Methods of payment

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Direct Debit

Definition

What types of payments is it used for?

Companies

A payment that comes out of your account for a third party

Automatic Payment

Definition

Organisations

Community groups

Charities

A payment with a set frenquency that is automatically paid

Advantages

You don't have to worry about payments

What types of payments is it used for?

Easily done

You can do big payments fast

Disadvantages

Rent

Bills

Any regular payments

Debit Card

The person or people on the receiving end could take more than expected

Definition

Credit card that takes money directly from bank account

What types of payments is it used for

Small payments

Groceries

Advantages

Shopping for clothing

The payments automatically go through without hassle

Disadvantages

If you stop needing to make that payment but forget to cancel it it'll still go through

Advantages

No need to pay off at the end of each month

Disadvantages

If you don't have any money at the time, you can't buy anything

It doesn't lend you money

Internet Banking

Contactless

Definition

Accessing and using your bank account online

What types of payments is it used for

Bills

Online shopping

Checking your bank balance

Defintion

Advantages

A payment that is made by your phone.

Easy to access

What type of payments is it used for?

Quickstops

Quick to use

Cafe

No need to leave your home

Disadvantages

Could get hacked

Advantages

Easy and quick payments

If your in a rush and stressed theres no hassle with pins

Its easy to remember to have your phone on you

Disadvantages

💰

If someone gets access to your phone they don't need a pin to acess your money.

Credit card

💸

Definition

A card that allows you to purchase on credit and payit back at the end of the month.

What type of payments is it used for?

Groceries

Petrol

💰

🤑

Stationary

Advantages

You can purchase items on free credit alll month and then pay it back.

Paying it all in one go instead of individually.

Disadvantages

Could get used throughout the month if stolen and you wouldn't realise

💸

🤑

Hire Purchase

Definition

A loan from a shop or store.You take the item and slowly pay it off with interest

What types of payments is it used for

Advantages

Can be paid off slowly if you don't Have enough money.

Expensive purchases

You can get the thing you want immediately even if you can't pay for it right there and then

Disadvantages

Unless it's interest free, the cost multiplies

🤑

Paying interest

Could over-spend without knowing

By Charlotte, Bella and Paige