Electronic Banking Services Flashcards
What does EFTPOS stand for?
EFTPOS stands for:
Electronic Funds Transfer at Point of Sale
Define EFTPOS
Electronic Funds Transfer at Point of Sale (EFTPOS) is a system that allows a customer to use a debit card to pay for products and, with the agreement of the retailer, to withdraw cash.
What are the advantages of EFTPOS?
1) EFTPOS may generate more sales as some consumers may prefer to shop at businesses that offer this service.
2) EFTPOS reduces the amount of cash that is held on the premises of the business as customers pay for products by depositing funds into the bank account of the business.
What are the disadvantage of EFTPOS?
A fee is charged for providing this service to customers.
Define Credit Card
A credit card allows the owner of the card to purchase goods and services up to a set limit.
What are the advantages of Credit Cards?
1) A credit card facility may generate more sales as some consumers may prefer to shop at businesses that offer this service.
2) A credit card facility reduces the amount of cash that is kept on the premises of the business.
What are the disadvantage of Credit Cards?
A fee is charged for providing this service to customers.
Define Direct Debit Systems
A direct debit system is a system that enables businesses to transfer money from its bank account to the bank account of a supplier in exchange for goods and services that have been supplied to the business.
What are the advantages of Direct Debit Systems?
A direct debit facility saves the time taken to process payments and to send cheques to suppliers.
What are the disadvantage of Direct Debit System?
A fee is charged for providing this service.
Define Internet Banking
Internet Banking allows a business owner to inspect the bank account details of his or her business, pay suppliers and transfer funds to or from a personal bank account.
Define Electronic Payment Systems
A business that sells products through a website will often have an electronic payment system located on the website, so that customers can pay for products ordered.
What are the advantages of Electronic Payment Systems?
An electronic payment system enables a business with a website shop to receive payment for these products quickly and efficiently.
What are the disadvantage of Electronic Payment Systems?
A fee is charged for providing this service.
