Discover the Best Payment Methods for Your Lifestyle and Security
With so many ways to pay, how do you choose the best option for your lifestyle and financial needs? Each method has unique benefits and considerations – here’s a look at the most popular options and when to use them.
Credit Cards: Rewards, Purchases, and Growth Potential
With credit cards, you don’t have to worry about carrying cash, you can earn rewards, and you’re building a credit history that can ultimately help you finance a car, get a mortgage, and enjoy other benefits of good credit. They are convenient to use whether you are shopping in person or online. Some offer perks like 0% interest rates for an introductory period, travel and shopping discounts, or cash-back rewards. You are also unlikely to be liable for unauthorized purchases if your credit card is hacked or stolen, and many credit cards have account monitoring built in, which will flag suspicious charges.
The downside? It’s easy to accumulate a lot of hard-to-manage debt if you’re not careful. Interest rates and late fees can add up quickly. Use credit cards responsibly – limit spending to necessities, keep balances low, and pay off your bill in full each month.
Learn more about the American Heritage Mastercard®, which offers great rewards, low rates, and fewer fees for members. Plus, American Heritage donates $0.01 to The Kids-N-Hope Foundation for every purchase made using any American Heritage credit card!
Debit Cards: Simplicity and Direct Access
Faster than writing a check, debit cards are a great choice for spending money already in your account. When you use a debit card, the payment is immediately deducted from your checking or savings balance, making it easier to stick to a budget and avoid overspending than using a credit card. You won’t be charged interest on debit card purchases, so unexpected debt won’t pile up. You can also use it to withdraw cash at an ATM – though you will pay a fee if that ATM is out of network.
Drawbacks of debit card payments include limited fraud protection unless you act fast – typically within about two business days of your card being lost or stolen or a suspicious charge appearing on your account. You will only be able to spend what’s in your account, although it’s possible to overspend and incur overdraft fees. Debit cards also won’t help you build credit.
American Heritage's debit card offers the convenience of shopping and withdrawing cash from ATMs without having to worry about high interest rates or monthly payments. Each of American Heritage's checking account options comes with an Independence Debit Card which earns ScoreCard® Rewards Points, and the opportunity to use contactless payment!
Check out the diagram below to review how to make a contactless payment.
Mobile Wallets: The Future of Payments
In recent years, mobile wallets like Apple Pay, Google Pay, and Samsung Pay have gained popularity. These wallets store your debit or credit card information securely on your smartphone or smartwatch, allowing you to make payments with just a tap. Mobile wallets offer fast, secure transactions and are especially convenient for purchases you’re making on the go. In addition to convenience, legitimate mobile wallets use state-of-the-art encryption and authentication techniques to protect your funds, and transactions are easy to track because they are all logged in one place.
However, if your device is uncharged or a data breach occurs, payments may be disrupted. Some regions may also have limited mobile wallet compatibility.
With your American Heritage credit or debit card linked to your mobile wallet, you can make payments without needing your physical card. It's a great way to streamline your finances and enjoy the added security of encrypted transactions.
Online Bill Pay: Pay Bills on Your Terms
Online bill pay services are great for regular bills like utilities, credit card payments, and subscriptions. By automating your bill payments, you can avoid late fees and save time. Typically, funds for bills are drawn from a linked checking account. Because you don’t need paper statements and you’re not sending in checks, online bill pay is a more environmentally friendly option for handling expenses. You can automate payments, see upcoming and past bills all in one place, and avoid the risk of your check getting lost in the mail or stolen.
As with debit cards and mobile wallets, there is a risk of overdrawing your account if you’re not careful. It can also be easy to miss any fraudulent charges if your payments are automatic, and it can sometimes take several days for online payments to process – so schedule payments in advance to avoid late fees.
Managing monthly bills can be a hassle, but American Heritage's Online Bill Payer makes it easy. This service allows you to set up automatic payments and manage due dates from the comfort of your computer or mobile device. You control the amount of the payment and the specific date on which you want funds transferred. You can even schedule payments in advance, so you never miss a due date. You can access Bill Payer by logging into Online Teller here.
ATMs: Cash When You Need It
While digital payments are undeniably convenient, there are times when you need cash. ATMs are a convenient way to access cash when you’re out and about, and you can also use them to make deposits. ATMs also allow you to check your account balance if you don’t want to log in to online banking on your phone.
What are the cons? If you’re using an ATM after hours or in a remote area, there are always small concerns about safety and security. To ensure a safer transaction, use well-lit ATMs and monitor your accounts for fraud. To protect your personal identification number (PIN), memorize it instead of writing it down and stand directly in front of the keyboard to block it from anyone else’s view. For your financial and personal safety, don’t stand in front of the ATM and count your money, and keep an eye on your online account to ensure there aren’t fraudulent transactions.
Whether you want to tip a server or stylist, you’re paying for something at a local farmer’s market, or you simply like having emergency cash on hand, American Heritage Credit Union’s network of ATMs gives you access to your funds whenever you need them. Having the option to withdraw cash can be reassuring, and with thousands of ATMs available nationwide, you won’t have to go far to get it.
Traditional Methods: Cash and Checks Still Matter
Even though digital payments are on the rise, cash and checks are still important methods of payment. Some small businesses may prefer cash payments, and checks may be required for certain transactions, like rent and deposits on home improvement projects. It's a good idea to have these traditional options available when the need arises. Having a variety of payment methods allows you to adapt to different situations and ensures you can make payments when and where you need to.
Factors to Consider When Choosing a Payment Method
Choosing the right payment option will depend on your personal preferences and financial goals. Here are a few factors you might consider:
- Convenience: How easily can you access your money and make payments? Mobile wallets and online bill pay can help you manage most transactions from your phone or computer.
- Security: Credit and debit cards, especially those linked to mobile wallets, offer encrypted transactions that are more secure than carrying cash. Credit cards and some debit cards also have fraud protection, which can save you from financial losses if your information is compromised.
- Rewards and Benefits: If earning rewards is important to you, a credit card like the American Heritage Mastercard® can help you earn cash back, points, or donations to charity every time you make a purchase.
- Personal Habits: Do you prefer to budget carefully? Debit cards and cash are excellent for sticking to a set limit. If you travel often or make large purchases, a credit card may offer you better perks and rewards.
The Choice is Yours
Your best way to pay depends on your individual needs and lifestyle. Ready to explore your options? Visit us at American Heritage Credit Union and find the payment method that fits your lifestyle. We’re here to support you every step of the way.
