Chapter 9: Choice of Payment Products

Question 1

Direct Payment

Answer 1

Amount is debited from the account during the payment transaction immediately (e.g. in a shop / web store)

Question 2

Payment in advance

Answer 2

Money is already debited from the bank account before the actual payment happens

Question 3

Payment in Arrears

Answer 3

Moment payment is debited from the account is after the actual payment happens (eg payments by credit card)

Question 4

Payments on location

Answer 4

Buyer is at physical point of sale

Includes vending machines

Question 5

Payment at a distance

Answer 5

Buyer is not physically at point of sale e.g. paying on web store

Question 6

Cash currency

Answer 6

• Quick and annonymous
• Can be stolen or destoryed

Question 7

Debit card

Answer 7

**AKA pinpass
**
* payment terminal connects with bank
* Deduction of amount from the bank, the bank owes less to the account holder

Question 8

Pin transaction

Answer 8

Payment sends account details of the bank + pin code via a clearing use to check validity/funds available

Question 9

Credit card

Answer 9

• credit card company takes care of payment on behalf of the customer
• Form of deferred payment, either using consumer credit or as a charge card

Question 10

SEPA

Answer 10

Single Euro Payment Area
* European bank transfer