Personal Finance - Methods Of Payment.

Question 1

Cash

Answer 1

Notes and coins in a wide range of denominations

Question 2

Debit card

Answer 2

Issued by banks with payments for goods and services being deducted directly from a current account

Question 3

Credit card

Answer 3

Issued by financial institutions allowing customers to delay payments for goods and services

Question 4

Cheque

Answer 4

A written order to a bank to make a specific payment for a specific amount of money from one persons account to another account.

Question 5

Electronic transfer

Answer 5

Payment is transferred directly from one bank account to another

Question 6

Direct debit

Answer 6

An agreement made with a bank allowing a third party to withdraw money from an account on a set day to pay for goods or services received. E.g electricity bills.

Question 7

Standing order

Answer 7

An agreement made with a bank to transfer a fixed sum of money to a third-party account on a set date on a regular basis e.g a fixed loan repayment

Question 8

Pre-paid card

Answer 8

Money is uploaded onto a card with transactions then withdrawn to reduce the balance

Question 9

Contactless card

Answer 9

Cards with an embedded chip and antenna FINISH USING BOOKLET

Question 10

Charge card

Answer 10

Issued by a retail outlet to allow customers ADD MORE