Ever since digital payments were introduced, a lot of methods have been created which can be used to make our transactions. Each of the methods has its own advantages and disadvantages. The most popular method which is being used right now is online payment services. So, the question arises, which of the methods should you use. Well, the answer to that depends on what qualities of the transaction methods matter to you the most.
We will tell you all about the pros and cons of the most popular payment methods. After reading this article, you will be able to choose the payment method that is best for you. Here are the different payment methods available to everyone as of now.
Cash
The cash system is best for people who are constantly living paycheck to paycheck. They can switch to cash as their source of transactions to make their financial lives a whole lot better. Studies show that we spend less when we use cash. So, you don’t have to worry about overspending in the supermarket as you do now.
However, there are some challenges that come with using cash. First of all, it gets inconvenient. Everyone likes to just wipe off a card and buy everything they need. Well, you can’t do that with cash. You gotta go to the bank or an ATM to withdraw the money and then go about your business. The third is the challenge of not building up a credit score as you’re not using any credit. So, should you switch to credit to build up that credit score? Well, let’s find out.
Credit cards
Credit cards, as everyone knows, are a double-edged sword. They are very secure and safe to use. Most users are given protection against fraudulent transactions, and in some cases, they also provide poor consumer service. If you pay the balances by the due date, no interest is applied by the bank. The other side, however, is not so great looking. People tend to spend 10-50 percent more when they are using a credit card. Some cards also charge annual fees, which can prove devastating for people who live paycheck to paycheck.
Digital payment services
Digital payment services are known by many names, such as online payment, electronic funds transfer, direct transfer, Automated Clearing House(ACH), and basically any transactions made over the internet. The transaction happens from the bank or credit union, and the money is directly transferred to the merchant you are paying. Platforms like medius offer many digital payment services as well; click here to read more.
They offer a lot of advantages and are considered the best form of payment right now. However, the statistics show that people tend to spend more through it. Many payment platforms allow you to see these statistics and make changes to your spending patterns according to them.
The facilities that digital payment platforms provide are nowhere to be found. You can set all your bills to be paid automatically, like utilities, credit card bills, insurance, etc. The best part is, you can enjoy these services for free most of the time. Also, the impact that cashless service is making on the economy is huge.
