- Internet banking
- ADVANTAGES
- On-line banking is convenient and available at any time of the day.
- It is a portable way of banking, you can access your money from anl.where in the world.
- Transactions are made quicker and more effrciently.
- There are various functions that can be performed at once, such as making payments and getting statements.
- DISADVANTAGES
- available at any time of the day.
- It is a portable way of banking, you can access your money from anl.where in the world.
- Transactions are made quicker and more effrciently.
- There are various functions that can be performed at once, such as making payments and getting statements.
- You need to have a computer available.
- Bad Internet or WiFi reception will not allow you to make your payments.
- You have to be registered on the system in order to make use of the facilities.
- Some banking sites are not very user friendly.
- There is a possibility of fraud.
- Errors can lead to bigger problems, for example entering an incorrect account number and paying a stranger by mistake.
- Electronic Fund Transfers (EFT)
- ADVANTAGES
- Fast and convenient.
- Payments are secure.
- Less expensive than cheque payments.
- DISADVANTAGES
- Bank charges are high.
- Transactions are very difficult to reverse if the incorrect information is used.
- Telegraphic Transfers (SWIFT)
- ADVANTAGES
- Faster service than other conventional methods.
- Money transfer is guaranteed in the required currency.
- Can be used for different types of financial transactions such as payments and gifts to or from overseas people.
- DISADVANTAGES
- There is a time limit for collecting and converting the money into ZAR.
- The transaction needs full account details before it can be processed.
- Admin fees and commissions are charged for the transactions.
- Takes long a process (about a week).
- Bank Drafts
- ADVANTAGES
- Prevents the need to carry cash.
- Can be replaced if lost or stolen.
- It can be posted or transferred to many people.
- Bank guaranteed.
- Available in most currencies.
- DISADVANTAGES
- Can take a long time to clear.
- Bank charges and commissions are charged on all transactions.
- Has to be deposited into a bank account,
- Only valid for a certain period of time.
- A replacement fee is charged in the case of loss or theft.
- Credit Card (Visa, Mastercard, American Express, Diners Club)
- ADVANTAGES
- Allows the client a credit line which means you are seen as reliable when applying for loans, or other financial assistance.
- Allows one the flexibility to buy now and pay later.
- Increases one's purchasing power.
- You have the card to use in case ofan emergency when cash is not available immediately.
- DISADVANTAGES
- Many people tend to over spend money that they dont have.
- There are higher interest rates charged on these cards.
- There is a lot ofcredit card fraud.
- Foreign Bank Notes
- ADVANTAGES
- Accepted worldwide.
- Convenient and easy to use.
- Good for small expenses.
- Some places only accept cash.
- Always useful to carry cash in case of problems with other forms of foreign currency.
- DISADVANTAGES
- Cannot be refunded if lost or stolen.
- A weak conversion rate will result in a loss for the customer.
- Commission is payable during exchanges and may differ from facility to facility.
- Bank notes are not insured.
- Traveller's Cheques (Very seldom used and not widely accepted any more)
- ADVANTAGES
- Very secure.
- They cannot be cashed at an insecure place.
- Only the person who has signed it can cash it, which allows for security.
- Traveller's cheques are easier to carry than cash and safer than cards.
- DISADVANTAGES
- One has to be near a bank or wait for a bank to open in order to make use of the cheque.
- Cheques may be post-dated which means you have to wait before using the money.
- Only the person it is signed to can cash it, therefore ifthis person is not available, the cheque cannot be used.
- Pre-loaded Foreign Debit Cards (Cash Passport/Travel Walleti International Travel card)
- ADVANTAGES
- Money can be drawn from ATM's.
- One can load more money onto this card than a normal debit card.
- ATM fees are fixed wherever you go.
- Card can be stopped or cancelled if lost or stolen.
- Safe because it is pin protected.
- DISADVANTAGES
- Not accepted everywhere.
- No credit facilities are available on this card (overdraft).
- The exchange rate is fixed on the day it is purchased.
- A minimum amount must be loaded on to it.
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