B2: 2 Payment and receipt of money

In this section

In this section we will look at the various methods available to businesses to pay employees, suppliers and others. We will describe their characteristics and also consider how quickly they will impact on the business’ bank and cash balances.

We will also look at how businesses pays cash and cheques into a business bank account.


2.01 Methods of payment

2.01(a) Cheques

2.01(b) Bank drafts

2.01(c) Standing orders

2.01(d) Direct debits

2.01(e) Debit cards

2.01(f) BACS and CHAPS

2.01(g) Faster Payments System

2.01(h) Cash

2.01(i) Credit cards

2.02 Paying money into a bank account

2.03 Payment methods questions and answers