Different Ways to Pay

What is one advantage of using cash as a payment method?

• Most widely accepted form of exchange

• No need to carry cash

• Allows a period of credit that is interest free

• Low risk form of payment

What is one disadvantage of using a debit card as a payment method?

• Most widely accepted form of exchange

• No need to carry cash

• Allows a period of credit that is interest free

• Short time lapse between making the transaction and the money being withdrawn from the customers account

What is one advantage of using a credit card as a payment method?

• Most widely accepted form of exchange

• No need to carry cash

• Allows a period of credit that is interest free

• Low risk form of payment

What is one disadvantage of using a cheque as a payment method?

• Low risk form of payment as the cheque can only be cashed by the named payee

• Widely accepted for face-to-face and postal transactions

• Expensive for the consumer if the bank refuses to clear the cheque

• Almost instantaneous

What is one advantage of using electronic transfer as a payment method?

• Most widely accepted form of exchange

• No need to carry cash

• Provides a record of payment

• An easy way to make regular payments e.g. utility bills

What is one disadvantage of using direct debit as a payment method?

• An easy way to make regular payments e.g. utility bills

• If the payer makes a mistake and takes too much it is the payee’s responsibility to claim back the money

• The same amount is paid each time making it easier for the payee to plan and budget

• Allows a short period of credit

What is one advantage of using a standing order as a payment method?

• The same amount is paid each time making it easier for the payee to plan and budget

• Can set a budget in advance to avoid overspending

• Gaining in popularity

• Reduces risk of running up debts

What is one disadvantage of using a prepaid card as a payment method?

• Can set a budget in advance to avoid overspending

• If lost or stolen the loss is limited to the remaining balance

• Gaining in popularity

• No protection if lost

What is one advantage of using a contactless card as a payment method?

• Can set a budget in advance to avoid overspending

• Gaining in popularity

• Secure method of making payments

• Reduces risk of running up debts

What is one disadvantage of using a charge card as a payment method?

• Must be paid in full each month

• Reduces risk of running up debts

• Allows a short period of credit

• No need to carry cash