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Methods of paying for food

Method of paying for foodAdvantagesDisadvantages
CashQuick and efficient / no interest charged / sometimes consumers can negotiate a discount when paying with cashSafety 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 processHigh 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
AdvantagesQuick and efficient / no interest charged / sometimes consumers can negotiate a discount when paying with cash
DisadvantagesSafety issues over carrying large amounts of cash / transaction limitations - ie you cannot pay for products online using cash
Credit card (including contactless)
AdvantagesCan borrow money from the issuer / repayments can be spread over a long time / contactless credit cards are quick to process
DisadvantagesHigh 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)
AdvantagesNo 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
DisadvantagesMoney 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
A contactless transaction with a credit card

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