Methods of payment

Methods of payment accepted by colleges, businesses and shops in Oxford vary. For payment of University and college fees, you should contact your college bursary for advice. What follows is a short overview of the range of methods of payment accepted in Britain.

Direct debit

Direct Debit is a convenient way to make regular payments for subscriptions and bills. It is a simple instruction from you to your bank that authorizes an organisation or business to collect money from your account on a regular, usually monthly, basis.

Setting up a Direct Debit is a fairly straightforward exercise. Usually the business or organisation you want to pay will give you an instruction form to fill out. Once you have completed this, you can return it to them and they will then send it to your bank. Sometimes you can also set up Direct Debit over the Internet or the phone.

To cancel a Direct Debit, you must write to your bank asking them to stop making the payments. It is good practice to send a copy to the party for which you are cancelling the Direct Debit authorisation.

For more information, see the website of BACS (Bankers Automated Clearing System), which manages Direct Debit in the UK.

Cheque

Clumsy, slow and error-prone. But still the preferred way to settle the bills for the analog gent.With most bank accounts, you will also get a chequebook —cheques are especially useful for making payments by mail. Normally you will get one chequebook at a time, and when it is almost finished, the bank should automatically send you a new one.

A cheque has two parts, separated by a perforation: one is the stub that you keep as a record, the other is the main body of the cheque which you tear off and use to make a payment. Writing a cheque is fairly straightforward. A completed cheque will include the date in the upper right-hand corner, as indicated. Where it says, ‘Pay’, you will need to write the name of the person/company to whom you are making a payment and then the amount spelled out in words, followed by the word ‘only’. Don't forget to draw a straight line through any free space remaining. Put the amount in digits in the box indicated and sign below it, where it says ‘Signature’. And, voilà, you are done!

Useful Tips: It is not a good idea to write a cheque if you don't have enough money in your account. Keep your chequebook in a safe place. Never pre-sign your cheques. If you lose your chequebook, contact your bank as soon as possible to report its loss. Regularly check your bank statement against the stubs in your chequebook to make sure the cheques and amounts match.

Debit cards

With some bank accounts, you can also get a debit card. Debit cards allow you to pay for purchases directly from your account. Some shops may only accept certain types of debit cards, and you should always check that yours is accepted before making a purchase.

Debit cards can also be used at cash machines or ATMs. They are a convenient way to get cash from your account outside bank opening hours. You can usually use your debit card to get cash from machines belonging to other banks, but there may be a charge. Some shops will allow you to use your debit card to get cash when you make a purchase from them —this is what's popularly called ‘cash back’.

Most banks place a limit on the amount of money you can withdraw at any one time when using a debit card at a cash machine. This is usually explained in the information the bank will give you at the time you open an account with them.

Credit cards

Credit cards differ from debit cards in that they allow you to buy things or obtain cash withdrawals without paying for them immediately. You are likely to be charged a sizable fee for cash withdrawals on a credit card and it is important to bear it in mind.

Electronic bank transfers

Electronic Bank Transfers allow you to make a direct payment into the recipient's account. If your bank offers an online banking service, then you can easily do this yourself. Banks typically provide clear and easy-to-follow instructions on their websites, and if you have any questions or problems, you can call the telephone number provided for help. Alternatively, you can go to your local bank branch and ask them to make the transfer for you.