Due to the technological revolution in financial sector, the transactions in banking system have undergone a tremendous change. Customers have showed their preference over the usage of the plastic money generally over a period of time. Plastic money is an alternative to the cash or the standard 'money'. Plastic money refers to the credit cards or the debit cards that is used to make purchases .Various other types of plastic cards provided by banks in Bangladesh are ATM cards, Smart cards. The current study presents an overview of the development of banking in the plastic cards usage trends since these have been introduced in Bangladeshi banking sector. The study also highlights the problems faced by the users of these cards as electronic payment tool. The Study is been carried out by taking a survey of 68 respondents by non probabilistic convenience sampling method from the city of Dhaka by using structured questionnaire and interview technique. The factors for adoption of plastic money in replacement of cash and paper money have been identified which shows the preference of the customers for plastic cards over the cash and paper money. Some future plans made by various banks and institutions for avoiding the frauds arisen due to the credit and debit cards are also been discussed in a way that it depicts the picture of its future growth and prospects in Bangladesh.