Curious about Plastic Money
What are the different types of plastic money?
Plastic money is a term used to describe various forms of electronic payment methods that allow individuals to make transactions without using physical cash. The different types of plastic money include:
1. Credit Cards: Credit cards allow you to borrow money from a bank or financial institution to make purchases. The amount borrowed needs to be paid back within a specified period, usually with interest.
2. Debit Cards: Debit cards allow you to make purchases using the funds in your bank account. They are linked to your bank account and the amount spent is deducted from your account balance.
3. Prepaid Cards: Prepaid cards are similar to debit cards, but the funds are loaded onto the card beforehand. They can be used until the balance on the card is exhausted.
4. Charge Cards: Charge cards are similar to credit cards, but they require the balance to be paid in full each month.
5. Digital Wallets: Digital wallets are smartphone applications that allow you to store multiple payment methods, such as credit and debit cards, and use them to make payments electronically.
6. Virtual Credit Cards: Virtual credit cards are credit cards that exist only in digital form. They can be used to make online purchases, but cannot be used physically in stores.
7. Smart Cards: Smart cards contain a computer chip that stores information and can be used for a variety of applications, including making payments.