Topic 3: Payment methods Flashcards
ATM
Automated teller machine, known as a cash machine.
Bacs
Central payment system used to process different types of electronic payment.
Cash back
Service offered by some retailers when customers pay by card. Retailer gives the customer cash and debits the amount of cash handed over from the customer’s card
Banker’s draft
Similar to a cheque but the payment is signed and guaranteed by the financial services provider that issues it. Are ysed for paying large sums of money but are falling out of fashion and aren’t secure
Cash card
Used to withdraw cash from ATMs or branch counters.
CHAPS
Clearing House Automated Payment System - a same-day payment system for high-value transactions. E.g., house purchases.
Cheque
A written instruction to the provider to pay a specified amount to a specified person or organisation.
Contactless card
Cards that can be read by holding it in front of a card reader. Used for low-value payments.
Faster payments
Electronic payment service that enables payments to be made within 2 hours
Direct credit
Electronic payments into an account. E.g., a salary or benefit payment
Direct debit
Electronic payments out of an account. The amount and frequency can vary
Mandate
Paper or online instruction to a provider to make a payment from an account
Prepaid cards
Cards that have to have money credited to it before cardholders can use it to pay for goods. Once the initial sum runs out, it can be topped up. Some cards can be loaded with foreign currency and used abroad.
Standing order
Electronic payments out of an account. Used to make regular payments out of the same account.
Transaction
Buying or selling something
