This classic form of payment involves physical currency, providing immediate and anonymous transactions. However, it lacks the electronic tracking capabilities of digital methods and may pose security risks.

Debit cards provide direct access to funds from your bank account, offering a convenient and secure way to make everyday purchases and withdraw cash. They enable ATM transactions and payments at shops, serving as a versatile financial tool. Linked to your bank account, debit cards allow you to access only the available balance, ensuring responsible spending. With each transaction, the purchase amount or cash withdrawal is instantly deducted from your account. Debit cards are commonly used for daily expenses, ATM withdrawals, and online payments, making them essential for managing day-to-day finances efficiently and effectively.

Credit cards are like having a ready-to-use loan from a bank. They let you buy things or take out cash, even if you do not have enough money in your bank account. You can spend up to a certain limit set by the bank, based on your financial situation. Instead of taking money directly from your account, the bank pays for your purchases, and you pay the bank back later. Every month, you need to pay at least a minimum amount of what you owe. If you pay off everything you owe, you won’t have to pay any extra fees. But if you only pay the minimum, you’ll have to pay extra fees called interest on the remaining balance. These fees can add up fast, so it’s important to be careful. Credit cards come with other benefits too, like fraud protection and rewards programs. But they can also lead to debt if you’re not careful with your spending. It’s essential to use them responsibly and only borrow what you can afford to pay back.

A bank transfer is a way to electronically move money from one bank account to another. It’s like sending money from your account to someone else’s without using cash or checks. This method is commonly used for various financial transactions in business, such as paying suppliers, receiving payments from customers, or transferring funds between different accounts. Bank transfers are favored for their speed, security, and convenience. They offer a reliable way to make large payments or transactions without the need for physical cash. Moreover, bank transfers leave a clear electronic trail, making them a transparent and traceable method of financial exchange.

Direct debit is a convenient way to pay bills or invoices automatically. When you set up a direct debit, you give permission to a company or service provider to withdraw money directly from your bank account to pay for things like utilities or subscriptions. This means you don’t have to remember to make payments manually each month, saving you time and hassle. While direct debit offers convenience and ensures that your bills are paid on time, it’s essential to keep an eye on your bank account to avoid overdrafts or unauthorized charges. Make sure you have enough money in your account to cover the payments and regularly check your bank statements to ensure that everything looks correct.

 Mobile payment is a convenient way to pay for goods or services using a smartphone or tablet instead of cash or physical cards. This technology allows you to securely make transactions through mobile wallets, banking apps, or contactless methods. Popular mobile wallet apps like Apple Pay, Google Pay, or Samsung Pay store your card details securely and enable you to tap your device on a card reader to make payments at checkout. Simply link your credit or debit card information to the mobile wallet application on your device to get started with mobile payments.

Having a business bank account offers many advantages, but it’s important to note that it also comes with fees. These bank fees are charges imposed by banks for various services and transactions. Here are some of these fees:

Banks charge this fee to cover the expenses of managing your account. It is usually taken out of your account balance each month.

Using ATMs within your bank’s network usually doesn’t cost extra. However, if you use an ATM from another bank or a third-party provider outside of your bank’s network, you can expect to be charged a fee.

 Spending more money than what’s available in your account may result in an overdraft fee if the bank covers the shortfall. This fee can be significant, so it’s crucial to monitor your account balance closely to prevent it. Overdrawing your account can happen easily, but signing up for direct deposit ensures that money is regularly and automatically deposited into your account. This helps maintain a minimum balance and prevents overdrafts.

When you use your debit or credit card abroad or in a foreign currency, you may be charged a foreign transaction fee, usually a percentage of your purchase amount. This fee applies to transactions made outside your card’s currency or designated region. A foreign transaction encompasses any financial transaction conducted in a currency different from your own, including purchases made overseas, ATM withdrawals in another country, or online transactions in a foreign currency.

It is a fee that banks charge for performing a wire transfer. A wire transfer is a method of electronic funds transfer from one person or entity to another. It allows money to be sent quickly and securely from one bank account to another, often across different banks or even across international borders. The wire transfer fee covers the costs associated with processing and facilitating the transfer of funds between accounts.

Company tax, or corporation tax, is the tax paid by various entities like businesses, clubs, co-operatives, and informal groups on their earnings. Each country sets its own rules for this tax, and these rules may differ from one country to another.

For further details on business tax regulations in your country, click here.