Consumer Credit1. Critique the use of bank debit cards. Bank debit cards are becoming a popular...

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Consumer Credit1. Critique the use of bank debit cards. Bank debit cards are becoming a popular alternative to using checks or credit cards. Investigate the advantages and disadvantages of using a bank debit card and answer the questions below.Here are some ideas to consider in your investigation:convenience to account holders float timerecord of transactionsfinancial privacy/safetycard loss/theft liabilitycheckbook balancingvendor acceptanceusage fees by banksusage fees by vendorsease of administration by banksease of administration by vendorsWhere did you get your information?Was it the most reliable resource? Why or why not?How could you have improved the reliability of your resource?How has technology, such as online banking, affected these aspects? Discuss any pros and cons about the affects of technology on the aspects of reliability.2. Your textbook defines an installment loan as a loan with regular payments (Cleaves, Hobbs, & Noble, 2014, page 428). Search the internet to find an article or application of a type of installment loan that you find interesting, that you encounter on a daily basis or that you find in your profession. Present this article or application to the class and explain why you chose the example. Find the amount financed, the installment price, and the finance charge of the installment loan. Include the URL for the site you used. Do not copy the text in the site verbatim. You should summarize your findings.

David · Accepted Answer

1) A debit card is connected to either a ledger or is paid before(prepaid) by  the cardholder. A 
debit card draws on the monies that the proprietor of the card has as of now kept with a bank.  
A creditcard is fundamentally a loan. When somebody utilizes a Visa, the bank gives the 
individual credit (an advance). Buys are totaled and charged month to month with interest and 
the client pays the loan boss back after some time.
 Credit Debit 
Where does 
money come 
from? 
Borrowing money from 
a bank.  
Funds taken from 
the money in your 
bank account.  
Can be used 
as: 
Credit card only Debit or Credit 
Card 
Line of 
Credit: 
Issued Line of Credit No Line of Credit 
PIN 
Number: 
No PIN number is used 
for most 
transactions. 
Picture ID 
asked for: 
Yes No 
Interest: Pay interest on the 
amount borrowed. 
No 
Credit 
History: 
Credit cards normally 
report account activity 
to one of the three 
major credit bureaus 
monthly. 
Does not have an 
impact credit 
history. 
Legal 
Liability 
laws: 
Strict. Consumer 
liability for credit card 
fraud is $50- must 
notify bank in certain 
amount of time 
Lean. Consumer 
liability limit for 
debit card fraud is 
$50-must notify 
within 48 hours
Risk 
involved: 
Low.  High, due to the 
fact they are 
attached to a bank 
account. (could lose 
all money) 
Fraud: These cards must Must 
prove that someone else 
has used the card. 
Loss of money 
possible 
Limit:

Consumer Credit 1. Critique the use of bank debit cards. Bank debit cards are becoming a popular alternative to using checks or credit cards. Investigate the advantages and disadvantages of using a...

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