payment methods

Question 1

what is a debit card?

Answer 1

issued by banks to their customers (account holders)

Question 2

what is the debit card linked directly to?

Answer 2

the cardholder’s bank account

Question 3

benefits of debit card:
what can be done from cardholder’s bank account at time of transaction?

Answer 3

payment taken directly

Question 4

benefits of debit card:
what is there no need for?

Answer 4

no need for cash

Question 5

benefits of debit card:
what can it be used for?

Answer 5

payment up to the amount in the cardholder’s bank account including any authorised overdraft limit

Question 6

benefits of debit card:
what do contactless cards do not require?

Answer 6

use of a PIN

Question 7

benefits of debit card:
what can it be used by?

Answer 7

used remotely via phone or online

Question 8

what is one disadvantage of using a debit card?

Answer 8

can be stolen

Question 9

what is a credit card?

Answer 9

issued by banks and financial companies

Question 10

benefits of a credit card:
what can card issuer pay at time?

Answer 10

at time of transaction - a loan to the cardholder

Question 11

benefits of a credit card:
what does the cardholder receive?

Answer 11

short interest-free period on amount borrowed

Question 12

benefits of a credit card:
what do contactless cards not require?

Answer 12

the use of a PIN

Question 13

benefits of a credit card:
what does it mean if the customer does not incur high credit card charges?

Answer 13

as it can be used for any amount up to a limit set by the card issuer

Question 14

disadvantages of a credit card:
what will the card issuer charge after the interest-free period?

Answer 14

charge interest on the balance

Question 15

disadvantages of a credit card:
why are cards issued with a credit limit?

Answer 15

so that the cardholder is limited to the amount they can spend, regardless of their financial situations

Question 16

disadvantages of a credit card:
what does the seller pay?

Answer 16

a fee to credit the card company each time customer pays by card

Question 17

benefits of cash:
where is it most accepted?

Answer 17

accepted in most places

Question 18

disadvantages of cash:
what two things may not be suitable for cash?

Answer 18

1. large transactions
2. online purchases

Question 19

disadvantages of cash:
what can happen when you’re out?

Answer 19

can be lost or stolen

Question 20

disadvantages of cash:
how can mistakes be made during transactions?

Answer 20

as there may be incorrect change being given

Question 21

what is a direct debit?

Answer 21

giving permission for a company to take money directly from your bank account to pay for things like bills or subscriptions on a regular basis

Question 22

benefits of a direct debit:
what is it a simple way to pay?

Answer 22

regular bills - deducted automatically from customer’s bank account

Question 23

benefits of a direct debit:
what makes it a flexible way to collect payments?

Answer 23

third party may vary amounts

Question 24

disadvantages of a direct debit:
why must the customer have sufficient money in their bank account?

Answer 24

to cover payment, otherwise payment will not take place

Question 25

payment technologies:
what does e-commerce transactions allow individuals and enterprises to do?

Answer 25

transfer money between buyers and sellers

Question 26

payment technologies:
what is an example of an e-commerce transaction?

Answer 26

PayPal

Question 27

payment technologies:
what do electronic payments allow?

Answer 27

same-day payments from one bank account to other

Question 28

payment technologies:
what is a simple way to make repeat purchases?

Answer 28

when online customer accounts are linked to e-commerce website stores customers payment details

Question 29

payment technologies:
what can be completed using a smartphone?

Answer 29

payment apps allow transactions

Question 30

payment technologies:
what may some payment technologies charge?

Answer 30

a fee