Understanding Payment Methods Quiz

What is the primary advantage of using cash payments?

• They offer rewards and cashback.

• They are universally accepted and immediate.

• They help build credit history.

• They provide purchase protection.

Which of the following is a feature of credit card transactions?

• They require a PIN for every transaction.

• They allow for interest-free borrowing if paid in full each month.

• They are limited to the balance in your bank account.

• They cannot be used for online purchases.

Which of the following is a popular digital wallet service?

• PayPal

• Cheque

• BACS

• Standing Order

What is a key disadvantage of cheque payments?

• They are processed instantly.

• They can be easily lost or stolen.

• They offer high security.

• They are widely accepted.

Which of the following is true about debit card transactions?

• They allow you to spend more than your account balance.

• They are linked directly to your bank account.

• They offer a credit limit.

• They require monthly repayments.

What is a standing order?

• A one-time payment instruction.

• A regular payment of a fixed amount.

• A payment that varies each month.

• An immediate transfer of funds.

Which of the following is a characteristic of direct debit?

• It is used for one-time payments.

• The amount can vary each time.

• It is only used for international payments.

• It requires a cheque to be written.

What is a store card?

• A card issued by a bank for general use.

• A card issued by a retailer for use in their stores.

• A card that can only be used online.

• A card that offers no credit facility.

What does BACS stand for?

• British Automated Clearing System

• Banker’s Automated Clearing Service

• Bank Account Clearing System

• British Account Clearing Service

What is the main benefit of using Faster Payments?

• They are processed within 3-5 business days.

• They allow almost instant transfer of funds.

• They are only available for international transfers.

• They require a fee for each transaction.