Collin College Different Payment Methods Discussion Paper

I’m stuck on a Finance question and need an explanation.

You are the owner of a small sandwich shop. A buyer may offer one of several payment methods: cash, a check drawn on a bank, a credit card, or a debit card. Which of these is the least costly for you? Explain why the others are more expensive. 

PART 1: Initial Post

Respond to the question thoroughly with a minimum of 150-200 words.

1. It should include at least one reference from reputable sources (peer-reviewed journal articles and/or published books). 

These must be cited correctly in APA Sixth Edition format. 

PART 2: Responding Posts

Reply to at least one classmate’s post. Your response to your classmate’s discussion needs to be substantive by adding something new to the original comment. Responding Posts should include a level of depth that enriches the discussion (i.e., reflection on their response, application of their comment to the workplace, reference to the literature, etc.).

CLASSMATE’S POST >>write a respond to this post below for Part 2 of the assignment

• When it comes to payment methods “Consumers choose payment-timing options that best suit their financial strategy to manage payments in pursuit of their consumption objectives” (Agrawal and Gentry, 2020). For a small business it is especially important to have several means of payment. Making sales easier for the customer will be more beneficial because it could make them want to come back, which can make you more money and that could help you grow your business. Although all sales are beneficial the least costly and the fastest payment method is cash. Cash is instant, easy, and has no fees attached for accepting it. Another free method of payment are checks, however it is not instant and it could bounce and that would be a whole mess. When it comes to a small sandwich shop I think checks would be the worst payment method. Credit cards and debit cards are used for the majority of transactions because of its convenience. A customer can choose to have the money taken from the bank instantly with a debit card, or you can pay it back later with a credit card. This goes back to payment timing methods and its convenience. This is good for the customer but, credit cards and debit cards both have a fee for accepting the mean of payment but since it is not as common to carry around checks or cash anymore this is something a small business will need to adapt to. In my opinion, I would say cash is the best way to receive payment.