instead of having the bearer pay back the money at a later date.
Debit cards usually also allow for instant withdrawal of cash, acting as the ATM card for
withdrawing cash. Merchants may also offer cash back facilities to customers, where a customer
can withdraw cash along with their purchase.
Advantages of Debit Card

Plastic money, unlike paper money, will not burn easily and can resist higher temperatures

than paper money.

You have no fear to be theft. And its easy to use.
Paper money also picks up dirt and stains more easily than plastic money.
Plastic money is the debit card and credit cards. Plus point of plastic money is that you

wont have to carry your cash around all the time.

It also doesnt wear after time as paper does not rip and tear.
Be more convenient to carry than cash.
Provide a convenient payment method for purchases made on the internet an over the

telephone.
Help you establish a good credit history.

Disadvantages of Debit card

Cost much more than other forms of credit, such as a line of credit or a personal loan, if you

dont pay on time.

Damage your credit rating if your payment are late.
Allow you to build up more debt than you can handle.
Have complicated terms and conditions.
Its around 2.5% of the money you spent.
Some extra money will be deducted for the bank services.

It is cheaper to make.

OBJECTIVE

Primary objectives:
To know the perception of people towards plastic money.

Secondary objectives:
1. To know the importance of plastic money in the daily life of consumers with respect to
credit and debit cards.
2. To study the benefits of debit card and credit cards.
3. To find out the market leader among the various banks/ companies issuing credit and debit
cards.
4. To know the problems faced by respondents using plastic money.
5. To study the satisfaction level of consumers towards plastic money.

LITERATURE REVIEW
Hayashi, Fumiko and Weiner Stuart E. (Sept.2005) in their article
Competition and Credit and Debit Card Interchange Fees

Stated that there is a bridge between the theoretical and empirical literatures on interchange
fees. Credit and Debit card industries are examples of two sided markets. The
distinguishing feature of two- sided markets is they contain two sets of end users, each of
whom needs the other in order for the market to operate. In the case of credit and debit cards
the two end user groups are cardholders and merchants.
Payment card systems take one of two principal forms. They may be three- party system:
Cardholders, Merchants and a single financial institution that offers proprietary network
services, For example: American Express. Alternatively they may be four-party systems:
Cardholders, Merchants, Card- Issuing Banks, and Merchant acquiring Banks, using the
services of a multi- party network such as MasterCard, Visa, or a domestic debit card
Network. In four-party system, the interchange fee is an instrument that networks can
Use to achieve a desired Balance of cardholder.
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. Recently credit card networks have come under scrutiny
from regulators and antitrust authorities around the world. Focusing on interrelated bilateral
transactions, several theoretical models have been constructed to study the implications of
several business practices of credit card networks.

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. These differences have
implications for when, why, and how the rules of antitrust law- which regulate how firms
may exercise market power- should be applied to this industry. He focused on general
purpose credit cards such as Visa or Master Card, and debit cards. We do not discuss
department store cards, oil company cards, or bank cards when they are used at ATMs Debit

cards allow customers to pay for goods and services at the point of sale by authorizing a
withdrawal from their checking or savings account. Most ATM cards can be used at the point
of sale as debit cards. Such transactions are called PIN debit transactions because the
cardholder must enter a four digit personal identification number (PIN) to authorize the
transaction. Funds are then immediately withdrawn from the associated bank account. The
transaction itself is routed through as electronic funds transfer (EFT) network, For example
Star , NYCE and pulse 7 transaction , a signature debit transaction does not immediately
remove funds from the cardholders account; It typically takes a day or two for the
transaction to clear. MasterCard must also accept the comparable brand of debit card.

AN ANALYTICAL STUDY ON USE OF PLASTIC MONEY IN INDIA:

WITH SPECIAL REFERENCE TO CARD HOLDERS OF GUJARAT Dr.
Kaushal A. Bhatt ( April 2004 )
The Banks are the main participants of the financial system in India. The Banking sector
offers several facilities and opportunities to their customers. Indian banking industry has
been divided into two parts, organized and unorganized sectors. Among e-banking, card
banking is the most important form of e-banking products. Important card banking products
are Debit Cards, Credit Cards, Store Card and Smart Card which are popularly known as
Plastic Money. Research design used for this research is descriptive and method is primary
which is collected through structured questionnaire. Objectives of this study includes to
examine the socio-economic profile of the cardholders so as to ascertain the association of
such factors with the use of debit cards and credit cards; to identify the benefits of plastic
money by cardholders and merchants in business deals; to investigate into the problems
confronted by both types of cardholders and merchants in the plastic money deals, etc.
Scope of this study is limited to State of Gujarat with 384 sample size. Tools used for
analysis is one way ANOVA. There are approximate 24% users who are using only credit
card, 24% using only debit card, 5% using only smart card, 6% using only store card while
there are few card holders who holds more than one type of
card. Suggestion that requires for plastic money industry is that Insurance and other security
should be available for the security of plastic money. Card Issuer Company has to make their

advertisement more effectively to attract more number of people. In e-shopping, merchant

should create trust and loyalty to customers which influence to purchase on-line.

IMPACT OF PLASTIC MONEY ON BANKING TRENDS IN INDIA

Sushma Patil ( Jan 2014)
Due to the technological revolution in financial sector, the payments in banking system have
undergone a tremendous change. The Number of innovative products for making payment
has developed after the privatization and globalization.Customers have showed their
preference over the usageofthe plastic money generally over a period of timein thebanking
process. Plastic money is an alternative to the cash or the standard money. Plastic money is
referring to the credit cards or the debit cards that we use to make purchases .Various other
types of plasticcards provided by banks in India are ATM cards, Smart cards. The current
study presents an overview of the development of banking in the plastic cards usage trends
since these have been introduced in Indian banking sector. The study also highlights the role
of these cards as electronic payment tool to be used by customers and discusses the
penetration of these cards in replacement of cash and paper money. The Study is been
carried out by taking a survey of 100 respondents by non probabilistic convenience sampling
method from a city of Mumbai by using structured questionnaire and interview technique.
The factors for adoption of plastic money in replacement of cash and paper money have
been identified which shows the preference of the customers for plastic cards over the cash
and paper money. Some future plans made by various banks and institutions for avoiding the
frauds arisen due to the credit and debit cards are also been discussed in a way that it depicts
the picture of its future growth and prospects in India. As the study is been carried out in a
city of Mumbai the results cannot be generalized.

RESEARCH METHODOLOGY
Research methodology deals with the method of study i.e. how the study can be carried
out and what techniques can be used. It is the careful investigation and enquiry in a systematic
manner in order to find solution to find to find problems in research. It consists of defining and
redefining the problems formulating the hypothesis or suggestions solutions collecting data and
evaluating the data and at last carefully testing the conclusion to determine whether they fit the
formulated hypothesis or not.

Research Design: Research design states the conceptual structure within which research is to be
conducted. A research design is the arrangement of conditions for collections and analysis of data
in a manner that aims to combine relevant the research purpose with economy in procedure. The
different research designs available are:
Exploratory research: It generally emphasis on discovery of ideas and insights. Its more
qualitative rather than quantitative.
Descriptive research: It is concerned with determining the frequency with which something
occurs or extent relationship between two variables. This study will be having an exploratory
research which is based on discovery of ideas and insights.
The Research Methodology adopted for the research project is Descriptive in nature it intends to
collect data from Primary as well as Secondary source
Sampling Plan:Sample size: This refers to the number of respondents to be selected from the universe to
constitute a sample. Large samples give more reliable results than the small samples. So the
sample size of 100 respondents was taken into consideration in case of research work which
includes both debit and credit card holders.
Sampling unit: Sampling unit implies that who are the respondents. In this sample all those who
are using debit cards and credit cards.
Sampling technique: The technique used for my study is convenient sampling that consists of
questionnaire, which are given to respondents who are the regular users of plastic money.
Methods of Data Collection:
Primary Data:
Primary data is that data which is collected for the first time and thus happens to be original is
character. In the study, primary data will be collected from direct source of information like
customers with the help of questionnaire survey and personal interview.
Questionnaire: The second tool used for study is questionnaire. Various questions regarding the
purposes of plastic money and the various procedures for obtaining credit cards, the necessity of
credit cards, increasing relevance of plastic money among consumers, market leader among
various companies issuing credit and debit cards.
Secondary Data:

Secondary data are those which have already been collected by some one. For this study there
will be following secondary data.

Websites
Magazines
Articles and Newspapers
Books

Tools of analysis:

Pie charts and percentage

Figures

The limitations of a study are:

1. The results are based on primary data.
2. The accuracy of the result is also limited to the reliability of methods of investigation,
measurement and analysis of data.
3. The present study is based on the data from NORTH DELHI city only and thus might not
be true for all others areas.
4. There was lack of time.
5. The data collected may or may not be accurate because of the biasness from respondent
side.
6. Findings are not justified because each market player have their unique characteristics of
debit cards and credit cards, so its very difficult to decide which bank has upper edge in
plastic money.

DATA ANALYSIS AND INTERPRESTATIONS

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

No; 0%

Yes; 100%
No. of
Using Plastic money

Respondent

Percentage

Yes

100

100%

No

0%

Interpretation:
From the above figure it can be interpreted that 100 respondents who are taken for the study
are using plastic money and hence it can be said that majority respondents now a days are
using plastic money.

2. Card possessed by respondents?

Both; 14%

Credit Card; 28%

Debit Card; 58%

Card Possessed

No. of Respondents

Percentage

Debit Card

58

58%

Credit Card

28

28%

Both

!8

18%

Interpretation:
From the above data collected we can interpret that the people mostly have debit card, as credit
card is little expensive than debit card so people mostly prefer debit card, but still people have
applied for their credit card also. Some people have both debit card and credit card.

3. Debit cards of different companies/banks owned by respondents?

Three; 6
Two; 24

One; 68

No. of Debit
Cards

No. of Respondents

Percentage

One

68

68%

Two

24

24%

Three

6%

Interpretation:
The above data reveals that mostly people have one debit card; about 25% of the respondents are
using two debit cards from different companies, its clear that people are satisfied with their debit
card.

4. No. of Credit cards of different companies/banks owned by respondents?

Three; 6%
Two; 30%
One; 64%

No. of Credit Cards

No. of Respondents

Percentage

One

64

64%

Two

30

30%

Three

6%

Interpretation:
From the above information it can be interpreted that 64% of the respondent have one credit card
from different companies/banks and 30% have two debit cards.

5. Companies/Bank card owned by the respondents?

28
22

22
12

10

HDFC Bank

SBI

PNB

OBC

ICICI

Card Owned

No. of Respondents

Percentage

HDFC Bank

22

22%

SBI

28

28%

PNB

12

12%

OBC

6%

ICICI

22

22%

BOI

10

10%

BOI

Interpretation:
From the above data its clear that people mostly prefer SBI Bank to get the plastic money, after
that respondent prefers ICICI and HDFC bank. People usually like to have credit card with
which they have account.
6. Time period of using the debit card/credit card/both ?

More than 5 year; 18%

Between 3- 5 year; 34%
Less 1than
1 year;
22%
Between
3 year;
26%

Time Period

No. Of Respondents

Percentage

Less than 1 year

22

22%

Between 1- 3 year

26

26%

Between 3- 5 year

34

34%

More than 5 year

18

18%

Interpretation:
The above data reveals that mostly people are using plastic money from 3 to 5 year and rest are
using it for less than 3 year i.e. plastic money become a trend from the last few years.

7. Purposes for using the card?

All of above; 4%
Petrol filling; 14%
Shopping; 37%
Hotel and Restaurant; 20%
Withdrawal of money; 24%

Purpose for using Plastic money

No. Of Respondents

Percentage

Shopping

36

36%

Withdrawal of money

24

24%

Hotel and Restaurant

20

20%

Petrol filling

14

14%

All of above

4%

Interpretation:
It is clear that mostly people use the card for the shopping purpose and then for withdrawal of
cash, 20% use it for going for hotel and restaurants. So the plastic money is used by the
respondents everywhere. For all purpose related using is till now less i.e. 4%.

8. Card which is more beneficial?

Both; 30% Debit card ; 36%

Credit card; 34%

Card which is beneficial

No. of Respondents

Percentage

Debit card

36

36%

Credit card

34

34%

Both

30

30%

Interpretation:
From the above figure it is clear people mostly prefer debit card but credit cards are not far
behind, about 34% of the respondents feel that credit card is more beneficial than debit card and
some feel that both are beneficial.

9. Benefits provided by Debit card?

50
20

20

10

Benefits provided

No. of Respondents

Percentage

Security

33

50%

Free from fraud

13

20%

Anytime access

13

20%

No interest charges

10%

Interpretation:
From the above collected data it is clear that there are many benefits and respondents are
satisfied with these benefits, as they feel secured and easy to carry the money. They can use
wherever they want. So from analysis respondents are enjoying all the benefits of Debit card
with having a security 50% and accessing anytime.

10. Benefits provided by credit cards?

11

2
2

25

23

4
4

3
3

27

25

Benefits Provided

No. of Respondents

Percentage

Convenient to pay

16

25%

Overdraft facility

14

23%

Prestige to holder

16

25%

Easy to carry

18

27%

Interpretation:
From the above study it can be seen that respondents agreed that credit card is easy to carry and
it give prestige to the holder. They can use it where ever they want and fulfill their wishes,
without thinking. Credit card gives facility to the holder to do anything on credit. From above
27% thinks its easy to carry in case of cash.

11. Problems faced in processing the card?

High fee charged by bank; 15%

Feeling of insecurity; 30%
Unnecessary formalities; 15%

Fear of losing card; 40%

Problem Faced

No. of respondents

Percentage

Feeling of insecurity

30

30%

Fear of losing card

40

40%

Unnecessary formalities

15

15%

High fee charged by bank

15

15%

Interpretation:
From the data it is clear that the cardholders have the problem in processing the card. 40% have a
fear of losing a card, and 30% feel insecure that card might be misused by some other person.

12. Customer Satisfaction towards plastic money?

Unsatisfied; 5%
Neutral; 20%

Satisfied; 75%

Satisfaction level

No. of Respondents

Percentage

Satisfied

75

75%

Neutral

20

20%

Unsatisfied

5%

Interpretation:
From the data it is clear that 75% of consumers are satisfied with the services of the plastic
money, 20% consumers are not satisfied and only 5% of consumers are not satisfied.

Findings
Following are the findings that are drawn from the study:
Respondents taken for this study are those who are using the plastic money in their daily
life.
62% of the respondents believe that plastic money is the currency of modern India.

69% of respondents own one debit card and 25% owns two debit cards.
People have less craze for credit card. Only 28% of the respondents have credit card.
Respondents mostly prefer the plastic money of SBI Bank, HDFC Bank and ICICI Bank.
34% using the cards for the last 3 years and the trend of plastic money have emerged

from the last few years.

Mostly people use the cards for shopping and withdrawal of money- plastic money is

mostly preferred at the time of shopping.

Debit card is more beneficial according to 36% respondents.
Debit card provide security to the cardholders.
20% respondents are dissatisfied that debit card is free from fraud.
Mostly people agreed that debit card provide the facility of anytime access. Anytime you

can withdraw your money.

Credit card is convenient way to pay agreed by most of the respondents.
Credit card provide prestige to holders having the tie up with the famous card companies
it provide the sense of pride.
30% cardholder agreed that the plastic money holders have to tackle with the problem of
insecurity.
Cardholders have to fulfil the unnecessary formalities while obtaining the card.
Plastic money has a rapid growth in the coming years.
The growth credit card in India is still very slow. Companies are going really hard to
increase the sale of credit cards.

CONCLUSIONS
In the last two years, spending pattern through plastic money has changed drastically.
Travelling, dining and jewellery are the top three purchases that Indian makes through
credit cards.
Fuel accounts for a very small portion of credit card purchases as these are largely paid
through debit cards.
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.

 The status symbol aspect of owning and using cards too played its part on bringing about
such robust growth over the space of a single year.
Consumers are preferring these cards mostly for shopping online E- commerce has given
a better way to use the plastic money.
According to projections for the 2003-2016 periods the number of financial cards in
circulation will register a compounded annual growth rate of nearly 51 percent and the
satisfaction of consumers has also increased.
There are many ethical issues and challenges for plastic money issuing banks/ companies.
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.

RECOMMENDATIONS
Various offers and discounts should be provided on the plastic money so that all the users
feel satisfied with their card choice.
The interest charges on credit cards should be reduced so that people are encouraged to

use it in regular routine.

More facility should be provided to the card holder in order to satisfy them completely.
There should be more sales executives to reinforce new customers.
More outlets should be provided where the cards can be easily accepted.
The unnecessary formalities should be reduced in order to obtain the plastic money.
Advertisements should be given through TVs, magazines and hoardings to have

maximum reach because the respondents perceive these as important promotional tools.
The whole procedure of obtaining the plastic money needs to be authentic. Companies
should provide security to the card holders.
Companies should reduce the amount of the annual fee charged on the cards.

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
College Student using the Credit Card
Smart card based Electronics Commerce characteristics and Roles
Credit card and Debit cards : What new ? Where to ?
Competition and Credit and Debit card Interchange Fees
Theory of Credit card Networks: A survey of Literature
An introduction to the economics of payment card networks
Credit card crisis in South Korea
Ethical Issues and Challenges
Websites
www.rba.gov.au
www.federalreserve.gov
www.direct.gov.uk
www.paypal.com
www.google.com

QUESTIONNAIRE
Dear Sir/Maam
I am student of MBA of Northern India Engineering College and topic of my project report is
To study the customer perception towards plastic money with special reference to credit cards
and debit card and I want your cooperation to fill this questionnaire related to my project.
Personal information
Name

______________________________________________

Address

______________________________________________

Occupation ______________________________________________

Q.1 Do you use plastic money?

a) Yes
b) No
Q.2 Which card do you have?
a) Debit card
b) Credit card
c) Both
Q.3. How many no. of debit cards of different companies owned by you?
a)
b)
c)
d)

One
Two
Three
None

Q.4 How many no. of credit cards of different companies owned by you?
a)
b)
c)
d)

One
Two
Three
None

Q.5 Which companies / bank card do you have?

a)
b)
c)
d)
e)

HDFC Bank
SBI Bank
BOI Bank
ICICI Bank
Any other if yes specify

Q.6 Since how long you have been using debit card/credit card/ both ?
a) Less than 1 year
b) Between 1-3 year
c) Between 3-5 year
d) More than 5 year
Q.7 Normally for what purpose do you use cards?
a) Shopping
b) Withdrawal of money
c) Petrol filing
d) Hotel and restaurants
e) All of above
Q.8 Which card according to you is more beneficial?
a) Debit card
b) Credit card
c) Both
Q.9. What are the benefits provided by debit cards?
a)
b)
c)
d)

Security
Free from fraud
No interest charges
Anytime access

Q.10 What are the benefits provided by credit cards?

a)
b)
c)
d)

Easy to carry
Convenient to pay
Overdraft facility
Prestige to holder

Q.11 What are the problems you are facing in processing the card?
a)
b)
c)
d)

Feeling of insecurity
Fear of losing the card
Unnecessary formalities
High fee collected by banks

Q.12 Are you satisfied with the use of plastic money?

a) Satisfied
b) Neutral
c) Unsatisfied