9 Making Payments

Making Payments Cheque: 9 Cheque: A written instruction to your bank to pay a sum of money to another person.

Making Payments Cheque: (continued) 9 Cheque: (continued) There are three parties to a cheque: drawer — the account holder drawee — the bank where the account is held payee — the person being paid the money

Making Payments 9 A cheque contains the following additional information: 1. Date 2. Amount in words 3. Amount in figures 4. Drawer’s signature 5. Cheque number 6. Account number 7. Branch sort code 8. Purpose of payment 9. New balance in account 1 1 8 2 3 9 4 5 5 7 6

Making Payments Crossing a cheque 9 Crossing a cheque Crossing a cheque involves drawing two parallel lines across the front

Making Payments Plastic Cards: 9 Plastic Cards: Banks provide a number of “plastic” cards for their current account holders: Laser (Debit) Card ATM Card Cheque Guarantee Card Credit Card People use “plastic” to pay for goods and services and to transfer money to other people without using cash.

Making Payments Transferring Money 9 Transferring Money Money can be transferred electronically in the following ways: Direct Debit A direct debit can be used to make a regular payment where the amount changes each time, e.g. the electricity bill Standing Order A standing order can be used to make a regular payment where the amount is the same each time, e.g. a regular donation to charity

Making Payments Transferring Money (continued) 9 Transferring Money (continued) Money can be transferred electronically in the following ways: Bank Giro Credit Transfer A bank giro credit transfer is used to make a single payment to another person through the bank, e.g. paying your TV licence Paypath Paypath is used by employers to transfer the wages of their employees directly into their bank accounts each payday