The interest rate that the Bank of England uses when it lends money to other banks. Financial services providers take account of the Bank rate when they decide how to set interest rates on their own products.

Three numbers on the back of a credit or debit card. This is a security measure designed to prevent fraudulent use of the card by someone other than the cardholder.

A written instruction to the provider (eg the bank or building society) to pay a specified amount to a specified person or organisation. (The law relating to cheques is quite complex so this is a simplified explanation for the purpose of these study materials.)

A card that allows the holder to make purchases face to face, online or over the phone, and to withdraw cash from an ATM. Unlike a debit card, where the money is taken from the holder’s own account, transactions are paid by the card provider. The card holder repays the amount owed to the provider either in one payment or in instalments. The provider charges interest on cash withdrawals from the time the withdrawal is made and on purchases after a certain period.

A bank or building society account where people can store their money in the form of an electronic balance and withdraw it to make payments.

Direct credit

Direct debit

Money either paid to an account holder by the provider, or charged to the account holder by the provider. Interest is paid on savings accounts and some current accounts and charged on borrowing, eg an overdraft. Each provider decides the rate of interest it will pay or charge, depending on the type of account and, in some cases, the credit history of the individual account holder.

An electronic payment out of an account. Standing orders are used to make regular payments of the same amount.