Indulge your need for retail therapy safely and sensibly

Shop smarter and avoid the dangers of overspending – no one needs extra hassle in life. That’s why it makes sense to choose ways to pay for your stuff that won’t leave you in the red. And, when there’s so much to buy on the web, stay safe while you shop online.

Depending on where and how you shop, there are a few ways to pay.

On the high street, stores generally accept cash, credit cards, debit cards or prepaid cards.

On the internet your options are more limited as most online payment methods only admit adults over 18. Whatever payment type you choose there are good and bad things about all of them – here are the facts…

CASH

Cash is accepted almost everywhere you shop and using it is quick and easy. It’s simple to keep to your spending limits with cash – after all, it’s not hard to add up what’s left in your pocket. Plus, there are no charges or statements at the end of the month. However, without statements it might be harder to keep track of where you have spent all your money so if you’re trying to save then having all your money in cash might not be the best thing to do.

Another disadvantage of cash is that if your wallet gets lost or stolen, you can’t claim the money back or cancel it like you can with a card. It’s no good for paying for big stuff – no one feels safe with a few hundred quid in their pocket!

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CREDIT CARDS

In most countries, you only qualify for a credit card once you turn 18, so although it’s not something available to you at the moment it still pays to know a bit about how they work.

With a credit card, you buy now and pay later. If you don’t pay off everything you’ve spent each month, you’re charged interest on the amount you’ve borrowed. You’ll need to know interest rates and the fees that come with borrowing money to get the best card for you.

Credit cards can be very useful if you have a lot of expenses all arriving at once and, with regular statements, you are able to keep track of your spending. If your card is lost or stolen, you can cancel it and you won’t have to pay for what’s bought on it afterwards – as long as you haven’t shared your PIN with anyone else.

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DEBIT CARDS

A debit card lets you pay for things directly from your bank account or withdraw cash at an ATM. Paying with the card is easy and the money is taken from your account immediately. Debit cards combine the convenience of cash with the security of cards and regular statements enable you to track what you’ve spent.

Banks have different policies about the age at which they’ll offer you a debit card. And sometimes they prefer to give you an ATM card which can be used for withdrawing cash, but not for paying for things in shops. You should ask your bank what they offer to get the right card for you.

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PREPAID CARDS

There are two types of prepaid card: a disposable card and a reloadable card. Most of the gift cards you see in major shops are disposable and are thrown away once the value on them has been spent. You might also be given a Visa gift card which works in the same way, although you have a much wider choice as to where you can spend the money. All Visa cards can be used anywhere you see the Visa sign.

With Visa reloadable prepaid cards, you have a card that can be loaded again and again. Because they are preloaded with money, you can’t spend more than you have loaded on the card. If it’s not on there, you can’t spend it!

If you want to try and keep to a budget, you can usually set spending limits to help you stay in control and the cards can be loaded by you, your parents or other adults approved by your parents. It’s a good way to learn to manage your money with no danger of overspending.

It may be harder to keep track of what you’ve spent during the course of your day than with cash, but it’s easier to keep track in the long-term. They’re also a more secure alternative to cash – as you can cancel them if they’re lost or stolen.

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You can use a debit or prepaid card to pay online yourself, or ask an adult to pay with their credit card. With your own Visa prepaid card, of course, you won’t need to keep asking mum and dad – you’ll be able to pay yourself!

There is no safer way to pay online than with your Visa card, as it offers great protection against fraud, damaged or faulty goods. If you have a problem, contact your bank who can help you to get your money back. For more information about this look at your bank’s terms and conditions.

Despite the protection offered by your bank, you should still take precautions to avoid online fraud. Here’s our checklist of things to look out for:

• Check for an unbroken key or lock icon at the bottom of your browser window when you pay – this means your card details are being encrypted securely
• Use the latest version of your web browser and check your operating system is up to date
• Shop with sites you know about, or research to ensure they’re honest and reliable
• Keep a good record of what you’ve bought and spent
• Add another layer of security by signing up for Verified by Visa. This service makes sure that both your card and the website you’re using are genuine

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