In today’s generation public is using the plastic money instead of cash. In my opinion the advantages of using credit cards removes the risk of carrying cash, can be used for all types of transactions globally and it is easy to carry. Simultaneously, the disadvantages includes its misuse, can be easily hacked and involves paying up high interest rates.
First of all, using plastic money removes the risk of carrying cash. Moving cash is a very expensive business, which involves lots of security and people are always under a threat of being looted. Credit cards and digital transactions minimize the danger of carrying high volumes of cash. Secondly, plastic money opens up many avenues for transaction globally. For instance, nowadays any product or services can be purchased globally, just by swiping the card or by digital payment. Also it is very easy to carry as it fits in the pocket and can be processed from any device.
On the contrary, there has been lots of instances where credit card has been misused. Credit card cloning is now a global phenomenon and millions of people have been deceived by it. Simultaneously people and organizations have been the victims of cyber hacking which have resulted in huge financial loss. No doubt, nowadays cyber laws have been introduced but there has been a tremendous rise in the online fraud which cannot be detected easily. In addition to it, credit cards are not accepted everywhere, especially in rural areas where there is less internet coverage. Lastly, using credit card is not always free, because it involves hidden charges and certain transaction charges which the customer has to bear. Also using the credit card is very tempting and often leads to needless shopping which increases the burden of the consumer.
To sum up, credit cards have their own pros and cons and it is up to the person how to make the best utilization of the technology.
Contributed by — Yogesh Parmar
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