Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

finance - josh > methods of payments > Flashcards

methods of payments Flashcards

You may prefer our related Brainscape-certified flashcards:
Series 65 flashcards Series 63 flashcards Series 66 flashcards Series 7 Top-off Exam flashcards SIE Exam flashcards CFA flashcards Series 79 Top-Off Exam flashcards
1
Q

definition of cash

A

Physical money (coins and notes) used to pay directly for goods and services in person.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

3 advantages of cash

A
  1. Ensures your privacy
  2. Fast payment method
  3. Only spend what you have
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

3 disadvantages of cash

A
  1. Not always accepted
  2. Can loose it or it can get stolen
  3. Can be given counterfeit cash
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

definition of a debit card

A

A card linked to a bank account, allowing users to pay by withdrawing funds immediately.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

3 advantages of a debit card

A
  1. No need to carry cash
  2. Shop online or on the phone
  3. No debt
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

3 disadvantages of a debit card

A
  1. Need to have money in account
  2. Can accidentally overspend – overdraft
  3. Card may get stolen
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

definition of a credit card

A

A card that allows users to borrow money from a bank to pay for goods or services, with repayment later.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

3 advantages of a credit card

A
  1. Interest free borrowing
  2. Protected from fraud
  3. Spend money abroad
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

3 disadvantages of a credit card

A
  1. High interest rates
  2. Risk of overspending
  3. High fees
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

definition of a cheque

A

A paper-based method instructing a bank to pay a specific amount from one account to another.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

3 advantages of a cheque

A
  1. No need to carry cash
  2. Less errors happen
  3. More secure transfers
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

3 disadvantages of a cheque

A
  1. Can be refused as a payment
  2. Limited use
  3. Takes a long time to be processed
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

definition of electronic transfer

A

A method of sending money directly from one bank account to another, usually online.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

3 advantages of electronic transfer

A
  1. Instant payments online
  2. More secure
  3. Track your spending
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

3 disadvantages of electronic transfer

A
  1. Risk of fraud
  2. Risk of technical issues
  3. Transaction limits
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

definition of direct debit

A

An arrangement where a company can take varying amounts of money from your account at regular intervals.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

3 advantages of direct debit

A
  1. Stops people from late payments
  2. Saves you time
  3. Flexible with the amount taken out
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

3 disadvantages of direct debit

A
  1. Charged an overdraft
  2. Late fees
  3. High risk
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

definition of standing order

A

A fixed, regular payment set by the payer, transferring the same amount of money to another account.

20
Q

3 advantages of standing order

A
  1. Convenient
  2. Simple to set up
  3. Reduces risk of late fees
21
Q

3 disadvantages of standing order

A
  1. Lack of flexibility
  2. Can’t refund any money taken out
  3. No protection against errors
22
Q

definition of mobile banking

A

Using a smartphone app to manage finances, make payments, or transfer money electronically.

23
Q

3 advantages of mobile banking

A
  1. Available 24/7
  2. Notifications when you spend
  3. Speed – transfers etc can be done faster
24
Q

3 disadvantages of mobile banking

A
  1. Security risk
  2. Dependent on technology
  3. Cant give as manty services as a branch
25
Q

definition of CHAPS

A

A same-day, high-value payment system used for large or urgent transactions in the UK.

26
Q

3 advantages of CHAPS

A
  1. Capable of large transfers
  2. High security
  3. Predictability – aware when the money will be where
27
Q

3 disadvantages of CHAPS

A
  1. Limited to working hours
  2. Fees for using it
  3. Risk of errors
28
Q

definition of BACS

A

A system for processing low-cost payments between banks, typically taking a few days.

29
Q

3 advantages of BACS

A
  1. High security measures
  2. Set up payments in advance
  3. Lower fees
30
Q

3 disadvantages of BACS

A
  1. Slower processing time
  2. Only be used in the UK
  3. Not good for one off payments
31
Q

definition of FPS

A

A near-instant method for transferring money between UK bank accounts 24/7.

32
Q

3 advantages of FPS

A
  1. Same-day transfers
  2. 24/7 availability
  3. Varied payment sizes
33
Q

3 disadvantages of FPS

A
  1. Some banks have transaction limits
  2. Irreversible payments
  3. Not useful for reoccurring payments
34
Q

definition of pre-paid cards

A

A card loaded with a set amount of money in advance, used for transactions until the balance runs out.

35
Q

3 advantages of pre-paid cards

A
  1. Cant pay over the amount on the card
  2. Don’t need a bank account to use it
  3. Good for travelling as if you loose it you only loose what’s on the card
36
Q

3 disadvantages of prepaid cards

A
  1. Not good for big payments
  2. Lose the money if the card is stolen
  3. No chargeback protection
37
Q

definition of contactless cards

A

A card that allows quick payment by tapping it on a reader, usually for small amounts.

38
Q

3 advantages of contactless cards

A
  1. don’t need to enter pin
  2. can be used on public transport
  3. fast payment
39
Q

3 disadvantages of contactless cards

A
  1. payment limits
  2. data can be stolen
  3. card can be stolen and then they can easily spend
40
Q

definition of store cards

A

A credit card issued by a retailer, used for purchases at that specific store, often with rewards or discounts.

41
Q

3 advantages of store cards

A
  1. access to discounts and special offers
  2. can use flexible payment options with these cards
  3. help build up your credit score when you use it properly
42
Q

3 disadvantages of store cards

A
  1. restricted to a specific shop
  2. late payment fees
  3. rewards/points may expire fast
43
Q

definition of charge cards

A

Like a credit card, but the balance must be paid in full at the end of each month.

44
Q

3 advantages of charge cards

A
  1. no spending limit
  2. no interest when paid in full
  3. help build your credit score when you pay back on time
45
Q

3 disadvantages of charge cards

A
  1. potential for overspending
  2. not everywhere accepts them
  3. payments aren’t flexible

finance - josh (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions