What Is the Best Method of Payment? Cash Vs Plastic

It's your money, but there seems to be a dozen ways to pay for it. Does your head spin when the cashier asks "Will that be cash, credit or debit?" Don't know what the smartest choice is? Here, we break down each method of payment, and explain it's pros and cons, as well as example scenarios. We help you find the wisest method of payment for your situation.

PAYMENT METHOD: Cash PROS:

Universally accepted, easy to keep track of spending patterns, always aware of your "balance" without having to dial a 1-800 number or log onto the bank's website.

You avoid bank maintenance, overdraft and other fees.

In the event of your purse of wallet containing cash being lost or stolen, although it would indeed be a set back, only the amount of cash contained in your purse/wallet would be lost. In other words, you aren't at risk for your entire account being wiped out. You're also at a less risk of becoming a victim of stolen identity, as the prospective thief has no idea how much money you make, your level of debt, or what is in your accounts. There's no personal information that he might otherwise find on a checkbook or credit and debit cards. Most thieves would not take the risk if they don't know if the targeted person has money, assets or just loads of debt.

As for transferring money goes, using cash, wiring money and using money orders to pay bills can be easier and faster. It also provides more protection for your personal information than writing a check or transferring funds from account to account.

You also avoid the risk of "bouncing checks" and the fees that follow.
CONS:

Although every single bill has a unique serial number, it is virtually impossible to trace. (Who writes down every single serial number, of every single bill from one to one-hundred that they encounter?) Because of this, people who might not steal credit/debit cards or checkbooks would steal cash.

Cash also takes up more "room", making it easier to notice. For example, a wallet that contains $100, all in $1 bills would be considered "fat", an d would certainly look like it contained well over $100.

Unless you request, and save a receipt for every single purchase, there would be no way to prove that you did or did not purchase,buy, or make a payment on something, whereas using plastic automatically has a record of every purchase made. Be smart, save and file cash receipts on large purchases, and monthly payments.

It is very hard, if not impossible to track money orders (as com pared to a check). Because of this, money orders were a favorite payment of scam artists that do their dirty work over the internet, such as the Nigerian (419) E-mail scams.
When is cash the ideal choice?

When paying for large purchases in full. Most companies will off er discounts for cash and/or payments made in full. Just ask!

When shopping at garage or estate sales, purchasing merchandise on Craigslist or eBay, or through a local buy/sell newspaper like the Greensheet, a s most citizens do not have credit card processing equipment. Most people would not accept a personal check from a stranger either, aware of the possibility that the check may bounce, be fraudulent or stolen. The seller can actually find themselves in legal trouble for accepting fraudulent or stolen checks, even if they had no idea it was not legitimate.

If you use soda and vending machines a lot. Most accept only one dollar bills and coins. Those who use them frequently at school or work might find it handy to carry a few bucks in cash around.

People with financial problems may want to try using cash as the ir primary form of payment because its easier to see where your money goes, what yo u spend too much on, and what you should consider cutting out of your budget altogether as you can literally see your cash depleting.

If you have school age children, giving them a small cash allowance is a great way to teach them first hand about finances, budgeting, saving, work /employment and the consequences of not being responsible with money.
METHOD OF PAYMENT: Credit cards/Debit cards.

Debit cards allow you to access funds (deposits) you have made into your bank, whereas credit cards a re charged on a line of credit or money you do not currently have, but promise to p ay back in a certain amount of time. PROS:

A great way to build credit.
Ability to make large purchases in one transaction, and without the paperwork of layaway and payment plans.
Many cards allow you charge purchases as either credit or debit,giving you a choice.
Consolidates all your payments into one monthly bill, rather than countless bills for monthly payments from each individual retailer.
You can access your cash quickly using an ATM machine, rather than going inside the bank and waiting in line.
You don't have to carry cash in fear of losing it.
If your card has been lost or stolen, you can report it and not be held liable for all transactions.
Your transactions are automatically recorded.
Easiest way to shop online, on some webstores the only method of payment accepted.
If the money is paid back in the "grace period", there is no interest to worry about.
CONS:

Many people feel as if they have unlimited funds with a credit card in their hands, thus spending more money than they would otherwise.

They are great as far as convenience goes, most banks are open t he usual 9:00 AM- 5:00PM or somewhere around there, and closed for federal holidays. On weekends, they are either closed altogether or have limited hours. Credit and debit cards give you access to funds in situations where you would not be able to g o to bank and make a withdrawal.

Impulse buys are the biggest problem of credit cards.

Skipping out on payments, and ignoring you bill will land you in big trouble. With late fees, interest fees and whatever other fees are a condition of your card the amount you originally spent can easily inflate to double.

While you can improve your credit with one, you can easily damage or destroy it.

Remember, the credit card companies make many millions of dollars a year, and there's a reason for that.
When is a credit/debit card the ideal choice?

When you want to build your credit.

When you need to make purchases on credit, and would like to avoid getting a cash loan.

You do a good portion of your shopping via the internet.

When you make frequent purchase at a certain place, they can have your card number/PIN on file for a speedy transaction. Having a bank account to transfer funds is more secure than money orders, there will be reports of what account the money was transferred from and 소액결제 현금화 what account it was transferred to and when. If you have employees or anybody else you pay, its a great choice.