is a popular form of payment with customers
Cash can be reused for other transactions immediately
Transactions are completed immediately
ADV: Ideal for small purchases
DIS: Has to be locked away for security
Effectively a promise to pay the amount stated
Cheques must be presented to a bank in order to obtain the payment
It usually takes at least 3 working days to “clear”
ADV: Better for large amounts
A plastic card, issued by the bank, which allows payment to be made without writing a cheque or carrying cash
ADV: Guaranteed Payment, Can be used for mail order or online purchases
DIS: Danger of fraud – hence new chip and pin
It looks just like a debit card – and is also issued by banks
It is a form of borrowing so MUST be used sensibly
ADV: Enables the cardholder to borrow money
DIS: High interest rates so expensive way to borrow