Payments

What does the acronym SEPA stand for?

Correct answer D. Single Euro Payments Area.

SEPA stands for Single Euro Payments Area. The SEPA is an area in which citizens, businesses, public administrations and other economic operators can make and receive payments in euros both within national borders and between different countries, under the same conditions and with the same rights and obligations.

The use of cash offers a number of advantages. Which of these advantages applies to payment cards but not to cash?

Which of these is not a feature of credit cards?

Correct answer B. The amount paid is immediately debited from the account.

When we use a credit card, we benefit from a credit, i.e. a loan. In simpler words, the bank advances the requested sum, which we then of course have to pay back based on an overall monthly statement that includes all expenses incurred during the period.

Which of these is not a feature of debit cards?

Correct answer B. They are a form of financing.

When we use a debit card, the charges made are immediately debited from our payment account, so there's no advance from the bank and no financing. This is the main difference between a credit card and a debit card.

Which of these words has nothing to do with a debit card?

Correct answer D. Revolving.

Only credit cards can be revolving. The revolving credit card lets you make a deferred payment, i.e. a payment in instalments, spread over several months.

You have sold your scooter and receive a bank cheque from the buyer. You should cash it in:

Correct answer A. Within eight days if the place of issue and for cashing the cheque are the same .

A bank cheque can be cashed within eight days if it's cashed in the same town as it was issued (town cheque) and within 15 days if it's cashed in a different city (out-of-town cheque). It can still be cashed even after the specified time limit has elapsed, but iif there are no funds, the payee can't appeal against the issuer (drawer).

A banker's draft:

Correct answer D. Has guaranteed coverage.

A banker's draft is a safer form of payment for the recipient than a normal bank cheque, which may 'bounce' when you try to cash it (if there aren't enough funds in the account from which it's 'drawn'). It's, in fact, a credit instrument for a sum already available at the bank at the time of issue. The banker’s draft is therefore guaranteed to be covered, because the bank sets the money aside.

What is the main difference between a debit card and a credit card?

Correct answer A. Using a debit card means that the amount being spent has to be available in your current account.

A debit card is a payment instrument issued by the bank with which you have a current account. The sums spent or withdrawn are immediately debited from your current account. This means that a debit card can

only be used if there is at least as much money available on the account as you intend to spend. A credit card allows you to purchase goods and services even if you don't have the money needed for the purchase on your current account; the amount spent will be debited from your account at a later date.

Bank money is:

Correct answer C. Money produced by banks and accepted by everyone because it's convertible into legal tender.

Bank money has two prerogatives that differentiate it from any other form of money created by private entities and that determine whether it is acceptable as a means of payment:

it may be converted 'at sight' into legal tender, meaning that the depositor may ask the bank to convert the deposit into legal tender at full face value at any time;
it's issued by operators in the banking and financial system, i.e. qualified entities that are subject to the control of public authorities to ensure their sound and prudent management and that also supervise the overall stability of the system (for EU countries, they are the European Central Bank and the individual national competent authorities; for Italy, the national supervisory authority is Banca d'Italia).

When are you asked for 'strong authentication' (e.g. PIN and OTP code) in order to pay?

Correct answer C. Always, i.e. for all electronic payments made both in shops and online, except in certain exceptional cases.

Strong authentication – used to ascertain that it's really you who's making a payment by means of multiple elements for recognition – is required for all electronic payments made in shops and online, except in certain exceptional cases indicated by a bank or card issuer under the rules laid down by law (e.g. up to a set number of small payments).

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