And How
Would You Like To Pay For This Purchase?
Wisconsin consumers
today have more and more options to pay for goods and services. Every
payment method has its advantages and drawbacks. Which payment option
is the best alternative for you?
CASH
Paying with cash is the simplest alternative. With ATMs, you can access
cash 24 hours a day and you don’t have to worry about fees or identification
checks. Cash is accepted everywhere and you don’t run up your debt
because it is money you already have. If you want to keep your transaction
private, cash allows you to make your purchase anonymously. A drawback
with cash is the absence of a paper trail should a dispute arise over
a defective product. And carrying large amounts of cash may create security
concerns and make budgeting more difficult.
PERSONAL CHECKS
Checks are easy to use and are routinely accepted by merchants, service
providers and individuals. Using checks can keep you from overextending
and help you to build a good payment history. You can also “stop
payment” on a personal check, but you have to act quickly and be
prepared to defend your actions when the merchant demands payment. Remember,
your financial institution will charge your account a fee to stop payment
on a check.
CREDIT CARDS
With credit cards, you can buy goods or services now and pay for them
later, although you will pay interest charges. Credit cards are easy
to use and widely accepted by merchants. Credit cards also offer excellent
consumer protections and are safer to carry than cash. The Federal Truth
in Lending Act limits your losses to a maximum of $50 if your credit
card is lost or stolen. Paying by credit card offers you the best legal
remedies against billing errors, damaged merchandise and other problems
buyers may encounter.
DEBIT CARDS
Debit cards look like credit cards but work more like checks because
the money is deducted directly from your checking or savings account.
Using a debit card is easier than writing a check. Remember to immediately
deduct your debit card transactions and fees from your checkbook balance.
Safeguard your account number and Personal Identification Number; be
sure no one can see the keypad checkout counter.
Other payment system
alternatives include:
COMPUTER BANKING
allows you to pay bills, move money and perform other banking functions
24 hours a day using your computer.
DIRECT PAYMENT
allows you to automatically pay bills such as your mortgage and car
payments without writing or mailing checks. This is accomplished by
a prearranged automatic withdrawal from your checking account or credit
card.
TELEPHONE BANKING
allows you to pay bills anytime using a touch-tone phone.
TELEPHONE DEBIT
allows you to authorize a merchant to electronically withdraw from your
checking account by providing your bank routing and checking numbers.
With this option, you can avoid late fees on bills or speed delivery
of goods. But be sure to give this information only to reputable
merchants and not in response to unsolicited calls that may prove
fraudulent.
There are many payment
options available to you. Regardless of which option you choose, always
keep receipts, warranties and other documentation. Without these important
papers, it’s your word against the merchant’s in a dispute.
The Wisconsin Consumer
Act regulates consumer credit transactions and handles complaints by
state residents against Wisconsin companies. For more information on
these rules, visit www.wdfi.org. You also can file a complaint with
the Office of Consumer Protection, www.doj.state.wi.us/columns/complaint.asp.
Provided
as a public service by the Community Bankers of Wisconsin (CBW).
