Payment Methods (Leaving Cert Home Economics): Flashcards
📚Flashcards
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15 cards from this deck
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Practise the cards
15 cards from this deck
What is cash?
What is cash?
Physical currency (notes & coins) for immediate payment
Key benefit of using cash
Key benefit of using cash
Spending control - only spend what you physically have
Main drawback of cash
Main drawback of cash
Security risk - if lost/stolen, cannot be recovered
What are cheques?
What are cheques?
Written orders instructing banks to transfer money
Safety advantage of cheques over cash
Safety advantage of cheques over cash
Can be cancelled if lost or stolen
Main disadvantage of cheques
Main disadvantage of cheques
Processing time - takes several days to clear
What are debit cards?
What are debit cards?
Electronic cards accessing money from your bank account
Key benefit of debit cards
Key benefit of debit cards
Immediate transfer of funds reflected in real-time
Fraud risks with debit cards
Fraud risks with debit cards
Card skimming, online fraud, unauthorised use if lost/stolen
Direct debits vs standing orders difference
Direct debits vs standing orders difference
DD varies amount; SO transfers fixed amounts you control
Main advantage of automated payments
Main advantage of automated payments
Ensures bills paid on time, preventing late fees
What are credit cards?
What are credit cards?
Borrow money from issuer, repay with interest if not in full
Credit building benefit of credit cards
Credit building benefit of credit cards
Establishes positive credit history for future loans
Main risk of credit cards
Main risk of credit cards
High interest rates if balances not paid off monthly
What is online banking?
What is online banking?
Complete banking services through secure internet platforms