Which of the following payment types require you to pay upfront?

Money orders & pre-paid cards are the payment types that require you to pay upfront.  

These types of payment method require that you pay upfront and get a check which is available in banks, retails stores etc.

A paper document used to make payment, similar to check is known as Money order. It is only issued when after buyer pay cash or other forms of guaranteed fund because they are prepaid.

The people that often used money orders do not have standard checking account, money orders is acceptable and can be converted to cash.

This method of payment is acceptable and is mostly used for paying debts, and it can be purchased from financial institution for a small fee. Some of the places where money orders are sold include post offices, grocery stores, and gas stations. This makes it easy for anyone to purchase.

Pre-paid cards are often called everyday cards. It is plastics and an alternative to carrying money around. When you purchase prepaid, you load it with money and top it up when balance goes down. They are not like credit card where you run debts on. It is also ideal for those who have no bank account because this type of payment method is not linked to a bank account.

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KEYWORDS:

Money orders & pre-paid cards are the payment types that require you to pay upfront. You have to pay first before you can use money orders and pre-paid cards.  

EXPLANATION:  

A money order is similar to checks. It is considered a safe payment form just like checks. A money order is pre-paid. It is only issued once you have paid some amount of money to afford it with cash or other forms of guaranteed funds. This paper document is used to make payments. When you buy a money order, you have to specify who is qualified to receive the funds. The one who becomes the receiver of the money order is called payee. You have to fill the payee name on the money order to make sure that it is a specific payee who is qualified to receive the money order.  

Moreover, you can get a money order in banks, credit unions, convenience stores, supermarkets, United States Post Offices, money transfers, and other places.

A pre-paid card is an alternative to carry electric money around. This payment type is often called everyday cards because many people use it to make daily payments. In order to use the pre-paid card is daily life, first, you have to buy it in specific shops. Once you have bought it, you have to top-it-up with some amount of money so that later, you can use it to make payments. It is just like transferring and transforming your money into digital or electronic money in the pre-paid cards. When you already have the amount of money in your card, you can make payment in offline stores or even online shops.

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If you’re interested in learning more about this topic, we recommend you to also take a look at the following questions:

1.What is the primary difference between hard money and soft money?  

2.What country does not use the euro as its currency?  

KEYWORDS:  payment types, pre-paid card, money order, payment types that require you to pay upfront

Subject: Social studies  

Class: English

Sub-chapter: Payment types  

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