Understanding Payment Methods

The video tutorial explains different payment methods, including coins, dollars, and three types of cards: gift cards, debit cards, and credit cards. Gift cards store money for specific stores, debit cards allow direct bank account transactions, and credit cards involve borrowing money from a credit company. The tutorial highlights the importance of security features like PINs for debit cards and discusses the concept of interest with credit cards. It concludes with a review of these payment methods.

What are the three types of cards mentioned in the video?

• Gift card, loyalty card, and credit card

• Gift card, debit card, and credit card

• Debit card, credit card, and membership card

• Gift card, debit card, and membership card

What is a unique feature of a gift card?

• It can be used at any store

• It has a fixed amount of money stored on it

• It is linked to a bank account

• It requires a PIN for transactions

What happens if you lose a gift card?

• The money on it is lost forever

• You can still use it with a PIN

• The money is refunded to your bank account

• You can get a replacement

How does a debit card work?

• It allows direct access to your bank account

• It is a loan from the bank

• It can only be used at specific stores

• It stores money like a gift card

Why is a PIN important for a debit card?

• It protects your card from unauthorized use

• It allows you to withdraw more money

• It increases the card's spending limit

• It links the card to multiple accounts

What is the main difference between a credit card and a debit card?

• A credit card is linked to a bank account

• A debit card offers a loan for purchases

• A debit card requires a monthly payment

• A credit card involves borrowing money

What happens if you don't pay back the full amount on a credit card?

• The bank will cover the remaining amount

• The card will be deactivated

• You will owe interest on the remaining balance

• You can continue using the card without issues

Which card type is described as a loan for purchases?

• Gift card

• Membership card

• Debit card

• Credit card

What is a common feature of both debit and credit cards?

• They both require a PIN for transactions

• They both allow spending without cash

• They both have a fixed amount of money stored

• They both can only be used at specific stores

What should you do to keep your debit card safe?

• Link it to multiple bank accounts

• Share your PIN with trusted friends

• Use the card only at ATMs

• Keep your PIN private