Finance Topic 3: Payment Methods

ATM
Automated teller machine, also known as a cash machine.
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Bacs
The central payment system used to process different types of electronic payment.
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Banker's Draft
A banker's draft is similar to a cheque but the payment is signed and guaranteed by the financial services provider that issues it, rather than by an individual. Bankers drafts are used for paying large sums of money.
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Cashback
A service offered by some retailers when customers pay by card. The retailer gives the customer cash and debits the amount of cash handed over from the customer's payment card.
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Cash Card
A card used to withdraw cash from ATMs or branch counters.
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CHAPS
Clearing House Automated Payment System, a same-fay payment system for high-value transactions, such as a house purchase.
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Cheque
A written instruction to the provider (e.g. the bank or building society) to pay a specified amount to a specified person or organisation.
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Contactless Card
A card that can be read simply by holding it in front of a card reader. it is used for low-value payments.
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Debit Card
A card that can be used to withdraw cash, to make face-to-face transactions in, for example, shops, and to make payments online or over the phone.
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Direct Credit
An electronic payment into an account, for example a salary or benefit payment.
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Direct Debit
An electronic payment out of an account. The amount and frequency of a direct debit payment can vary.
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Faster Payments
An electronic payment service that enables payments to be made within two hours.
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Mandate
A paper or online instruction to a provider (e.g. bank or building society) to make a payment from an account.
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Prepaid Cards
A card that has to have money credited to it before the card holder can use it to pay for goods. Once the initial sum of money on the card runs out, it can be topped up again. Some prepaid cards can be loaded with foreign currency and used abroad.
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Standing Order
An electronic payment out of an account. Standing orders are used to make regular payments of the same amount.
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Transaction
Buying or selling something.
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Transaction Need
The reason why someone needs to make a payment, e.g. needing to top up your phone credit so that you can use your phone is a transaction need.
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Traveller's Cheque
A pre-printed cheque for a set amount of currency, e.g. 50 or 100 US dollars or euros. A traveller's cheque can be exchanged for local currency or used to make payments while abroad.
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Other cards in this set

Card 2

Front

The central payment system used to process different types of electronic payment.

Back

Bacs

Card 3

Front

A banker's draft is similar to a cheque but the payment is signed and guaranteed by the financial services provider that issues it, rather than by an individual. Bankers drafts are used for paying large sums of money.

Back

Preview of the back of card 3

Card 4

Front

A service offered by some retailers when customers pay by card. The retailer gives the customer cash and debits the amount of cash handed over from the customer's payment card.

Back

Preview of the back of card 4

Card 5

Front

A card used to withdraw cash from ATMs or branch counters.

Back

Preview of the back of card 5
View more cards

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