3.3 Flashcards
What are the advantages to the payer of using a cheque?
Sent via post
Cash does not need to be handled
Records of payment
What are the disadvantages to the payer of using a cheque?
Cheques for business accounts often need to be signed by two people, time consuming
What are the advantages to the payee of using a cheque?
Safer to carry a cheque
What are the disadvantages to the payee of using a cheque?
Must be paid into a bank, inconvenient
Any errors delay payment
Cheques have to ‘clear’ before funds can be withdrawn
Cheques can ‘bounce’
What are the advantages to the payer of using a credit card?
Payment can be made even if there are insufficient funds
Degree of protection from fraud
Can be used for online payments
What are the disadvantages to the payer of using a credit card?
Charged interest if not repaid
Charge payer a fee of payment
What are the advantages to the payee of using a credit card?
Guaranteed payment
Payments can be made online
What are the disadvantages to the payee of using a credit card?
Processing fee
What are the advantages to the payer of using a debit card?
Cash does not need to be handled
Used for online payments
What are the disadvantages to the payer of using a debit card?
Charge an additional fee to the customer
Fraud more common
Insufficient funds may decline payment
What are the advantages to the payee of using a debit card?
Guaranteed payment after authorised
Used for online payments
What are the disadvantages to the payee of using a debit card?
Pay processing fee
Appropriate technology needed to enable transactions
What is a paying in slip?
Document that needs to accompany the payment if someone needs to pay cash or cheques into their bank
What is an electronic transfer?
Electronic movement of funds between one bank account and another
