Module 5 Lesson 2 - Bill payment methods

Front

What is online bill pay?

Back

A method of paying bills electronically through a bank or financial institution's website, allowing for scheduled and automatic payments.

Front

What is a check?

Back

A written order directing a bank to pay a specific amount of money from the writer's account to the person named on the check.

Front

What is a debit card?

Back

A payment card that deducts money directly from a consumer's checking account to pay for a purchase.

Front

What is automatic payment?

Back

A payment method where funds are automatically withdrawn from a bank account on a scheduled basis to pay bills.

Front

What are the risks associated with using a debit card?

Back

Identity theft and unauthorized transactions if the card information is compromised.

Front

What is the main advantage of using online bill pay?

Back

Convenience of managing and scheduling payments from anywhere with internet access.

Front

What is the disadvantage of using cash for payments?

Back

Risk of losing receipts and difficulty in tracking expenses.

Front

What is the primary use of checks?

Back

To make payments that require mailing or for transactions where electronic payment is not accepted.

Front

What is the setup requirement for automatic payments?

Back

Requires initial setup to authorize recurring payments, which may take time.

Front

What is the risk of losing a receipt when using cash?

Back

Cash transactions do not provide a paper trail, making it hard to prove payment.