In Ecuador there are four means to pay for their purchases, but many are unaware of which are suitable for certain circumstances.
The first thing you should do is to know what are the advantages and disadvantages of each method of payment (we will give details below), and, second, to analyze the purchase, its cost and the amount of time it will spend with your creditor to know the most convenient mean to pay.
It is one of the most effective because the user consumes with own money, without going into debt when making a purchase. When you use a debit card, the account balance decreases and must not pay it later, as you must do with a credit card.
At the same time, you do not need physical money in your purse or wallet, which gives you more security. If your wallet is lost or you are a theft victim, you can lock the cards and your money stays in your bank account.
It is good to use the credit card for purchases involving a higher cost than you have in both debit and cash, and if it is a needed good. The monthly amount payable should not exceed 30% of your income.
Among the advantages of using credit card are that you can increase your credit score, as long as you are responsible with your payments.
Paying with credit card is convenient and safe. You avoid carrying cash. If you are a victim of theft it is not only possible to block your card by digital means, phone or in person, but it is also protected with insurance for such eventualities.
First, the cash has become the less comfortable mean. One must go to the bank or ATM, withdraw money, count the bills and that will take away your time. Carry cash will also bring greater risks, because if you save them in your wallet and this one is lost or you suffer from robbery or theft, you will lose all your bills; this wont happen if you have only cards, because it is possible to block them and your money is still in the bank account or you maintain the quota on the credit card.
Despite these disadvantages, having cash available can be an excellent way to avoid overspending. It will also allow you to decide exactly how much cash you are willing to spend, similar to the debit card.
This system is one of the latest means in Ecuador, operating since 2016, it was driven by the actual government. Through the electronic money, online transactions from any mobile phone, regardless of the technology or the operator, can be made.