Different Ways To Pay Flashcards
Cash (2 positives 2 negatives)
Easy to budget
Physical
Easily lost
Easy to steal
Credit (2 positives 2 negatives)
Protection online
Widely accepted
Interest charged
Set amount of credit
Debit (2 positives 2 negatives)
Secure
Low risk of theft
Potential of overdraft
Minimum spend limits
Cheque (2 positives 2 negatives)
No need to carry cash
Secure
Errors can be made
Outdated
Contactless (2 positives 2 negatives)
Popular
Safe
Limited amounts
Only small amounts
Mobile banking (2 positives 2 negatives)
Convenient
Secure
Limited features on internet
Direct debit- You to another bank/ building society (2 positives 2 negatives)
Quick easy
Convenient for paying bills
Needs monitoring to see if correct amount is collected
Standing order- regular fixed payment from your bank account
(2 positives 2 negatives)
Same amount each time
Good for budgeting
Payments continued unless cancelled
Payed regardless of financial situation
Pre paid card- Certain amount already on card (2 positives 2 negatives)
Avoids overspending
Can control spending
May cost to start up
No protection if lost
Charge card- credit card but payed in full each month (2 positives 2 negatives)
Short period of credit
No need to carry cash
Annual fixed fee
Payed in full each month
Store card- Issued by retail outlets to spend at own stores
(2 positives 2 negatives)
Short period of interest free credit
Special offers are easily accessible
Can only be used in that store
Interest is charged
BACS-3 working days direct from one account to another
(2 positives 2 negatives)
Payment within 2 hours
No additional costs
Limited amount per transaction
Service not offered by all banks
CHAPS- payment to UK accounts that are guaranteed to arrive on same day
(2 positives 2 negatives)
No limit on single transaction
Same day transfer
Fixed charge for the transaction
