Payment Methods Flashcards
What is a cheque
Cheque
An instruction in writing by the customer telling the bank to pay an amount to a named person or business
What is a debit card
A card which is used for purchases and cash withdrawals payments are usually taken the next working day
What is a credit card
A card issued on a buy now pay later basis and for cash withdrawal payment is made in full or inpart on receipt of statement
What is an electronic bank transfer
A term used to describe the electronic transfer of funds through a bank’s computer system
What is BACS
Bankers automated clearing services this is a direct payment between bank account usually with a three day clearance
What is a standing order?
A regular payment, fixed date and same amount, set up with the bank by the business sending the money
What is direct debit?
Variable date and amount back set up by the business receiving the payments through their bank
What is faster payment
This is the same day payments up to 2 hours between banks. It can be done online over the phone or in a bank branch.
What is chaps?
High value same-day payments sent through the bank’s computer systems. It can’t be cancelled once sent.
What is a bank draft?
A paper based document issued by the bank. It’s as good as cash used for high value purchases and it cannot be stopped or cancelled after issued.
