Types of payment

Question 1

Cash

Answer 1

Notes and coins in a wide range of denominations.

makes budgeting easier but can be lost or stolen

Question 2

Debit Card

Answer 2

issued by banks with payments for goods and services being deducted directly from a current account
means there is no need to carry cash but it isnt appropriate for small transactions

Question 3

Credit card

Answer 3

issued by financial institutions allowing customers to delay payments for goods and services.
can encourage debt but allows a period of credit interest free

Question 4

Cheque

Answer 4

written order to bank for a specific amount of money from one account to another
widely accepted but there is a time delay

Question 5

electronic transfer

Answer 5

payment is transferred directly from one bank to another

it is quick but there is a risk of loss if set up incorrectly