Payment Methods: Understanding Different Payment Options
What are some common payment methods apart from using a debit card?
Select all that apply: • Money orders • Mutual funds • Credit cards • Peer to peer money transfers • Prepaid cards
Final answer:
Jamie Lee's method of payment was a debit card. However, there are other methods like money orders, credit cards, peer to peer money transfers, and prepaid cards. Each of these methods has a unique mechanism to facilitate transactions.
Explanation:
There are various methods through which payments can be conducted. Jamie Lee used a debit card which, like a check, is an instruction to the user's bank to transfer money directly and immediately from your bank account to the seller. However, there are other methods available as well.
- Money orders - A money order is a certificate, usually issued by a government or banking institution, that allows the stated payee to receive cash on demand.
- Credit cards - Unlike a cheque or a debit card, a credit card uses borrowed money from a bank instead of your own funds.
- Peer to peer money transfers - This is a method of transferring money digitally from one person to another through an app or website.
- Prepaid cards - These cards are usually loaded with a specific amount of money and can be used for making payments till the balance lasts.