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Business BTEC Unit 3(Personal and Business Finance) > (A2) Different ways to pay > Flashcards

(A2) Different ways to pay Flashcards

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1
Q

Different ways to pay by using a card

A
  • Debit Card
  • Credit Card
  • Store Card
  • Pre-Paid Card
  • Charge Card
  • Contactless Card
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2
Q

Different ways to pay via non-card

A
  • 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).
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3
Q

Advantages of Cash

A
  • Accepted in most places
  • Easier to control expenditure if you can see what is being spent
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4
Q

Disadvantages of Cash

A
  • Risk of loss
  • Physical transactions only
  • Can’t be used for extremely large transactions
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5
Q

What is a cheque?

A

A written order to a bank to pay a sum of money from one account to another(payee)

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6
Q

Advantages of Cheque

A
  • Secure payment method
  • More convenient than carrying cash
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7
Q

Disadvantages of Cheque

A
  • Not accepted by some retailers or place
  • Receiving a cheque takes time; depositing and processing
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8
Q

What is an electronic transfer?

A

A direct payment between two accounts

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9
Q

Advantages of Electronic Transfer

A
  • Easy to set up
  • Transfer is instant
  • Can be done from anywhere
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10
Q

Disadvantages of Electronic Transfer

A
  • Bank details of third party need to be correct
  • Transfers can potentially be delayed
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11
Q

What is direct debit?

A

An instruction from someone to their bank. It lets a third party to collect varying amounts from an account

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12
Q

Advantages of Direct Debit

A
  • Simple way to do regular and similar payments(e.g. bills)
  • Advance notice if there is a change in date or amount
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13
Q

Disadvantages of Direct Debit

A
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14
Q

What is a standing order?

A
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15
Q

Advantages of Standing Order

A
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16
Q

Disadvantages of Standing Order

A
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17
Q

Advantages of Mobile Banking

A
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18
Q

Disadvantages of Mobile Banking

A
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19
Q

What is BACS?

A

Banker’s Automated Clearing System
The system for electronic payment between accounts

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20
Q

Advantages of BACS

A
  • No fee
  • Usable for large payment
21
Q

Disadvantages of BACS

A
  • Payment takes three days to clear
22
Q

What is FPS?

A
23
Q

Advantages of FPS

A
24
Q

Disadvantages of FPS

A
25
Q

What is CHAPS?

A

Clearing House Automated Payment System
A same day payment system used to pay for time-critical pay

26
Q

Advantages of CHAPS

A
  • Same-day transfers
27
Q

Disadvantages of CHAPS

A
  • Fee is charged
28
Q

What is a debit card?

A
29
Q

Advantages of a debit card

A
30
Q

Disadvantages of a debit card

A
31
Q

What is a credit card?

A
32
Q

Advantages of a credit card

A
33
Q

Disadvantages of a credit card

A
34
Q

What is a store card?

A
35
Q

Advantages of a store card

A
36
Q

Disadvantages of a store card

A
37
Q

What is a pre-paid card?

A
38
Q

Advantages of a pre-paid card

A
39
Q

Disadvantages of a pre-paid card

A
40
Q

What is a charge card?

A
41
Q

Advantages of a charge card

A
42
Q

Disadvantages of a charge card

A
43
Q

Advantages of a contactless card

A
44
Q

Disadvantages of a contactless card

A
45
Q

What is a credit limit?

A
46
Q

What is APR?

A
47
Q

What is AER?

A
48
Q

What is a transfer fee?

A

Business BTEC Unit 3(Personal and Business Finance) (16 decks)

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