Payment Methods Understanding Different Payment Methods to Make

Payment Methods Understanding Different Payment Methods to Make Purchases

Available Payment Method Options Cash Check Debit cards Credit cards Online payments Mobile devices Payroll cards Layaway plans Automatic bank deductions

Paying with Cash Using dollars and cents Planning ahead Reduces impulse purchases Changes spending practices Has greater negotiation power Accepted everywhere Can reduce overall spending Important to be aware of your surroundings and how you handle your money.

Paying with a Check Designed as an alternative to paying with cash. Must have amount available in account before making a purchase. Safe to send through the mail. Keep a register of purchases. Not all retailers accept checks.

Paying with a Check Requires a bank account that can have fees associated with it. Purchase of checks Monthly service charge Personal information is visible on checks.

Paying with Debit Cards Tied directly to your checking account. Some accounts require an additional fee. A PIN is necessary. May be used at ATMs. Cash-back option. Prepaid debit cards limit risk.

Paying with Credit Cards Borrowed Money!!! Must have approval from a financial institution to obtain a credit card. Interest applied to balance. Membership fees. Affects your credit score. Can be used for purchases in any store that accepts the form of credit card.

Paying with Credit Cards Types of Credit Cards Universal Cards Visa, Master. Card, Discover, American Express Company Specific Credit Cards Often limited to use in that store In-store rewards

Paying with Payroll Cards A type of bank debit card issued by the employer. Draws on the user's wages or salary instead of a deposit account. Users access their money from an ATM or cash-back purchase in the same manner as with a traditional debit card. Negatives to payroll cards : Fees Dealing with lost card

Paying with Layaway A buyer selects the items that he wants to purchase, and the company holds those items until payment is made. Often the company requires a minimum initial payment and will only hold the item for a certain period of time until the full payment is made.

Paying with Automatic Bank Deduction You ask your bank to automatically pay a specific bill out of your account. This method of payment is generally used to pay regular bills. Automatic bank deduction is often called a bank draft.

Paying with Automatic Bank Deduction Issues: Bank pays late or not at all. Bank pays after a request to stop payment. Bank pays too much or too little.