5.10C Payment Methods

5.10C Payment Methods

Checks (cheques)

•  A written order to a bank to pay money from an account.

Check

Advantages

• No convenience fees

• You can keep track of what you spend

• Safe to mail

Disadvantages

• Many places don't accept them

• Inconvenient to carry around

• Time consuming to fill out

• Long to process

Debit Card

• Connected to one's own bank account

• Plastic payment card that can be used instead of cash buying things

Advantages

• Money available immediately

• No extra fees (interests)

• No debt

Disadvantages

• You can run out of money quickly

• You may not have much money available

• No rewards points

• Can be difficult to track funds

Electronic Payment

• Paying for goods or services on the internet. 

• You can use debit card, bank account, or credit cards

Advantages

• Easy

• Convenient because you can do it from anywhere you have internet access

Disadvantages

• Although uncommon, financial information in computers could be taken by people who hack computers

• If you buy something, you will not get it right away

Credit Card

• Banks give you a line of credit which basically means they let you borrow funds but you have to pay it back on time

Advantages

• You can use this if you don't want to use the money in your account in the moment

• You can use it if you are low on money

• You can buy things and pay off the card bill later little by little if you want

Disadvantages

• You get charged extra fees like a yearly fee and interest

• You have to pay it back

• If you miss a payment you get charged late fees

• You can easily go in debt