Swipe your debit card or stored-value card. Log on to the Internet and don't forget to pack your cybercash. Thanks to technology and enterprising banks and businesses, these choices are possible today, with many more on the way. An increasingly popular electronic payment option for consumers is debit cards, which immediately deduct payments from a bank account. Another type of stored-value card is the smart card, which replaces the magnetic strip with a microchip with a memory and can be reloaded through an ATM or special telephone.
Some smart cards can cover multiple types of purchases, including groceries, gas and stamps.
Another popular electronic payment alternative is direct debit. With this convenience, banks are pre-authorized to move funds electronically from individual accounts to appropriate recipients on a certain day of each month. These transfers typically include mortgage and car payments, insurance premiums, student loans, even alimony. On the flip side, the most popular method of receiving funds is direct deposit. About half of Americans authorize their employer to automatically deposit their paychecks into their bank account.