ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The three most common types of payment in today’s market are credit cards, debit cards, and cash. Credit and debit card transactions involve fees paid by merchants to the card companies, but they tend to involve larger purchase amounts than cash transactions.

Detailed explanation-2: -When you buy something with a check card, the purchase price is automatically deducted from your checking account. You then receive your monthly purchase statement from your own bank, but you do not need to make any payments because the money has already been withdrawn from your checking account.

Detailed explanation-3: -When you open a checking account at a bank or credit union, you usually get a debit card. A debit card lets you spend money from your checking account without writing a check. When you pay with a debit card, the money comes out of your checking account immediately. There is no bill to pay later.

Detailed explanation-4: -Cash (bills and change): Cash is one of the most common ways to pay for purchases. Personal Cheque (US check): These are ordered through the buyer’s account. Debit Card: Paying with a debit card takes the money directly out of the buyer’s account. Credit Card: Credit cards look like debit cards.