Podcast
Questions and Answers
What is a key feature of a student account?
What is a key feature of a student account?
What characterizes a personal loan?
What characterizes a personal loan?
Which type of borrowing provides the use of an item before full payment?
Which type of borrowing provides the use of an item before full payment?
How does a mortgage typically function?
How does a mortgage typically function?
Signup and view all the answers
What does an overdraft allow an individual to do?
What does an overdraft allow an individual to do?
Signup and view all the answers
What is the main purpose of a debit card?
What is the main purpose of a debit card?
Signup and view all the answers
Which of the following payment methods allows a third party to withdraw money from an account on a set day?
Which of the following payment methods allows a third party to withdraw money from an account on a set day?
Signup and view all the answers
What distinguishes a charge card from a credit card?
What distinguishes a charge card from a credit card?
Signup and view all the answers
Which type of account typically offers additional incentives for an annual fee?
Which type of account typically offers additional incentives for an annual fee?
Signup and view all the answers
How does a pre-paid card function?
How does a pre-paid card function?
Signup and view all the answers
Which payment system allows for transactions typically completed on the same day?
Which payment system allows for transactions typically completed on the same day?
Signup and view all the answers
What is the characteristic feature of a contactless card?
What is the characteristic feature of a contactless card?
Signup and view all the answers
What does a standing order typically arrange?
What does a standing order typically arrange?
Signup and view all the answers
Study Notes
Payment Methods
- Cash: Notes and coins in various denominations.
- Debit Card: Payments deducted directly from a current account.
- Credit Card: Allows delayed payment for goods and services.
- Cheque: A written order for payment from one account to another.
- Electronic Transfer: Direct transfer between bank accounts.
- Direct Debit: Automated payments from an account on a set date for bills.
- Standing Order: Regular transfers of a set amount to a third-party account.
- Pre-paid Card: Money loaded onto a card, withdrawn for transactions.
- Contactless Card: Wave card at a reader for automatic transactions.
- Charge Card: Delayed payments, full payment due by statement date.
- Store Card: Delayed payments for goods from a particular store.
- Mobile Banking: Financial transactions using mobile devices.
- BACS Faster Payment: Payment transfer in 3 business days (faster available).
- CHAPS: Payment transfer usually within the same business day.
Current Account Types
- Standard: Full banking facilities (cheque book, debit card, overdraft).
- Packaged/Premium: Annual fees or charges for extra benefits (e.g., discounted insurance, no-fee overdraft, event tickets).
- Basic: Limited features, usually for individuals with no or poor credit history.
- Student: Designed for students, may include benefits like interest-free overdraft.
Borrowing Types
- Overdraft: Withdraw funds from a current account (more than available).
- Personal Loan: Borrowing a fixed amount, repaid in installments with interest.
- Hire Purchase: Immediate use of an item, paid in installments until ownership is complete.
- Mortgage: Long-term loan for assets (e.g., property) repaid over time.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Explore various payment methods including cash, debit, credit cards, and electronic transfers. This quiz covers the basics of each method and how they function in daily transactions. Test your knowledge on modern banking and payment solutions.
