Methods of Payment 2
Call Kai
Learn
Practice Test
Spaced Repetition
Match
Flashcards
Knowt Play1/18
There's no tags or description
Looks like no tags are added yet.
Name | Mastery | Learn | Test | Matching | Spaced | Call with Kai |
|---|
No analytics yet
Send a link to your students to track their progress
19 Terms
What is a charge card?
Similar to a credit card, but must be paid in full at the end of the month.
Usually for one retailer.
What are the advantages of using a charge card?
Can only be used for one store - can prevent poor spending decisions elsewhere.
What are the disadvantages of a charge card?
Limited to one retailer.
Must be paid in fully monthly otherwise suspension or extra fees.
What is mobile banking?
The ability to make financial transactions using mobile devices.
Includes PayPal.
What are the advantages of using mobile banking?
Convenient and easier for small businesses such as taxis and window cleaners.
What are the disadvantages of mobile banking?
May have security issues.
Internet may fail - or poor reception.
Can get hacked, although becoming more secure.
What are contactless cards?
Cards which can make payments without PIN being entered when placed next to a contactless terminal.
What are the advantages of a contactless card?
Quick and convenient. Takes less time and no need to remember a pin.
What are the disadvantages of a contactless card?
Security concerns - can be stolen and used by strangers.
What is a store card?
Issued by retailer outlets, allowing customers to make purchases and pay at a later date.
What are the advantages of store cards?
Allow you to purchase necessary food before being paid and paying it back afterwards.
May offer promotional discounts.
What are the disadvantages of store cards?
May not be paid back in time or full amount.
Can be unreliable.
What does BACS stand for?
Bankers Automated Clearing Service.
What are BACS?
Most commonly used system by businesses in the UK, average 100million transactions made per day.
Responsible for all debit and credit transactions made.
What are the disadvantages of BACS?
Payments clear in 3 days.
Primarily for lower-value transactions.
Charge a business to use - less profit.
What does CHAPS stand for?
Clearing House Automated Payment Service.
What are CHAPS?
Usually for large, one-off payments.
Typically for sums over £10,000. No upper limit.
What are the advantages of CHAPS?
System of choice for financial institutions or large companies.