VI) Credit cards

VI) Credit cards- Credit cards is a new concept of credit money which is gaining popularity among the rich. At the time of purchasing goods the buyer presents his credit card to the seller. The seller then prepares the sale voucher in triplicate. The buyer signs the voucher and the seller verifies the signature of the buyer with the signature that appears on the reverse side of the card.

One copy of the voucher is retained by the seller, one copy is given to the buyer and one copy is forwarded to the card issuing bank through the sellers’ bank.

Credit cards issued by private business houses like Diners club and by some foreign and Indian banks.

A credit card holder can make purchases from certain shops, hotels, and restaurants, garages and many other establishments’ without actually paying money in cash or cheques. It eliminates payment on the spot in the form of paper money or bank money. Credit cards are expected to play an important role.

Thus, the process of evolution of money is a continuous one. The present form of money may change in order to satisfy the requirements of a growing and changing world.

Posted in General Economics