3.2 Electronic payments from current accounts

Question 1

Standing orders

Answer 1

• instructions to pay the same amount of money to another account on a regular basis

Question 2

Direct debits

Answer 2

• type of automatic payment set up for current account
• give permission to provider to pay regular bills
• can be diff amounts

Question 3

How direct debits + standing orders can be cancelled

Answer 3

• cancel at any time for free only if holder has enough money in their account
  By:
  -Writing
  -Over phone
  -Online

Question 4

Direct debits guarantee

Answer 4

All providers that accept instructions by direct debit agree to refund the account holder if there is an error with transaction

Question 5

Online banking

Answer 5

-Holder can give instructions for transactions to provider via internet

• have to register to access
• enables holder to set up regular payments (standing,direct) + one off transfers

Question 6

Before Faster Payments

Answer 6

-bacs
-up to 3 days to electronically transfer

Question 7

Faster payments

Answer 7

-Ensures payment arrives within 2 hours
-free
-Many providers set a max value that can be transferred

Question 8

CHAPS meaning

Answer 8

Clearing House Automated Payment System

Question 9

What is CHAPS

Answer 9

• same day automated payment system
• Used for very high value payments
• Can have a fee

Question 10

Mobile banking (app)

Answer 10

• Give instructions on phone
• Check balances,
• pay in cheques digitally,
• set up direct debits and standing orders
• transfer

Question 11

April 2014

Answer 11

Use faster payments on mobile

Question 12

Online payment services

Answer 12

E.g Paypal
- Pay each other without details
- link debit or credit cards

Question 13

Advantages to online payment services

Answer 13

• fast
• safe
• convenient
• most free
  -Automated payments can be set up to make repeated transactions

Question 14

Disadvantages to electronic payments

Answer 14

• security
• risk account holder can make a mistake