Methods of payments

Question 1

Name the different types of payment?

Answer 1

Cash, credit card, debit card, cheque, standing order, BACS transfer and Pay pal.

Question 2

What is cash?

Answer 2

Cash is money in the form of coins and notes.

Question 3

What is a credit card?

Answer 3

It is a small plastic card issued by a bank, building society allowing the holder to purchase goods or services on credit then they pay it back.

Question 4

What is a cheque?

Answer 4

It is an order to a bank to pay a stated sum from the drawer’s account, written on a specially printed form.

Question 5

What is a standing order?

Answer 5

A standing order) is an instruction a bank account holder gives to their bank to pay a set amount at regular intervals to go to another’s account.

Question 6

What is a BACS transfer?

Answer 6

BACS stands for Bankers’ Automated Clearing Services it is a scheme for electronic processing of financial transactions within the United Kingdom.

Question 7

What is a debit card?

Answer 7

Direct debit is a method payment which takes money directly out of the persons back account using a card.

Question 8

What is Pay pal?

Answer 8

PayPal is an international digital wallet based business allowing payments and money transfers to be made through the Internet it is safe and secure.

Question 9

What are the advantages of using/ receiving cash?

Answer 9

Cash is hugely used by customers so it is easy for customers to pay with and allowing people to pay with cash increases revenue to the business.

Question 10

What are the disadvantages of using/ receiving cash?

Answer 10

The down side to using cash for a business is that it can be faked and someone has to be paid to count and collect the money from customers.

Question 11

What are the advantages of using/ allowing the use of a credit card?

Answer 11

The money isn’t onsite so it is more secure and won’t get stolen and the money isn’t fake.

Question 12

What are the disadvantages of using/ allowing the use of a credit card?

Answer 12

Credit card is there must be a card machine to allow this method of payment and the customer has to pay back the money they owe the bank plus interest at the end of the month.

Question 13

What are the advantages of using a cheque?

Answer 13

It allows people who have to carry around the cheque to not have a huge amount of cash with them which isn’t secure like a milk man.

Question 14

What are the disadvantages of using a cheque?

Answer 14

Cheques can be easily forged and can bounce which mean the business lose money, the customer also can’t make any mistakes while writing the cheque otherwise they must start again.

Question 15

What are the advantages of using a standing order?

Answer 15

I allows the payment to be made so the business is paid as the payment isn’t forgotten.

Question 16

What are the disadvantages of using a standing order?

Answer 16

The problem with a standing order is that businesses may not want the money on the same day every time as an example swimming lessons may be cancelled for a week so they wouldn’t ask for money.

Question 17

What are that advantages of using a debit card?

Answer 17

the money doesn’t have to be paid to the bank at the end of the month it comes straight from a persons account.

Question 18

What are that disadvantages of using a debit card?

Answer 18

there must be a card machine to allow this method of payment.

Question 19

what are the advantages of using Pay pal?

Answer 19

PayPal is a secure way to pay or get money for goods/ service over the internet it can also convert different currencies it cost money for the business to be used.

Question 20

what are the disadvantages of using Pay pal?

Answer 20

not all businesses are set up to and online payment systems and a percentage of the money is paid to Pay pal.