(A2) Different ways to pay Flashcards
Different ways to pay by using a card
- Debit Card
- Credit Card
- Store Card
- Pre-Paid Card
- Charge Card
- Contactless Card
Different ways to pay via non-card
- Cash
- Cheque
- Electronic transfer
- Direct debit
- Standing order
- Mobile banking
- Banker’s Automated Clearing Services (BACS)
- Faster Payments Service (FPS)
- Clearing House Automated Payment System (CHAPS).
Advantages of Cash
- Accepted in most places
- Easier to control expenditure if you can see what is being spent
Disadvantages of Cash
- Risk of loss
- Physical transactions only
- Can’t be used for extremely large transactions
What is a cheque?
A written order to a bank to pay a sum of money from one account to another(payee)
Advantages of Cheque
- Secure payment method
- More convenient than carrying cash
Disadvantages of Cheque
- Not accepted by some retailers or place
- Receiving a cheque takes time; depositing and processing
What is an electronic transfer?
A direct payment between two accounts
Advantages of Electronic Transfer
- Easy to set up
- Transfer is instant
- Can be done from anywhere
Disadvantages of Electronic Transfer
- Bank details of third party need to be correct
- Transfers can potentially be delayed
What is direct debit?
An instruction from someone to their bank. It lets a third party to collect varying amounts from an account
Advantages of Direct Debit
- Simple way to do regular and similar payments(e.g. bills)
- Advance notice if there is a change in date or amount
Disadvantages of Direct Debit
What is a standing order?
Advantages of Standing Order
Disadvantages of Standing Order
Advantages of Mobile Banking
Disadvantages of Mobile Banking
What is BACS?
Banker’s Automated Clearing System
The system for electronic payment between accounts
Advantages of BACS
- No fee
- Usable for large payment
Disadvantages of BACS
- Payment takes three days to clear
What is FPS?
Advantages of FPS
Disadvantages of FPS
