MEANS OF PAYMENT
What are the three main types of means of payment?
Cash, cheques, and credit in a bank account.
What are two common types of payment cards?
Debit cards and credit cards.
What does COD stand for?
Cash on delivery.
What is plastic money?
It refers to debit or credit cards used for making purchases.
Which companies issue credit cards in cooperation with banks?
MasterCard, Visa, and American Express.
Why is cash sometimes impractical for large purchases?
Because carrying a lot of cash can be difficult or even dangerous.
Where can you buy a postal order?
At a post office.
What is a mobile wallet?
It’s a way to pay using your smartphone without a physical card.
When was the term "plastic money" coined?
In the early 1950s, when credit cards were first introduced.
What is the main difference between a credit card and a debit card?
A credit card lets you buy on credit and pay later, while a debit card deducts money directly from your bank account.
Which countries used cheques widely in the past?
Britain, the USA, and Germany.
Name two popular online payment systems in Europe.
PayPal, Apple Pay (others include eWallet, Amazon Pay, Google Pay, PayU).
What is an invoice?
It’s a document that requests payment and records what was bought and the details of the transaction.
Why is plastic money considered safer than cash?
If lost or stolen, the card can be deactivated, and hacking a PIN is difficult.
How can using plastic money benefit businesses?
Customers spend more easily, increasing sales, and less cash on-site reduces the risk of theft.
Why has the use of cheques declined?
Because of the rise of electronic banking.
How can QR codes be used in payments?
People can scan the QR code with a banking app to make a contactless payment.
What is a bill of exchange mainly used for?
It’s mainly used in international trade to order someone to pay a specific amount at a specific time.
What are two disadvantages of using plastic money?
People might overspend and end up in debt, and there’s a risk of credit card fraud.
What security features does a credit or debit card have? Name 7.
A chip, magnetic stripe, bank details, card number, expiry date, cardholder’s name, and signature.
What types of payment cards can you named? Name three.
debit card, credit card, pre-paid card
Why is a letter of credit considered secure for international trade?
It ensures the exporter gets paid only when the goods are delivered as promised, making the buyer seem trustworthy.
What is the difference between an invoice and a pro forma invoice?
A regular invoice is a request for payment after the goods or services are delivered, while a pro forma invoice requires payment in advance before the goods are supplied.
What is a smart card or chip card?
A card with an embedded integrated circuit that can store or process data.
Name three uses of smart cards besides payments.
ccess to buildings, health cards, and loyalty point cards.