KEY TERMS

BACS
Automated payments by bank transfer. BACS is commonly used to pay salaries to employees and to pay regular suppliers.
Charge card
A charge card is similar to a credit card, however, the balance must be paid in full every month.
Credit card
A form of payment whereby the cardholder makes payment to a retailer from an agreed credit facility. The outstanding amount is settled by the cardholder to the credit card company.
Crossed cheque
A cheque is crossed by drawing two parallel vertical lines on it. A crossed cheque must be paid into a bank account.
Debit card
Payment medium allowing instant payment from a customers bank account to a retailer electronically.
Designated signatory
Person authorised to sign a cheque in defined circumstances.
Direct debit
Order to a bank to make regular payments out of a bank account. The amounts to be paid are notified to the bank by the payee (the account holder having given written authority to the bank for the payee to do this).
Drawer of a cheque
Account holder of person/business writing a cheque.
Payee
The person being paid.
Standing order
An order to a bank to make regular payments out of a bank account. The amount to be paid is notified by the account holder.