Business Deals Using Plastic: Money in Merchant E5TAB'-'S""V'E"'T$ - AN EVA!-UP T'°'/'s
Business Deals Using Plastic: Money in Merchant E5TAB'-'S""V'E"'T$ - AN EVA!-UP T'°'/'s
Business Deals Using Plastic: Money in Merchant E5TAB'-'S""V'E"'T$ - AN EVA!-UP T'°'/'s
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Merchant establishments
M
Q Profile of the merchant establishments
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Factors motivating to accept plastic money by merchants
Benefits of accepting plastic money in business dealings
Plastic money and its impact on business dealings
6.1 Merchant establishments
Merchant establishments (MEs) mean any business establishment
including a company, corporation, firm or person, wherever located, with whom
arrangements exist for acceptance and honour of plastic money in settlement of
sale of goods and services. Documents needed to be furnished by merchant
establishments for getting merchant account along with enrollment fee are copy
of Sales Tax Registration Certificate, authorised signatory proof as per the
enclosed format, rent receipts/telephone bill/ electricity bill, in case of
partnership firm partnership deed. in case of limited company memorandum of
association, articles of association, company financial statements or Income Tax
Returns etc. The acquiring bank enters into a contract with various merchant
establishments. who accept the cards presented by the customers as a means of
payment for the goods purchased or services received. Merchant account is
granted on the basis of their sales turnover, financial stability, goodwill, scope
for the use of plastic money in the business etc. A floor limit is assigned for each
merchant for transactions through plastic money. But, in the case of card-not
present transactions, no floor limit is assigned. The acquiring bank provides the
merchant establishments the charge slips and Electronic Data Capture Machines,
which are hand operated machines. Under the agreement, the merchant
establishments will supply goods and services to the customers presenting
credit/debit cards and will receive the money from the acquiring bank within a
few days. The merchant establishment also pays commission to the card issuer
ranges between two to live per cent of the total value of the charge slip. The
merchant establishment may include shops, stores, restaurants, hotels
commercial establishments etc.
details of transaction as requested and also allow the cardholder to enter the
identification number if so required (providing cardholder sufficient privacy to
do so) so as to obtain authorisation and generate a charge slip. They shall after
the primary verification as above and only when the card is not a debit card
and the electronic data capture terminals is not available and the bank has
permitted the merchant establishments to make a charge slip otherwise, make
charge slip manually and obtain authorisation by telephone. They shall obtain
cardholder’s signature on the charge slip. so as to match the same with that on
the card. They shall verify the number embossed or printed on the card with
the card number appearing on the charge slip so as to ensure both being same.
They shall not entertain a transaction in case of being unsure of any of the
foregoing or when in doubt that the person requesting transaction is not the
cardholder. ln such cases merchant establishment shall forthwith inform the
incidence to the bank for seeking further instructions. They shall provide to the
cardholder the copy of the charge slip marked as cardholder’s copy. Not
withstanding the aforesaid, they shall obtain additional authorisation for
transactions in excess of the floor limits as may be stipulated by the bank from
time to time or when merchant establishments has reason to believe that the
card may be stolen or counterfeit or in any other suspicious circumstances.
They shall in the event ol‘ a card included in the Warning Bulletin being
presented for transaction, use all peaceful attempts to retain such card and shall
forthwith intimate about such retention to the bank and deliver the card to the
bank. They agree that the agreed limit for each cardholder per day/per stay for
purchase will be stated in the schedule at the end of the agreement. If the
merchant establishment is a hotel, it agrees to request the cardholder checking
into indicate the mode of payment of his/her bill. In case the payment is by
card and when the charges are about to reach the limit fixed per stay, the
merchant establishments would request the bank for prior authorisation. If any
extra credit over and above the limit mentioned by the bank, is given by the
merchant establishments to the cardholder without prior approval of the bank,
the merchant establishments shall do so at its own risk and responsibility or if
=’13usi':ze.rs @Dea[r ‘Z/‘sing =P[astz'c S-l/Iorrcy in 3-"1/Zercfzant £sta6li'sfiments —jl n fivafuatio-n.
any charge back is received by the bank then in such case the entire transaction
will be treated as void and the bank will reject/recover payment of the same.
They agree that in case bills/"charges of any cardholder exceed the limits as
provided, the merchant establishments will not permit such cardholder to split
the charges into two or more charge slips for submission to the bank and in
such cases charge slips are received by the bank, they shall be treated and
governed in the same manner as in above.
Merchant establishments shall not honour any card after the date of its
expiry and/ or intimation from the bank about its loss/pick up or cancellation
has been dispatched to the merchant establishments and if any such charge
slips of such invalid card is received, the bank shall not be liable in any
manner whatsoever in respect thereof to the merchant establishments or to
anybody whomsoever. They should also follow the instructions such as full
transaction amount covers tax, not impose any surcharge, do not split the sales
in order to avoid authorisation limit, laundering/factoring is not allowed,
(Depositing transactions for a business that does not have a valid merchant
agreement is called factoring. It is a form of fraud associated with high charge
back rates and the potential for forcing merchants out of business), authorise
only for the known amount, not the transaction amount plus estimated tip, do
not provide any cash refunds for any credit/debit card transaction etc. In the
case of card- not-present transactions, the transaction date is the ship date and
not the order date. Transactions deposited more than 30 days after the original
CBusz'ness ®ea£s Usirzg <P[astt'c 9l'l0ne_y in 51/{ercfzant Estafifzlrfiments —jln 931/afuation
at the rates as stated in the schedule, of the transaction amount and any other
amount due by merchant establishments to the bank. No amount on a
transaction shall be payable by the bank unless the bank has received a receipt
of the transaction. In case the bank receives any charge slip unsigned or
bearing the signature which does not tally with the specimen signature
submitted by the cardholder on his/her application form then the bank reserves
the right and shall be entitled to reject such charge slips submitted by the
merchant establishments and in such cases the merchant establishments shall
have no right or remedy against the bank and the bank shall not be liable to the
merchant establishments for anything or for any amount or incidental to or
arising out of, any and all such charge slips as aforesaid. The bank shall
endeavour to make payments of amount when due to merchant establishments
on transactions within seven business days after receipt of the transactions by
the bank, unless this agreement under termination notice period in which case
the bank shall endeavour to make such payments only when it is successfully
collected by the bank from the card issuers and within 180 business days after
receipt of the transactions by the bank. The bank shall be entitled, in case any
refund by the bank exceeds the amount due to merchant establishment, to debit
the amount by which the refund exceeds the amount payable to the account of
the merchant establishment and to recover it from merchant establishment.
All costs (including cost between the advocate and client) charges,
expenses, taxes duties (including stamp duty) in relation to this agreement and any
document executed pursuant thereto and in relation to the enforcement of this
agreement shall be borne and paid by the merchant establishment alone.
Merchant establishments shall accept full responsibility and deal with all
complaints received from any cardholder in respect of sale/service availed of by
any such cardholder. ln case on the specific request of the merchant
establishments, it has been authorised to entertain supply orders/mail orders from
the cardholders the merchant establishments shall be solely responsible, if at any
future date, the cardholder disowns the transaction or raises any dispute in regard
to delivery/quality/price of the goods ordered/delivered and the merchant
establishments undertakes to indemnify and keep the bank indemnified, saved and
harmless against any loss or damage caused to the bank including the costs and
expenses that the bank may have incurred or may have to incur.
Merchant establishments agree that any bill includes irregular charges and
submitted to the bank, the bank shall have the right to charge back such amounts
to the merchant establishment from which it was received, upon the bank coming
to know of it.
these documents, the bank shall have the right to charge back such amounts to
the merchant establishment. In case of any disputes between the cardholder and
the merchant establishment, it is agreed that the merchant establishment will
keep the bank safe, harmless and indemnified of, from and against all claims,
demands, actions, liabilities and expenses whatsoever brought or made against
or sustained or incurred by the bank in consequence of having made the payment
to the merchant establishment in such transaction.
Depending upon the nature of the dispute, bank may respond -- issue a
full credit to the cardholders’ account agrees to issue a partial credit (explain
why you are issuing only a partial credit and fill in the amount)/ if merchant
feel no credit is due, provide an explanation and appropriate supporting
documentation. If the documentation merchant provides the charge is valid, the
cardholder will be sent the appropriate explanation and asked to pay the
charge. However, if the documentation provides does not support the
cardholder’s claim because the charge was not processed as per merchants
agreement with card organisation; or the cardholder has posed a question about
the quality or delivery of the goods or services; or banks written reply is not
received by the card organisation by the reply-by date, then card organisation
will have the right to give the cardholder a permanent credit and to debit the
cardholders account, normally merchant establishments should not add any
extra amount but using card with petrol bunks, railways etc., you should agree
to bear extra charges. Such charges together with the charge slip amount will
be billed to merchant account. Merchants also have the options to accept or
reject credit cards during their discount period if any.
As and when the bank ties up with any bank/institution (Foreign or Indian)
dealing in credit card business, the merchant establishments agrees to give same
service to the banl<’s collaborated cardholders as and when such card is presented
to the merchant establishments, subject to the terms contained herein and /or such
other terms that may be separately informed by the bank.
Gusiness (Deals ‘Using (P[astz'c Money in 91/lercfiant *£sta6[zlsfiments -fl n Evafuation
I Compare the printed four digit number with the first four digits of
account number
" Check the CVV2 (Card Verification Value). It is a 3-digit code number
to verify the true cardholder.
I Compare the name, number and signature on the card to those on the
transaction receipt, if the merchant suspect fraud, make a Code 10 call.
If the operator tells the merchants to pick up the card to do so only if
recovery is possible by reason and peaceful means. Tell the cardholder
about you have been instructed to keep the card, and that he or she may
call the card issuer for more information and send the card or other
Wises according the instructions of merchant bank.
" In any situation where making the call with the customer present feels
inappropriate or unsafe, complete the transactions, return the card, and
make the call immediately after the customer.
' Asks the customer the expiration date, account number and CVV2.
' Evaluate the CVV2 result code with the transaction authorization
and take appropriate action based on all transaction characteristics.
' Address Verification Service (AVS) is an automated fraud prevention
tool that allows card-not-present merchants to check a cardholder billing
address as part of the electronic authorisation process. It also helps to
know the validity of transaction.
~’Busz'ness ®ea£r Usz'rzg Q>[astz'c Wforwy in 51/(ere/iant Qistafifisfiments —/in Evafuation
In addition to the above, many fraud- screening services and practices are
available to help intemet merchants to assess the risk of transactions. (e.g.
(1) verified by Visa help to know the valid card holder on a real time base.
(2) Cyber Source Advanced Fraud Screen enhanced by Visa evaluates the
risks associated with transaction on a real time basis).
First-time shopper
Multiple transactions are charged to one card or similar cards that have
a single billing address but multiple shipping addresses.
Q3usi.'ncss ®ea£r ‘Using Qfastic SI/loney in :1-’l/Iercfzant Estafillsfiments -jln €E"ua[uatz'0n
' Obtain cardholder’s name, card account number, expiration date and
card authentication number (CVV2/C-VC2/CID).
' Pill in brief description of the goods and show the amount of the sale in
the space marked ‘Total’.
Provide a copy of the sales draft to the cardholder, either with the cardholder
order or separately.
Region
..
Table 6.1 wise classification of merchant establishments and| ( .nature
. . . ,. . - . - .
of
business --
' . _ - ~ - 7 v - ' 7*‘ — ' —' ~ ~ ~ — ——~ V ' -~ ___ _ _ _ , , “
... E l 3.
':0F
akulam Th|ruvananth,a pn1iam§g,.-iii;i 53 5:5
.6 100%
13; Kozhlkode
6 % 31.7i~Ern32.7%
_...---\--.v
...
......
35 .
-- --- ..
% 537 2 l 34.8 28 100.......... .... .... .... .... ...
Out of 150 merchants, 107 (71.3 per cent) engaged in trading activities
and the rest 43 (28.7 per cent) rendering services. Region wise analysis
indicates that out of 50 merchants of Kozhikode in the northern region, 68 per
cent are doing trading business and the rest 32 per cent are rendering services.
In the case of Ernakulam district representing central region, out of 50
merchants, 70 per cent engaged in trading activities and the rest 30 per cent are
rendering services. Among the 50 merchants of Thiruvananthapuram
representing southern region, 76 per cent are doing trading business and the
rest 24 per cent are rendering services. Thus, trading units are the major groups
that accept plastic money.
Table 6.2 shows that out of 150 merchant establishments, 39 (26 per cent) are
in the semi-urban area and the rest l ll (74 per cent) are located in urban area. Further
analysis on the basis of regions shows that out oi‘ 50 merchant establishments from
Kozhikode, 74 per cent are in urban area and 26 per cent situated in semi-urban area. In
Ernakulam, 70 per cent located in urban area and the rest 30 per cent are situated in
semi-urban area. As far as the merchant establishments in Thiruvananthapuram are
concemed, 78 per cent are in the urban area and 22 per cent are located in semi-urban
area. Thus, majority of the merchant establishments that accept plastic money are
located in urban area. It is due to the fact that more business units in urban centers are
accepting plastic money as medium of payment than in semi-urban areas.
turnover, 14 (9.3 per cent) of them come under Rs. 2,00,000 - 3,00,000
turnover, 17 (11.3 per cent) are in the group of Rs. 3,00,000 - 4,00,000
turnover, 38 (25.4 per cent) belong to the income group of Rs. 4,00,000
5,00,000 turnover and 73 (48.7 per cent) are in the income group of above
Rs. 5,00,000 turnover.
I i
wise analysis
Ernakulam
...... n
-
= Below
,. . . .. . 4-------- $2
-l2 I
"=1Ti.% F -.g %1F %0aF. '‘-;aj§';'..f'ij5;%:f:§§§i;,'l''.,i1§§1'§;§." tZ2F %
i§ .
...........................
4 5............
I
.............................. . -........... ; .....
............
-...... .... ....
-............-;...................................
______,,,....._... . _ ,.,. .. .. ....,.. .,.\.. ... ... . . ,- . .- . .. ... ................. ---,-..... -. .......~.... ..»-..-a-.----»----- ------_._.\..\.~"“-M-..
respectively under Rs. 2,00,000 - 3,00 ,000 turnover and Rs. 3,00,000 - 4,00,000
turnover and 6 per cent of them belong to Rs. l,00,000 - 2,00,000 turnover. As far as
the merchant establishments from Thiruvananthapuram are concemed, 42 per
cent of them are in the group ot‘ above Rs. 5,00,000 turnover; followed by 30 per
cent belong to the group of Rs. 4,00,000 - 5,00,000 turnover, 12 per cent come
under the group of Rs. 3,00000 - 4,00,000 tumover, 10 per cent are in the income
group of Rs. 2,00,000 - 3,00,000 turnover and the rest 2 per cent come under below
Rs. 2,00,000 turnover group. Thus, it is seen that majority (48.7 per cent and 25.4
per cent) of merchant establishments accepting plastic money belong to monthly
turnover of Rs. 4,00,000 — 5,00,000 and above Rs. 5,00,000.
» it 'TYP€»oi Goods/Services i A 1 1
.service,
T Food and Accommodation
5 ' 33
“i ,i ....., .... .- i .. .. ,,. -...--i..-..... .., . \ . - - — ii--- - --. . ------—i----»-\-----— ~ ~——-1;?
.. ............ .....--.--.------\....-~
‘p---- -.-.-_.__....~.---_i__.
........
. -10.
. §
\/- --nuAutomobile -pllvl/\W\- ---...... ,... .... ,,., ,... .in... “ service ........ ..~~,- >--------......- - 15 7 g 'p :
...........
..
...................
g “*4 ......................... A-—---...--.
...................................................... ..........
........................
--.l_6_____..,.__
Others 6 .5 . __-_...._
"'“rB£5ii iiii
Source: F ield Survey
100 ,
fiusiness ®ea£s ‘Using (P[astz'c 5'1/loizqy in filtercliaizt Estafifisfinzents -fin ‘Evaluation
Table 6.4 shows that out of 150, merchant establishments dealing in textile
products constitute major group of 25.8 per cent; followed by groups of leather
products and foot wears 16 per cent, automobile service 10 per cent, travel and
entertainment 9.4 per cent, groceries 7.3 per cent, jewelry and luxury items and
health and medical expenses 6 per cent respectively, household items 4.7 per
cent, educational service, cosmetics and beauty products and others 4 per cent
respectively and food and accommodation 3.3 per cent. Thus, majority of the
merchant establishments covered in the study are dealing in textile products
followed by leather products and footwear, automobile service, travel and
entertainment expenses, and groceries.
_ — ,7, Less _~.---.._--:__-.----1 than l year 6 4 Y --------ii~.--».------i ------ ~------Z---_..--v--4...» .----i -.~_~: _ _—_ _ __ _ e —— __ _ '——— ~ —_ __ _ — ;—_—.-_—___ ——
.......- ~- - - :- ./v
n~wuv- .-..¢\ -~6i—i-.~¢~-<v-vi - - - A A vv— -mavo9— —-—-¢\w;— 7" '' ' ' "; " '7
5,88 5, 5&6 5“
Total
Source: Field Survey
l 50 l 00 r
Out of 150 merchant establishments, 58.6 per cent have been accepting
plastic money for more than 5 years, 20.7 per cent have been dealing in between 4
to 5 years, l0 per cent have been accepting it in between 3 to 4 years, 6.7 per cent
have been using it 2 to 3 years and 4 per cent has been accepting for cards less
than lyear. Thus, it is revealed that majority of units covered in the study have
been using plastic money for more than 5 years and accepting it continuously.
(Business <Dea[r T/’sr'rr,g ~’P[astz'c Sl/lomzy in 5'l/lerc/tam! Estaflzlsfiments - flu Qivafuation
reason is business promotion. Third and fourth reasons are increase in sales and
profitability and avoid bad debts respectively. Last one is the less risk of handling cash.
The analysis of Table 6.7 revealed that most important reason for the
preference of choosing debit card is that it helps to attract all levels of customers. The
second and third reasons respectively are it increases the sales of small value items
and lessens the charge back problems compared to credit cards.
preference. The ranks assigned by 150 merchants were tabulated and the mean
score were calculated. Based on the mean scores ranks are assigned to the reasons
for preference as shown in Table 6.8.
Table 6.8 Preferences to accept credit cards by merchants
Priéferensesi .0
T Increases the impulse sales pi 4.000
y Able to attract both middle and high income level customers 2.593
The analysis based on ranks revealed that the most important reason for the
preference of accepting credit card is that it increases the impulse sales. The second
and third reasons respectively are they are able to attract both middle and high level
income customers and reduce bad debts. Increases the sale of big ticket items both
traditional and online is the fourth reason for the preference of choosing credit cards.
Card payments are the fastest, simplest and safest way to purchase and sales. It
helps the merchants to avoid the costs and risks involved in handling cash. Cards are
the most popular form of payment on the intemet and other e-commerce transactions.
Fraud control techniques and internet security solutions offered by international card
agencies such as VISA, Master Card etc help to detect frauds irmnediately and avoid
huge losses. It particularly increases the confidence in e-commerce dealings. The
responses collected for knowing the opinion about increased flexibility in dealings
and conveniences were also analysed with respect to nature of business and region
wisethislocationofmerchantestablishments.
5 Woes1
,_,, i ,i..---i....“»--
52(34.8)93(65.1)150(100)
L Ow g_ (34.7) g (65.3) (100) J
(Figures in brackets denote percentage to total)
Source: Field Survey
Chi-square Test Result
ttsC“'°"‘”i°d at T*"°'°" i
§§=:‘ ‘F ' _* l value M A W _"- 5. .-gg::1_E_I§I'j;
6.9 0.001 3.841 0.972 lilo: Significant
\’Bu.rz'ness fDea£r Using G°[astz'c 51/ioney in Sltercfiarzt Gstafilrlsfiments —/In ‘E"ua[uat1'on
In the case of trading establishments, out of 107, 34.5 per cent of them
strongly agreed that plastic money increased the flexibility in dealings and
conveniences and the rest i.e. 65.5 per cent also agreed to it. Among the service
establishments, out of 43. 34.8 per cent supported it and the rest 65.1 per cent
agreed to it. Thus, all of them have agreed to the same view.
Chi-square Test at 5 per cent level of significance revealed that there does
not exist association between the opinions of merchants with regard to nature of
business and the benefit of increased flexibility in dealings and conveniences
on acceptance of plastic money.
Table 6.10 shows the region wise analysis of opinion about increased
flexibility in dealings and conveniences of acceptance of plastic money.
Reg]:Table6.10Increased(3flexibility-indealingson6andconvenience.....ofmerchants
Region wise analysis
ThiruvananthapuramTml5298,l,733 504
_° g lg (34.7) g M g_ (65.3) (100) 6
(Figures in brackets denote percentage £0 total)
Source: Field S urvey
Chi-square Test Result
Chi-square Test at 5 per cent level of significance revealed that there does not
exist association between opinion of merchants with regard to the region of location of
business increased flexibility in dealings and conveniences of accepting plastic money.
Mere presence of VISA and Master Card logos will increase the cash
sales in addition to card sales. This is an extra bonus of accepting cards.
Scientific experiments and controlled studies proved it. Card products also
increase the impulse sales. Sales volume through loyalty programmes increases
by co-branded cards.
The responses collected for knowing the opinion about increased sales and
revenue enhancement were also analysed with respect to type of business and
regions wise of merchant establishments. The analysis revealed that all the units
(trading 107 and services 43) covered in the study strongly agreed that acceptance
of plastic money increased their sales and revenue.
The responses collected for knowing the opinion on economy in time and
cost leads to increased productivity and operating efficiencies were also analysed
with respect to type of business and region wise of merchant establishments. The
analysis revealed that all the units (trading 107 and services 43) covered under the
study agreed that acceptance of plastic money helped economy in time and cost
which leads to increased productivity and operating efficiency of the business.
The analysis revealed that as far as the trading establishments are concemed,
31.8 per cent of them strongly agreed to this benefit and 68.2 per cent of them
agreed to it. In the case of service establishments 32.6 per cent of them supported
it strongly and 67.4 per cent agreed to it. Thus, all of them supported that plastic
money ensures guaranteed and timely’ payments.
Chi-square Test at 5 per cent level of significance revealed that there does
not exist association between the opinions of merchants with regard to the
nature of business and the benefit of ensuring guaranteed and timely payment
of business dealings by accepting plastic money.
Table 6.12 presents the region wise analysis of opinion of merchants about
the benefits of plastic money that is it ensures guaranteed and regular payments.
in the case of Kozhikode region 30 per cent strongly agreed to it and 70 per cent
agreed to it. As far as the Ernakulam region merchant establishments are
concerned 32 per cent strongly agreed to it and the rest 68 per cent agreed to it.
Among the Thiruvananthapuram region merchant establishments 34 per cent
supported it strongly and the rest 66 per cent agreed to it.
.....................................
2 34 E édmwmu
.................................. ...............................................................j-—~—-.-...................
l6 (100) T
,; -. ....---...- a
,T
fI .
=
ea
hiruvananth apuram 17
33 ..1 50 I
.
T tl g 48 5 102 g E1506
(2) (100)
Chi-square Test at 5 per cent level of significance revealed that there does
not exist significant association between the opinions of merchants based on the
regions of location of business and the benefits of accepting of plastic money
which ensures guaranteed and timely payments for business dealings.
wise analysis
Nature-of A Enhanced image andre putatiioin"".-’?§?;5. i. 1; fl‘
I 0 ....,.. ..-.. I I - .. | ,,7 : : :11...
(T d. 37 33 35 107 l
business ;Strong lypAgreeg ggree H pg l.\leutrjal':-";;~; - . 3
Services l5 l5 l3 43
I 52 50 43 150
,__---......_ ................... .................................. .Qil: 9..-l-...-
Tota
£30-2) M- (1.90)
Chi-square Test at 5 per cent level of significance revealed that there does
not exist association between the opinions of merchants with regard to the
nature of business and the benefit of enhanced image and reputation of business
through accepting plastic money.
Table 6.14 shows the region wise analysis of opinion of merchants about the
benefit of enhanced image and reputation. As far as the Kozhikode region, 34 per
cent supported it strongly; followed by 36 per cent agreed to it and 30 per cent
have expressed neutral opinion. Among the merchants of Emakulam, 36 per cent
strongly agreed to it, 32 per cent agreed to it and 32 per cent have neutral opinion.
In the case of Thiruvananthapuram region 34 per cent of the merchants strongly
agreed to it, 32 per cent agreed to it and the rest 34 per cent have neutral opinion.
Thus, overall, 80 per cent of them supported this benefit to business.
i
Table 6.14 Enhanced image and reputation of business - Region wise
analysis {"‘iNeutraI1'
..........
' Re mil ‘ W M Eflanced n11 ggeand ‘ u‘tat1oni“":"**'*“’s 3 s - -3
i ;; § , l gl7Stronglyr Agree18.g Agree15p ; 50Tl
W Kozhlkode (34) (36) (30) g g (100)
, ; 18 16
-,......... ..... ....., ,,, . ; ,,
16 2 50
,,, ,, , ,, ;, ,, , , , . 1J
L*i17!g =
-
" l7 l6 50 T
T Thiruvananthapuram ,
L
'
t. Total2. -'
l(347) 5 1
A l .
4(32)>06I 8
i (100) 50
Chi y ..
-square Test Result ., .
"I"q>J(-."'.-'-:3:. -.‘ '--.:'.I.' ' .'.! . . .
6.14 0.323 4 9.488 0.988 §§NotSignificant
Chi-square Test at 5 per cent level of significance revealed that there does
not exist association between opinions of merchants based on the regions of
location of business units and the benefits of enhanced image and reputation to
the business through acceptance of plastic money.
,‘,_NotTotalGood 12 150.3
Source: F field S urvey
Analysing Table 6.15, revealed that out of 150 merchants, 8 per cent of
them opined it as excellent, 27.4 per cent of them rated it as very good, 63.3 per
cent of them expressed it as good and the rest 1.3 per cent of them only remarked
it as not good. Thus, it can be concluded that almost all of the merchants have
favourable opinion and are ready to accept it in their dealings.
Table 6.16 Increase in number of customers after the acceptance of plastic money
.l."::f- -- .‘ -T‘. in-. :7"-I _ W 7" _;' _' _ H- ;'- 777- ‘V W I ' V. '7'-L II:.':j:_-5 '51.‘: '-".':§:_'-I-1'.'.: .. .":-'
U Increased 74 49.3
~
.... _-... .................................
Some what Increased 52 34.
-... ....... --_ .... ....................... ..... ........................ -. .-- - . % .___...-.
I
....... .. ................. .. ....... .................................................... -? .................. .. ............... . . ...... - ....... M . .- ..... . ....
1 Total
. Same .H_,;,,,,i,,,.i,..,,.i.......i....-____ .... 24 -.i-.....-.F.......- .. ; - 16.0 ti
150 100 ‘i
Out of 150 merchants, 49.3 per cent opined that there is increase in the number
of customers, 34.7 per cent responded as somewhat increased and the rest 16 per cent
__ ________ __ Q3_ {1_~f_1]_1ess ®ea£¢ "Using Qfastic Money in Dl/lercfiant 9.~Ista6fisfiments —,‘4n Evaluation
marked that customers are same as before. Thus, majority of the merchants admitted
that there is increase in the number of customers who are using the plastic money for
shopping, which in turn increases its role in the business deals.
likMerc_ha'nt, establishment
B¢2'°W40-_..69..... 46386J.
T O: ttttttt 40-—— -a -——» = —
60 ?p~ww.“-v—.....~ — —.=— —;=
24 =—.—----------.~-w..-».-W.-. —
16 V—————, __
l —~—
Out of 150 merchants, 38 per cent of them opined that their expectation
about growth in business is only below 20 per cent, 69 per cent of them stated
that the expectation in growth is between 20 - 40 per cent and the rest 24 per
cent marked that the expectation of growth in business is between 40 - 60 per
cent. Thus, it is seen that all of them expect growth in volume of business by
accepting plastic money as a medium of payment instrument. Thus, it can be
concluded that plastic money has an important role in the growth of business
deals.
Very High
7 7 e - e»»’ ’.=.¢.:_-~;.’-, -,--,-,-:,-,,,¢,T?,----eee~==:.=- .~---.»-=’.='.'_=':=—.'~....--.-~-,-1-,-, : - --.--1~-»--.-----.-.-»..-...-.~.w.-H--.-..-._% =1V::.=’.=’.==’.=’---.~.v.-_»_-_'.'_-_'==_-_'-.~-,
ii E ual ‘
Total L
Source: F ie Id Survey
Out of 150 merchants, 8.6 per cent of them opined as boom in spending
is very high due to usage and acceptance of plastic money, 58.7 per cent of
them stated as it is high and the rest 32.7 per cent of them opined that they are
equal as usual. Thus, majority of them opined that boom in consumer spending
has been experienced and the changes in the spending behaviour of consumers
have an influence on use of plastic money and growth of business.
I I I I OIIWQIUICUUQ