The Advantages /Disadvantages of different payment methods (Credit Card…
The Advantages /Disadvantages of different payment methods
A document requesting paid requesting paid sum of money into account (drawer) Paying into that account (Drawee)
Cheques can be sent via post. Large amounts of cash do not need to be handled. The drawer has a record of payment + security, no money lost.
Cheques normally need to signed by two people.
It is safer to carry a cheque than larger amounts of cash.
Cheques must be paided into a bank which is a disadvantage -
Any Errors on Check may delay payment. Cheques can bounce i.e the payer may not have sufficient funds in the bank account to make payments as the payee may not be aware.
Credit Card Payer
Enables an individual or business payed to make payment for goods / services but in effect borrowing from - Yet, a delay in payment means interest is added on.
Payer- Payment can be made even with insufficient funding there is a degree of fraud- when paying by a credit card be online to customers / supplier.
The payer is charged interest in full amount this is not repaid when a requested some companies charge payee's a fee over credit card.
Advantages to the payee
The Payee authorities the payment that they will receive payment. Also, payments can be made online
Payees must pay a processing fee which reduces the amount revived unless paused on player.
Used for payment online or where there is a debit / credit card machine -from payees bank account. From payees bank account.