Upload
jane-heath
View
242
Download
0
Tags:
Embed Size (px)
Citation preview
WAYS OF PAYMENT IN TOURISM
Ways of payment in tourism:
• cash
• travellers cheque (traveler’s cheque)
• debit or credit card
• voucher
What are some advantages and disadvantages of paying with cash?
MAKE A LIST.
Advantages (of using cash)
- Constant access to money
- No need for a cash machine
- No extra fees
Disadvantages (of using cash)
- Easily robbed
- Usually not used to pay in large amounts
- Must be constantly cautious
Traveller‘s Cheques
• Issuing banks include: American Express, Thomas
Cook, Visa, Post Office Money, …
• Preprinted, fixed-amount
• Signature authorizes unconditional payment to payee as
a result of having paid the issuer for that privilege
What are some advantages and disadvantages of traveller’s cheques?
MAKE A LIST.
Advantages (of using traveler’s cheques)
- Very difficult to use if stolen
- Signed when purchased
- Countersigned when redeemed
- “Attractive” exchange rates which can be locked
into
Advantages (cont.)(of using traveler’s checks)
- Easy to replace when lost or stolen
- (current checks cancelled)
- Replacement checks issued
- Combined funds when traveling with someone
else
Eurocheck
• First introduced in 1969
• Alternative to traveler’s check
• Issued by a European bank
• Available in various currencies
• Discontinued as of January 1, 2002
Declining Use
• Traveller cheque use has been declining since the 1990s
• Replaced by ATM cards, debit cards, credit cards
Apple Pay
Debit cards
• Debit card (a.k.a. bank card or check card) = plastic
payment card
• Substitute for cash when making purchases
• Funds are immediately transferred from the cardholder's
designated bank account when using a debit card
• Fees may apply
Credit card
• Plastic payment card• Credit limit
– Balance transfers– Cash advance (cash withdrawal)
• Interest payment– Monthly payment– Minimum payment
• Annual fee
ATM Skimming
• Preventing ATM Skimming
• A simple solution
Debit or Credit?
• Repairing credit
• Stockpiling rewards
• Making a large purchase
• Going on vacation
• Shopping on-line
Applying for a credit card?
• Regulary salary (wage) or pension
• Account holder
• Credit rating
• Other terms and conditions
Erasing Credit Card Debt
• Get a low interest rate
• Track your expenses
• Spend less
• Prioritize your payments
• Earn more money
What’s that?
• Electronic funds transfer
• Wire transfer
• Giro transfer
• Money order