What are the most important things you need to be successful in the modern Canadian economy? You might think that this is a difficult question, but many people would say it’s having adequate means of payment.
What does this mean? It simply refers to being able to pay for goods and services with something other than cash. However, some forms of payments are better than others. For example, if you have enough money in your account at any given time then using credit cards or checks will work just fine. On the other hand, if you don’t have the money on hand, cash is king because there are no credit card fees involved.
Credit Cards
Credit cards are the most common way to make purchases in today’s economy. They also provide greater safety than if you were paying with cash because there is less chance of theft involved when using plastic over when carrying around money.
Credit cards are accepted at more places than any other type of payment and in most cases, you can receive your items before the credit card company processes the purchase and sends you a bill. To be able to improve your credit score, it is a good idea to pay off your credit card monthly in full, avoiding any late fees. It would be smart to consider different credit cards as well. For example, you might consider getting one that pays rewards points or cashback on your purchases.
Some websites offer the convenience of paying through their site without having to be physically present at that store or location, but this does come with a fee for using this service.
Debit Cards
A debit card functions the same way as a credit card does, but also allows you to withdraw cash from your bank account. This option is good for when you do not have the money in hand to pay for an item or service, which can be helpful in certain situations. You should always transact safely when using your debit card online, however. By having your card number and other necessary information readily available, you can stay safe by making purchases at reputable websites with an air of legitimacy.
Cash and Coins
Carrying cash around with you is the most basic method of payment that we have in society; it can be used one on one or in a business transaction. Coins are another form of payment that has been around for a long time, and everyday items such as vending machines or candy stores accept them.
Cash and coins are also good for when you wish to avoid linking personal information in your purchases.
Cryptocurrencies
A hot topic today is cryptocurrencies, which are not controlled by any bank or government. This means that every transaction will be private and anonymous unless you transact through a third party that keeps track of your purchases. Some people prefer this form of payment due to the lack of taxable income involved with cryptocurrency transactions.
The thing with cryptocurrencies is that they are highly volatile in their values, which means it can be risky to hold onto them for too long without selling when you feel the value has gone up enough.
Gold and Other Precious Metals
While precious metals are not very common forms of payment, they have historically been used as a form of currency because it is harder to counterfeit them due to their natural scarcity. This means that people will feel safer storing their money in precious metals rather than fiat currencies or cryptocurrencies.
People who use gold as a form of payment will have to be very careful about where they purchase from, at the same time, because there are many scammers around who wish to take advantage of individuals who do not know any better.
Checks
Checks are a common way to transact, especially when it comes to sending money back and forth between family members. A check is also a good way for new businesses to process clientele.
A word of warning with checks – if you lose your physical copy of one or have someone steal the information written on it, your bank account can be drained and you will have no way of knowing until it is too late.
It is important to have a variety of means of payment to be successful when trading in the modern economy. While many people prefer credit cards because they are accepted at more places and can help you improve your credit score, cash or coins may be better for when you wish to avoid linking personal information with purchases. As always, it’s wise to transact safely by providing your card number and other necessary information only on reputable websites. With so many options available today, there really is something for everyone!