Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business Unit 2 > 3.3 > Flashcards

3.3 Flashcards

1
Q

Name the different types of payment methods

A 
Cheques 
Debit cards
credit cards
cash
Bank payment
Digital Online
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

who might a business need to pay

A 
Employees
Suppliers
Utility Companies
Travel Companies
Hotels
Transport providers
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is a cheque

A

Cheques are paper based form of payment available through banks, a cheque is effectively seen as an instruction to the bank to pay money from your bank account into another bank account.

The writer of the cheque (making the payment) is called the drawer
The receiver of the cheque ( getting the payment) is called the payee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Advantages/ Disadvantage of cheque for the payer/drawer

A

Advantages

  • No need to obtain cash so safer for large amounts of money to be sent
  • Can be sent through post

Disadvantages

  • Paper based so can be lost
  • May require more than one signature (business cheques)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Advantage/ disadvantage of cheques for payee

A

Advantages

  • No need to store large amounts of cash
  • Can be post dated to enable future payments

Disadvantages

  • Can take 3-5 working days for the funds to be received
  • Cheques can bounce if the payer does not have enough money
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is a Debit Card

A

A bank card allowing payments to made from the payers bank account

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Advantages/ disadvanatges of debit card to the payer

A

Advantages

  • No need to carry cash
  • Can be used online to make payments
  • Can be accepted in most payments

Disadvantages

  • Must have sufficent funds otherwise payment will not go through
  • Fraud as the debit card gives direct access to the account
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Advantages/ disadvantages of debit card to payee

A

Advantages

  • Safer than cash
  • Payments can be received online
  • Once authorised payment is guaranteed

Disadvantages

  • Processing fees
  • Requires equipment to process card payments
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is Digital online payment system

A

Creating an account for example PayPal and link the account to your bank account or can be through exchanging virtual currencies such as crypto currency.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Advantages/ Disadvantages of online payments for payer

A

Advantages

  • Easy to use and access only requires a log in
  • Safer than carrying cash

Disadvantages

  • Value of crypto currency can rapidly change
  • Accounts can get frozen
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Advantages/ disadvantages of digital online payment for the payee

A

Advantages

  • Safer than cash
  • Once authorised payment is guaranteed
  • Faster than cheques

Disadvantages

  • Payment received in virtual currency can be changed in value
  • Payment is not instant
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is a credit Card

A

A payment card used to purchase good and services enabling people to buy now and pay later

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Advantages/ Disadvantages of credit card for payer

A

Advantages

  • Buy now Pay Later
  • Can be used online
  • Safer than cash
  • Provides additional customer protection

Disadvantages

  • Interest is charged on amount not paid off each month
  • Fraud
  • If not used sensibly can lead to debt
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Advantages/ Disadvantages of credit card for payer

A

Advantages

  • Buy now Pay Later
  • Can be used online
  • Safer than cash
  • Provides additional customer protection

Disadvantages

  • Interest is charged on amount not paid off each month
  • Fraud
  • If not used sensibly can lead to debt
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Advantages/ Disadvantages of credit card for payee

A

Advantages

  • Payment can be received online
  • Once authorised payment is guaranteed

Disadvantages

  • Equipment required to process card payments
  • Fees are payable
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Two types of bank payments

A

Paying in slip

Electronic Fund Transfer

17
Q

What is Paying in slip

A

This is used to pay cash/ cheques into a bank account

18
Q

What is Electronic Fund Transfer

A

Used to transfer funds from one bank account to another

19
Q

two forms of electronic fund transfer and what are they

A

Direct Debit- Gives withdrawals to be made from an account
Standing Order - Gives permission to withdraw specific amount of money on a regular basis (weekly, monthly etc)

20
Q

Advantages/ disadvantages of electronic fund transfer for payer

A

Advantages

  • Transfers can be made and done easily and quickly
  • No need to remember to make regular payments

Disadvantages

  • Money still paid even if funds are insufficient
  • May forget payments and pay for services that no longer exist
21
Q

Advantages/ Disadvantages of Electronic Fund Transfer for payee

A

Advantages

  • Regular payments can be received on time
  • Safer than receiving cash
  • Faster than cheques

Disadvantages

  • Payments can be charged back if errors have been made
  • May pay fees to collect bank payments

Business Unit 2 (20 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions