SHANGHAI: Young people living in urban areas are increasingly using credit cards to pay for goods instead of cash.

Many believe it is safe to carry and use these plastic cards as they are embedded with a number of security features. In case of theft, the card can be frozen, unlike cash.

A survey conducted by Daily Business News showed that by the end of this year, China will have 60 million credit cards, 80 percent issued after 2005.

Banks try to attract more customers by offering various perks, cooperation with stores, airliners, hotels and even universities.

A typical Shanghai white-collar worker's wallet contains one or two credit cards, a gym membership card and discount cards for restaurants and stores.

"Who carries 800 yuan to 1,000 yuan ($103 to $128) in cash today? It's like a big bonus for a thief," Amanda Chen, a young office worker said. "If your card is stolen, you can have it cancelled immediately."

Although one can always use credit cards in big shopping malls and restaurants, credit card readers are seldom found in markets, and therefore it is always a good idea to carry a little cash.

Recently, a woman found herself in an embarrassing situation when she could not afford to pay for some vegetables, as she was not carrying any cash.

She related this experience on the Web, and it turned out many had been caught in a similar situation.

"I tried to pay a taxi fare with my card and found it had insufficient funds, and I did not have enough money," Xu Qin, a journalist, said.

Many also find it frustrating visiting shops that do not have card-reading machines, and have to walk a fair distance to find an ATM. Some just give up and go home.

Xu said: "If you go on vacation, you have to bring enough cash, because ATMs and card-reading machines are not always found outside Shanghai."

Xu Jin, manager of the credit card center of the Bank of Communications, said: "People have accepted the use of credit cards, but the environment for their use is not well established."

He said so far credit card bad debt was not a problem in China.

However, hotel manager, Joshu Tong, said: "My credit card doesn't require a pin number for payment. If it was stolen, not just my money, but all my personal information could be used."

(China Daily 07/19/2007 page5)