What's the difference between credit card consumption and cash consumption?

Refers to the direct payment of cash as the intermediary of commodity transactions. It is closely related to spot trading. Although it is an ancient trading method, it runs through the whole historical journey after the emergence of commerce.

In cash transactions, the movement of commodity value, the transfer of ownership and the movement of commodity entities are completed at the same time, which is the essential feature of cash transactions. The function of cash transaction is to ensure the reverse movement of commodity circulation and currency circulation.

2. Credit card consumption

It refers to a settlement method in which customers use wealth management accounts, Peony Smart Card E Times, Peony Smart Card, Peony International Card, Peony Credit Card, Peony Credit Card and various co-branded cards to make credit card payments, and the money is deducted from relevant bank cards.

Characteristics of extended data services

1. SMS billing service. If you apply for SMS reminder service through online banking, you can receive SMS to inform the account dynamics in real time after spending by swiping your card.

2. Safe and fast. No need to carry a lot of cash to ensure the safety of funds.

3. It's free. When customers use credit cards, they don't have to pay any handling fees.

4. There are many value-added services. Banks regularly carry out points promotion and points redemption activities for credit card consumption, which brings unexpected surprises to your credit card consumption.

Advantages and disadvantages of cash

1, which is easily limited by time and space.

For transactions that are not conducted at the same time and place, this transaction method cannot be adopted. For example, if one person is in Shanghai and the other person is in Guangdong, this transaction method cannot be adopted when the two places are separated.

2. Restricted by different issuers.

The purchasing power of cash units and representatives in different countries is different, which brings inconvenience to transnational transactions. If China citizens travel to the United States, they can't bring RMB directly. They must change it into dollars before they can spend it in the United States.

3. Not conducive to large transactions.

Large transactions involve a huge amount of money, so it is not only inconvenient but also unsafe to use cash as a means of payment. For example, in the transaction of advanced instruments and equipment, the amount is generally tens of millions, so it is obviously very unsafe and inconvenient to carry so much cash.

Reference Source Baidu Encyclopedia-Credit Card Consumption Baidu Encyclopedia-Cash Transaction