Methods of Payment

Created by: 13ashmanc
Created on: 27-02-18 11:37

Cash

The customer must obtain cash first from bank or ATM. Carrying large amounts is risky. If the receipt is lost, no proof of purchase. No problems with fraud for the business, but storing large amounts of cash and transporting cash to the bank is risk

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Cheque

The customer doesn’t need to carry cash and cheques can be sent by post. Cheques must be taken to the bank by the business. Transfer of money takes a few days. Any mistakes on a cheque make it invalid.

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Credit card

Credit cards issued by credit card companies (not banks!) – MasterCard and Visa are best known types. Money is transferred immediately. Allows customers to pay later – interest is charged if amount not paid in full when statement is received.

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Debit Card

Debit cards issued by banks. Money is transferred immediately. Swipe system recognises stolen/invalid cards. The money used is your own—not borrowed.

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Direct Debit

Useful for regular payments as it allows automatic transfers from one account to another. Direct credit often called credit transfer – money is transferred to the individual.

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Other cards in this set

Card 2

Front

Back

Cheque

Card 3

Front

Back

Card 4

Front

Debit cards issued by banks. Money is transferred immediately. Swipe system recognises stolen/invalid cards. The money used is your own—not borrowed.

Back

Card 5

Front

Useful for regular payments as it allows automatic transfers from one account to another. Direct credit often called credit transfer – money is transferred to the individual.

Back

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Methods of Payment