Suppose I have a friend who had given me a monetary reward of $75 in person.
Which medium should he or she have chosen and why?
- Cash - The one I think is the best (no fees, no restriction on where it can be used)
- Cheque - Possible fees for moving from one account to another
- Pre-Paid Visa - Possible activation fee, usage fees
- Gift card - Can only be used at certain locations
As far as I know, the order of preference should be as listed above (cash then cheque then pre-paid visa etc.) for the reasons listed.
A reason why cheque would be preferred is it is easier to keep track of who you have given money to and how much.
A reason why pre-paid visa would be preferred is that it can be used to purchase items online (as opposed to cash).