Everfi Payment Types Module
Terms in this set (16)
Payment types are what you actually use to buy something. There are lots of options: cash, checks, debit cards, and credit cards are just a few.
A payment type that is paid for upfront and guaranteed by the bank not to bounce.
A payment type paid for upfront and used to pay for goods or services. Money orders function like cash, but are safer because you are able to specify whom the money order should go to.
A payment type that allows you to make electronic purchases that debit the cost of the purchase directly from your checking account.
A credit card is a payment type that does not automatically draw money from your account. Instead, it provides a short-term loan that you can use to make everyday purchases. Credit card loans are unsecured, which means the credit card company can't take your valuables away from you if you don't pay the loan back. This is why credit card companies charge a high interest rate on the money you owe them--so they can make money off of your loan.
merchant credit cards
A card that you sign up for at a store, which may offer discounts or other rewards. These cards function like a regular credit card
A payment type that works just like credit cards except the balance must be paid in full every month.
A card that allows you to put a specific amount of money onto them. Prepaid cards usually come with additional fees and charges.
When money is taken out of a bank account (also known as a 'withdrawal').
a transfer of funds from one account or individual to another through a bank's website or mobile application.
Also known as ACH (Automatic Clearing House) transfer. Allows you to have money come out of your account one time or automatically.
Also known as ACH (Automatic Clearing House) transfer. Allows you to have money come into your account one time or automatically.
A loan of cash you obtain with a credit card.
Annual Percentage Rate (APR)
Another name for the interest rate charged on the balance of a credit card.
A transfer of your existing credit card balance to another credit card. Balance transfers are typically used when a consumer wants to transfer their credit card debt onto a card with a lower interest rate.
The amount of money that you are able to charge to a credit card. If you exceed this limit, your purchase may not go through and you could be penalized