Account cash cheaper/ Cash discount

Cash discounts refer to an incentive that a seller offers to a buyer in return for
paying a bill before the scheduled due date. In a cash discount, the seller will
usually reduce the amount that the buyer owes by either a small percentage or a set
dollar amount.

A cash discount gives a seller access to her cash sooner than if she didn't offer
the The discount.
• An example of a cash discount is a seller who offers a 2% discount on
an invoice due in 30 days if the buyer pays within the first 10 days of receiving
the invoice.

A typical format in which the terms of a cash discount could be recorded on an

invoice is Percentage discount [if paid within xx days] / Net [normal number of
payment days].

Thus, if the seller is offering a reduction of 2% of the amount of an invoice if it

is paid within 10 days, or normal terms if paid within 30 days, this information
would appear on the invoice as "2% 10 / Net 30."

Money Payment
Payment is the transfer of money, goods, or services in exchange for goods and
services in acceptable proportions that have been previously agreed upon by all
parties involved. A payment can be made in the form of services exchanged, cash,
check, wire transfer, credit card, debit card, or cryptocurrencies.

Tipes of money payment

Credit card
Is a thin rectangular piece of plastic or metal issued by a bank or financial
services company that allows cardholders to borrow funds with which to pay for
goods and services with merchants that accept cards for payment. Credit cards
impose the condition that cardholders pay back the borrowed money, plus any
applicable interest, as well as any additional agreed-upon charges, either in full
by the billing date or over time.

Today, are widely used for purchases and payments. Credit cards work by offering
its user a line of where where an individual can draw credit up to a certain limit
When you attempt to use your credit card, your account information is sent to the
merchant bank. The merchant bank then receives authorization from the credit card
network to process the transaction.Many businesses accept credit cards, though many
that accept cards charge a fee from the merchant that provides the machine and
payments infrastructure as well as their financial institution. This fee is often a
percentage of the transaction amount and/or a flat fee for each payment.

Types of Credit Cards

Most major credit cards—which include Visa, Mastercard, Discover, and American
Express—are issued by banks, credit unions, or other financial institutions. Many
of them attract customers by offering incentives such as airline miles, hotel room
rentals, gift certificates to major retailers, and cash back on purchases. These
types of credit cards are generally referred to as rewards credit cards.

Pos
• Help an individual build a credit history that can used to make more
major purchases in the future
• Reduce risk as it is easier to carry a single plastic card as opposed
to cash
• Produce revenue opportunities through rewards and airline miles
 • Delay when an individual actually needs to use personal capital to pay
for something

Cons
• Create the potential to overextend credit and incur unpayable debt
• Charge processing fees by many merchants, making a purchase more
expense than other methods
• Charge high interest (~15% to ~25% APY) on unpaid balances
• Impact a credit report negatively when too many cards are opened

Debit card/deposit card

A debit card is a payment card that deducts money directly from your checking
account. Also called “check cards” or "bank cards," debit cards can be used to buy
goods or services or to get cash from an ATM. Debit cards can help you reduce the
need to carry cash, although using these cards can sometimes entail fees

May look similar to credit cards, but their underlying mechanism is entirely
different. When a debit card is used, funds are immediately withdrawn from an
individual's account. Instead of having a line of credit that you can pull from in
excess of what you have saved, debit card transactions can be declined if you do
not have enough money in your account.

Debit cards share many advantages as credit cards, as the small piece of plastic is
easy to carry, widely accepted by many merchants, and has varying levels of fraud
protection. However, debit cards often have less promotional opportunities and may
result in processing fees if you accidently attempt to overdraw your account.

Pros
• Help individuals transact easier through ATM withdrawals or purchases
as many major companies
• Typically don't have annual fees or transaction costs as long as you
have money in your account
• Discourage excess spending by only allowing spending up to account
balance
• Doesn't charge interest since all payments are facilitated using the
spender's money

Cons
• Often has limited fraud protection up to certain dollar amounts or time
periods
• Limit your spending capabilities to your account balance, not allowing
for higher amounts of spending for emergency or high need situations
• Charge overdraft fees through some banks when you attempt to withdrawn
more funds than available in your account
• Don't build your credit score as no credit is used

Cash
Is still used for many businesses, such as the retail industry.

Mobiles phones
The contactless payment technology that has emerged in recent years has made
payments easier than ever. The credit or debit card machine—called a point of
terminal payment (pos)—can read the customer's banking information through the
software application that's installed on the mobile device.

Checks
Have fallen out of favor over the years due to advancements in technology, allowing
payments to be electronically submitted. However, there are instances when checks
might be helpful, such as when the seller wants a guaranteed payment.
Coin Balance
Small lightweight scales used by merchants for checking the weight of coins offered
in exchange. This was important because the value of a coin was in part determined
by its metal content. Because precious metals such as gold and silver were used in
making coins in order to retain their value, a good trade could be made by clipping
off small amounts of metal from many coins to produce forged coins or other items.