saving for your child’s college while on a tight budget

Posted on: 27 October 2020

There used to be a time when making a purchase ended with one of 2 questions: "Paper or plastic?" or "Cash or credit?" The two payment forms were both very common and were, if checks counted as cash, the only ways to pay for a purchase. But just like everything else in life, there is always something new around the corner.

Advances in technology and the exponential growth of e-commerce have created several new options in how to make the payment. There used to be a saying that "Cash is king". These new methods have caused the king to step down into a much smaller role in the world of financial transactions.

• Credit and Debit Cards - While credit cards have been around for a long time, their popularity has increased with the need to be able to process transactions from a distance. It is very hard to transfer physical cash to a seller who may be in another state or even another country. By being able to simply give the credit card number and complete the transaction, this barrier to trade is eliminated. The advent of the debit card gave an option to complete credit card–type transactions but without incurring debt by directly paying the transaction from the buyer's deposit account.

• Mobile Wallet Accounts - A number of new options have been developed which allow a consumer to deposit funds into an account with an online processor. When purchasing from a retailer who accepts payment from this particular processor, the buyer is able to instantly transfer funds from their mobile wallet to that of the seller. In most cases, this transaction is completed by simply passing the buyer's smart phone or other device over a reader. 

• Invisible Payments - In order to create further convenience and reduce transaction time, many retailers are now using saved payment methods. Remembering how the customer paid last time and offering the opportunity to use the same method for future payments allows the transaction to be completed without entering new information. Technology is even being developed that will allow connections such as a vehicle's hands-free link directly communicating payment information to a gas pump.

Of course, with the advancement in ease of payment with all of these technologies comes advancement in the nefarious methods used to steal such information. Continual efforts are being made to use artificial intelligence, biometrics and other methods to keep everything safe and secure.

To learn more, contact a resource like Swiped Solutions.