Using “Plastic” in Monetary Asset Management.
There are many types of plastic devices used to access your money:
ATM cards allow you to withdraw money from or transfer money among your checking and savings accounts at an automatic teller machine. You must use a personal identification number (PIN) to use the card.
Debit cards -you can use them to make purchases via a point-of-sale (POS) terminal at retail outlets. Using a debit card to make a purchase immediately transfers money from your account. You typically use a PIN or provide your signature when using a debit card.
Stored-value cards contain a magnetic strip or bar code that encrypts the amount of money stored via the card. Some stored-value cards can be “reloaded” with additional funds. Stored-value cards are much like a mini-checking account you can use wherever the card is accepted. A gift card is an example of a stored-value card. There are risks associated with gift cards since many have an expiration date and should the retail company go bankrupt or close in your area, the cards may be impossible to redeem.
Credit cards allow you to make purchases or obtain cash with credit from the bank or retailer that issued the cards. These are debts that must be paid back, often with interest.