Definitions Flashcards
Cash
Cash is physical money —notes or coins—that can be used to exchange goods, debt, or services.
Debit Card (Pay Now)
A debit card (personal money) is a payment card that deducts money directly from a consumer’s checking account to pay for a purchase.
Credit Card (Pay Later)
A credit card (borrowed money) allows cardholders to borrow funds with which to pay for goods and services with merchants that accept cards for payment.
Cheque (Old Fashioned)
A paper transaction giving a bank permission to transfer payment from one’s account to another account
Electronic Transfer
A electronic transfer is a transfer of funds done electronically across a network of banks. Senders provide the recipient’s name, bank account number, and the amount transferred
Direct Debt
An arrangement made with a bank that allows a third party to transfer money from a person’s account on agreed dates, typically in order to pay bills.
Standing Order
An instruction to a bank by an account holder to make regular fixed payments to a particular person or organization.
Pre-paid card
A cash balance is held on a card which then reduces each time a transaction takes place, e.g. Oyster Card
Contactless Card
Contactless payment allows consumers to pay for goods and services using their debit or credit cards without the need to swipe, enter a personal identification number (PIN), and/or sign for a transaction.
Charge Card
Credit card linked to an bank account, allowing customers to delay payments for goods and services for a short period of time; the balance must be paid off in full when a statement is issued (each month)
Store Card
Issued by a retail outlet so that customers can delay payments for goods and services (similar to a credit card but only accepted by stores specified)
Mobile Banking
The ability to carry out financial transactions using mobile devices such as phones or tablets
(BACS) Banker’s Automated Clearing Service (For Large Amount of Money)
A system that allows the transfer of payments directly from one bank account to another, may take a few days
(FPS) Faster Payment Systems (For Large Amount of Money)
A system that allows the transfer of payments directly from one bank account to another (guaranteed within 2 hours or even quicker)
(CHAPS) Clearing House Automated Payment Systems (For Large Amount of Money)
A system that allows the transfer of payments directly from one bank account to another, same day and any amount
