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Explain circumstances under which each of the following means of payment can be used. (i) Standing order (ii) Credit cards (iii) Credit transfers (iv) Crossed cheque (v) Postal orders

      

Explain circumstances under which each of the following means of payment can be used.
i) Standing order
ii) Credit cards
iii) Credit transfers
iv) Crossed cheque
v) Postal orders

  

Answers


gideon
i. Standing order – Where the trader wants to make specific amount of money to a certain
business for a given period of time .This is mainly applied in payment of rents , Hire purchase etc.
ii. Credit card - where the customer may not want to carry large amount of money for security
reasons / where it is a business policy for the customer to use credit card.
iii. Credit transfer – when the business organization would like to pay many employees (earning
in the same commercial bank) using one cheque.
iv. Crossed cheque - where the business organization would want to ensure safety of payment
to the right creditor / person
v. Postal order – Where the business organization would like to make fixed payment which involve
smaller denomination.
gideon1 answered the question on November 2, 2017 at 06:22


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