Lesson 4 Flashcards
What is the different ways to pay
Credit Card, Debit Card, Cash, Trade by Barter, Bank Transfers, Cheques, Charge Cards
What is direct debit
Setting up a system where money automatically leaves your account so there is no need to do inputs
What are the advantages of direct debit
Ensures regular payments
What are the disadvantages of direct debit
The amount taken may vary
What are the advantages of using cash
Confidence.
Widely accepted.
Easy to control expenses
What are the disadvantages of using cash
Risk Of Loss or Theft.
Physical Transactions Only.
Inappropriate for larger payments.
What are the advantages of debit cards
Secure.
Widely accepted.
Can withdraw cash from various places
What are the disadvantages of debit cards
Spending needs to be monitored constantly.
Overspending can usually be quite costly.
What are the advantages of credit cards
Allows you to defer and spread payments
What are the disadvantages of credit cards
Interest is charged on the outstanding balance
What is a cheque
A paper transaction giving a bank permission to offer accounts
What the advantages of cheques
Secure method of payment.
Appropriate for postal transactions
What are the disadvantages of cheques
May be charged for each cheque processed.
It is costly if the cheque is not honoured
What is electronic transfer
An online transfer of money from one account to another
What are advantages of electronic transfer
Quick and clean method of pay
