Methods of Payment

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What is a Credit Card?

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A method of payment not involving cash, where the bank pays for the customer's purchase and the customer pays back the bank the amount with interest at a later date.

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What is an advantage of using a credit card?

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Consumers can purchase things now, and pay for them later in the event of an emergency.

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What is a Debit Card?

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A payment method where the purchase amount is immediately removed from a linked bank account.

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What is an advantage of using cash?

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It is accepted almost everywhere in the US.

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What is a disadvantage of using a credit card?

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You can spend more than you have.

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What is a Stored-Value Card?

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A prepaid card that allows you to spend only the amount loaded onto it.

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What does it mean to 'pay back' a credit card?

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To return the borrowed money to the bank, usually with interest.

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What is interest in terms of credit cards?

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The extra money charged by the bank for borrowing money on a credit card.

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What is identity theft?

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When someone steals your personal information to use your credit or debit card without your permission.

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What is a payment method?

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A way to pay for goods and services, such as cash, credit cards, or debit cards.