As human beings evolve, ideas go alongside this, providing development in terms of technology, how we live our lives, transportation, and of course, payment. Today, we see the creativity of banks and other establishments in accepting payments, which also pose convenience for the everyday consumer. There are certain types of payment that consumers and sellers look at: prepaid, debit, and gift cards.
Prepaid is a mode of payment where you pay first before you avail of the service. This is clearly illustrated in cell phones, Internet service, online gaming, and landline service. This kind of service is typically suited to people who want to save money and would like to keep on top of their budget. I think people who avail of prepaid are rarely those who overspend.
How does prepaid service work? For example, instead of applying for a line service for your cell phone where you pay a monthly bill, you buy cards with a certain denomination of money, which you pay for first and then avail of the service for a certain number of days or months. In Internet, meanwhile, it is the same principle – only that you use the service for Internet use and per hour usage.
Online games have adopted this style of payment as well. To gain profit from this business, they have devised prepaid cards or tokens that would let you buy in-game items or avail of the per hour usage of the game. As you progress through the game, you will have to avail of prepaid cards.
Debit is the type of payment that provides an alternative method in cash payment and can be associated with electronic checks. This works like a credit card, but as you pay, your funds are directly withdrawn from your bank. This gives you the freedom to escape debt and effectively manage your money. In most cases, banks provide the customer with a card that can be used through the Internet, eliminating the physical transaction and providing more flexibility for the consumer.
Lastly, gift cards have emerged in the market. These are cheque-type modes of payment with which you can avail goods from a particular store. There are certain denominations for gift cards, depending on the store that carries them. These are mostly given to consumers as prizes or rewards. Other consumers also buy these gift cards to give as a gift to their friends and family or also as a mode of payment for what they owe.