A.2 Methods of Payment

Question 1

Cash

Answer 1

Widely accepted
Easy to control expenditure
Risk of theft
Inapropriate for large purchases

Question 2

Direct Card

Answer 2

Money taken directly from a current account

Question 3

Credit Card

Answer 3

Purchases on credit

Question 4

Cheque

Answer 4

Paper transaction giving a bank to transfer a specific amount from your account to another account

Question 5

Electronic Transfer

Answer 5

Online transfer of money from one account to another

Question 6

Direct debit

Answer 6

Permission given to the bank to make regular payments to a third party upon request

Question 7

Standing order

Answer 7

Permission given to the bank to make regular payments, of a set amount to a third party upon request.

(Payments are taken regardless of bank balance)

Question 8

Prepaid Card

Answer 8

Cash balance held on a card which reduces each time a transaction takes place

Question 9

Charge Card

Answer 9

Allows for purchases to be made on a credit card but the total amount is automatically paid direct from a bank account upon receipt of a statement each month

Question 10

Store Card

Answer 10

Allows a customer to buy on credit in a particular store or group of stores, a minimum payment is required each month upon receipt of a statement

Question 11

Mobile Banking

Answer 11

Making transactions using a mobile phone or other portable device such as a tablet

Question 12

Bankers Automated Clearing Services

Answer 12

Direct transfer of money from one bank account to another, may take a few days

Question 13

Faster Payment Services

Answer 13

Direct transfer of money from one bank account to another, guaranteed within 2 hours