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Electronic Money

When we go shopping, other than cash, we can also pay via non-cash methods, such as Octopus card, credit cards, EPS and other types of electronic money.

Parents can shop with their children and seize the chance to explain the usages of the following types of electronic money, and their pros and cons when compared with cash.

Although e-monies are convenient to use, parents should remind children that they should be used careful.  Children should also keep accounts regularly to avoid overspending and protect their e-monies properly to prevent them from being stolen. 

 

 IntroductionComparison with cash
Octopus card
  • You need to add value to the card with cash before use
  • Place the card on the Octopus reader to deduct the transaction amount from the card
  • The card has a built-in high-tech chip for storing value and recording transactions

Pros:

  • Don’t need to carry lots of cash
  • Change free transaction

Cons:

  • Easily buy more than you need
  • May be unaware of the amount you spent
EPS
  • After paying with EPS, the bank will deduct the amount from your bank account and transfer it to the merchant’s bank account
  • The transaction amount depends on your account balance and the withdrawal limit set by the issuer 

 Pros:

  • Don’t need to carry lots of cash
  • Change free transaction

Cons:

  • Opening a bank account is required
  • Enough balance is needed
Credit card
  • After paying with credit card, the bank will make the payment first and collect it from you later
  • A finance charge will be charged by the bank in case of late payment

Pros:

  • Buy now and pay later
  • Don’t need to carry lots of cash
  • Change free transaction

Cons:

  • Credit card application approval from the bank is required
  • Interest applies for late payment
  • Easily buy more than you need
  • May be unaware of the amount you spent

  


22 June 2018