Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business > Different ways to pay > Flashcards

Different ways to pay Flashcards

1
Q

Advantages of using cash as a payment method

A

Confidence due to familiarity with the payment system
Widely accepted
Easy to control expenditure
Better understanding of how much you are spending as it is physical

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Disadvantages of using cash as a payment method

A

Limited to the amount you have on you
Risk of loss/theft
Physical transactions only
Inappropriate for large expenditure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is a debit card

A

Payment method provided by banks so customers can withdraw money from their current account or make purchases from the current account

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Advantages of a debit card as a payment method

A 
Widely accepted
Withdraw cash
Convenient
Contactless payments
Pin number for security
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Disadvantages of using a debit card as a payment method

A

Risk of fraud
Constant need to monitor spending/balance
Can’t withhold purchase in the case of a dispute with merchant

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is a credit card

A

Payment method that allows customers to make purchases and pay the balance at a later date

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Advantages of using a credit card as a payment method

A

Allows you to spread payment
Contactless payments
Accepted in various different places
Purchase protection for goods bought

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Disadvantages of using a credit card as a payment method

A

Easy to end up in debt
Interest charges can build up
Can encourage overspending
Risk of fraud due to contactless payment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is a cheque

A

Paper transaction giving a bank permission to transfer payment from your account to another

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Advantages of using a cheque as a payment method

A

Reduces need for physical payment methods(e.g cash)
Appropriate for large expenditure
High security as it can only be cashed in by the named payee
Appropriate for postal transaction

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Disadvantages of using a cheque as a payment method

A

Businesses may take long to accept cheques
May be charged for each cheque processed
Payment may not be received if the person has insufficient funds

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is an electronic transfer

A

Payment made from one persons bank account to another

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Advantages of using electronic transfer as a payment method

A

Quick
Immediate confirmation of money sent
Safer than physical transactions
Can be done remotely(e.g mobile app)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Disadvantages of using electronic transfer as a payment method

A

Difficult to reverse
Needs to be carefully set up
May not be possible if bank website/app goes down

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is direct debit

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Advantages of using direct debit as a payment method

A

Prevents missing regular payments
Varied amounts can be taken out each time(due to fluctuations)
Providers can offer discounts for using the payment method

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Disadvantages of using direct debit as a payment method

A

May not have enough money in your account
Budgeting is difficult due to varying amounts taken each time
Has to be reset if bank details are changed

18
Q

What is a standing order

A

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

19
Q

Advantages of using a standing order as a payment method

A

Bills paid automatically
Can be cancelled at anytime
Secure payment method
Ensures payments aren’t missed

20
Q

Disadvantages of using a standing order as a payment method

A

Money taken regardless of balance

Must be reset or cancelled if anything changes

21
Q

What is a pre paid card

A

Cash balance held on a card which reduces each time its used(e.g oyster card)

22
Q

Advantages of using a pre paid card as a payment method

A

Allows budgeting
Can be cancelled
Useful for child money management
Can only be used for specific purposes

23
Q

Disadvantages of using a pre paid card as a payment method

A

Difficult to monitor balance
Money is lost if the card is lost
Can be used by others if lost
May involve a fee to purchase the card the first time

24
Q

What is a contactless card

A

Method that allows users to pay for goods up to a value of £30 without entering a pin

25
Q

Advantages of using a contactless card as a payment method

A

Quick

Avoids physical transactions

26
Q

Disadvantages of using a contactless card as a payment method

A

Can only be used for goods up to a value of £30

Card can briefly be used if lost

27
Q

What is a charge card

A

Purchases paid on credit but total amount is paid from a bank account monthly

28
Q

Advantages of using a charge card as a payment method

A

Short term source of credit
Prevents large amounts of debt
Secure

29
Q

Disadvantages of using a charge card as a payment method

A

User must pay balance in full regardless of funds

May incur annual monthly fees

30
Q

What is a store card

A

Allows customers to buy on credit from a particular store. Minimum payment required each month

31
Q

Advantages of using a store card as a payment method

A

Frequent shoppers can earn discounts/benefits
Spreads cost of spending over time
Short term source of credit

32
Q

Disadvantages of using a store card as a payment method

A

Only accepted by specific stores
May encourage debt
May encourage overspending to get special offers

33
Q

What is mobile banking

A

Allows users to complete banking on their phones or other devices

34
Q

Advantages of using mobile banking as a payment method

A

Quick and easy
Popular
Secure since its pin protected
Convenient

35
Q

Disadvantages of using mobile banking as a payment method

A

Relies on customer having a mobile device

Doesnt have the same amount of features as internet banking e.g setting up direct debit

36
Q

What is Bankers Automated Clearing Services(BACS)

A

Allows the transfer of payments from one bank directly to another

37
Q

What is Faster Payment Services

A

Direct transfer guaranteed within 2 hours or quicker(similar to BACS)

38
Q

Advantages of using BACS/FPS as a payment method

A

Transfers normally completed within 2 hours
Transactions can be completed via phone, branch or online bank account
Convenient

39
Q

Disadvantages of using BACS/FPS as a payment method

A

Service isnt offered by all banks so payment transfers may take longer
May incur charges per transaction
Must make sure details are correct
Limit on the transferable amount

40
Q

What is Clearing House Automated Payment System(CHAPS)

A

Same day transfer of funds(any amount) from one bank account to another

41
Q

Advantages of using CHAPS as a payment method

A

No limit on transferable amount

Time limit for when transactions must be completed by

42
Q

Disadvantages of using CHAPS as a payment method

A

Some banks charge to use this service

Business (22 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions