What are the existing payment methods and their advantages?

Understanding everything about the payment methods available on the market today is essential so that you can choose the one that offers the most advantages for your profile and moment of purchase.

We have selected the most commonly used ones! Check out information on each of them below.

Chip card and magnetic card

The chip card and the magnetic card are currently the preferred payment method for consumers across the country. Although it's not the most modern option (we'll explain a bit more about digital payment later), it's still popular and works for a large part of the population.

Known as debit and credit cards, the options are defined by companies - known as card flags - that regulate and offer the services.

The credit card is widely used and advantageous because it allows purchases of greater value and purchases in installments, as well as giving breath to the buyer who does not have the money in question in the current account at that moment.

Debit cards, on the other hand, work in sync with a banking institution. The money available is that which already exists in the account and, when the purchase is made, the value is automatically debited from the total amount. It always works as a cash payment.

In both cases it is necessary to have a card machine that accepts the flags in question, and the shopkeeper is responsible for this.

Cash

Cash has been used for hundreds of years by humans and is already part of our history and who we are. All payment methods existing today are in some way an offshoot of cash payment itself, always developed as a way to make the process easier, simpler or advantageous for one of the parties.

Historically speaking, we went from objects to coins and then to paper notes. In the 13th century, Marco Polo and other western travellers brought the concept to Europe. In 1657 in Sweden, Stockholms Bank was the first European bank to print banknotes.

With modernity, it is falling into disuse and the trend is that the physical circulation of money will simply cease to exist as the years go by.

Bank payment slip

Boleto Bancário is extremely popular as a payment method. It accounts for the second largest share of the market when it comes to this, mainly on account of online commerce.

Not counting purchases such as educational and health institutions, car parks, tickets and many other services and products that allow payment to be made this way.

However, it has some negative points, mainly for the entrepreneur. The fee charged for issuing boletos in banks is high. In addition, the consumer may decide not to pay that bill, since nothing prevents him from printing the paper and simply not making the payment.

Online transfer

Transfers are also popular payment methods. Today, there are two different modalities available in the country's institutions: TEC and DOC. The difference between them is that the first falls on the recipient's account on the same business day, while the second only one business day after the operation.

A transfer is nothing more than a movement of funds between a buyer and a company. It is easy and safe to do, but it takes longer to pay.

It is not very common to make this type of payment in the country because of the lack of confidence in giving your bank details to people you don't know.

QR Code

The QR Code is one of the most modern ways to make a payment, and best of all, you only need a mobile phone to complete it.

It is secure and extremely efficient. You can enter any kind of information there, from websites to even, of course, payment information.

There are several apps and platforms that already allow you to make payments using this type of service. You tell the app the amount to be paid and the establishment in question scans your code, automatically debiting the amount from your account. Incredible, isn't it?

NFC

NFC is another form of digital payment, just like the QR Code. The acronym NFFC comes from the expression Near Field Communication.

It is simply a different way of transmitting data without any kind of wire, just by bringing a device close to it. Today, we have cards that rely on this technology, but it is also applicable to mobile phones and wearables.

NFC generates a radio frequency that allows you to exchange data over a short distance for a short period of time. It's fast and secure.

Check

The cheque is a payment method that has passed its golden age. We can think of it as a precursor to credit and debit cards. It was one of the most popular ways to pay in the last century.

It is a credit note in which a person gives a financial institution an order to pay a certain amount of money, which will be debited from their current account. The possibility of fraud is enormous.

Today, it is also falling into disuse. Shops no longer accept the piece of paper that promises a certain amount of money, simply because it lacks security. The cloning of this document was one of the main reasons for the rise in the issuing of cards by banks.

Did you enjoy learning more about payment methods?

Understanding about payment methods, their advantages and history is paramount in order to use each of them in the right way, being aware of how they work.

It is much easier to feel safe and secure your rights when you understand exactly what you are doing with your money, isn't it?

Here at Alymente we want you to feel comfortable and secure with the way you make your digital payments, so there's plenty more content like this on our blog.

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