Week 3 : Payment Methods Flashcards
Back
The central payment system used to process different types of electronic payment
Bankers draft
Similar to a cheque but the payment is signed and guaranteed by the financial services provider that issues it rather than by the individual. Bankers drafts are used for paying large sums of money
Cash back
A service offered by some retailers when customers pay by card. The retailer gives the customer cash and debits the amount of cash handed over from the customers payment card
Cash card
A card used to withdraw cash from ATMs it branch counters
CHAPS
Clearing house automated payment system - a same day payment system for high value transactions, such as house purchase
Cheques
A written instruction to the provider eg, the bank or building society, to pay a specified amount to a specified person or organisation
Contactless card
A card that can be read by simply holding it in front of a card reader. It is used for low value payments
Debit card
A card that can be used to withdraw cash, to make face to face transactions in, for example shops and to make payments online or over the phone
Direct debit
An electronic payment out of an account. The amount and frequency of a debit card can vary
Faster payments
An electronic payment service that enables payments to be made within 2 hours
Mandate
A paper or online instruction to a provider to make a payment from an account
Prepaid cards
A card that has money credited to it before the card holder can use it to pay for goods. Once the initial sum of money on the card has run out, it can be topped up again. Some prepaid cards can be loaded with forge in currency and used abroad
Standing order
An electronic payment out of an account. Standing orders are used to make regular payments of the same amount
Transaction
Buying or selling something
Transaction need
The reaso why someone needs to make a payment eg, needing to top up your phone credit so you can use your phone
