Methods of Payment

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What is a credit card?

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A credit card is a payment card that allows consumers to borrow money from a bank to make purchases, which they pay back later with interest.

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What is a debit card?

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A debit card is a payment card that deducts money directly from a consumer's bank account to pay for purchases.

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What is the main advantage of using a credit card?

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Consumers can purchase things now and pay for them later, which can be helpful in emergencies.

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What is the main disadvantage of using a credit card?

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Interest is charged on the borrowed amount if not paid back on time.

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When should you use a check as a method of payment?

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You should use a check when mailing money or when you want to make a payment without using cash.

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What happens when you use a debit card for a purchase?

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The purchase amount is immediately removed from your linked bank account.

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What is the difference between debit and credit?

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Debit uses your own money from your bank account, while credit allows you to borrow money from the bank.

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What is a stored-value card?

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A stored-value card is a prepaid card that holds a specific amount of money for purchases.

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What is identity theft?

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Identity theft is when someone uses your personal information, like credit card details, without your permission.

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What is a cash payment?

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A cash payment is a transaction made using physical money, such as coins or banknotes.