1. Making Payments 9

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

3. Making Payments 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 9

4. Making Payments A cheque contains the following additional information: 9 1. Date2. Amount in words3. Amount in figures 4. Drawer’s signature5. Cheque number6. Account number 7. Branch sort code8. Purpose of payment9. New balance in account 1 1 23 5 5 6 8 4 7 9

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

6. Making Payments 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. 9

7. Making Payments 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 9

8. Making Payments 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 9