Methods of Payment Flashcards
Notes and coins in a wide range of denominations
Cash
Issued by banks with payments for goods and services being deducted directly from a current account
debit card
Issued by financial institutions allowing customers to delay payments for goods and services
Credit card
Payment is transferred directly from one bank to another
Electronic transfer
An agreement made with a bank allowing a third party to withdraw money from an account on a set day to pay for goods or services received e.g. electricity bill.
Direct debit
An agreement made with a bank to transfer a fixed sum of money to a third-party account on a set date on a regular basis e.g. a fixed loan repayment.
Standing order
Cards with an embedded chip and antenna that enable consumers to wave their card over a reader at the point of sale for an automatic transaction
Contactless card
Issued by financial institutions allowing customers to delay payments for goods and services for a short period of time with the balance being paid off in full at each statement date.
Charge card
Issued by a retail outlet to allow customers to delay payments for goods and services – similar to a credit card but only for the store(s) specified.
store card
The ability to carry out financial transactions using mobile devices such as phones or tablets.
Mobile banking
A system that allows the transfer of payments directly from one bank account to another in 3 working days (unless faster payment is available
Bankers Automated Clearing Service
(BACS) Faster payment
A system that allows the transfer of payments directly from one bank account to another, usually on the same day.
Clearing House Automated Payment Systems
CHAPS
