Different ways to pay Flashcards
State two advantages and disadvantages of using cash.
+ Anonymous form of payment, no personal details are needed unlike a card.
+ Cash has no interest unlike money in the bank.
- Is not replaceable once stolen.
- Counterfeit notes (fake money).
State the purpose of using a debit card and how it’s used.
State two advantages and disadvantages.
Money is taken directly out of current account and is used to withdraw cash.
+ The card is linked directly to a interest earning account.
+ Avoid fees and service charges.
- Risk of online fraud.
- Don’t get money back.
State the purpose of using a credit card and how it’s used.
State two advantages and disadvantages.
Buy now and pay later. Repayments are made following the issue of a statement with a minimum account.
+ Protected by insurance.
+ Rewards, discounts and cashback.
- Bad for budgeting.
- More likely to go into overdraft if constantly spending.
What is the difference between Debit and credit?
DEBIT = your money.
CREDIT = bank money.
