You choose how to pay every time you make a purchase. Sometimes you can choose from several methods of payment, and other times, you’re limited by your location. My wife and I use a combination of credit cards, debit cards, checks, and cash, depending on where we’re making our purchase.
What methods of payment do you use? Do you have a preference?
Credit Cards
Pros: Credit cards are a very popular form of
payment, and they let you pay on our own schedule. They help to build
credit, which will assist you in making large purchases in the future. Credit cards can also have rewards. My wife and I have a travel perks card that gives us about 2.5 cents per dollar spent towards flights.
In-store credit cards sometimes offer even higher returns and interest-free periods. Some stores offer up to a 5% rebate on every purchase if you use your card to buy products.
Cons: Credit cards can be overused. If you use a credit card and can’t pay it off in full by the payment date, you’ll be on the hook for the balance, plus a huge amount of interest. Not paying off your balance on time hurts credit.
In-store credit cards sometimes offer even higher returns and interest-free periods. Some stores offer up to a 5% rebate on every purchase if you use your card to buy products.
Cons: Credit cards can be overused. If you use a credit card and can’t pay it off in full by the payment date, you’ll be on the hook for the balance, plus a huge amount of interest. Not paying off your balance on time hurts credit.
Debit Cards
Pros: Debit cards use funds from your checking
account. Unlike credit cards, debit cards allow you to use plastic, but
they don’t allow you to overspend. You can withdraw cash at your local
bank or at an ATM using a debit card. They’re an efficient and simple
form of payment.
Cons: Debit cards don’t help you build any credit. They also typically have less fraud protection than credit cards, which could be problematic if your card is lost or stolen.
Cons: Debit cards don’t help you build any credit. They also typically have less fraud protection than credit cards, which could be problematic if your card is lost or stolen.
Checks
Pros: Checks can be used to pay anyone from your
checking account. If you don’t have sufficient cash, you can pay anyone
who doesn’t accept plastic forms of payment. Checks are a great way to
give money as a gift. They’re also better for record keeping, as the
bank will automatically provide a proof of payment.
Cons: Checks take time to fill out. They provide the receiver with more information than they need — such as some of your bank account details, your name, and home address.
Cons: Checks take time to fill out. They provide the receiver with more information than they need — such as some of your bank account details, your name, and home address.
Cash
Pros: You can make nearly every in-person purchase
with cash. For everything from the babysitter to your local grocery
store, cash is an easy form of payment. Many small businesses prefer to
accept cash, as well. In fact, you can often negotiate for a better price by paying in cash.
Cons: Cash doesn’t carry your name, so there’s no way to get your money back if it’s lost or stolen. There are no rewards for using cash, and it can’t be used to make purchases online. Some stores may also decide not to accept large bills due to potential for fraud. Though it’s an outdated method of payment, we’re probably still centuries away from cash becoming extinct.
see more : http://moneyning.com/life-style/is-there-a-best-method-of-payment/
Cons: Cash doesn’t carry your name, so there’s no way to get your money back if it’s lost or stolen. There are no rewards for using cash, and it can’t be used to make purchases online. Some stores may also decide not to accept large bills due to potential for fraud. Though it’s an outdated method of payment, we’re probably still centuries away from cash becoming extinct.
see more : http://moneyning.com/life-style/is-there-a-best-method-of-payment/
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