(Disclaimer, all opinions and thoughts in this blog are of my own and
expressed by no company, no advice or ideas should be used as advice,
legal or otherwise)
This is a question a lot of people face, especially in today's times where fraud is such a big thing. So this article is going to focus on a few different things to know when choosing how to pay for things!
First we will start with everyone's favorite:
Cash:
Everyone seems to have their own opinion on whether or not you should carry cash, and how much you should carry...and when to use it. Here is how you should look at it. You should always have some amount of cash on you. We live in a world of technology, and sometimes it fails. If your debit card gets lost or breaks, or just stops working, you need a back up. But cash is also the second worst way to pay for things and here is why. You are not protected when you carry cash, if you lose it, it is gone. And there very difficult to trace. If you pay someone in cash and it turns out to be a scam, you are not protected by the bank and there is almost nothing anyone can do.
Checks:
People seem to think that it is safe to pay people by checks. They are not. There is no good reason to pay anyone with a check. Lets go over the reasons. People mail other people checks as a form of payment, and they get lost in the mail. ALL THE TIME. i do not have exact figures but look at just this alone http://www.consumeraffairs.com/delivery/usps_lost_mail.html. Now the simple solution here is just put a stop payment on your check right? Well aside from that costing usually between 10 and 40 dollars, it does not really protect you. It may stop a criminal from cashing the check, but they still have your address, your name, and your checking account number. That is more then enough to cause a significant amount of damage. Now lets say you pay someone who is committing fraud with a check. The bank will not protect you here either, at the moment you hand them the check, it has no protection and becomes a civil matter, the bank will not help.
A better alternative? Use your banks online billy pay. It is usually free, guaranteed, and keeps you safe.
Automatic payments:
These are very convenient and i definitely recommend them as a good form of payment. However, you should still be aware of the danger that comes with them. Most businesses have it written that if you do not contact them within a certain time frame, they will not be able to stop your automatic payment or ACH. And if you dispute it with the bank, the company will just say you agreed to the terms of service (TOS). So, read carefully what you sign up for and be aware of when you need to cancel them. It should also be notated that automatic payments bypass most Overdraft Options on accounts and can still cause fees.
Debit Card/Credit Card
As you may have guessed by now, this is the best way to pay for anything. Most all of them have 100% fraud protection and guarantees to help you in case of someone taking money they should not have. Also if they are lost, you do not have to worry about losing any money and are simple to replace. If you pay for services you did not receive or were not satisfactory you can even file a claim against that! There is just no good reason not to use a card when making any purchase that will accept it.
