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发帖数: 364 | 1 Pay with cash, debit or credit?
This note is from BOA website. I think it is very good, so I share them here.
Knowing which payment method to use can be difficult. These tips can help
you determine the option that best suits your needs.
With all the options for making purchases and payments, it can be difficult
to know which payment method to choose. Is there really a "best" way to pay
for things? Should some methods be avoided altogether? If you've been
pondering these questions, the following should help you determine which
payment methods best suit your needs.
When deciding when to pay by cash, debit or credit, consider your spending
habits (carrying cash can help you manage daily spending) and how well you
keep track of your finances (paying with debit or credit gives you easy
access to a record of your purchases). Contrary to popular belief, it is not
always best to pay with cash. Debit and credit cards can be a better
payment method in certain situations. You might be looking to build your
credit score, you might want to keep better track of your weekly/monthly
spending or you might be in a situation where carrying cash isn't safe.
Here are some tips to help you decide which payment method is best for you:
Paying by cash:
Keeping cash on hand can be a great way to avoid overspending. You can
choose exactly how much cash you're willing to spend, carry it with you, and
stop spending when you're out of cash. For some people, cash can "burn a
hole" in their wallet meaning the temptation of easily accessible cash can
lead to undesired spending. Carrying cash also carries the risk that it
could be stolen. If these factors are concerns, consider using a debit or
credit card, which in most cases offer you protection against fraudulent use.
Choosing debit:
Debit cards provide easy recordkeeping and are accepted at many
merchants which makes purchasing convenient. Unlike a credit card, which
requires you to pay the bill later, the money comes directly out of your
checking account. This is a great way to avoid spending more money than you
have available.
Before you use your debit card, make sure you know your checking account
balance. If you try to spend more than you have, your purchase may be
declined or the bank might charge you an extra fee, also known as an
overdraft fee. (Note: One good way to help you avoid overdraft fees when
using your debit card is to set up alerts through online banking to notify
you by text or email when your balance is low.) It is important to recognize
that certain banks do not allow you to overdraw your account, while others
will allow you to overdraft. Please make sure to check your bank's policy so
you are aware of any potential fees you could incur by spending more than
you have available in your account.
Look into your bank's fraud liability protection program so you have a
good understanding of your debit card's security. Some debit cards offer
protections similar to a credit card, so if your debit card is lost or
stolen, you won't be on the hook for fraudulent purchases. Some banks also
offer debit cards that include photo ID to help ensure no one but you can
use your card. (Learn about Bank of America's Total Security Protection®
; package.)
Paying by credit card:
Responsible use of a credit card can be a safe and easy way to build up
your credit rating.
If you choose to make a purchase with a credit card, you can reduce the
amount of interest you pay by paying more than your minimum payment each
month. Or, if you are able, you can avoid interest on purchases altogether
by paying your bill in full each month.
Many credit cards come bundled with rewards programs that allow you to
earn points that are redeemable for things like travel and merchandise.
There are also cash-back credit card programs that allow you to earn a
certain percentage of money back for each purchase you make with the card.
The ability to earn points or cash back on purchases may make using your
credit card the right choice for some transactions.
Some credit cards offer a certain amount of protection on purchases. For
example, some credit cards provide protection if you buy merchandise that
turns out to be defective. Many credit cards also come with fraud liability
protection, meaning the card provider won't hold you responsible for
fraudulent charges on your card as long as you report them promptly.
Time to take action: You are the one who makes the decision whether cash,
debit or credit (or a combination) best suits your lifestyle and habits.
Carefully consider the benefits of each payment method before making a
purchase. Deciding your payment methods ahead of time can help you keep
better track of your money, and you won't be stumped at the checkout line
when the cashier asks "cash," "debit" or "credit." |
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