payment methods

• What are the three popular payment methods discussed?

  Cash, debit cards, and credit cards
• Why is it essential for businesses to provide various payment options?

  To cater to diverse customer preferences
• What has caused the popularity of cash to decline in recent years?

  Contactless payment methods and sanitary concerns
• What is a key advantage of using cash for payments?

  Immediate receiving of payment
• What is a disadvantage of using cash?

  Vulnerable to loss, damage, and theft
• What is required when using cash payments?

  Providing change
• How do debit cards facilitate payments?

  They allow electronic funds transfer between accounts
• What is a common use for debit cards besides purchases?

  Cash withdrawals from ATMs
• What security feature is typically required when using debit cards?

  Entering a private PIN
• What are the advantages of using debit cards?

  Convenience, immediate fund transfers, and security
• What is a drawback of debit cards?

  Processing fees reduce overall profit
• How do credit cards function in terms of payments?

  They allow borrowing money for purchases
• What is a key advantage of credit cards?

  Improved cash flow through deferred payments
• What is a disadvantage of credit cards?

  Risk of accumulating unmanageable debt
• How do the advantages of cash compare to debit cards?

  Cash offers immediate payment, while debit cards provide convenience
• What are the advantages and disadvantages of cash payments?

  Advantages:

  • Immediate payment
  • No transaction fees
  • Simple bookkeeping

  
  

  Disadvantages:

  • Vulnerable to loss and theft
  • Requires change
  • Risk of damage
• What are the advantages and disadvantages of debit cards?

  Advantages:

  • Convenient, no need for cash
  • Immediate fund transfers
  • Enhanced security against fraud

  
  

  Disadvantages:

  • Processing fees reduce profit
  • Potential for fraudulent payments
• What are the advantages and disadvantages of credit cards?

  Advantages:

  • Convenient for online payments
  • Improved cash flow
  • Potential rewards and credit rating enhancement

  
  

  Disadvantages:

  • Processing fees
  • Risk of fraud
  • Possibility of unmanageable debt
• What is the definition of cash?

  A physical form of legal tender
• What is the definition of a debit card?

  A card connected to a bank account
• What is the definition of a credit card?

  A card that allows borrowing money for purchases
• How do cash, debit cards, and credit cards differ in terms of payment processing?

  Cash is immediate, debit cards transfer funds, credit cards allow borrowing
• What payment methods were explored in the last lesson?

  Cash, debit cards, and credit cards
• What are the two payment methods discussed in this lesson?

  Direct debits and modern payment technologies
• How does direct debit work?

  Customers authorize businesses to collect funds
• What type of payments is direct debit commonly used for?

  Recurring payments like subscriptions
• What is a more suitable method for one-time payments than direct debit?

  Direct credit bank transfer
• What is one advantage of direct debit?

  Convenience with automatic payments
• What does the direct debit guarantee ensure?

  High security and customer protections
• What is a disadvantage of direct debit?

  Slow payment processing for one-time transactions
• What is required to set up a direct debit?

  Completion of a direct debit mandate
• What do customers expect at an e-commerce checkout page?

  Speed, ease of use, and variety of choices
• What are some examples of new payment technologies?

  PayPal, Apple Pay, Amazon Pay, Google Pay
• What does PayPal enable customers to do?

  Send and receive money without re-entering details
• What technology is used for contactless payments?

  NFC technology
• What is one advantage of payment technologies?

  Convenience and time-saving
• How do payment technologies enhance security?

  By keeping card details hidden from sellers
• What is a disadvantage of payment technologies?

  Transaction processing fees
• What is a risk associated with services like PayPal?

  Susceptibility to fraud and phishing emails
• What are the advantages and disadvantages of direct debit?

  Advantages:

  • Convenience with automatic payments
  • No transaction fees
  • High security with customer protections

  
  

  Disadvantages:

  • Slow payment processing for one-time transactions
  • Complex setup process