Commerce Y9 Test 1 section 2

• Cash


  Accepted almost everywhere, Some stores offer discounts (no hidden charges), reduce risk of debt
• Cash


  Can easily get lost or stolen, If no ATM nearby a consumer might not have enough money to purchase an item
• Store credit


  Large stores or retail groups issue their own cards that operate
• Store credit


  Purchase goods readily from stores. Access to in store discounts and offeres
• Store credit


  These cards often have higher interest rated and fewer interest free days than regular credit cards
• Paypal


  Sign up for free, choose paypal at checkout, confirm payment, they pay the seller
• Paypal


  High security and consumer protection, Pay with password and easy to shop online
• Paypal


  Hidden fee, Strict rules, difficult verification process
• EFTPOS, debit cards, BPAY


  You are using your own money, by electronically accessing money already in your account
• EFTPOS, debit cards, BPAY


  You pay no interest, only an account operating fee, and can spend up to your account balance
• EFTPOS, debit cards, BPAY


  If you don't have enough money to buy something the payment will refuse. Time consuming process
• Direct debit


  You can schedule bill payments from your nominated bank account and then the bank withdraws the funds from your account
• Direct debit


  You pay no interest, only an account operating fee, and can spend up to your account balance
• Direct debit


  Relying on direct debt also means that some consumers do not actually check whether their bills are accurate
• Cheque


  Written communication ordering your financial institution called the drawee top pay a person a specific amount. The person being paid (Payee). The person authorising transactions (drawer)
• Cheque


  Safer than carrying around cash, can be posted safely only the named recipient is able to cash the cheque, again making them safer
• Cheque


  Not accepted everywhere, Take time to process and clear, Bank charges are involved with having a cheque book
• Credit


  It is the supply of money now in return for the promise of paying it later. Allows you to buy anything and pay in full or monthly payments
• Credit


  Avoid carrying around cash, are convenient purchase method for online shop, help establish good credit history, cheap funds, provide you with it paying your balance in full
• Credit


  Easy to overspend & build debt, more expensive than other forms of credit, damage your credit rating if you make a late payment.
• Lay-Buy


  You first pay a deposit and then the store puts aside the goods for you, You then make regular payments over time. Cannot buy something else without paying off the last payment
• Lay-Buy


  A good option when you want to secure something expenses you desire, No interest, cheaper than credit card
• Lay-Buy


  You don't own the item until you finish payment, Not all stores offer this payment method
• Book-up


  A credit provided by a retailer so that you can purchase goods from the retailers store an pay the account at a later date. You must pay this back within a set time. Trades people such as plumbers usually have a hardwire account
• Book-up


  You can purchase goods and pay later, interest isn't charged unless you apply for extension of time, you can spread purchases over week or fortnight
• Book-up


  Some form of security may be requited unless you keep accurate records, you may overspend, charge accounts can be used only in that store.
• Bait and switch advertising


  Advertising a few products at a reduced rate and therefore enticing prices to attract customers. When the advertised product quickly runs out customers are directed to higher-priced items
• Misleading advertising


  Advertising using words that are deceptive or claim that a product has some specific quality when it doesn't
• Referral selling


  This offers the consumer a special deal if they buy the product and then supplies the names of potential customers to the trader. The "special deal" usually takes the form of discounts or commission
• Pyramid scheme


  You are required to pay a joining fee with the opportunity to earn money quickly and easily as you recruit new members. However, most people just lose money.
• Get rich quick


  This allows you to participate in a transfer of money from another country. For your help, you will receive a percentage of that amount. However, you are required to supply your bank details for the transaction to occur. Then they take your money
• Special prizes/offers


  You scratch the prize coupon to discover you've won. When you go to collect your prize you can only receive it if you purchase several goods.
• Unordered/unsolicited goods


  This involves sending unordered goods through the mail and then demanding payment for them. The ACCC protects you from having to pay for these goods.
• NSW fair trading


  NSW state consumer protective agency. It provides info and assistance to all consumers on areas such as consumer issues, shopping on the internet, home building and motor vehicle sales
• Ombudsman


  NSW organisation that is independent and impartial. Someones whose job is investigating and reporting on complaints
• ASIC


  Australian Securities and Investments Commision, protects consumers in areas of consumer credit, investment life and general insurance, supperannuation. This aim is to assist in reducing fraud in finance markets & products.