Please enable JavaScript.
Coggle requires JavaScript to display documents.
topic 3 finance - Coggle Diagram
topic 3 finance
-
-
-
-
via the internet. To access online banking, an account holder must first register for
-
-
societies. Prior to May 2008, electronic payments were made via a payment system
-
-
Although cheque imaging has significantly sped up clearing, people or organisations
-
-
Plastic payment cards are another payment mechanism that enables account holders
to give their provider instructions to pay money from an account
-
-
-
-
-
transactions by holding their card near a reader,
People tend to use cash for low-value everyday transactions.
when they meet face to face with the seller.
Cash is used by people at all stages in the life cycle, from young
children buying inexpensive toys to pensioners buying fruit from a market stall.
Another reason people might prefer to pay by cash is to help them budget, that is to
control the amount they spend
disadvantages of paying by cash
◆ The transaction is not made face-to-face with the seller
◆ The transaction must be made on the same or similar dates every month
◆ Paying by cash is less convenient than
other methods
◆ Carrying large amounts of cash can be
risky
.some sellers prefer other payment methods
-
There are a number of different types of electronic payment, designed to meet
different requirements
Standing orders are instructions to pay the same amount of money to another
account on a regular basis, such as the 5th of every month.
Standing orders can be set up and cancelled by giving instructions to the current
account provider in writing, over the phone or online
CHAPS (Clearing House Automated Payment System) is a same-day automated
payment system used for very high value payments
Mobile banking enables account holders to give payment instructions on their mobile
phone using the internet.
Online payment services, such as PayPal, enable people to pay each other without
exchanging current account details.
The advantages of electronic payments are that they are fast, safe and convenient to
make.
A cheque is a payment mechanism that enables an account holder to instruct their
provider to pay a specific amount of money to a specific person or organisation.
The advantages of cheques are that they are a secure way of paying money
They are also easy to carry and to use
Banker’s drafts look similar to cheques and are processed through the clearing
system. However, they are signed by the provider rather than an individual.
-
Debit cards allow account holders to access cash from their accounts and also to pay
for goods in stores, over the internet, by telephone and by post
These are plastic payment cards that can be loaded with money and then used to
make payments in other countries, wherever sellers accept the brand