Payment methods

List of all types of payments with a description.

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  • Created by: Deborah
  • Created on: 14-06-12 10:35
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Type Description
Credit Card Method of buying goods (shoes, books .etc) or services (insurances etc.), you usually have 56 days of pay
it back. If you don't pay it back in 56 days you have to pay in high amount of interest.
Debit Card If just another way of paying for goods and services but the money is taken straight out your bank
account.
Cash An instant method of payment for goods and services. An advantage is it is accepted everywhere. A
disadvantage is if you lose it is gone, there is very little chance of getting it back.
Cheques A method of getting money to a person's account. It takes 5 working days to get the money in the
account.
Bankers Automated This method is controlled by the computer. Banks are increasingly using a payment system called
clearing system(BACS) Electronic Funds Transfer (EFT) to make payments between bank holders.
E-Commerce This is a new industrial Revolution and Many businesses that do not get online will be left behind their
competitors who do get online. Encryption software coverts the card details into a code sp that the
details cannot be stolen and unauthorised purchase made.
Paying-in slip Businesses receive cash and cheques in payment for selling goods and services. They need to pay these
into their bank and to do this they use a paying-in slip. This is also known as a bank giro credit or credit
transfer.
Standing Order When money is taken out of your account regularly, but it must be the same amount each time. E.g. £10 a
month for charity
Direct Debit Money is taken out you account regularly but the amount will vary. E.g. telephone bill
Smart Card A smart card is similar to a credit card or debit card but instead of the information being held on a
magnetic stripe it is on a computer chip, which enables it to store much more information.
Electronic Data This is a system where data relating to business can send be exchanged via any electronic messaging
Interchange (EDI) service.

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Comments

Vicki Evans

AQA BCS payment methods refers to how employees might be paid e.g. salary, time rate wages, bonuses etc

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