Methods of Payment

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  • 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

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.

Back

Cheque

Card 3

Front

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.

Back

Preview of the back of card 3

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

Preview of the back of card 4

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

Preview of the back of card 5

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