The Benefits and Uses of Plastic Cards

Plastic cards have become more popular over recent years, notably in the corporate world. They provide businesses with a higher level of security, convenience and flexibility when handling customer information and transactional needs. This article will address the benefits of using plastic cards, the technologies related to them, and how businesses use plastic cards in their everyday operations. We'll also look at two case studies that demonstrate how plastic cards have benefited companies in different ways.

Introduction

Plastic cards are a type of payment system that replace traditional paper money. They are often referred to as credit cards, but they can also be used for debit transactions and other related activities. The technology behind plastic cards is based on the use of either an electronic or magnetic stripe embedded into the card which stores information related to the cardholder. Companies can issue a variety of different types of plastic cards, with the most common being credit, debit and gift cards.

Benefits of Plastic Cards

The benefits of using plastic cards are numerous. With the help of plastic cards, businesses can provide their customers with a secure and convenient way to shop and make transactions. There are several key advantages to this system, including:

• Optimized security Plastic cards provide an additional layer of security compared to traditional methods such as cash or cheque transactions. This is particularly beneficial for businesses that accept online payments, as the risk of fraud is minimized.
• Cost-effectiveness Companies that issue plastic cards significantly lower operational costs associated with handling customer information, such as bank account numbers, as the card can securely store customer information. Additionally, the use of plastic cards reduces the cost of printing paper or providing other traditional payment methods.
• Flexibility Plastic cards can be used to make online payments, and can also be linked to loyalty programs or rewards points. This allows customers to enjoy the convenience of being able to shop with their plastic card

Technologies Used for Plastic Cards

There are several technologies available for the production of plastic cards. These technologies can be used to process card payments, store customer information, or create customized cards. The most commonly used technologies for plastic cards are:

• Magnetic Stripe The magnetic stripe is a type of card reader that is used to store customer information. Magnetic stripes are used to process card payments and is typically used in debit cards and credit cards.
• Chip The chip, otherwise known as an EMV chip, is a type of card reader that stores customer information and securely processes payments. This technology is used largely in credit cards, and is slowly being adopted by more and more companies.
• NFC Near Field Communication (NFC) is a type of card reader that is used to securely transfer information between two devices. NFC technology is used mostly with contactless payments, such as contactless cards, smartcards, and smartphones.

Case Studies

To further illustrate the benefits of using plastic cards, let's look at two real-world examples:

Case Study 1: eCommerce Store

An online retailer wanted to increase customer loyalty and make it easier for customers to make purchases. The store started using plastic cards and linked them to a loyalty program. This allowed customers to easily purchase items online with their plastic cards and accumulate rewards points. The implementation of the plastic card system increased customer engagement and loyalty, as customers could easily manage their rewards online.

Case Study 2: Bank

A bank wanted to streamline its operations and reduce the cost of handling customer information. To do this, the bank started issuing plastic cards to its customers. The cards were linked to customers" bank accounts, which allowed them to make payments securely and conveniently. The implementation of the plastic card system greatly reduced the cost of processing payments and managing customer information.

Final Notes

Plastic cards provide businesses with a highly secure and convenient way to handle customer information and transactional needs. They come with several advantages, from increased security to cost-effectiveness. As demonstrated in the case studies above, businesses can benefit greatly from using plastic cards in their operations.