A2: Different ways to pay

What is a debit card?

A payment card that takes money directly from a current account.

What is a credit card?

A card that allows customers to borrow money up to an agreed credit limit.

What is one advantage of using cash?

It is widely accepted and does not require technology.

What is one disadvantage of using cash?

It can be lost or stolen and may be difficult to recover.

What is one advantage of a debit card?

It is convenient and allows people to spend money they already have.

What is one disadvantage of a debit card?

Payments may be declined if there are insufficient funds.

What is one advantage of a credit card?

It allows purchases to be made before the money is repaid and may provide purchase protection.

What is one disadvantage of a credit card?

Interest and charges can build up if repayments are not made.

What is contactless payment?

Paying by tapping a card or device against a payment terminal.

What is a prepaid card?

A card that must be loaded with money before it can be spent.

What is a cheque?

A written instruction telling a bank to pay money from one account to another.

What is a direct debit?

An instruction allowing an organisation to collect payments from a bank account, which may vary in amount.

What is a standing order?

A regular fixed payment arranged by a customer through their bank.

What is BACS?

A bank transfer system commonly used for payments that take around three working days.

What is Faster Payments?

A UK payment system that usually transfers money within seconds or minutes, although delays can occur.