Compare And Contrast Cash And Credit

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We all have to pay, but how the question remains. While online purchasing has become a very popular choice to buy specialty items, as well as our everyday items, some people still prefer to shop at local shops. Whichever way you decide to shop, you must still find a method of payment that is right for you. Two of the most popular forms of payment are cash and credit. Cash payments have been around for many years, and is still a widely accepted and preferred method of payment for many. This form of payment was around long before the others were introduced into our society, which aids in the popularity with our older generations. However, recently the popularity of credit has greatly increased due to several reasons; convenience and the …show more content…

According to the Federal Reserve System (2013), the 2013 Federal Reserve Payment Study shows the number of credit card transactions grew at an annual rate of 7.6 percent, rising from 21.0 billion in 2009 to 26.2 billion in 2012. This increase in growth is expected to continue over the next several years. Another big reason the use of credit cards continue to skyrocket is safety. The credit card companies constantly advertise how safe their product is compared to carrying cash. For example, if cash is lost or stolen, it is just gone. If a credit card falls into the hands of a criminal, you have options stop the card use by calling the card company and asking them to put a hold on you card. If there are fraudulent charges made to your card, then you also have several options to have those stopped or reimbursed. Both of these reasons make a good argument why credit is safer than carrying cash. Additionally, the new credit cards come with a chip built in the card, therefore making unauthorized purchases much more

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