Different Payment options

• Cash


  Physical currency, such as coins and banknotes used as a medium of exchange for goods and services
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  Advantages of CASH

  • Cash is accepted almost everywhere
  • Some stores give consumers discounts for using cash
  • There are no hidden fees like interest charges
  • There is a reduced risk of getting into debt.
  • Consumers can sidestep overspending
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  Disadvantages of CASH

  • Hygiene concerns for example a cash note goes from one person to another person etc
  • It can be easily lost or stolen
  • It may not be safe to carry around
  • If there is no ATM available, a consumer may be restricted to buying a desired purchase if they don't have enough cash on them.
  • Cash is less secure than a credit card
  • If you lose cash you can’t get it back 
• Credit - The supply of money loaned from the bank that allows you to shop and buy whatever you want even with insufficient funds, but you must pay back the money in full or Monthly payments.  
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  Advantages of CREDIT

  • avoid the necessity to carry around large amounts of cash
  • are a convenient payment method for online and telephone purchases
  • help you establish a good credit history
  • offer cheap use of funds, provided you always pay your balance in full
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  Disadvantages of CREDIT

  • make it easy to overspend and consequently build up your debt
  • be more expensive than other forms of credit such as a personal loan 
  • damage your credit rating if you continually make late payments
  • You will need to pay interest if you cannot pay back the balance at the end of the month
• STORE CREDIT - Some retail stores create their own card that operate like regular credit cards. These usually are linked with special deals, discounts, bonuses and a rewards program. 
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  Advantages of STORE CREDIT

  • Cardholders receive discounts and sales that other customers won’t get
  • Allows you to earn special rewards and deals 
  • You can save money on products or get free shipping 
  • You can use cards to build credit 
  • You can stretch out payments without paying interest 
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  Disadvantages of STORE CREDIT

  • They carry high interest rates and offer low credit limits
  • They may charge deferred interest 
  • Your credit limit is likely to be low
  • It may not be widely accepted
• PAYPAL - Paypal is an online payment method allowing you to send and receive money around the world. PayPal is an intermediary that allows you to pay for goods using your credit card or bank card.
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  Advantages of PAYPAL

  • PayPal is a very straightforward way to send money to friends, family and businesses (Consumer)
  • Using PayPal gives an extra level of security and fraud prevention (Consumer)
  • PayPal encrypts your bank and credit card information, keeping that information safe (Consumer)
  • Can pay on online platforms like video games (Consumer)
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  Disadvantages of PAYPAL

  • Not all places accept PayPal
  • Though it is free to send money to friends and family using paypal, you’ll be charged a fee for any business transactions (Both)
  • PayPal has transaction fees, thus they charge 2.9% fee based on the currency and this can serious harm small businesses profits (Business)
  • PayPal sometimes freezes of limits accounts without warning lasting several days or months (Both businesses and consumers)
  • Paypal also charges a 1% fee if you want instant access to your money, while a free bank transfer takes several days.
• ELECTRONIC FUNDS TRANSFER: Debit Cards - debit card lets allows you to use your own money, by electronically accessing money in your account.
• ELECTRONIC FUNDS TRANSFER: BPay - This system uses the telephone or internet to transfer funds from your cheque, savings or credit card account to the business you wish to pay. 
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  Advantages of ELECTRONIC FUNDS TRANSFER

  -Convenience , Bpay allows consumers to  to pay their bills convenience through various channels such as online banking.

  -Time saving 

  -Accessibility, services 24/7, providing flexibility and convenience for making payments at any time of the day or night.

  -Record Keeping, digital receipts and confirmation details, track of their payment history. 

  -Security,authentication methods to protect consumer information and ensure the safety of financial transactions.
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  Disadvantages of ELECTRONIC FUNDS TRANSFER

    

  • Risk of fraud and scam, if criminals get a hold of your card details such as security number, account number, or passwords it can easily be changed 
  • Technical issues such as servers crashing which leads to delay of transaction or errors in the process 
  • Cost of fees might be involved in the transaction 
• DIRECT DEBIT - It’s an automatic transaction that allows you to schedule and pay bills automatically by transferring money from your account to the business requiring payment, so you don’t risk any late fees or late hand-ins.
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  Advantages of DEBIT CARD

  -  No more late payments

  lets you ‘set and forget’ (no need to remember to pay) 

  Direct Debit is flexible, (can do it whenever and wherever with any amount of money)

  • It is safe, secure and convenient
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  Disadvantages of DEBIT CARD

   -  You need to have sufficient funds in your account to cover 

  Amounts may not always be the same

  You can be charged for late fees

  It might not be aware of scams 

  You have to make you have enough money to pay the bill, otherwise it will be refused

  • Relying on direct debit means that some consumers don’t check if the bill is accurate, this is because they put too much trust
• CHEQUE -

  A cheque is a written form of paper you fill out that instructs the bank to take money from your account and give it to someone else.
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  Advantages of CHEQUES

  • They are safer than carrying cash
  • They can be posted safely
  • Only the named recipient is able to cash the cheque, again making them safer.
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  Disadvantages of CHEQUES

  • They are not accepted everywhere
  • Cheques take time to process and clear
  • Bank charges are involved with having a cheque book
• LAY-BY - Buying goods using lay-by, is when you  pay a deposit first  and then the store puts aside the good for you. You then make regular payments over a fixed period of time. Unlike cash or credit card purchases, you do not take possession of the good, until you pay off the last instalment owing. 
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  Advantages of LAY-BY

  It's good if you want to secure something you desire but you don’t have the funds.

  No interest is charged, so it is cheaper than using a credit Card.
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  Disadvantages of LAY-BY

  If you do not complete payment by the agreed date, the store can cancel the lay-by. 

  Lay-by is quickly being replaced by after pay and pay-pal. 

  If you cancel the lay-by before paying the full purchase price, the store must be notified in writing.
• BOOK-UP - Book up is another way to pay for goods at a store. You can take the items straight away and pay for them later. You must pay back this amount within a set period of time.
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  Advantages of BOOK-UP

  you can purchase goods and pay for them later

  interest is not charged unless you apply for an extension of time

  you can spread your purchases over a week or fortnight.
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  Disadvantages of BOOK-UP

  some form of security may be required

  unless you keep accurate records, you may overspend.

  charge accounts can be used only in that store.
• Afterpay -

  • Afterpay = a digital service linked to a customer’s credit or debit card and enables consumers to ‘buy now pay later’ (BNPL)
  • Works by letting consumers pay for their product in 4 instalments (4 periods of payment) instead of paying for it all at once.
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  Advantages of AFTERPAY

  • Can Immediately use 
  • Fee and interest-free terms
  • Available at physical stores
  • Good alternative to credit cards
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  Disadvantages of AFTERPAY

  • Item not fully owned until all of the money is paid. 
  • can influence overspending and impulse buying
  • it’s fees can add up to a lot overtime
  • High interest rates if payment is missed
  • can only be used if over 18
• CRYTOCURRENCY - A digital currency where transactions are accepted and records are made.