Positives and Negatives of each method

• advantage of cash

  • Easy to budget​
  • Physical not digital​
  • Widely accepted​
• disadvantages of cash

  • Easily lost​
  • Easy to steal​
  • Cannot be used online​
  • No good for large amounts
• advantages of debit card

  • Secure​
  • Low risk of theft
  • Widely accepted​
  • Can be used online​
• disadvantages of debit card

  • risk of fraud
  • May overspend on card​
  • Potential to go into an overdraft​
• advanatges of credit cards

  • Period of interest free credit​
  • Widely accepted​
  • Protection online​
  • Used online​
  • Loyalty schemes / cash back
• disadvantages of credit card

  • Interest charged if not paid in full​
  • Encourage overspending and debt​
  • Charges on cash withdrawals​
  • Set amount of credit
• advantages of cheque

  • Safe​
  • Good for large transactions​
  • Good for postal transactions​
  • No need to carry large amounts of cash
• disadvantages of cheque

  • Cheques may bounce​
  • Time delay between writing cheque and it being cleared​
  • Places are fazing out this payment method​
  • Error made easily when writing
• advantages of contactless

  • Very popular​
  • Quick​
  • Safe
• Disadvantages of contactless

  • Limited amount of daily transactions​
  • Can only be used for small amounts​
  • Not available everywhere
• advantages of mobile banking?

  • Convenient​
  • Secure​
  • 24/7
• disadvantages of mobile banking

  • Limited features compared to internet banking and banking in branch
• advantages of direct debit

  • Quick & easy​
  • Convenient for paying bills​
  • Amount can vary depending on what the vendor requests​
  • Good way to stay on top of bills
• disadvantages of direct debit

  • Needs monitoring to ensure correct amounts are being collected
• advantages of standing order

  • Same amount is paid each time​
  • Easy for budgeting​
  • Easy to set up & cancel​
  • Provides piece of mind in terms of missing any payments.
• disadvantages of standing order

  • Payments are taken regardless of customers bank balance which may result in being overdrawn​
  • Payments will continue until cancelled
• advantages of electronic transfer

  • Fast method of payment​
  • Free​
  • Easy to do​
  • Payment is recorded
• disadvantages of electronic transfer

  • Could transfer to the wrong person​​
  • No appropriate for purchases in person
• advantages of a prepaid card

  Avoids overspending​

  If lost can not be overdrawn​

  Good way of controlling spending
• disadvantages of a pre-paid card

  • May cost money to set up​
  • No protection if lost
• advantages of a charge card

  • no pre set spending limits
  • improves credit score
• disadvantages of a charge card

  • Full payment required each month​
  • Annual fixed fee
• advantages of a store card

  • Short period of interest free credit​
  • Special offers and promotions for that store
• disadvantages of a store card

  • Can only be used in specified stores/places​
  • Interest is charged on balances​
  • Can encourage debt on consumer goods
• advantages of BACS (Banking Automated Clearing Service)

  • Guarantees instant payment within 2 hours​
  • No additional costs​
  • Used in branch, phone or online
• disadvantages of BACS

  Limited amount in a single transaction​

  Service not offered by all banks​
• advantages of CHAPS

  • No limit on the amount in a single transaction​
  • Same day transfer
• Disadvantages of CHAPS

  • Fixed charge for the transaction