Payment Methods

1. Payment Methods Understanding Different Payment Methods to Make Purchases

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

3. 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.

4. 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.

5. 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.

6. 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.

7. 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.

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

9. 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

10. 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.

11. 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.

12. 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.