unit 1 topic 3
- 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
- advantages
- 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
- clearing house automated payment system
- online payment services
- Eg paypal
- standing orders
- 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
- advantages
- bankers draft
- same as cheques but provider signs
- means they are guaranteed
- same as cheques but provider signs
- 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
- cash card
- 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
- travellers cheque
- Cash
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