WAYS OF PAYMENT IN TOURISM. Ways of payment in tourism: cash travellers cheque (traveler’s cheque)...

WAYS OF PAYMENT IN TOURISM

Ways of payment in tourism:

• cash

• travellers cheque (traveler’s cheque)

• debit or credit card

• voucher

What are some advantages and disadvantages of paying with cash?

MAKE A LIST.

Advantages (of using cash)

- Constant access to money

- No need for a cash machine

- No extra fees

Disadvantages (of using cash)

- Easily robbed

- Usually not used to pay in large amounts

- Must be constantly cautious

Traveller‘s Cheques

• Issuing banks include: American Express, Thomas

Cook, Visa, Post Office Money, …

• Preprinted, fixed-amount

• Signature authorizes unconditional payment to payee as

a result of having paid the issuer for that privilege

What are some advantages and disadvantages of traveller’s cheques?

MAKE A LIST.

Advantages (of using traveler’s cheques)

- Very difficult to use if stolen

- Signed when purchased

- Countersigned when redeemed

- “Attractive” exchange rates which can be locked

into

Advantages (cont.)(of using traveler’s checks)

- Easy to replace when lost or stolen

- (current checks cancelled)

- Replacement checks issued

- Combined funds when traveling with someone

else

Eurocheck

• First introduced in 1969

• Alternative to traveler’s check

• Issued by a European bank

• Available in various currencies

• Discontinued as of January 1, 2002

Declining Use

• Traveller cheque use has been declining since the 1990s

• Replaced by ATM cards, debit cards, credit cards

Apple Pay

Debit cards

• Debit card (a.k.a. bank card or check card) = plastic

payment card

• Substitute for cash when making purchases

• Funds are immediately transferred from the cardholder's

designated bank account when using a debit card

• Fees may apply

Credit card

• Plastic payment card• Credit limit

– Balance transfers– Cash advance (cash withdrawal)

• Interest payment– Monthly payment– Minimum payment

• Annual fee

ATM Skimming

• Preventing ATM Skimming

• A simple solution

Debit or Credit?

• Repairing credit

• Stockpiling rewards

• Making a large purchase

• Going on vacation

• Shopping on-line

Applying for a credit card?

• Regulary salary (wage) or pension

• Account holder

• Credit rating

• Other terms and conditions

Erasing Credit Card Debt

• Get a low interest rate

• Track your expenses

• Spend less

• Prioritize your payments

• Earn more money

What’s that?

• Electronic funds transfer

• Wire transfer

• Giro transfer

• Money order