Name : Sang Ayu Putu Permata Devi

NIM : 1512021097
Class : Tourism C
Subject: English for Banking

1. In Cash
The way that a buyer chooses to compensate the seller of a good or service that is
also acceptable to the seller. Cash is money in the form of coins and bank check. Usually,
Indonesian people pay goods in cash if they do transaction in traditional markets, stores,
shops, trades, and food street carts.
2. By Credit Card
Cash or plastic money (deferred
payment) is a payment card as a system of
payment. It allows the cardholder to pay
goods and services based on the holder’s
process to pay for them. A credit card or
plastic money is a card that allows the
cardholders to borrow money against a
line of credit, otherwise known as the card’s credit limit. The cardholders use the card to
make basic transactions, which are then reflected on their bill.
A credit card is a line of credit that the cardholders can access with their card.
 Generally, the cardholders must sign on these purchases (exceptions may be at the
gas pump or for small amounts at a drive-through window).
 The cardholders will pay interest on the purchases made if not paid off in 30 days.
3. By Debit Card
Debit card calls asset card in US
and calls payment card in UK. In debit
card transaction, the amount of a purchase
is withdrawn the available balance in the
cardholder’s account. If the available
funds are insufficient, the transaction is
not completed.
Debit cards offer the convenience of a credit card but work in a different way. Debit
cards draw money directly from the cardholders’ checking account when they make the
purchase. They do this by placing a hold on the amount of the purchase. Then the merchant
sends in the transaction to their bank and it is transferred to the merchant's account. It can
take a few days for this to happen, and the hold may drop off before the transaction goes
through.

4. By Cheque
It is a paper
used to give money
from one person or
business to the
person getting the
cheque. It is a paper
that allows them to
go to a bank and get money. A cheque is a written "order to pay", which you sign and give
to another party as payment. When you pay using a cheque, you are instructing your
financial institution to give money from your account to the person (or organization) that
is depositing the cheque.
There are some practical advantages and disadvantages in paying by cheque. If the
goods are defective, it may be of considerable negotiating advantage for a person to be able
to stop the payment on the cheque and then return the goods, rather than trying to argue for
a refund. However, if a customer stops the cheque, all the seller need do to take legal action
is show that the cheque was dishonored.
5. By Direct Credit
It is a type of authorized payment under which an account holder authorized a bank
to pay a fixed amount such as mortgage payment or rent or available amount such as those
called for in bills or invoices directly to a landlord, banks, supplier or utility company at
regular company at regular usually monthly intervals.
A direct debit or direct withdrawal is a financial transaction in which one person
withdraws funds from another person's bank account. Formally, the person who directly
draws the funds instructs his or her bank to collect (i.e., debit) an amount directly from
another's bank account designated by the payer and pay those funds into a bank account
designated by the payee. Before the payer's banker will allow the transaction to take place,
the payer must have advised the bank that he or she has authorized the payee to directly
draw the funds. It is also called pre-authorized debit (PAD) or pre-authorized payment
(PAP). After the authorities are set up, the direct debit transactions are usually processed
electronically.

Direct debits are typically used for recurring payments, such as credit card and
utility bills, where the payment amounts vary from one payment to another. However,
when the authorization is in place, the circumstances in which the funds are drawn as well
as the dates and amounts are a matter of agreement between the payee and payer, with
which the bankers are not concerned. In countries where setting up authorization is easy
enough, direct debits can also be used for irregular payments, such as for mail order
transactions or at a point of sale. The payer can cancel the authorization for a direct debit
at any time, and the banker can decline to carry out a debit if the transaction would breach
the terms of the bank account out of which payment is to be made, for example if it were
to cause the account to overdraw because banking law does not authorize a bank to alter
the payment amount.

A direct debit instruction differs from a direct deposit and standing order
instruction, which are initiated by the payer. A standing order involves fixed payment
amounts paid periodically, while a direct debit can be of any amount and can be casual or
periodic. They also should not be confused with a continuous payment authority, where
the payee collects money whenever it feels it is owed. Simply, a direct debit is an
 instruction from you to your bank or building society. It authorizes the organization you
want to pay to collect varying amounts from your account but, only if you’ve been given
advanced notice of the amounts and dates of collection. Once you have agreed those, the
money is deducted automatically. If the organization you are paying wants to change an
amount or date of collection, they have to tell you about it first.

6. By Standing Order
 Purchasing: Purchase order covering repeated deliveries of goods or services on
specified quantities at specified prices and according to a specified schedule.
 Banking: Type of pre-authorized payment under which an accountholder instructs
a bank to pay a specified amount, directly from his/her account balance, to a named
party on a regular basis.

The comparison between standing order and direct debit:

Standing Order Direct Debit

Set up No provider needed. Your customer
controls the set up. You are dependent on
them. This is unfeasible if you have > 25
customers.
Cost per Ostensibly free. You may incur a small
payment charge from your bank for each payment.
Failure rates Vary by industry. No notifications. It can
and take more than a month to find out about
notifications failures then you’ll need to chase the
customer to set up another payment.
Flexibility of Fixed payments at regular intervals only. If
payments you need to amend the amount or date of a
payment, the standing order will need to be
cancelled and a new one set up. You will
need to convince customers to change the
standing orders themselves!
Risk of late Medium - high. Once set up, low risk, but
payment many businesses struggle to get customers
to set up their standing order quickly, or to
amend it as required.
Admin High.
required Check bank statement daily to see what
payments
Bank/provider needed. You
control the set up and the amount
and date of payments.
Low. Expect to pay 20 - 40p or
1%, depending on your provider.
Very Low. < 1% with
GoCardless. Automatic
notification. You are notified
automatically of failures and can
re-submit the payment when you
want to.
High. You can collect variable
amounts or change the amount
or date of payments without
asking customers for further
authorization.
Low. You can charge customers
when a payment is due.
Very low.
Automatically submit 1000s of
payments at once
 No notification when a payment fails Automatically update your
Manually update your accounts accounts
Instant notifications when
payments fail
Easily track payments without
checking bank statements
Customer Low. No customer protection once High. Immediate refunds from
protection payments are made. This gives merchant’s your bank in the event of an
greater protection. incorrect payment.

7. e-Money
It is money which exists in banking computer systems and is available for transaction
through electronics systems. electronic money or e-money is the electronic alternative to
cash. It is monetary value that is stored electronically on receipt of funds, and which is
used for making payment transactions. e-Money can be held on cards, devices, or on a
server. Examples include pre-paid cards, electronic purses.

8. Electronic Data Capture (EDC)

It commonly known as the Credit/Debit swipe
machine is used to facilitate debit/credit card
payments. Buying an EDC machine is not as simple
as entering a shopping establishment and buying it
over the counter. As this type of a machine
incorporates monetary aspects, it requires a proper
official approval.
1. In Cash
A form of liquid funds given by a consumer to a provider of goods or services as
compensation for receiving those products. In most domestic business transactions, a cash
payment will typically be made in the currency of the country where the transaction takes
place, either in paper currency, in coins or in an appropriate combination.
 Read more: http://www.businessdictionary.com/definition/cash-payment.html

The way that a buyer chooses to compensate the seller of a good or service that is also
acceptable to the seller. Typical payment methods used in a modern business context
include cash, checks, credit or debit cards, money orders, bank transfers and online payment
services such as PayPal.

Read more: http://www.businessdictionary.com/definition/payment-method.html

2. By Credit Card

A credit card is a card that allows you to borrow money against a line of credit, otherwise known
as the card’s credit limit. You use the card to make basic transactions, which are then reflected
on your bill.

Worth noting: you are charged interest on your purchases, though there is no interest charged if
you do not carry your balance over from month to month. Credit cards have high interest rates,
and your credit card balance and payment history can affect your credit score. Below are other
facts about credit cards:

 A credit card is a line of credit you can access with your card.
 Generally, you must sign on these purchases (exceptions may be at the gas pump or for small
amounts at a drive-through window).
 You will pay interest on the purchases made if not paid off in 30 days.

Debit Cards vs. Credit Cards

It used to be commonly thought that you needed a credit card to complete certain transactions,
such as rent a car or to purchase items online, or that it was safer and easier to travel with a credit
card rather than carrying cash or using a checkbook.

Some also argue that a credit card offers additional insurance on purchases and makes it easier to
request a refund or a return. You should carefully read the disclosure information for your credit
card to understand the benefit.

Debit cards offer the same convenience without requiring you to borrow the money to complete
the transactions, though debit cards don’t always provide the same consumer protections of
credit cards.

It can be difficult to determine when to use a credit card or a debit card. Be sure to do your
research to determine the right option for you.

3. By Debit Card
Debit cards offer the convenience of a credit card but work in a different way. Debit cards draw money
directly from your checking account when you make the purchase. They do this by placing a hold on the
amount of the purchase. Then the merchant sends in the transaction to their bank and it is transferred
to the merchant's account. It can take a few days for this to happen, and the hold may drop off before
the transaction goes through.

That’s why it’s important to keep a running balance of your checking account to make sure you
do not accidentally overdraw your account.

You will have a PIN to use with your debit card at stores or ATMs. However, you can also use
your debit card without a PIN at most merchants. You will just sign the receipt like you would
with a credit card. Below are some other facts regarding debit cards.

 A debit card is tied directly to your checking account.

 It can be used where a credit card can be used.
 Generally, you will use your PIN to complete the transactions.

4. By Cheque

Payment by cheque

When payment for goods or services is made by cheque, it is a conditional payment. The condition is that the
cheque will be paid on presentation. This has some important practical consequences. Suppose that A buys
goods from B and pays by cheque. The cheque is stolen from B by C who forges B's endorsement and cashes it
through the banking system in circumstances where the bank is protected and A's account is debited. B cannot
demand further payment from A, because the condition for payment was not breached since the cheque was, in
fact, paid upon presentation.

There are other serious consequences of accepting payment by cheque, particularly in private sales of motor
vehicles. For example, if A pays B by cheque for a motor car, the basic rule would be that ownership of the car
passes to A when the cheque is handed over. If A acts fraudulently and the cheque is not paid, B may be
unable to recover the motor car if A has sold it to someone else in the meantime.

There are some practical advantages and disadvantages in paying by cheque. If the goods are defective, it may
be of considerable negotiating advantage for a person to be able to stop the payment on te cheque and then
return the goods, rather than trying to argue for a refund. However, if a customer stops the cheque, all the seller
need do to take legal action is show that the cheque was dishonoured.

Passing valueless cheques

Under the Summary Offences Act 1953 (SA) [s 39] it is a criminal offence to obtain goods or money by using
a cheque that is not paid on presentation, unless the person who offered the cheque proves that there were
reasonable grounds for believing that the cheque would be paid on presentation and there was no intention to
defraud.

Bank cheques
A 'bank cheque' is a cheque which is drawn by a bank on itself. They are traditionally used as a safe and secure
form of payment, since it is highly unusual for a bank to dishonour its own cheque. There are several reasons
why a bank might dishonour its own cheque including:

 it has been reported lost or stolen

 the cheque is a forgery or counterfeit
 a court has ordered it not be paid [Lyritzis v WBC (1994) ATPR 41-360]

The only practical protection when offered a bank cheque is to ring the bank which appears to have issued the
cheque and seek verification that the cheque has in fact been issued by the bank. This may be done by
telephone, but notes of the time and other details of the conversation should be made. It is also important to get
the name of the bank employee spoken to. This simple precaution should prevent any loss from a bad cheque.
The person handing over the cheque should not object since it is in the interests of all parties that confidence
be maintained. Indeed, if the person handing over the cheque protests about the procedure, it is even more
important that it be carried through.

Cheque use is steadily declining as electronic alternatives gain in popularity, but

Canadians still use close to a billion cheques each year.

A cheque is a written "order to pay", which you sign and give to another party as
payment. When you pay using a cheque, you are instructing your financial
institution to give money from your account to the person (or organization) that is
depositing the cheque.

Payments Canada and its participant financial institutions have established rules
and standards which set out the specifications for cheques (Standard 006), and
cheque images (Rule A10), which can be deposited using your mobile phone.

Writing a cheque
If you're filling out a cheque by hand, use a ball-point or roller pen with black or
blue ink.

If you're using a computer to do this, use a minimum 10 point font and dark ink
colours that will show up well in images (black, blue or dark purple).

We recommend including the amount of the payment in words (even though it's
not legally required), since it serves as a backup if the amount in figures is
questioned.
You should ensure that you have sufficient funds in your account to cover the
cheques that you write. It's a good idea to keep a record of the cheques you write
so you know which ones have been deposited and which ones are still outstanding.

Review your account activity regularly, and report any issues to your financial
institution.

Make sure to keep your chequebook in a safe place, and never pre-fill or pre-sign
cheques.

Accepting and depositing a cheque

When accepting a cheque, make sure the person paying you has filled all necessary
fields correctly and has signed it.

If the cheque is made out to more than one person or if someone is giving you a
cheque that was made out to them, make sure that it has all the required signatures
on the back of the cheque (endorsements). For example, if a cheque is made out to
you and John Smith, you need John Smith's signature on the back of the cheque to
deposit it in your account. Or, if a cheque is made out to Jane Doe, she can sign the
back and give it to you. If you're unsure whether an endorsement is required, check
with your branch.

When you deposit a cheque, your financial institution updates your account records
to show a deposit of the amount indicated. Depending on your bank's policies, you
may able to access the money right away, or the funds might be put "on hold".

Holds

Federally regulated financial institutions are required by law to limit the hold
period on cheques. Our rules and standards do not address holds on cheques, but
the Financial Consumer Agency of Canada's (FCAC) website has useful
information on your rights and responsibilities.

Stale-dated

Cheques are considered stale-dated after six months, unless certified. A stale-dated
cheque simply means that the item is old, and not necessarily invalid. Financial
institutions may still honour these items, but there is no obligation to do so.
Government of Canada cheques don't stale-date and your financial institution can
confirm that they are still valid.
Post-dated

Cheques should not be deposited before their due date.

However, given the large volume of cheques and automated processing, some
items may slip through.
If you notice that a post-dated cheque is cashed early, you can ask that your
financial institution return it, up to and including the day before the date on the
cheque. You will need to make other arrangements to pay the recipient.

To learn more about cheques, view Module 03 (Cheques) of our educational video
series – the Learning Exchange.

5. By Direct Debit

6. A direct debit or direct withdrawal is a financial transaction in which one person

withdraws funds from another person's bank account.[1] Formally, the person who directly
draws the funds ("the payee") instructs his or her bank to collect (i.e., debit) an amount
directly from another's ("the payer's") bank account designated by the payer and pay
those funds into a bank account designated by the payee. Before the payer's banker will
allow the transaction to take place, the payer must have advised the bank that he or she
has authorized the payee to directly draw the funds. It is also called pre-authorized debit
(PAD) or pre-authorized payment (PAP). After the authorities are set up, the direct debit
transactions are usually processed electronically. Direct debits are typically used for
recurring payments, such as credit card and utility bills, where the payment amounts vary
from one payment to another. However, when the authorization is in place, the
circumstances in which the funds are drawn as well as the dates and amounts are a matter
of agreement between the payee and payer, with which the bankers are not concerned.[2]
In countries where setting up authorization is easy enough, direct debits can also be used
for irregular payments, such as for mail order transactions or at a point of sale. The payer
can cancel the authorization for a direct debit at any time, and the banker can decline to
carry out a debit if the transaction would breach the terms of the bank account out of
which payment is to be made, for example if it were to cause the account to overdraw.
(Banking law does not authorize a bank to alter the payment amount.)
7. A direct debit instruction differs from a direct deposit and standing order instruction,
which are initiated by the payer. A standing order involves fixed payment amounts paid
periodically, while a direct debit can be of any amount and can be casual or periodic.
They also should not be confused with a continuous payment authority, where the payee
collects money whenever it feels it is owed.
8. Direct debits are available in a number of countries, including the United Kingdom,
Brazil, Germany, Sweden, Spain, South Africa, Switzerland, and the Netherlands. Direct
debits are made under each country's rules, and are usually restricted to domestic
transactions in those countries. An exception in this respect is the Single Euro Payments
Area which allows for Euro-denominated cross-border (and domestic) direct debits since
 November 2010. In the United States, direct debits are processed through the Automated
Clearing House network.
9.
10. Contents
11. Simply, a Direct Debit is an instruction from you to your bank or building society. It authorises the organisation you
want to pay to collect varying amounts from your account – but only if you’ve been given advanced notice of the
amounts and dates of collection.
12. Once you have agreed those, the money is deducted automatically. If the organisation you are paying wants to change
an amount or date of collection, they have to tell you about it first.

In a nutshell, Direct Debit is the simplest and most convenient way for you to pay regular and occasional bills.

› an arrangement for making payments, usually to an organization, in which your bank

moves money from your account into the organization's account at regular times:

I pay my electricity bill by direct debit.

13. By Standing Order

14. › an arrangement for making payments, usually to an organization, in which your
bank moves money from your account into the organization's account at regular
times:
15. I pay my electricity bill by direct debit.

A standing order is an automated payment method set up between a customer and a bank to send
payments to other people or organisations. A Direct Debit follows the same method, but it is
authorised by a customer and managed by an organisation. A Direct Debit is set up by an
organisation and they manage the frequency and amount. This is also the case for a standing
order, but the difference is that the customer is in control of the frequency and amount.

What are Standing Orders and Direct Debit?

1. Direct Debit and Standing Order are both automatic payment methods

 A standing order is an instruction your customer gives to their bank to pay you a fixed
amount at regular intervals whether this is weekly, monthly, quarterly or yearly.
 With Direct Debit, your customer authorises you to collect money directly from their
bank account whenever a payment is due. Direct Debit payments can vary in frequency
and amount.
2. You control a Direct Debit. Customers control a standing order

 A standing order is set up by customers. They choose the amount and frequency, and can
change or cancel it without notifying you.
 In contrast, you have full control over the payments you take by Direct Debit. You decide
how much and how often you collect from customers. You can vary the amount and
frequency of collections without further authorisation from the customer and are notified
automatically by the Direct Debit system of any cancellations or failures.

Direct Debit vs Standing Order

Here’s a quick comparison of the two payment methods for you:

Standing Order Direct Debit

No provider needed. Your customer controls Bank/provider needed. You control

Set up the set up. You are dependent on them. This is the set up and the amount and date
unfeasible if you have > 25 customers. of payments.

Cost per Ostensibly free. You may incur a small charge Low. Expect to pay 20 - 40p or 1%,
payment from your bank for each payment. depending on your provider.

Very Low. < 1% with GoCardless.

Vary by industry. No notifications. It can take
Failure rates Automatic notification. You are
more than a month to find out about failures
and notified automatically of failures and
then you’ll need to chase the customer to set up
notifications can re-submit the payment when you
another payment.
want to.

Fixed payments at regular intervals only. If you

need to amend the amount or date of a
Flexibility of payment, the standing order will need to be
payments cancelled and a new one set up. You will need to
convince customers to change the standing
orders themselves!
High. You can collect variable
amounts or change the amount or
date of payments without asking
customers for further authorisation.

Medium - high. Once set up, low risk, but many

Risk of late businesses struggle to get customers to set up Low. You can charge customers when
payment their standing order quickly, or to amend it as a payment is due.
required.

Very low.
High.
Admin
 Automatically submit 1000s
required  Check bank statement daily to see what
of payments at once
payments
 Automatically update your
 No notification when a payment fails
accounts
 Standing Order Direct Debit

 Manually update your accounts  Instant notifications when

payments fail
 Easily track payments without
checking bank statements

Low. No customer protection once payments High. Immediate refunds from your
Customer are made. This gives merchants greater bank in the event of an incorrect
protection protection. payment.

Should I use standing order or Direct Debit?

Which is the right option for you depends on two key things:

1. Your organisation size

2. Your customer base
3. Your payments

1. Standing orders are great for very small organisations

If you have less than 25 customers, standing order may be a good option for you. Standing orders
are great for smaller organisations or clubs with close relationships with their members.

However, if you have more than 25 customers Direct Debit is probably a better option for you.
With a standing order, you will always need to check your bank account when a payment is due
to find out whether a payment has actually been set up or if a payment has failed. On the other
hand, with Direct Debit you set up the payments so you'll know that everything's in place. What's
more, you'll be notified of any failures straight away so you'll always know when you have and
haven’t been paid without needing to trawl through your accounts.

2. Standing order is good if you are close to your customers

If you have less than 25 customers who you can trust to set up a standing order when asked and
continue to make the payments this could be a great option for you as your customer does all the
hard work for you.

However, if you aren’t sure whether you can trust your customers to set up or maintain a
standing order then Direct Debit could be a better option for you.

3. Standing order is only suited to regular, fixed payments

Both Direct Debit and standing order are great for regular, fixed payments like rent or
subscriptions. However, standing order isn’t great for paying bills with variable amounts or
frequencies such as utility bills or credit card debts or where you may want to increase fees or
upgrade subscriptions in the future. One of the greatest benefits of Direct Debit is its flexibility.
You are in control so you can adjust the amount or frequency of payments whenever you need to
(as long as you give your customer the required advance notice.

Both standing order and Direct Debit could be used to make one-off payments – although neither
of them are typically thought of as one off payment methods. Similarly to with regular payments,
Direct Debit means you control the payment so you know that the payment has been set up and
when you’ll receive it so there’s no chance of a customer forgetting to set up their standing order
or setting it up on the wrong date.

If you think Direct Debit might be for you and would like to find out more about how
GoCardless could help you to make your payments process cheaper and easier, our features page
is a good place to start.

Direct Debit is the simplest, safest and most convenient way to make regular or recurring
payments; that’s why it’s used for things like council tax and utility bills.

Download guide

Contents

 Chapter 1 – What is Direct Debit?

o What is Direct Debit? A guide for payers
o Direct Debit in a nutshell: A guide for merchants

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 Chapter 2 – What can Direct Debit do for my business?

o Direct Debit for wholesalers, distributors and manufacturers
o Direct Debit for membership organisations
 o Direct Debit for SaaS companies
o Direct Debit for telecoms and hosting companies
o Direct Debit for marketing agencies and accountancy firms
o Direct Debit for charities and fundraising organisations

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 Chapter 3 – How does Direct Debit work?

o Introduction to Direct Debit Mandates
o Paper vs Paperless Direct Debit
o Introduction to taking payments with Direct Debit
o The Direct Debit Guarantee: A beginner's guide

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 Chapter 4 – How does Direct Debit compare to other payment methods?

o What is the best way to take regular payments?
o Standing Order vs Direct Debit
o Credit Card vs Direct Debit
o Cash, Cheques and Bacs transfer vs Direct Debit

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 Chapter 5 – How can I access Direct Debit?

o How to access Direct Debit: a 60 second guide
o How to prepare your business for Direct Debit
o How to become a Direct Debit originator
o 8 Questions to ask to find the right Direct Debit bureau

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80% of Brits have at least one Direct Debit and the average consumer has six, but many people
remain unsure what Direct Debit is or when it should be used. If you’re looking to set up a
regular payment, read this guide to find out what Direct Debit is and if it’s right for you.

What is Direct Debit? A definition of Direct Debit

A Direct Debit is an instruction from you to your bank.

A Direct Debit authorises someone to collect payments from your account when they are due.
You give this authorisation by completing a Direct Debit Mandate form – this can be a paper
form or a web page that you complete online. Once authorised, the organisation can
automatically take payments from you (provided that they comply with the scheme rules).

Direct Debit can be used for nearly everything

Direct Debit can be used for most payments but it’s most often used to pay:

 Regular bills for variable amounts - With Direct Debit you know all your important bills will be
paid on time each month. In 2011 2.4bn payments were made by Direct Debit for utility bills and
council taxes.
 Fixed subscriptions or memberships - Direct Debit is the safest and easiest way to make
recurring payments like magazine subscriptions or gym memberships.
 Paying on account – Some organisations will provide Direct Debit as an option for spreading
your costs or paying on account.

Direct Debit can be used for one-off payments too

While Direct Debit is usually associated with regular and recurring payments, it can also be used
for one-off payments. Direct Debit should not be used for one-off payments where instant
transfer of funds is needed, like e-commerce. However, if the organisation you're paying doesn't
need the money immediately, Direct Debit can be a great option.

What are the important Direct Debit scheme rules that I should know?

 Advance notice - You must be told the amount and date of each payment in advance.
 Direct Debit guarantee - You are entitled to an immediate refund for any payments that
shouldn’t have been taken.

Direct Debit is safe, convenient and cost effective for customers

There are three benefits to making payments using Direct Debit:

 Convenience - Payments are automatic, so bills are never forgotten, lost or delayed.
 Cost - Businesses may offer incentives for paying by Direct Debit.
 Customer Protection – Direct Debit is the safest payment method in the UK.

Direct Debit vs Standing Order

People often confuse Direct Debits and standing orders. That’s understandable - the differences
are subtle but important.

We’ve set out a summary of these differences for you below:

Standing Order Direct Debit

An authorisation for a person/organisation

An instruction to your bank to make
What is it? to take payments from your account when
payments to a person/organisation.
they are due.
 Standing Order Direct Debit

Regular, fixed payments like rent payments, Regular payments of variable or fixed
What is it used
monthly charity donations or regular amounts like mortgage payments, utility
for?
payments into a savings account. bills or other bills based on usage.

You instruct your bank. You decide when

How do you You complete an instruction form then
and how much to pay, and tell your bank to
set one up? you won’t need to do anything else.
do this.

Customer High. Immediate refunds from your bank

None. Once you pay, you can't get it back.
protection in the event of an incorrect payment.

Standing orders give you control. Direct Debit gives you flexibility and safety

Standing orders are good for regular payments of a fixed amount. However, if you want to
pay variable amounts or might need to change payment amounts then standing orders are not the
most practical option.

Direct Debit lets you pay variable amounts or at varying intervals without needing to do
anything more. This makes it great for paying bills where you are charged depending on what
you have spent that month.

Direct Debit is the safest way to make payments in the UK. The Direct Debit Guarantee gives
you a right to immediate refunds for any payments which shouldn't have been taken.

Direct Debit and GoCardless

GoCardless is the UK’s leading Direct Debit provider and is used by over 2,000 organisations
including Greater Anglia. GoCardless is sponsored by RBS and is authorised by the FCA.

Switching to Direct Debit with GoCardless will save you the hassle of paying each month.
You’ll be notified of any upcoming payments, and you can cancel them whenever you want.
What’s more, the Direct Debit Guarantee makes this the safest way to pay.

If you would like to find out more about GoCardless, click here to go to our website.

Act of sliding a card through a magnetic stripe reader.

It couldn't be easier to use a credit card -- just one swipe and anything you want to buy is yours
Data capture device that reads information via contact with a card carrying a magnetic stripe. Also
called card swipe machine or just swipe machine because the card must be passed (swiped)
through a slot for reading the stored information.

Electronic Data Capture (EDC) commonly known as the Credit/Debit swipe machine is used to facilitate
debit/credit card payments. Buying an EDC machine is not as simple as entering a shopping
establishment and buying it over the counter. As this type of a machine incorporates monetary aspects,
it requires a proper official approval.

http://www.businessdictionary.com/

e money

electronic money or e-money is the electronic alternative to cash. It is monetary value that is stored
electronically on receipt of funds, and which is used for making payment transactions. E-Money can be held
on cards, devices, or on a server. Examples include pre-paid cards, electronic purses, such as M-PESA in
Kenya, or web-based services, such as PayPal. As such, e-money can serve an umbrella term for a number of
more specific electronic value products and services.

The European Union (EU) has been involved in defining terms related to e-money since 2000, which is much
longer than many other countries or regions. The following definitions are included in the most recent
proposed directive from the EU.

Electronic Money Institution. A legal person that has been granted authorization to issue electronic money.

Hybrid Issuers. Service providers who issue e-money as an accessory activity to their core business, ie mobile
phone companies, public transport companies, etc.

Electronic money is money which exists in banking computer systems and is available for transactions
through electronic systems. Its value is backed by fiat currency and it can be exchanged into physical
form however its uses are often more convenient electronically.

Read more: Electronic Money https://www.investopedia.com/terms/e/electronic-

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