Pick Your Plastic
PHIL – 447
Week 1 – Pick Your Plastic
In the article “Credit or debit: pick your plastic,” by Lisa Gerstner, the issue the author writes about is the importance of consumers knowing the difference between debit cards, credit cards and prepaid cards. If consumers do not understand the difference between the three cards and the way to use them, they could end up in financial disaster. If the consumer understands the card, then it can be useful and can be used to the consumer’s advantage. The article discusses which card offers the most perks, liability, and security, and which card provides more control. It also discusses the reasons consumers use different cards, example: most consumers use debit cards for groceries, utilities, and gas. The article also discusses some of the fees that consumers should be aware of when using the different kinds of cards. The author also mentions the new contender in cards, the prepaid card. She mentions a particular prepaid card she thinks is worth checking out, and gives some pros about using that prepaid card. The author provided many facts that can be researched and proven about the use of credit, debit, and prepaid cards. Facts mentioned in the article are: credit cards offer more protection against fraud and merchant disputes; the card issuer must investigate disputes with the merchant. If there is no previous balance, consumers get at least a 21-day interest free grace period between the statement date and the bill’s due date. More credit cards offer rewards on purchases than debit cards. Some credit cards offer introductory periods with no interest. Some credit cards offers purchase protection, car rental insurance coverage, and extended warranty on certain items. Some debit cards offer similar benefits. Merchants such as hotels and car rental companies may not accept debit cards and if they do, they will put a hold on cash in consumers’ checking accounts and the money won’t be
Week 1 – Pick Your Plastic
In the article “Credit or debit: pick your plastic,” by Lisa Gerstner, the issue the author writes about is the importance of consumers knowing the difference between debit cards, credit cards and prepaid cards. If consumers do not understand the difference between the three cards and the way to use them, they could end up in financial disaster. If the consumer understands the card, then it can be useful and can be used to the consumer’s advantage. The article discusses which card offers the most perks, liability, and security, and which card provides more control. It also discusses the reasons consumers use different cards, example: most consumers use debit cards for groceries, utilities, and gas. The article also discusses some of the fees that consumers should be aware of when using the different kinds of cards. The author also mentions the new contender in cards, the prepaid card. She mentions a particular prepaid card she thinks is worth checking out, and gives some pros about using that prepaid card. The author provided many facts that can be researched and proven about the use of credit, debit, and prepaid cards. Facts mentioned in the article are: credit cards offer more protection against fraud and merchant disputes; the card issuer must investigate disputes with the merchant. If there is no previous balance, consumers get at least a 21-day interest free grace period between the statement date and the bill’s due date. More credit cards offer rewards on purchases than debit cards. Some credit cards offer introductory periods with no interest. Some credit cards offers purchase protection, car rental insurance coverage, and extended warranty on certain items. Some debit cards offer similar benefits. Merchants such as hotels and car rental companies may not accept debit cards and if they do, they will put a hold on cash in consumers’ checking accounts and the money won’t be