How to Choose a Suitable Payment Method?

Gone are the days when everyone used to use cash to pay for their expenses. Credit cards and debit cards have become more convenient to use nowadays. People avoid using cash and rather choose to make card payments. 

However, there still might be some situations when using cash is the best option. In this post, we will take you through multiple situations to help you figure out where to use cash, debit or credit card.

Cash, Credit Cards, Debit Cards – When to Use These Payment Methods?

Here are the most convenient payment methods to use when paying for your expenses. Let us check out when to use which one.


Most people nowadays do not carry cash, and if they do, they just make sure that they have enough cash to be used in case of an emergency.

Cash certainly has power and stands as a king in the financial world for some people. It acts as a go-to budgeting standby for those who work their way out of debts. 

When Should You Use Cash?

Here is when you must consider using cash to manage your finances.

  • To Limit Spending: Cash plays a critical role when people want to limit their spending. It is said that people spend less money when they have it in cash. They see cash leaving hand and quickly connect it with the thing they are spending it to buy. People don’t make such associations with credit cards.
    If you are also trying to limit your spending, make sure you use envelopes full of cash for budgeting your money rather than using a credit or debit mode of payments when tracking your purchases. Seeing the amount of money you have left helps you manage your finances even better.
  • To Deal with Emergencies: You can use cash to deal with any kind of emergency as it is a financial option that is accepted everywhere. It is recommended that you carry a wallet with some cash in it to easily handle financial emergencies when you can’t use a debit or a credit card.
    If you have cash in hand, you can rely on it to deal with emergency expenses such as car repairs, broken home appliances, etc.
  • To Make Small Purchases: Some small stores in the UAE have a purchase limit for using a credit or debit card. If you purchase items worth less than that limit, you need to pay using cash. So you can also use cash to make small purchases at small stores.
    For example, you are in a store that accepts card payments only for transactions of more than AED 40. Here you need cash if you are buying something of an amount less than AED 40.
  • To Make Healthier Purchases: As per a study, it has been discovered that people using cash make a less impulsive purchase of items like unhealthy food products including chips, ice cream, cookies and much more.
    Even if you try to remember your last trip to a supermarket or grocery store, you are more conscious when using cash than a credit or debit card.

Credit Card

Credit Cards come with a lot of financial power if you know how to use them right. Make sure you pay your credit card bills on time so that you do not have to pay interest on the outstanding bills. By doing this, you can not only manage your finances well but build an excellent credit Score for yourself.

When Should You Use a Credit Card?

Here is where you can consider using a credit card to manage your finances.

  • When Travelling: Credit Cards are ideal payment methods when you are travelling. You can use it to manage multiple expenses, including paying for car rental, booking hotels and flights, etc. Another best thing about credit cards is that you have no liability for fraudulent charges when carrying one. Additionally, you can freeze or cancel your credit card anytime in case you have lost it or it’s stolen.
    Moreover, when you are travelling outside the country, you can get better foreign exchange rates when using a credit card. In fact, most banks in the UAE provide a no foreign fee benefit on different types of bank account cards. These cards also come with various exciting deals and discounts when it comes to making travel purchases.
    Most credit cards in the UAE also offer travel insurance, which means you get coverage against loss or damage caused to you while travelling.
  • When You Want to Earn Rewards: Most banks in the UAE offer exciting reward programs and deals on credit cards. You can earn a reasonable amount of reward points by using your credit card to make purchases and paying for other expenses. Based on these credit card policies, you can then convert your reward points into cashback, miles and much more to avail them easily.
  • To Pay for Work Expenses: Most companies and business owners in the UAE provide their employees with business credit cards to pay for work-related expenses. This helps them keep track of their professional expenses and there is no need to hand over cash to their employees.
    On the other hand, this is also beneficial for the employees. They can submit their expense report and get the amount reimbursed or paid by the company. So they do not hesitate in spending for business when required, with them being assured that they will surely get the same reimbursed later on.

Debit Card

All the banks in the UAE provide debit cards with different types of bank accounts. Debit cards are for people who don’t want to deal in loose cash. They have funds in their bank accounts and can use their debit cards to pay for their expenses with great ease.

When Should You Use a Debit Card?

Here is where you can consider using a debit card to deal with your finances.

  • To Stay Out of Debts: You can use your debit card when running short of cash to avoid getting into huge debts. As your debit card helps you withdraw funds from your bank account, you can actually spend what you have in your account. A debit card plays the same role as a credit card does. It’s all just without worrying about increasing your debts.
  • To Pay for Daily Expenses Conveniently: You can use your debit card to conveniently pay for your daily expenses, including groceries, gas bills or other smaller purchases like buying a coffee and much more.
  • When Bad at Paying Bills: You can also consider using a debit card if you are bad at paying bills. A debit card lets you spend money without having a bill generated at the end of the month. Most banks in the UAE offer online banking tools to help account holders pay their bills with ease. With these services, you can easily manage your funds and do not need to worry about massive bills to be paid.
  • When Not Carrying Cash: You can use a debit card to pay for your needs when not carrying cash in your wallet. A debit card is as good as cash in hand as it allows you to use the funds in your bank account.


To understand which payment method is the best for you, you first need to consider different factors and analyse your financial needs. There are certain cases when cash is the best option, whereas using a credit card can be wise in some cases. We would suggest you to identify your financial goals and then choose your default payment method. 

You can also consider using all three payment methods. For instance, you can use a debit card or a credit card to pay for expenses involving huge purchases and travel bookings. On the other hand, you can use cash to meet unexpected expenses.

We can help you get both a debit and credit card based on your financial preferences. You can contact our financial experts anytime to explore your financial options. 

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