Long ago businesses were done based on the old barter system. People exchanged goods among themselves and carried out business transactions. However with time this changed and the concept of money came into force. This changed the face of the world and the way transactions were carried out across the world. Currency reigned supreme and banks came into play. As time passed people found it difficult to carry large amounts of cash on them for various reasons and security concerns. Then came the concept of plastic money or payment cards. These are easy to use and carry and have a host of security features that makes them safe to use. Today the use of these has become so rampant that people no longer believe in carrying cash with them. A majority of all merchants across the world agree to accept this method of payment. Let us take a look at different types of payment cards available today and their advantages.

Credit cards

Credit cards are one of the most widely used versions of payment cards. You can use them to buy products or services and can then pay your service provider at a later date. This means that you will be able to access a credit line that your service provider or bank offers you through this card. You can use credit cards to make your purchases online or offline. The service provider will send you detailed statements on a monthly basis and you are expected to clear your dues to the service provider then. The major advantage that you stand to gain by using credit cards is that they come in very handy when you need to meet any emergency requirements and you don"t have cash on you.

Debit cards

Though debit cards work on the same lines of a credit card for all transactional purposes the major difference between the two is that while a credit card gives you access to credit, a debit card can be used only to the extent of the amount available in your bank accounts. You can also use your debit cards to withdraw funds via a teller machine from your bank accounts. This is very convenient option to carry on your daily transactions and a perfect replacement for cash. However you need to keep check on your bank balance as you will be able to use your debit card only to the extent of your account balance.

Prepaid cards

This is the next version of payment card and is now being used by a large number of consumers. These cards can be credited with a pre-set amount and can be used by a customer like a normal debit card. The card will cease to work when the pre-loaded credit limit expires. These cards can be used for shopping purposes, carry out online transactions; withdraw cash from Teller machines etc. They are being widely used for gifting purposes as well.