The difference between a Credit and Debit Card Debit card: Give you access to your funds immediately Credit card: You use money you don’t have but are borrowing from the bank and you pay back on a monthly basis – main companies are VISA, MasterCard, American Express, Diners Club Advantages of debit cards: Easy to obtain, Don’t have to show identification, Don’t have to carry cash, accepted in all countries Disadvantages of debit cards: Less protection, costly, money immediately taken from account Advantages of using an ATM: You have access to the cash in your bank account whenever you need it. You can travel anywhere without cash (ATM = Automatic Teller Machine) Disadvantages of using and ATM: Costly, safety

The difference between a Credit and Debit Card Debit card: Give you access to your funds immediately Credit card: You use money you don’t have but are

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The difference between a Credit and Debit Card

Debit card: Give you access to your funds immediatelyCredit card: You use money you don’t have but are borrowing from the bank and you pay back on a monthly basis – main companies are VISA, MasterCard, American Express, Diners ClubAdvantages of debit cards: Easy to obtain, Don’t have to show identification, Don’t have to carry cash, accepted in all countriesDisadvantages of debit cards: Less protection, costly, money immediately taken from accountAdvantages of using an ATM: You have access to the cash in your bank account whenever you need it. You can travel anywhere without cash (ATM = Automatic Teller Machine)Disadvantages of using and ATM: Costly, safety issues, must remember pin number (password use for security reasons)

Advantages of Internet banking: Also called on-line banking Does not have to wait in long queues at bank, can open a bank account without much paper work, fast, convenient, banks can cater for the needs of many customers at the same timeDisadvantages of Internet banking: Identity theft, security concerns

Advantages of Travellers’ cheques: Cheap, safe, accepted world wide, can be replaced within 24 hours, never expireDisadvantages of travellers’ cheques: Some foreign shops do not accept travellers’ cheques, range of currency is limited, in many places they are only useful for changing local currency in banks

Cell phone payments: people use their phones to connect to the internet to make payments. Can also us sms (short messaging services) or MMS (Multi Media Services)transactions

Page 3: The difference between a Credit and Debit Card Debit card: Give you access to your funds immediately Credit card: You use money you don’t have but are

Electronic Funds Transfer (EFT): refer to computer –based systems used to perform financial transactions electronically.

The Society for Worldwide Interbank Financial telecommunication (SWIFT): Operates as a worldwide financial messaging network which exchanges messages between banks and other financial institutions The majority of international interbank messages use the SWIFT network. Portable Speed point machines: Allows users to pay without cash. Speed point machines accept credit and debit cards and petrol cardsThe SA Travel Card: A prepaid debit card. Foreign tourists load money on the card and use them in RSACheques: A piece of paper issued by a bank that orders apayment of money. The account holder fills in and signs the cheque when making a purchase