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Recap of the Foundation Course: Cards

Before exploring the intermediate module on cards, let’s take a quick recap of the essential concepts covered in the Intermediate course. This will help ensure you’re all set to tackle the more complex ideas ahead:

Understanding Plastic Money

Plastic money refers to the small, convenient cards we use for everyday purchases—like debit cards, credit cards, prepaid cards, and forex cards. These cards provide a secure and cash-free way to handle transactions.

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Different Types of Cards

 

  • Debit Cards: These are directly linked to your bank account, allowing you to make instant payments using the money you already have. They’re ideal for day-to-day expenses, as the amount is immediately deducted from your account.
 
  • Credit Cards: Unlike debit cards, credit cards let you borrow money from the bank up to a pre-set limit. You can make purchases now and repay the amount later, usually within a billing cycle. They often come with perks like reward points, cashback, and discounts, making them a popular choice for both convenience and benefits.
 
  • Prepaid Cards: Prepaid cards are pre-loaded with a specific amount of money, making them perfect for controlled spending. Once the loaded amount is used up, you can simply top it up and continue using the card. They’re great for budgeting and can be used without needing a bank account.
 
  • Forex Cards: These are specialized prepaid cards designed for international travel. You load them with the currency of the country you’re visiting, offering a safe and convenient way to spend abroad without the hassle of exchanging cash.
 
  • Virtual Cards: Virtual cards exist only online, without a physical form. They provide a secure way to make digital transactions, as they can be generated instantly for single-use or multiple transactions, offering protection against fraud.

Why Cards Are Invaluable

Cards have revolutionized how we manage and spend money. They’re easy to carry, secure with PIN codes and chips, and help keep track of your spending. You can use them anywhere—from local stores to international destinations—and even earn rewards like cashback and discounts for using them. Plus, with a card in hand, you’re never stuck needing exact cash, making life more convenient.

This overview should prepare you to dive into the intermediate module, where we’ll explore in even more detail about the different types of cards available to Indian customers and provide tips on how you can use your cards safely!