Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Methods of Payment
Definition, advantage and disadvantage of each method of payment
| Term | Definition |
|---|---|
| Cash | "Notes and coins in a wide range of denominations" +: widely accepted form of exchange -: can be lost or stolen |
| Credit Card | "issued by financial institutions allowing customers to delay payment for goods and services and payback on a later date" +: Allows period of credit which is interest free -: Can encourage customers to overspend |
| Debit Card | "Issued by financial institutions allowing customers to pay for good and services only with funds they have" +: Will stop you going into debt -: Minimum spend |
| Direct Debit | "An agreement with the bank for a 3rd party to transfer money from your account on a set day to pay for goods and services" +: Amount can vary to ensure payment matches bill -: The payer determines how much to take, so budgeting can be tricky |
| Cheque | "A written order to the bank for a specific amount to a specific payment from one person to another" +: Low risk form of payment as can only be cashed by the specific payee -: Viewed as old fashioned |
| Electronic Transfer | "Payment is directly from one account to another" +: Almost instant -: Risk of loss if not set up correctly |
| Standing Order | "An agreement made with the bank for a fixed sum of money to be transferred to a 3rd party on a specific date on a regular basis" +: Same amount payed each time so easy to budget -: Payments continue unless cancelled |
| Pre-paid Card | "Money is uploaded to the card with transactions then withdrawals to reduce the balance" +: Can set a budget to avoid overspending -: No protection if lost |
| Contactless Card | "Cards with an embedded chip to allow customers to wave card at reader to make automatic transactions" +: Fast and efficient method of transaction -: only accepted for small amounts |
| Charge Card | "Issued by financial institutions to allow customers to delay payments for goods and services but must be paid off in full at end of the month" +: Allows short period of credit -: Must be payed in full |
| Store Card | "Issued by a retail outlet to allow customers to delay payments for goods and services(store credit card)" +: Allows short period of interest free credit -: Only accepted in the specific stores and in store |
| Mobile Banking | "The ability to carry out financial transactions using mobile devices" +: Convenient to use -: Not available on all phones and requires specific app |
| BACS(banker automated clearing service) | "A system that allows payment from one account to another within 3 working days unless faster payment is available then it is 2 hours" +: No additional costs -: Transfer amount limit |
| CHAPS(clearing house automated system)` | "A system that allows transfers from one account to another usually on the same day" +: No limit on amount that can be sent -: Usually a fixed charge to make transactions no matter on how much is transferred |
Created by:
wheeldxn
Popular Finance sets