Methods of paying for food
| Method of paying for food | Advantages | Disadvantages |
| Cash | Quick and efficient / no interest charged / sometimes consumers can negotiate a discount when paying with cash | Safety issues over carrying large amounts of cash / transaction limitations - ie you cannot pay for products online using cash |
| Credit card (including contactless) | Can borrow money from the issuer / repayments can be spread over a long time / contactless credit cards are quick to process | High rate of interest charged if not fully paid off / easy to overspend, risk of debt / security issues / maximum amount of £100 allowed for contactless payments which may not be enough for a food shop |
| Debit card (including contactless) | No interest charged unless there is an overdraft on the account / takes money from the consumer’s bank account so no repayments to make / contactless debit cards are quick to process | Money must be in the bank account in order for it to be debited / security issues / maximum amount of £100 allowed for contactless payments which may not be enough for a food shop |
| Cash | |
|---|---|
| Advantages | Quick and efficient / no interest charged / sometimes consumers can negotiate a discount when paying with cash |
| Disadvantages | Safety issues over carrying large amounts of cash / transaction limitations - ie you cannot pay for products online using cash |
| Credit card (including contactless) | |
|---|---|
| Advantages | Can borrow money from the issuer / repayments can be spread over a long time / contactless credit cards are quick to process |
| Disadvantages | High rate of interest charged if not fully paid off / easy to overspend, risk of debt / security issues / maximum amount of £100 allowed for contactless payments which may not be enough for a food shop |
| Debit card (including contactless) | |
|---|---|
| Advantages | No interest charged unless there is an overdraft on the account / takes money from the consumer’s bank account so no repayments to make / contactless debit cards are quick to process |
| Disadvantages | Money must be in the bank account in order for it to be debited / security issues / maximum amount of £100 allowed for contactless payments which may not be enough for a food shop |
