Methods Of Payments Flashcards
Cash
Notes and coins in a wide range of denominations
Debit Card
Issued by banks with payments for goods and services being deducted directly from a current account
Credit Card
Issued by financial institutions allowing customers to delay payments for goods and services
Cheque
A written order to a bank to make a specific payment for a specific amount of money from one person’s account to another account
Electronic Transfer
Payment is transferred directly from one bank account to another
Direct Debit
An agreement made with a bank to transfer a fixed sum of money to a third-party to withdraw money from an account on a set day to pay for goods or services received e.g electricity bills
Standing Order
An agreement made with a bank to transfer a fixed sum of money from an account to a third-party account on a set date regularly e.g. a fixed loan repayment
Pre-Paid Card
Money is uploaded onto a card with transactions then withdrawn to reduce the balance
Contactless Card
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
Charge 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
Store Card
Issued by retail outlet to allow customers to delay payments for goods and services - similar to a credit card but only for the stores specified
Mobile Banking
The ability to carry out financial transactions using mobile devices such as phones or tablets
Bankers Automated Clearing Service (BACS) Faster Payment
A system that allows the transfer of payments directly from one bank account to another in 3 working days (unless faster payment in available)
Clearing House Automated Payment Systems (CHAPS)
A system that allows the transfer of payments directly from one bank account to another, usually on the same day
