Methods of paying for food
Method of paying for food | Advantages | Disadvantages |
Cash | Quick and efficient / no interest charged / sometimes consumers can negotiate a discount when paying with cash | Safety issues over carrying large amounts of cash / transaction limitations - ie you cannot pay for products online using cash |
Credit card (including contactless) | Can borrow money from the issuer / repayments can be spread over a long time / contactless credit cards are quick to process | High rate of interest charged if not fully paid off / easy to overspend, risk of debt / security issues / maximum amount of £100 allowed for contactless payments which may not be enough for a food shop |
Debit card (including contactless) | No interest charged unless there is an overdraft on the account / takes money from the consumer’s bank account so no repayments to make / contactless debit cards are quick to process | Money must be in the bank account in order for it to be debited / security issues / maximum amount of £100 allowed for contactless payments which may not be enough for a food shop |
Cash | |
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Advantages | Quick and efficient / no interest charged / sometimes consumers can negotiate a discount when paying with cash |
Disadvantages | Safety issues over carrying large amounts of cash / transaction limitations - ie you cannot pay for products online using cash |
Credit card (including contactless) | |
---|---|
Advantages | Can borrow money from the issuer / repayments can be spread over a long time / contactless credit cards are quick to process |
Disadvantages | High rate of interest charged if not fully paid off / easy to overspend, risk of debt / security issues / maximum amount of £100 allowed for contactless payments which may not be enough for a food shop |
Debit card (including contactless) | |
---|---|
Advantages | No interest charged unless there is an overdraft on the account / takes money from the consumer’s bank account so no repayments to make / contactless debit cards are quick to process |
Disadvantages | Money must be in the bank account in order for it to be debited / security issues / maximum amount of £100 allowed for contactless payments which may not be enough for a food shop |