Methods of Payment
- Created by: DeniseAlex1910
- Created on: 09-01-18 23:54
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- Methods of Payment
- Cash
- Buying low price items
- Notes and Coins
- Makes budgeting easier/Can be stolen or lost
- Debit Card
- Pays from a current account directly
- Doesn't require carrying cash/Not appropriate for small transactions
- Credit Card
- Allows delaying of payment
- Offers degree of protection/Encourages overspending
- Pay for a brand new TV
- Cheque
- Makes payment of specific amount of money to specific account
- Low risk/Error on writing can easily become problem
- Paying rent
- Electronic Transfer
- Transferred directly between accounts
- Almost instantaneous/If incorrect set up can be lost
- Switching money between accounts (e.g. personal to savings)
- Direct Debit
- Allows third party to withdrawn on set date
- Amount payed can vary/Payer has responsibility to check for mistakes
- Bills
- BACS
- Instant transfers within 2 hours/Limited amount per transaction
- Mobile Banking
- Carrying out financial transactions through the phone
- Convenient/Limited features
- Check account balance
- Contactless Cards
- Allows money transfer through touching on pad
- Gaining popularity/only small transactions
- Grocery Shopping
- CHAPS
- Allows direct transfer of money between accounts
- BACS
- Instant transfers within 2 hours/Limited amount per transaction
- BACS
- No amount limit/Fixed charge per transaction
- Allows direct transfer of money between accounts
- Store Card
- Delaying payments of specific shop
- Clothing
- Offers discounts/ Interest is high
- Delaying payments of specific shop
- Standing Order
- Fixed sum of money is payed on set date
- Easier to plan and budget/there is no regard to payers account balance
- Phone bill
- Pre-paid Cards
- Money is uploaded to card
- Can set budget/If lost or stolen there is no protection
- Shopping
- Cash
- Definition
- Advantage/Disadvantage
- Example
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