Payment methods Flashcards
Which payment method comes in notes and coins?
Cash.
Which paper payment method has to be ‘cleared’ by the bank before the business receives the money?
Cheque.
What does ‘clearing’ mean?
The time taken between the cheque being presented to the bank and the money being received into the account.
What is ‘fraud’?
Crimes that are committed involving money.
Which payment method allows you to borrow money and then pay it back later or in instalments?
Credit card.
What does ‘credit’ mean?
It derives from the Latin word for ‘trust’. It is where a person buys something and agrees to pay for it later.
What is ‘receivership’?
It is when a company that is about to become bankrupt has come under the control of a receiver who sorts out the financial arrangements.
Which payment method is similar to a credit card but actually takes money out of the customer’s or business’ account?
Debit card.
What is ‘chip and PIN’?
Where a credit or debit card has a digital chip within it that holds information about the business or customer.
What does PIN mean?
Personal identification number. This is the four digit number that only the card holder should know.
Which payment method allows businesses to move monies from one account to another?
Credit transfer.
Which payment method, set up by the business and not the customer, is a way of transferring money automatically?
Direct debit.
In what way is a standing order different to a direct debit?
A standing order is set up by the customer.
What are the advantages of direct debit?
They are guaranteed payments?
Customers do not have to remember to pay them because they are automatic.
They cannot get lost in the post.
The amount of money and the date when it is taken can be changed automatically.
What is an ‘e-cheque’?
A payment that is made over the internet from one account to another.
