What Are the Most Common Methods of Payment?

Whether you're visiting a store or buying something online, there are many different ways to pay for your purchases.
Redde Payments
4 min to read

What Are the Most Common Methods of Payment?

In the digital world, there's an endless number of ways that you can pay for things. You can use your smart phone to make a payment with Apple Pay or Google Pay, you can use a computer or laptop, or you might even pay with a smart watch. Ecommerce payments are becoming more and more popular every day, but they're not the only way that people pay for things these days. In fact, some people prefer traditional methods like cash and checks over newer electronic methods like PayPal because they are less worried about security issues. Let's look at some of the most common ways that people pay for things—both online and off—in this article.

Credit Cards

Credit cards are a popular payment method for both consumers and businesses. They're convenient for the consumer because they don't need to carry cash, and they can be used at brick-and-mortar stores, over the phone or online to buy just about anything. Credit cards have many security features, such as EMV chips, which make it harder for fraudsters to get away with identity theft through card skimmers. Unfortunately, credit cards also come with some downsides: they have a high rate of fraud; and you may get hit by interest charges if you don't pay off your balance in full each month. 

Debit Cards

Debit cards are linked to a checking account and can be used to make purchases in the same way as credit card. They're also a good choice for both in-person and online shopping because they have many security features like credit cards including EMV Chips. However, debit cards have a high fraud rate and can have some processing fees compared to withdrawing from an ATM. For business owners, these types of cards can yield a lower interchange rate, especially when ran in-person combined with a pin number. 


We still use checks in the United States, and they may be more common than you think. Although their use is declining, many people still use checks for payments, including paying rent and utilities. Checks can also be used for larger purchases, including buying a car or taking out a loan. However, checks are not just used for making payments. They can be used for other money transferable payments, including wages and salaries and as supporting documentation when verifying your business or bank account information.


Cash is the most common form of payment, and for good reason: it's anonymous and convenient. Cash transactions are not traceable, which can be a great way to keep your records private. However, cash can be useful when making a quick purchase. But as a business, this also requires you to keep a safe on your premise and make frequent trips to your bank for deposits. Cash is also hard to track and account for, which makes it difficult when trying to manage your finances.

Contactless Payments

Contactless payments are a fast and easy way to pay for items. The technology allows you to hold your card or phone in front of a payment terminal without physically touching the machine, allowing you to stay mobile when paying for purchases. It’s also more secure than using cash or credit cards because there's no need to enter your PIN number when making an authorized purchase.

Contactless technology has been around since 2003, but it didn’t become popular until 2015 when Apple Pay was launched in Canada. Since then, contactless payments have taken off as more and more retailers offer the service at their checkout counters. Some examples include:

  • Starbucks
  • McDonald's
  • Subway
  • Target

Direct Deposits/ACH

If you want to pay your bills, direct deposit is the way to go. Instead of writing a check, or even paying with cash, you can simply have the funds withdrawn directly from your account. Direct deposit is often used for payroll and government benefits such as Social Security payments. It’s also a great alternative for bill payments; many utilities and internet providers allow customers to pay their bills online through direct deposit, which means they don’t need paper checks anymore!

Venmo, Zelle and Cashapp

Transferring money between accounts is another common way to pay. You can transfer funds from your checking account to your savings account, or vice versa. You can also use this method of payment to send money directly to another person's bank account. Venmo, Zelle and Cashapp are some of the most common transfer options for making payments from one person to another! These services work by connecting your bank account to the service and allowing you to transfer funds to another person using the same service by locating their profile within the service itself.


In-person and over-the-phone payments are more traditional payment methods that are still popular in our digital world. Ecommerce payments are not only growing but also getting more sophisticated with introducing new payment methods that can make it easier to pay online. New ecommerce features include the ability to pay with your fingerprint, making it easier for you to check out. This is just one of many new payment methods that are being introduced as ecommerce grows and becomes more popular.

Another trend is to give customers more options for how they pay while making sure they can easily track their spending. This includes offering options like automatic billing, also known as recurring billing; giving people multiple ways to pay (such as debit card, credit card or direct deposit); and showing smart notifications that prompt for additional information when there's a sale or promotion available for customers who use certain payment types (for example, if you sign up for an auto-renewal plan). It’s important to remember that any payment method is valid, and there are many reasons people choose one over another. The key is to find the one that works best for you and your business so that it becomes a seamless part of your daily routine. If you'd like to implement any of these payment types for your business, let Redde Payments help you get started. We offer a variety of payment gateway options, including those that allow you to accept almost any type of payment method. You can also set up recurring payments and automate your billing with our easy-to-use platform. Get started here and chat with our team of experts!

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