Easy e-Money Syndrome: Challenges of Risk Management in Credit Card Industry in Sri Lanka

Abstract

The concept of plastic money as a value of the currency is transferred from the credit of the buyer or the beneficiary through cyber space. The volume of utilizing credit cards and the risk incurred, has considerably increased due to certain vulnerabilities in the credit card industry in Sri Lanka. The research paper aims at identifying the challenges in the Sri Lankan credit card system through quantitative and qualitative approaches of research methodology. This paper has ascertained that credit card discrepancies are mainly due to the arrival of the concept of credit cards without proper IT literacy, institutional frame work, infrastructure and legal safeguards. The study recommends measures to minimize the perceived challenges of the credit card risk management by giving better awareness to the stakeholders about credit card frauds and imposing the required legal system which has to go beyond the existing British legal system used in Sri Lanka.