What is Plastic Money? What are Debit Cards, Credit Cards and Cash Cards

Generic term of all types of bank cards, credit cards,debit cards,smart cards, etc. are termed as plastic money. 

Plastic money is a term that is used predominantly in reference to the hard plastic cards we use everyday 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.

Cash Cards - A card that will allow you to withdraw money directly from your bank via an Automated Teller Machine (ATM) but it will not allow the holder to purchase anything(goods and services) directly with it.

Credit Cards - This card will permit the card holder to withdraw cash from an ATM, and a credit card will allow the user to purchase goods and services directly, but unlike a Cash Card the money is basically a high interest loan to the card holder, although the card holder can avoid any interest charges by paying the balance off in full each month.

Debit Cards - This type of card will directly debit money from your bank account, and can directly be used to purchase goods and services. There is no official credit facility with debit cards, as it is linked to the bank account. So the limit is what is in your account, for instance if an overdraft facility is available then the limit will be the extent of the overdraft.

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