Payment methods

Question 1

What are the different payment methods for enterprises and their customers to pay for goods and services?

Answer 1

The different payment methods for enterprises and their customers to pay for goods and services are:
1) Debit card
2) Credit card
3) Cash (notes and coins)
4) Direct debit
5) Payment technologies
6) Cheque

Question 2

1) Debit card:
What are debit cards?

Answer 2

Debit cards are issued by banks to their customers (account holders) and the card is linked directly to the cardholder’s bank account

Question 3

1) Debit card:
Debit cards are issued by banks to their customers (account holders) and the card is linked directly to the cardholder’s bank account.

Advantages of debit cards:
1) The payment is taken …

Answer 3

Advantages of debit cards:
1) The payment is taken directly from the cardholder’s bank account at the time of transaction

Question 4

1) Debit card:
Debit cards are issued by banks to their customers (account holders) and the card is linked directly to the cardholder’s bank account.

Advantages of debit cards:
1) The payment is taken directly from the cardholder’s bank account at the time of transaction.
2) There is no need for …

Answer 4

Advantages of debit cards:
1) The payment is taken directly from the cardholder’s bank account at the time of transaction.
2) There is no need for cash

Question 5

1) Debit card:
Debit cards are issued by banks to their customers (account holders) and the card is linked directly to the cardholder’s bank account.

Advantages of debit cards:
1) The payment is taken directly from the cardholder’s bank account at the time of transaction.
2) There is no need for cash.
3) Debit cards can be used for payment up to …

Answer 5

Advantages of debit cards:
1) The payment is taken directly from the cardholder’s bank account at the time of transaction.
2) There is no need for cash.
3) Debit cards can be used for payment up to the amount in the cardholder’s bank account (including any authorised overdraft limit)

Question 6

1) Debit card:
Debit cards are issued by banks to their customers (account holders) and the card is linked directly to the cardholder’s bank account.

Advantages of debit cards:
1) The payment is taken directly from the cardholder’s bank account at the time of transaction.
2) There is no need for cash.
3) Debit cards can be used for payment up to the amount in the cardholder’s bank account (including any authorised overdraft limit)
4) Debit cards can be used …

Answer 6

Advantages of debit cards:
1) The payment is taken directly from the cardholder’s bank account at the time of transaction.
2) There is no need for cash.
3) Debit cards can be used for payment up to the amount in the cardholder’s bank account (including any authorised overdraft limit)
4) Debit cards can be used remotely via phone or online

Question 7

1) Debit card:
Debit cards are issued by banks to their customers (account holders) and the card is linked directly to the cardholder’s bank account.

Advantages of debit cards:
1) The payment is taken directly from the cardholder’s bank account at the time of transaction.
2) There is no need for cash.
3) Debit cards can be used for payment up to the amount in the cardholder’s bank account (including any authorised overdraft limit)
4) Debit cards can be used remotely via phone or online
5) Contactless …

Answer 7

Advantages of debit cards:
1) The payment is taken directly from the cardholder’s bank account at the time of transaction.
2) There is no need for cash.
3) Debit cards can be used for payment up to the amount in the cardholder’s bank account (including any authorised overdraft limit)
4) Debit cards can be used remotely via phone or online
5) Contactless cards (up to value of £30 per transaction) do not require the use of a PIN

Question 8

1) Debit card:
Debit cards are issued by banks to their customers (account holders) and the card is linked directly to the cardholder’s bank account.

Disadvantages of debit cards:
1) Can be …

Answer 8

Disadvantages of debit cards:
1) Can be stolen

Question 9

2) Credit card:
Credit cards are issued by …

Answer 9

Credit cards are issued by banks and financial companies

Question 10

2) Credit card:
Credit cards are issued by banks and financial companies.

Advantages of credit cards:
1) The card issuer …

Answer 10

Advantages of credit cards:
1) The card issuer pays at the time of the transaction - a loan to the cardholder

Question 11

2) Credit card:
Credit cards are issued by banks and financial companies.

Advantages of credit cards:
1) The card issuer pays at the time of the transaction - a loan to the cardholder
2) The cardholder …

Answer 11

Advantages of credit cards:
1) The card issuer pays at the time of the transaction - a loan to the cardholder
2) The cardholder receives a short interest-free period on the amount borrowed

Question 12

2) Credit card:
Credit cards are issued by banks and financial companies.

Advantages of credit cards:
1) The card issuer pays at the time of the transaction - a loan to the cardholder
2) The cardholder receives a short interest-free period on the amount borrowed
3) Contactless cards …

Answer 12

Advantages of credit cards:
1) The card issuer pays at the time of the transaction - a loan to the cardholder
2) The cardholder receives a short interest-free period on the amount borrowed
3) Contactless cards (up the value of £30 per transaction) do not require the use of a PIN

Question 13

2) Credit card:
Credit cards are issued by banks and financial companies.

Advantages of credit cards:
1) The card issuer pays at the time of the transaction - a loan to the cardholder
2) The cardholder receives a short interest-free period on the amount borrowed
3) Contactless cards (up the value of £30 per transaction) do not require the use of a PIN
4) Credit cards can be used …

Answer 13

Advantages of credit cards:
1) The card issuer pays at the time of the transaction - a loan to the cardholder
2) The cardholder receives a short interest-free period on the amount borrowed
3) Contactless cards (up the value of £30 per transaction) do not require the use of a PIN
4) Credit cards can be used for any amount up to a limit set by the card issuer, so the customer does not incur high credit card charges

Question 14

2) Credit card:
Credit cards are issued by banks and financial companies.

Disadvantages of credit cards:
1) The card issuer …

Answer 14

Disadvantages of credit cards:
1) The card issuer charges interest on the balance outstanding after the interest-free period

Question 15

2) Credit card:
Credit cards are issued by banks and financial companies.

Disadvantages of credit cards:
1) The card issuer charges interest on the balance outstanding after the interest-free period
2) Cards are issued with …

Answer 15

Disadvantages of credit cards:
1) The card issuer charges interest on the balance outstanding after the interest-free period
2) Cards are issued with a credit limit so that the cardholder is limited to the amount they can spend, regardless of their financial situation

Question 16

2) Credit card:
Credit cards are issued by banks and financial companies.

Disadvantages of credit cards:
1) The card issuer charges interest on the balance outstanding after the interest-free period
2) Cards are issued with a credit limit so that the cardholder is limited to the amount they can spend, regardless of their financial situation
3) The seller …

Answer 16

Disadvantages of credit cards:
1) The card issuer charges interest on the balance outstanding after the interest-free period
2) Cards are issued with a credit limit so that the cardholder is limited to the amount they can spend, regardless of their financial situation
3) The seller pays a fee to the credit card company each time the customer pays by card

Question 17

3) Cash (notes and coins):
Advantages of cash (notes and coins):
1)

Answer 17

Advantages of cash (notes and coins):
1) They are accepted in most places

Question 18

3) Cash (notes and coins):
Disadvantages of cash (notes and coins):
1) Cash may not be suitable for …

Answer 18

Disadvantages of cash (notes and coins):
1) Cash may not be suitable for very large transactions

Question 19

3) Cash (notes and coins):
Disadvantages of cash (notes and coins):
1) Cash may not be suitable for very large transactions
2) Cash is not suitable for …

Answer 19

Disadvantages of cash (notes and coins):
1) Cash may not be suitable for very large transactions
2) Cash is not suitable for online purchases

Question 20

3) Cash (notes and coins):
Disadvantages of cash (notes and coins):
1) Cash may not be suitable for very large transactions
2) Cash is not suitable for online purchases
3) Cash can be …

Answer 20

Disadvantages of cash (notes and coins):
1) Cash may not be suitable for very large transactions
2) Cash is not suitable for online purchases
3) Cash can be lost or stolen

Question 21

3) Cash (notes and coins):
Disadvantages of cash (notes and coins):
1) Cash may not be suitable for very large transactions
2) Cash is not suitable for online purchases
3) Cash can be lost or stolen
4) Mistakes …

Answer 21

Disadvantages of cash (notes and coins):
1) Cash may not be suitable for very large transactions
2) Cash is not suitable for online purchases
3) Cash can be lost or stolen
4) Mistakes can be made during transactions, such as incorrect change being given

Question 22

4) Direct debit:
What is direct debit?

Answer 22

Direct debit is an instruction to a bank authorising a third party, such as an enterprise, to transfer money of varying amounts from a customer’s account to its own bank account on an agreed date

Question 23

4) Direct debit:
Direct debit is an instruction to a bank authorising a third party, such as an enterprise, to transfer money of varying amounts from a customer’s account to its own bank account on an agreed date.

Advantages of direct debit:
1) Direct debit is a simple way to …

Answer 23

Advantages of direct debit:
1) Direct debit is a simple way to pay regular bills - they are deducted automatically from customer’s bank account

Question 24

4) Direct debit:
Direct debit is an instruction to a bank authorising a third party, such as an enterprise, to transfer money of varying amounts from a customer’s account to its own bank account on an agreed date.

Advantages of direct debit:
1) Direct debit is a simple way to pay regular bills - they are deducted automatically from customer’s bank account
2) Third party may …

Answer 24

Advantages of direct debit:
1) Direct debit is a simple way to pay regular bills - they are deducted automatically from customer’s bank account
2) Third party may vary amounts, making it a flexible way to collect payments

Question 25

4) Direct debit:
Direct debit is an instruction to a bank authorising a third party, such as an enterprise, to transfer money of varying amounts from a customer’s account to its own bank account on an agreed date.

Disadvantages of direct debit:
1) The customer must …

Answer 25

Disadvantages of direct debit:
1) The customer must have sufficient money in their bank account to cover the payment, otherwise the payment will not take place

Question 26

5) Payment technologies:
Advantages of payment technologies:
1) Ecommerce transactions such as PayPal …

Answer 26

Advantages of payment technologies:
1) Ecommerce transactions such as PayPal allow individuals and enterprises to transfer money between buyers and sellers

Question 27

5) Payment technologies:
Advantages of payment technologies:
1) Ecommerce transactions such as PayPal allow individuals and enterprises to transfer money between buyers and sellers
2) Electronic payments such as Faster Payments and CHAPs …

Answer 27

Advantages of payment technologies:
1) Ecommerce transactions such as PayPal allow individuals and enterprises to transfer money between buyers and sellers
2) Electronic payments such as Faster Payments and CHAPs allow same-day payments from one bank account to another

Question 28

5) Payment technologies:
Advantages of payment technologies:
1) Ecommerce transactions such as PayPal allow individuals and enterprises to transfer money between buyers and sellers
2) Electronic payments such as Faster Payments and CHAPs allow same-day payments from one bank account to another
3) Online customer accounts …

Answer 28

Advantages of payment technologies:
1) Ecommerce transactions such as PayPal allow individuals and enterprises to transfer money between buyers and sellers
2) Electronic payments such as Faster Payments and CHAPs allow same-day payments from one bank account to another
3) Online customer accounts linked to ecommerce website stores customers’ payment details - it is simple to make repeat purchases

Question 29

5) Payment technologies:
Advantages of payment technologies:
1) Ecommerce transactions such as PayPal allow individuals and enterprises to transfer money between buyers and sellers
2) Electronic payments such as Faster Payments and CHAPs allow same-day payments from one bank account to another
3) Online customer accounts linked to ecommerce website stores customers’ payment details - it is simple to make repeat purchases
4) Payment apps …

Answer 29

Advantages of payment technologies:
1) Ecommerce transactions such as PayPal allow individuals and enterprises to transfer money between buyers and sellers
2) Electronic payments such as Faster Payments and CHAPs allow same-day payments from one bank account to another
3) Online customer accounts linked to ecommerce website stores customers’ payment details - it is simple to make repeat purchases
4) Payment apps allow transactions to be completed using your smartphone

Question 30

5) Payment technologies:
Disadvantages of payment technologies:
1) Some payment technologies such as PayPal and CHAPs …

Answer 30

Disadvantages of payment technologies:
1) Some payment technologies such as PayPal and CHAPs charge a fee

Question 31

6) Cheque:
What is a cheque?

Answer 31

A cheque is a written order to pay a sum of money from a bank account to the payee (an enterprise or an individual)

Question 32

6) Cheque:
A cheque is a written order to pay a sum of money from a bank account to the payee (an enterprise or an individual).
This method of payment is …

Answer 32

This method of payment is declining in popularity

Question 33

6) Cheque:
A cheque is a written order to pay a sum of money from a bank account to the payee (an enterprise or an individual).
This method of payment is declining in popularity.

Advantages of cheques:
1) Cheques are …

Answer 33

Advantages of cheques:
1) Cheques are more secure than cash

Question 34

6) Cheque:
A cheque is a written order to pay a sum of money from a bank account to the payee (an enterprise or an individual).
This method of payment is declining in popularity.

Disadvantages of cheques:
1) Cheques need to be …

Answer 34

Disadvantages of cheques:
1) Cheques need to be paid directly into a bank and so can be inconvenient

Question 35

6) Cheque:
A cheque is a written order to pay a sum of money from a bank account to the payee (an enterprise or an individual).
This method of payment is declining in popularity.

Disadvantages of cheques:
1) Cheques need to be paid directly into a bank and so can be inconvenient
2) Cheques cannot be used …

Answer 35

Disadvantages of cheques:
1) Cheques need to be paid directly into a bank and so can be inconvenient
2) Cheques cannot be used remotely or online

Question 36

6) Cheque:
A cheque is a written order to pay a sum of money from a bank account to the payee (an enterprise or an individual).
This method of payment is declining in popularity.

Disadvantages of cheques:
1) Cheques need to be paid directly into a bank and so can be inconvenient
2) Cheques cannot be used remotely or online
3) Cheques take …

Answer 36

Disadvantages of cheques:
1) Cheques need to be paid directly into a bank and so can be inconvenient
2) Cheques cannot be used remotely or online
3) Cheques take several days to clear (for the funds to be available)

Question 37

6) Cheque:
A cheque is a written order to pay a sum of money from a bank account to the payee (an enterprise or an individual).
This method of payment is declining in popularity.

Disadvantages of cheques:
1) Cheques need to be paid directly into a bank and so can be inconvenient
2) Cheques cannot be used remotely or online
3) Cheques take several days to clear (for the funds to be available)
4) Most banks …

Answer 37

Disadvantages of cheques:
1) Cheques need to be paid directly into a bank and so can be inconvenient
2) Cheques cannot be used remotely or online
3) Cheques take several days to clear (for the funds to be available)
4) Most banks charge businesses for paying in cheques