ways of paying for products/services

Question 1

Cash

Answer 1

Notes and coins
A- Widley accepted
A- Physical
D- Easily lost or stolen
D- Cant be used online

Question 2

Debit card

Answer 2

Issued by banks, money gets taken from current account
A- Cashless
A- Secure method
D- Overspending
D- Not accepted on small transactions

Question 3

Credit card

Answer 3

Issued by banks/ delays payments
A- period of credit interest free
A- Loyalty schemes
D- Overspend + debt
D- Limit on credit

Question 4

Cheque

Answer 4

Written order for a bank/ one persons bank to another
A- Widely accepted
A- No need to provide change
D- Time delay
D- Viewed as old fashioned

Question 5

Electronic transfer

Answer 5

Payment from one bank to another electronically
A- Instant transaction
A- Record of payment
D- Risk of loss
D- Not appropriate/ face to face

Question 6

Direct debit

Answer 6

Allows a third party to withdraw on a set day
A- Easy for regular payments
A- Quick to set up
D- IF mistake/ payee’s responsibility
D- Payer determines amount

Question 7

Standing order

Answer 7

Allows bank to transfer a fixed sum to third party
A- Same amount paid each month
A- Easy to set up + cancel
D- Taken regardless of balance
D- Payments continue unless cancelled

Question 8

Prepaid cards

Answer 8

Money uploaded onto a
card with transactions then being withdrawn to reduce balance
A- Set up a budget
A- controlling the amount spent
D- No protection if lost
D- Initial fee to purchase

Question 9

Contactless card

Answer 9

Cards containing antennae allow money transferred when card
touches a contactless terminal
A- Gaining popularity
A- Secure
D- often for small transactions
D- Not widely accepted

Question 10

Charge cards