Payment Methods

Student Information Payment Methods

Consumers can select from a variety of payment methods when purchasing goods and services. The most common forms of exchange in Australia are made via cash, debit and credit cards.This is a Ready-Ed Publications'

Paying with Cash

Cash refers to money in the form of notes and coins. Many consumers prefer to use cash because all retailers accept this payment method and transactions take place book preview. instantly. Another advantage of using cash is that it is relatively easy to keep track of personal spending because people generally know how much money they have on them. However, cash is not very secure and once it is lost or stolen, it can be diffi cult to trace and prove exactly how much you had. Some customers also prefer to use less bulky methods of payment, especially when purchasing more expensive goods and services.

Paying with Card

Electronic funds transfers at point of sale (EFTPOS) allows consumers to pay for items directly from their bank account using a plastic debit card and a personal identifi cation number (PIN). Debit cards are diff erent to credit cards because they are linked to accounts that contain money that you have already earned or saved. In contrast, credit cards are linked to accounts containing money that has been borrowed from the bank. At the end of each month, customers who use credit cards for purchases are charged an additional amount of money called interest on any money that has not been paid back to the bank. As a result, many consumers, especially those who fi nd it diffi cult to stick to a budget, fall into debt as they have been unable to pay back the money loaned. Both debit cards and credit cards are relatively quick and convenient forms of payment accepted by most retailers, including online. However, some stores and market places still operate on a strictly cash only basis. In such instances, consumers use their cards to withdraw cash from an automated teller machine (ATM) before they make a purchase. This can sometimes be more expensive as some banks charge a fee for using their ATM. Cash withdrawals made with credit cards also cost extra. In terms of security, debit cards and credit cards are considered safer than carrying cash because if they are lost or stolen they can be cancelled quickly over the phone. They also can’t be used unless the person in possession of them knows the unique PIN. However, new technologies, such as paypass and payWave, now enable purchases Go to www.readyed.net. to be made without using a PIN. While this has made shopping faster and more convenient, customers must be extra careful not to lose their cards as they can quickly be misused.