The war between plastic money and paper money has existed for long. Both have their own advantages and disadvantages. However, you should know there is a time to use credit card and cash. In this article you will find the safer mode of payments and how you can be on your budget while making purchases.

 

As the popular saying goes money is not everything and yet it is very much crucial. The relevance of money in human life is similar to the importance of water or food. It wouldn’t be wrong to say that every human needs money to take care of things and most importantly family. Though money exists but the forms in which we can make payments have been developed. Among these, credit cards have become a popular phenomenon. The debate over the use of plastic money or paper money has been going on for quite some time now. Yet no clear winner has been declared. Everybody wants a card and if you too are planning to buy it then this article is for you. The following are the things you should definitely know before you get one:

 

1. Interest charges and additional costs of using credit card:

While credit card is still a new concept in the history of finance, why so many people still stick to using paper money indeed hints to the relevance it holds even today. At the same time, the benefits and convenience a credit card brings along cannot be simply neglected. Though the benefits would offset the cost but a credit card does account for additional as well as annual charges. Also, if you are buying something and don’t pay off instantly, you will later have to pay for the purchase and interest charges too.

 

2. Giving tips in cash:

You pay tips when you are really happy with a product or service. You as well as the other person will feel happier when tips are made in cash. Some efforts really matter and these deserve a tip. But when you opt for tipping by card, believe it or not, the special feeling the server would have got somehow fades away.

 

3. Cash on a budget:

As a critical part of financial marketplace, cash does play its role the same as a credit card would. However, when you pay in cash you can physically feel the money going away from you. You are bound to think again whether the purchase is necessary or not. So to say, when you choose cash to pay over a credit card, you are determined to consider budget for future purchases.

 

4. Finance and security:

While it may come as a surprise to you, paying in cash is actually a secure method of paying. Firstly, you don’t have to worry about a third person getting access to that cash. Regardless of what happens at the backend of the store, you have paid for your purchase and happily the cash is into safe hands. And this is true not only for the smaller kinds of transactions but for the bigger ones too. Not to forget the fact that many have been victims of fraud online transactions. So if you want to save yourself from being one, try paying in cash. Research shows that it is very easy for fraudsters to get the details of a credit card holder and make scam payments.

 

5. Avoiding additional costs and interests:

The greatest benefit of using only cash and not the credit or debit card is that you will be avoiding the additional costs or interest charges associated with the purchase. Even some small businesses prefer to run as cash-only businesses, for your convenience and for simpler book keeping requirements. At the same time, because not everyone carries cash all the time, these small businesses hire ATM rental and placement services. Certain free ATM Placement Programs aid in such implementations. Adding an on-site ATM makes the process enticing and smooth. Buyers can withdraw the money anytime they want and pay easily for their purchase.