Disadvantages Of Electronic Money

Money has always regarded as one of the most important medium of exchange tool to make payments in India, or around globe. With the emergence of an organized mode of payment overtime from barter system to more intricate forms of monetary arrangements money has changed from coins to paper and as we moved ahead in 21st century it is available in formless form as electronic money or plastic cards. Plastic money is a term that is used predominantly in reference to the hard plastic cards we use every day in place of actual bank notes. They can come in many different forms such as cash cards, credit cards, debit cards, pre-paid cash cards and store cards.

Today, it is impossible to imagine modern banking operations and other payments without the

Credit card holders are highly educated and rich. Debit card holders because of ATM usage. ATM is use because of withdrawing cash not any online payment. Credit cards are used for online payments, online shopping. Many people set their mind credit card is less good then debit card because of withdrawing cash.

Syed Ali Raza, Liaquat Ali Rahoo, Prof. Muhammad Memon (2016) conducted study on “the awareness and use of plastic money among the consumers and consumer’s reasons for preference of plastic money over hard cash” it shows that majority of the respondents use plastic money in the form of debit card, the respondents also prefer the use of debit card over credit card as they prefer debit card due to the convenience and easy portability, they also studied the purpose of usage of card in different areas and mostly in apparels followed by electricity bills and online transactions, banking, consumer durables, jewellery, investments and so on. Further they have studied about the problems faced by the respondents regarding the use of plastic money the problems listed are Insecurity, Fear of losing the card, Unnecessary formalities and high processing fee and after analyzing the data it was found that majority of the respondents

A study of 212 respondents shows that majority of the respondents use plastic money for instant transactions, mostly of them using plastic money because of flexibility and portability it was also found that less time consumed while using plastic money is also a factor which is affecting the usage. The Plastic Money is largely used by the people of service sector followed by business people, students and a small part by free lancers and homemakers. The majority of the respondents preferred private banks than public banks. A stagnant percentage of respondents does not use card because of the fear of losing it and less percentage of respondents is affected by the processing fee. Some of them were worried about the transaction charges and most of them were also affected by the formalities made by the