unit 1 topic 3

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  • Created by: ruyb
  • Created on: 05-03-18 11:16
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  • unit 1 topic 3
    • Cash
      • advantages
        • convenient
        • instant
        • accepted by most
        • low risk at low values
      • disadvantages
        • large amounts of cash are not easily carried
        • other methods are more suited
          • such as buying in advance
      • used for low value transactions
    • electronic payments
      • standing orders
        • payment out of an account
      • direct credit
        • payment into asn account
      • direct debit
        • payment out of an account-amount varies
      • online banking
        • enables account holders to give instructions for account transactions via the internet
      • faster payments
        • used to be BACS
        • 2 hours
        • free to use
        • some providers set a max
      • advantages
        • usually free , fast, safe
        • automated payments
      • disadvantages
        • secuirty (fraud)
        • risk of mistakes eg misplaced decimal
      • mobile banking
        • enables account holders to give payment instructions on their mobile phone
      • CHAPS
        • clearing house automated payment system
          • same day
          • high value transactions
      • online payment services
        • Eg paypal
    • cheques
      • advantages
        • Easy to carry and use
        • secure and can only be cashed in by the right person
      • disadvantage
        • slow, take upto 6 days to clear
        • unpaid cheques are sent back when there are insufficient funds
        • some places do not accept them
    • bankers draft
      • same as cheques but provider signs
        • means they are guaranteed
    • payment cards
      • cash card
        • used to withdraw cash at ATMs
      • Debit cards
        • used to withdraw cash at ATMs
        • used to make face to face transactions
        • used to make online transactions
        • money is removed from the current account
      • prepaid cards
        • EG oyster card
      • contactless cards
        • fast, require no pin - face to face transactions
    • paying abroad
      • travellers cheque
        • prepaid cheque for a set amount of a currency
        • can be used to swap for local currency
      • prepaid travellers cards
        • loaded with currency and used abroad
      • debit card
      • cash in local currency

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