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Business - Personal Finance > A2 - Ways To Pay > Flashcards

A2 - Ways To Pay Flashcards

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1
Q

Examples of ways to pay

A

Cash
Debit card
Credit card
Cheque
Electronic transfer
Contactless card
Direct debt
Standing order
Prepaid cards
Store cards
Mobile banking
Charge cards

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2
Q

Definition of cash

A

Notes and coins in a wide range of dominions

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3
Q

Advantages of cash

A

No transaction fee
Immediate settlement
Widely accepted

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4
Q

Disadvantages of cash

A

Lack of traceability
Can’t be used online
Limitations for international transactions

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5
Q

Definition of debit card

A

A card issued by your bank, money spent of goods is deducted from your current account

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6
Q

Advantages of debit card

A

Credit score doesn’t matter
Increased security

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7
Q

Disadvantages of debit card

A

Limited fund protection
Reduced spending limits

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8
Q

Definition of credit card

A

Issued by financial institutions, allows customers to delay payment

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9
Q

Advantages of credit card

A

Boosts credit score
Borrow money without paying interest

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10
Q

Disadvantages of credit card

A

Temptation to overspend
Potential to max out credit limit

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11
Q

Definition of cheque

A

A paper transaction giving a bank permission to transfer payment from one account to another

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12
Q

Advantages of cheques

A

Safer to carry then cash
Keeps a record of transactions

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13
Q

Disadvantages of cheques

A

Cheques can be refused as not legal tender
Long processing time

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14
Q

Definition of electronic transfer

A

Payment is transferred directly from one bank account to another

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15
Q

Advantages of electronic transfers

A

Speed of transactions
Keeps record of transactions

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16
Q

Disadvantages of electronic transfers

A

Risk of fraud
Technical issues

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17
Q

Definition of direct debit

A

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

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18
Q

Advantages of direct debit

A

Convenient for recurring payments
Protection incase of forgetting

19
Q

Disadvantages of direct debit

A

Can be charged overdraft
Late fees

20
Q

Definition of standing order

A

A fixed amount of money is taken out of your bank account on a specified date

21
Q

Advantages of standing order

A

Free of charge
Quick to set up

22
Q

Disadvantages of standing order

A

Pay,ents are customer dependent
Lack of flexibility

23
Q

Definition of prepaid cards

A

Upload money to the card and spending reduces the balance

24
Q

Advantages of prepaid cards

A

No credit check
More secure than cash

25
Q

Disadvantages of prepaid cards

A

Do not help you build credit
Charge fees

26
Q

Definition of contactless cards

A

Payment made by swiping a contactless terminal

27
Q

Advantages of contactless cards

A

Hygiene
Fast transactions

28
Q

Disadvantages of contactless cards

A

If lost or stolen can be used to make fraudulent transactions
Do not require a PIN

29
Q

Definition of charge cards

A

Issued by financial institutions, buy now pay later

30
Q

Advantages of charge cards

A

No preset credit limit
Does not apply interest

31
Q

Disadvantages of charge cards

A

High annual fees
Late payments damage credit history

32
Q

Definition of store cards

A

Issued by a retail outlet, buy now, pay later

33
Q

Advantages of store cards

A

Discounts
Free shipping

34
Q

Disadvantages of store cards

A

Low credit limits
Easily lost or stolen

35
Q

Definition of mobile banking

A

Use a tablet or smartphone to manage your bank accounts

36
Q

Advantages of mobile banking

A

24/7 Accessibility
Quick & Easy transactions

37
Q

Disadvantages of mobile banking

A

Data usage concerns
Possible security vulnerability

38
Q

Definition of BACS and FPS

A

Payments transferred from one account to another

39
Q

Advantages of BACS & FPS

A

Reduces administration
Speedy transactions

40
Q

Disadvantages of BACS & FPS

A

Limited flexibility
Security risks

41
Q

Definition of CHAPS

A

Electronic bank to bank technology that enables payments to be made

42
Q

Advantages of CHAPS

A

Safe and secure
Require very little effort from businesses

43
Q

Disadvantages of CHAPS

A

Very expensive
Cannot be used for international payments

Business - Personal Finance (8 decks)

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