Making Payments

Question 1

What information should the counterfoil have

Answer 1

🔴The amount of money you’re making the check out for.
🔴The date the cheque was written on.
🔴The name of the person or firm your making the money out to.

Question 2

Who is the drawer

Answer 2

The drawer is the person who writes the cheque-the account holder.

Question 3

Who is the payee

Answer 3

The person we want to pay the money to.

Question 4

Who is the drawee

Answer 4

The bank where we have our account

Question 5

Why might a bank refuse a cheque.

Answer 5

🔴If there is any information missing from the cheque, e.g. the amount.
🔴if they are suspicious of the signature, i.e. they think it has been forged.
🔴If there is not enough money in the account to cover the cheque.
🔴If the account holder has asked the bank not to cash the cheque .This is known as stopping the cheque.
🔴A dishonoured cheque is a when there is not enough money in the drawers account.

Question 6

What is endorsing a cheque.

Answer 6

A cheque is endorsed when the person named on the cheque (the payee) signs his or her name on the back of the cheque.You must endorse a cheque you receive if you to pass it on to another person or organisation.

Question 7

What is crossing a cheque.

Answer 7

To cross a cheque draw two parallel lines across the front of the cheque.This makes the cheque safer because a crossed cheque must be lodged into a bank account and stay there for at least 3 days.

Question 8

What is a post dated cheque

Answer 8

A cheque with a date in the future the cheque can not be cashed until that date.

Question 9

What is a antedated cheque

Answer 9

A cheque that contains a date in the past.A cheque must be cashed in within 6 months.After six months it will become a stale cheque and will be of no use.

Question 10

What is a blank cheque

Answer 10

A signed cheque that has some revel ant piece of information omitted.

Question 11

What is a cheque guarantee card.

Answer 11

The bank gives this card to someone with a current account.If you are paying for goods or services using a cheque, you should show this card to the seller of the goods or supplier of the service they should:
🔴Check that the signature on the card and the signature on the cheque are the same.
🔴Check the expiry date on the card to make sure it is not out of date.
🔴Write the card number on the back of the cheque.
IF THIS procedure is followed, the bank promises to pay the amount of the cheque even if there is no money in the drawers account.The maximum amount covered by the card, however, is €130.

Question 12

What is a debit card

Answer 12

Is the customers own money not the banks it is much easier to use then cash or cheque.

Question 13

What is an A.T.M.

Answer 13

An atm is an automatic teller machine.This has many advantages to the customer including:
🔴It is a convenient way of paying bills.
🔴The money is transferred immediately from your account.
🔴Bills can be paid 24 hours a day.

Question 14

What is a credit card

Answer 14

A credit card is like a debit card except it’s the banks money which up you pay back with extra interest.Every credit card limit.

Question 15

What is a smart card

Answer 15

Smart cards are becoming popular as a means of paying for goods and services and will be used a lot more in the future. They are similar to Laser or credit cards except that the magnetic strip also contains a microchip and a memory. Smart cards are often referred to as an electronic purse because the memory in the card can be loaded with an amount of cash from your current account. Every time you want to purchase goods or services, you hand in your smart card instead of cash and the amount is taken from the card electronically by the terminal installed in the retail outlet – just like you would remove cash from a purse or wallet. Once the card is empty of funds, it can be inserted into an ATM where, instead of receiving cash, the machine will load the money onto the card.

Question 16

What is the name given for paying for goods and services using a laser card and a smart card

Answer 16

Electronic funds transfer at point of sale (EFTPOS)

Question 17

What is direct debit

Answer 17

A direct debit is where you allow a person or business to request an amount of money to be paid out of your bank account to their bank account on a regular basis, e.g. the first day of every month.

Question 18

What is standing order.

Answer 18

standing order is where you tell your bank to pay a certain amount of money from your bank account to another bank account on a regular basis, e.g. the fifth of everymonth. It is useful if you want to pay the same amount of money to another person or business, e.g. paying €10 every month to your favourite charity. Do you know why you could not pay your electricity bill by standing order?

Question 19

What is pay path

Answer 19

Paypath is a system operated by most of the main banks where employers can transfer their employees’ wages directly into their bank accounts each week or month. The employee still receives a payslip, but the money is lodged directly to their account.

Question 20

What is foreign exchange

Answer 20

t17 of the European Union countries, including Ireland, use the same currency – the euro. If Irish people wish to visit these countries or Irish firms wish to do business in these countries, there is no need to change currency. However, people who want to visit other countries and firms who wish to do business in other parts of the world will need to use a different currency. You can get foreign currency from the commercial banks in a number of different ways.

Question 21

What is a travellers cheque

Answer 21

These are cheques that come printed in various amounts of a foreign currency. They are paid for at the bank when they are purchased. They can be turned into cash in a bank or bureau de change in the foreign country you are visiting. Each cheque must be signed in the bank when they are bought and again when they are turned into cash.
You must show your passport when you are changing the traveller’s cheques into cash in order to prove that you are the rightful owner of the cheques. Traveller’s cheques will be phased out over the next few years.

Question 22

What is a cheque?

Answer 22

Cheque is the written instruction to your bank to pay a sum of money to another person.