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Credit & Debit cards

Credit & Debit cards. Unit 8: Assignment 1 – Task. intro. Credit and debit cards are huge parts of buying online due to normal cheques being phased out of internet practice As such its important to know whether this method is worth using at all

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Credit & Debit cards

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  1. Credit & Debit cards Unit 8: Assignment 1 – Task

  2. intro • Credit and debit cards are huge parts of buying online due to normal cheques being phased out of internet practice • As such its important to know whether this method is worth using at all • As such we have researched credit and debit cards in depth and have prepared this personation to show what we found

  3. Comparison of data types

  4. Credit cards

  5. Disadvantages of Credit cards • It is easy to go into large debt with a credit card. • There are some hidden costs. • Withdrawing money costs you money. • Credit card fraud.

  6. Advantages of credit cards • The protection given to credit cards is much higher the that of debit cards although there use is much more complicated then a debit card • There is more freedom with credit cards

  7. Explanation of a credit card • A credit card gives the user the ability to make purchases for something without actually spending any money at the time of purchase, instead you will be charged monthly. • An example of how the credit card works: 2.5% Interest Month one: Cost: £1025 £1000 TV £1000 TV Full month one payment missed (£25) £1000 TV Part of month one payment missed (say £5) 2.5% Interest Month Two: Cost: £1050.63 OR 2.5% Interest Month Two: Cost: £1050.13

  8. Debit cards

  9. Disadvantages of Debit cards • With credit cards, you are often offered warranties. With debit cards this is not the case. • A debit card could easily be lost, they are only small plastic cards. • It is possible that you the debit card company will charge you if you take out too many withdrawalsfrom an ATM per month. • You can also be charged for purchasing too many products with the card within a month.

  10. Advantages of debit cards • with this card you can only use the money you have as such its impossible to accidentally go into debt while using a debit card • You never get any hidden costs

  11. Explanation of a debit card • A debit card works differently to a credit card, instead of having to pay for a product using credit, the money is taken from your bank account as soon as you purchase the product. • Example of how a debit card works: No interest Day of purchase: Cost: £1000 £1000 TV

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