Prompt: The debate on cash versus credit card has been going on for some time. Credit is still a fairly new concept within the history of finance; so many people would rather stick with paper money. Ċ According to you, which is a better payment method, cash or credit? Ċ Give reasons for your answer and include any relevant examples from your own knowledge or experience.

With the implementation of demonetisation, payment methods became a hot topic of discussion. While some side towards credit cards, many people still prefer to stay with cash citing the reason that credit is still a newer concept in the long history of finance. This essay elaborates on why I feel that credit cards are a preferred payment method as compared to physical currency. Ċ To begin with, there are definite advantages to the virtual exchange of money. Firstly, there is no need to carry rupee notes in your wallet and just a card is sufficient. Secondly, there is a limit to the amount of cash that one can practically carry with himself, a drawback not faced by virtual money. For example, when I visited the Apple store to buy a phone which costs 150,000 rupees, it would have been mighty inconvenient to carry this large amount in cash. But as I had a credit card, I could travel with a lighter pocket. Ċ Moreover, cash also has some inherent disadvantages. First of all, cash transactions happen off-paper, without leaving any trail. Thus, paper money can be used as a source of corruption and bribery. For instance, I was once asked a bribe of Rupees 500 by a traffic policeman as I had forgotten to carry my driving licence. Ċ In conclusion, due to the advantages like convenience and safety offered by the credit card and the drawbacks associated with cash such as fake currency and bribery, I believe that virtual payments are superior to physical notes.