C7 - Accounts And Payments

Question 1

Types of bank account

Answer 1

Basic
Current - cheque book, overdraft
Savings
Sharia - don’t pay/charge interest

Question 2

Choosing a bank account

Consider

Answer 2

Account charges
Interest
Accessibility of funds
Online banking
Minimum balance required 
Sharia - compliant

Question 3

Bank Mandates

Answer 3

Authorised bank to:

Honour cheques
Accept and act on all instructions
Go overdrawn

Question 4

Payment methods

Answer 4

Automated payments
Cash
Cheque
Bankers draft
Bank cards
Atm
Cheque

Question 5

Payment systems

Answer 5

BACS - Direct debits
CHAPS - same day, £
Paym - mobile Payment 
Faster payments - 2008, improve speed of lower value transactions, up to £100,000
SWIFT - exchange of messages

Question 6

Payment industry bodies and other organisations

Answer 6

SEPARATE DIRECT DEBITS - European, no cross border fees

Payment council - sets strategy for U.K. Payments council

European payments council - European decisions SEPA council

UK Payment admin - forum for banks - chip and pin

Paym - mobile

Question 7

Cheque clearing system

Answer 7

1. Payee sends cheque
2. Send cheque to central clearing
3. Forward to main clearing of drawers bank
4. Send cheque to branch of bank held
5. Funds available