Ways To Pay

Question 1

Cash Advantages and Disadvantages

Answer 1

Advantage
- Is accepted in most places

Disadvantages

• Can be stolen or counterfitted.
• Cannot be used online.

Question 2

Credit card Advantages and Disadvantages

Answer 2

Advantages
- Pay for goods and services 
- Receive a period of no interest  
- Used online
Disadvantages 
- Risk of overspending 
- Some retailers charge a fee to use credit card.

Question 3

Electronic transfer Advantages and Disadvantages

Answer 3

Advantages 
- Payment made directly between bank accounts 
- Easy to setup and use 
- Transfer is instant 
Disadvantages 
- Information can be stolen.

Question 4

Debit card Advantages and Disadvantages

Answer 4

Advantages
- Payment is taken straight from bank account
- Secure method, no cash needed
- Contactless cards can be used for small amounts
Disadvantages
- Small chance of overspending
- Can be used online which may encourage overspending
- Risk that details may be stolen.

Question 5

Cheque Advantages and Disadvantages

Answer 5

Advantages
- Fairly secure
Disadvantages
- Takes a long time for money to move accounts
- Some retailers no longer accept cheques .

Question 6

Direct debit Advantages and Disadvantages

Answer 6

Advantages
- Simple way to pay changing bills
Disadvantages
- Changing amounts make it difficult to plan expenditure
- There must be enough funds for the payment to go through.

Question 7

Standing order Advantages and Disadvantages

Answer 7

Advantages
- Easy way of making regular SET payments to a person or organisation.
- Payments don’t change, easy to plan expenditure.
- Payments are automatically made, making them easy.
Disadvantages
- Payer must have enough funds for it to work.