LO3 Part 2: Payment Methods

What is one disadvantage of using cash for the payer?

• Good for small payments

• Not accepted by all businesses

• Quick & easy to use

• Has to be taken to the bank

What is one disadvantage of using cash for the payee?

• Has to be taken to the bank

• Not accepted by all businesses

• Good for small payments

• Quick & easy to use

Which of the following is a disadvantage to the payer when using a cheque?

• The drawer has a record of the payment.

• More secure than cash.

• 2 signatories may be needed on a business account, which takes time.

• Safer to carry than large amounts of cash.

Which of the following is a disadvantage to the payee when receiving a cheque?

• A) The drawer has a record of the payment.

• B) More secure than cash.

• C) Must be paid into the bank – inconvenient.

• D) Can be sent by post.

Fill in the blank: The funds from a cheque are not available ______.

• instantly

• after 1 hour

• before deposit

• without signature

What is a disadvantage to the payer if the full amount is not repaid to the credit card company on request?

• Charged interest.

• Receive a reward.

• Credit limit increases.

• No effect on credit score.

Which of the following is a disadvantage to the payer when using credit cards?

• A) Protection from fraud

• B) Some businesses may charge a fee for credit card payment

• C) Payments can be made online

• D) Guaranteed payment to payee

What is one advantage to the payee of accepting credit card payments?

• Payee guaranteed to receive the amount from the credit card company.

• Payee receives payment in cash only.

• Payee avoids all transaction fees.

• Payee is not required to provide receipts.

What is a disadvantage to the payee when accepting credit card payments?

• Payee must pay a processing fee.

• Payee receives payment instantly.

• Payee avoids all transaction records.

• Payee earns interest on payments.

What is one disadvantage to the payer of using debit cards?

• Some businesses may charge a fee for using a debit card.

• Debit cards always offer higher rewards than credit cards.

• Debit cards require a credit check to use.

• Debit cards can only be used for online purchases.