A2 Methods of payments - debit cards and credit cards

Question 1

what are debit cards and credit cards ?

Answer 1

debit cards and credit cards are two types of payment methods that allow consumers to make purchases or withdraw cash.

Question 2

facts about a debit card

Answer 2

a debit card is linked to a bank account and when a purchase is made, the funds are withdrawn directly from the account . This means that the consumer can only spend the amount of money that is available in their account.

Question 3

facts about a debit card

Answer 3

debit card transactions are dirdctly linked to the account and can be used only when there are

Question 4

facts about a credit card

Answer 4

a credit card allows consumers to borrow money up to a certain credit limit, which they can pay back , over time usually with credit . This means that consumers can spend more money than they currently have in their account, but they will have to pay it back later.

Question 5

2 facts about a credit card

Answer 5

a credit card often provides additional rewards and benefits such as cash back or travel points. These rewards can be used by using the credit card for cash , gift cards , or other items. it’s important to note that a credit card can be a useful financial tool when used responsibly , but it can also lead debt if not managed properly . it’s essential to keep track on your credit card spending and make sure to pay the balance on time and in full to avoid accruing high - interest charges.

credit card transactions have stronger consumer protections in case of fraud or unauthorised charges.