payment on their card each month. Payment is delayed until Interest charges can They can make a minimum payment or the bill needs paying be very high pay the full amount owed. Debit Similar in use to the credit card but Instant payment with no User must have the Card Linked to a bank account so there must interest available in their account be fund before it can be used. Cannot be used to borrow Provides sellers with instant payment and is quicker than a cheque. Many businesses prefer to receive payments by debit card as there is no fee attached. Direct Direct debit allows customers to pay Direct debits are free: regular bills automatically. buyers do not have to pay A direct debit is an agreement under to use this method of which a business selling goods and payment services can take money from the Buyers do not have to customer’s bank account. This amount remember to pay regular can fluctuate, for example, a direct bills, direct debit does this debit could be set up to pay for a fuel automatically. bill which is different every month Sellers know that they will dependent on amount of fuel used. receive payment on time. Sellers can save time and money, as they do not have to pay cheques into their bank account or send out invoices to customers. Standing Similar to a direct debit but the amount As Order does not fluctuate. This shows all the inflows (money coming in) and outflows (money going out). Total inflows = all the inflows added together Total outflows = all the outflows added together = total inflow minus total outflow Net inflow/outflow Closing Balance = net inflow/outflow plus opening balance Opening balance is the previous month’s closing balance
payment on their card each month. They can make a minimum payment or pay the full amount owed. Payment is delayed until the bill needs paying Interest charges can be very high Debit Card Similar in use to the credit card but Linked to a bank account so there must be fund before it can be used. Cannot be used to borrow Provides sellers with instant payment and is quicker than a cheque. Many businesses prefer to receive payments by debit card as there is no fee attached. Instant payment with no interest User must have the available in their account Direct Direct debit allows customers to pay regular bills automatically. A direct debit is an agreement under which a business selling goods and services can take money from the customer’s bank account. This amount can fluctuate, for example, a direct debit could be set up to pay for a fuel bill which is different every month dependent on amount of fuel used. Direct debits are free: buyers do not have to pay to use this method of payment Buyers do not have to remember to pay regular bills, direct debit does this automatically. Sellers know that they will receive payment on time. Sellers can save time and money, as they do not have to pay cheques into their bank account or send out invoices to customers. Standing Order Similar to a direct debit but the amount does not fluctuate. As This shows all the inflows (money coming in) and outflows (money going out). Total inflows = all the inflows added together Total outflows = all the outflows added together Net inflow/outflow = total inflow minus total outflow Closing Balance = net inflow/outflow plus opening balance Opening balance is the previous month’s closing balance
Unit_2_Revision_Booklet.docx