Zusammenfassung der Ressource
Payment methods
- Debit Card
- Advantages
- Can only use money that is disposable in bank account, therefore you cannot overspend
- The transaction is completed in a short time
- Safer than using cash and cheques because there is no need to post
- Readily accepted by most businesses
- Disadvantages
- The transaction cannot be completed if there are insufficient funds in the bank account
- Direct Debit
- Advantages
- Automatic payment so less likely to pay and incur late payment penalties
- Once set up, admin costs are lower
- Disadvantages
- Setting up costs by bank
- Money might be taken from the bank account even if there are insufficient funds-bank charge and interest
- Cash
- Advantages
- Immediate payment
- Disadvantages
- Have to take money to bank
- Cheque
- Advantages
- Easy way for businesses to pay, it is a traditional method.
- It can only be cashed by the person who is the payee
- Disadvantages
- Cheques may bounce/take time to clear
- The bank charges business customers for each cheque they use
- Credit Card
- Disadvantages
- High interest rates if do not repay within one month of grace
- Not accepted by many businesses for low value payments
- Advantages
- Possible to pay even if not valid funds available/allows cost to spread
- Deferred payment means you can buy immediately
- Might not otherwise have been able to afford when paying by an alternative method
- Can pay online or by phone