Q. What is Plastic money? Describe the different types of plastic money. What is E-commerce, how banking sector play an importance role of e-commerce and also discuss the advantages of E-commerce.
Q. Plastic money? Discuss various forms of plastic money. Plastic money: Plastic money is the alternative to the cash or the standard 'money'. Plastic money is the generic term for all types of bank cards, credit cards, debit cards, smartcards, etc. They are the alternative to the cash or the standard 'money'. Plastic money is used to refer to the credit cards or the debit cards that we use to make purchases in our everyday life.
The various Plastic cards include ATM cards, Debit Card, ATM cum Debit Card, Credit Cards, Smart Card, Charge Cards, Co-branded cards, add on cards and so on
1. Debit Cards - When a person uses a debit card, the money is directly debited from the person’s bank account. Thus, a person can use the debit card till he has sufficient balance in his bank account as there is no deferred payment. Debit cards can also be used in Automated Teller Machines (ATMs) to withdraw cash.
2. Credit cards - A credit card is a type of plastic money using which a person can purchase now and pay later. When the person swipes his credit card for making payment, the amount does not get debited to his bank account. It is paid by the credit card company and comes to the person in the form of a monthly statement.
3. Smart Cards - A smart card consists of an electronic chip used to store cash. While making a payment, the exact amount is deducted from the smart card. This card does not require any authorization like signature or identification.
4. Cash Cards - These cards cannot be used to make payments or buying things. They are only useful for withdrawing cash from machines, known as ATMs.
5. Prepaid Cash Cards - These cards are similar to credit cards except that there are no monthly statements. It can be used till there is credit in the card but does not need a bank account.
6. Store Cards - Some stores have their own cards which can be used at that particular store or group of stores. They can be used like credit cards in the particular stores but are accompanied with high interest rates.
2. Credit cards - A credit card is a type of plastic money using which a person can purchase now and pay later. When the person swipes his credit card for making payment, the amount does not get debited to his bank account. It is paid by the credit card company and comes to the person in the form of a monthly statement.
3. Smart Cards - A smart card consists of an electronic chip used to store cash. While making a payment, the exact amount is deducted from the smart card. This card does not require any authorization like signature or identification.
4. Cash Cards - These cards cannot be used to make payments or buying things. They are only useful for withdrawing cash from machines, known as ATMs.
5. Prepaid Cash Cards - These cards are similar to credit cards except that there are no monthly statements. It can be used till there is credit in the card but does not need a bank account.
6. Store Cards - Some stores have their own cards which can be used at that particular store or group of stores. They can be used like credit cards in the particular stores but are accompanied with high interest rates.
7. Loyalty Cards - Loyalty cards are issued by retailers as a reward to frequent buyers. It entitles the cardholders to a certain percentage of discounts every time they purchase from that retailer.
Q. What is E-commerce, how banking sector play an importance role of e-commerce and also discuss the advantages of E-commerce.
The buying and selling of products and services by businesses and consumers through an electronic medium, without using any paper documents. E-commerce is widely considered the buying and selling of products over the internet, but any transaction that is completed solely through electronic measures can be considered e-commerce. E-commerce is subdivided into three categories: business to business or B2B (Cisco), business to consumer or B2C, and consumer to consumer or C2C (eBay).
The Internet has opened up a new horizon for trade and commerce, namely electronic commerce (e-commerce). E-commerce entails the use of the Internet in the marketing, identification, payment and delivery of goods and services. This paper highlights the status, statutes, potential and constraints to e-commerce development in Bangladesh. Major legal, regulatory and institutional constraints to e-commerce are identified. The paper also lists specific policy changes aimed at bringing improvements to the legal and regulatory environment affecting e-commerce.
E-commerce through Internet, e-mails, websites, and other facilities, enables a businessman to be linked with every corner of the world, and thus opens up greater opportunities in the world market. However, the steps taken towards trade liberalization in Bangladesh become ineffective as a result of poor governance and weak infrastructure. Even simple day-to-day transactions with government bodies are characterized by unnecessary delays, obstructionism by public sector officials and demands for illegal payments. In addition to corruption, trade related regulations that are vague, contradictory and improperly implemented aggravate the situation.
Advantages of e-commerce:
** Faster buying/selling procedure, as well as easy to find products.
** Buying/selling 24/7.
** More reach to customers, there is no theoretical geographic limitations.
** Low operational costs and better quality of services.
**No need of physical company set-ups.
** Easy to start and manage a business.
** Customers can easily select products from different providers without moving around physically.
Advantages of e-commerce:
** Faster buying/selling procedure, as well as easy to find products.
** Buying/selling 24/7.
** More reach to customers, there is no theoretical geographic limitations.
** Low operational costs and better quality of services.
**No need of physical company set-ups.
** Easy to start and manage a business.
** Customers can easily select products from different providers without moving around physically.
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