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Explain two of the following methods of payment used for goods and services - Leaving Cert Home Economics - Question 12 - 2010
Question 12
Explain two of the following methods of payment used for goods and services. Credit Card Laser Card Direct Debit / Standing Order
Worked Solution & Example Answer:Explain two of the following methods of payment used for goods and services - Leaving Cert Home Economics - Question 12 - 2010
Step 1
Credit Card
Answer
Credit cards, such as Visa and MasterCard, are issued by financial institutions and allow cardholders to make purchases without immediate payment. They typically come with a credit limit and a grace period during which no interest is charged if the total balance is paid before the due date. If the minimum payment is not made, interest will accrue on the remaining balance. This method provides convenience but can lead to debt if not managed responsibly.
Step 2
Laser Card
Answer
Laser cards are a type of debit card that allow funds to be drawn directly from the user's bank account for transactions. When a purchase is made, the amount is immediately debited, making it a straightforward way to manage spending. Users can also use Laser cards to withdraw cash from ATMs, often with lower fees compared to credit cards. This method encourages responsible spending since the card can only be used if sufficient funds are available in the account.