Payment methods

What is an advantage of using a cheque?

• Checques can be sent via post

• Cheques for business accounts often need to be signed by two people

• Cheques must be paid into a bank

• Cheques can bounce

Which of the following are advantages of having a cheque?

• Large amounts of cash do not need to be carried to the bank

• Any errors on the cheque will delay payment

• The drawer has a record of the paymeny being made

• Cheques can take 5-10 days for the funds to be credited to your account

What is an advantage of a credit card?

• Payments can be made even if there are insufficient funds in the payers bank acoount

• The payer is charged interest if the full amount is not repaid to the credit card company when requested

• The payee must pay a processing fee which reduces the amount received

• Users are sometimes charged an annual fee

There is a degree of protection from fraud when paying by credit card.

• TRUE

• False

What are the advantage of having a Debit card?

• Large amounts of cash do not have to be handled

• They can be used for online payments

• Credit cards can be easily cloned leading to fraud

• Card readers must be purchaded to enable transactions

What is the definition of a standing order?

• an instruction given by an account holder to the bank to pay a specific amount to another account on a regular basis.

• an instruction to the bank to withold payments

What is the definition of a Direct Debit?

• an instruction given by an account holder to another bank to allow payments to be withdrawn from their account.

• a payment method made using a signed piece of paper.

Which of the following are benefits of digital payment methods such as paypal?

• You do not need to enter your credit card details each time you make a payment

• They can be more secure for the customer

• Fees increase cost for the business receiving the payment

An electronic transfer allows the transfer of funds between bank accounts .

• True

• False