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Methods of payments - Coggle Diagram

- - - - Physical not virtual
      - Makes budgeting easier
      - Consumers feel confident when using
    - - Can easily be lost or stolen
      - Threat of counterfeit
      - Cannot be used as an online payment
- - - - Secure method of payment with low risk of theft
      - No need to carry cash around
      - Suitable for online transactions
    - - Not accepted or suitable for small transactions
      - Short time lapse between making the transaction and the money being withdrawn from the customer's account may result in overspending
- - - - Offers a degree of protection purchases
      - Suitable for online transactions
      - Most cards are accepted
      - Allows a period of credit that is interest free
    - - Interest is charged on balances not paid off within a month
      - Can encourage a customer to overspend and may get into debt
      - A limit will be set on the amount of credit allowed
- - - - Accepted for face to face transactions
      - No need to provide change as it can be written for an exact amount
      - Low risk form of payment as the cheque can only be cashed in by the named payee
    - - Viewed as old fashioned
      - Easy for the consumer to make errors when writing the cheque
      - A consumer could go overdrawn as the time delay from writing the cheque and handing it in
- - - - Easy to use for one off an more frequent transactions
      - Provides a record of payments
      - No additional costs incurred
    - - Risk of loss if the transfer is incorrectly set up
      - Not appropriate for face to face transactions
- - - - Reduces administration and management costs
      - Safe and convenient
      - An easy way to make regular payments
    - - No credit allowed
      - All transactions and withdrawals are limited to the balance in your account
      - Additional fees on ATM withdrawals
- - - - Easy and quick to set up
      - Useful for making recurring payments between private individuals
      - Usually free of charge for both payer and payee
    - - No payment notifications
      - If you want to change the date or amount you must cancel or instate a new one.
- - - - More secure
      - Ideal for when travelling overseas
      - Direct deposit
    - - Have to have the money available to load onto the card in the first place
      - No credit involved, the bank does not lend you money, they just hold you money until you spend it
- - - - Fast and efficient way of paying
      - Don't need to type chip or pin in
    - - Can be lost or stolen and used(security and theft)
      - Some people o not allow contactless
      - Can only be used for £45 or less
- - - - Can be use for large purchases typically due to no limits
      - Used for online or mail transactions
      - Provides the cardholder with increases protection
    - - You have to pay your balance off each month
      - Expensive fees if payment in full is not made on the due date
- - - - Lower credit limit
      - Increased level of consumer protection
      - High interest rates
    - - High interest rates
      - Only accepted and use in the store of issue
      - Usage is limited
- - - - Mobile banking becomes limited if you don't own a mobile
      - Doesn't offer all of thecfunctionality of interest banking
    - - More flexible payment method that can be used in groups
      - Easy to track
      - Quick and easy payment, safer than using cash
- - - - Trust service
      - No limits on the transaction size that can be sent
      - Same day payments
    - - Very expensive
      - Needs to be instructed before 2pm on a working day
- - - - There is no limit on the amount that can be transferred in a single transaction
      - Transfer can be made the same day assuming instructions are received prior to a set time, e.g 2pm at Barclays
    - - Normally, there is a fixed charge per transaction regardless of the amount transferred