Grade 12 Tourism

summarised Notes
term3/4

Forms of payment when

travelling
internationally
Electronic fund transfers (EFT) special attention to this one

Transfer money automatically from one account to the other.

Processed immediately

Advantages Disadvantages

• Safe, efficient and fast • Difficult to cancel

• Cheaper than cheques • Time of day may influence the
• Used worldwide time it shows in other account
• Shows immediately, otherwise
the following day.
Telegraphic transfer (SWIFT) sometimes in short questions

Section A

A person gives permission to the bank

Money is transferred to an overseas account.

A person gives a SWIFT-code and account number to a local bank.

Advantages Disadvantages

• A person from another country • Fees for overseas payments

can send money at any time. very high.
• Do not need internet. • If payment is urgent- fees even
higher.

Bank draft/ bank cheque

In receiver’s currency

Cheque deposited directly into bank account

Usually picked up personally at the bank

Security measurements: water mark, security line, special ink and paper.

Advantages Disadvantages

• Very Safe • Costs & Fees = very high.

• Done per mail/courier- can be
time consuming.
• No cash – only deposited into
accounts.
Internet payments asked often

• Online payments for any product or service

• Any payment can be made with your phone or computer – hotel bookings,
booking of services / access to attractions and deposits.

Advantages Disadvantages

• Saves time –no long queues • Irregular access – may lead to

• Used at any time delayed payments
• Lower fee • No direct contact with receiver
of money.
• Cyber-crime = dangerous

Take Note!!!

In the past they referred to (IoT) – Internet of

things – where you were expected to indicate where
a tourist can use internet to aid travel planning–
Internet payments are part of the answer as well as
internet bookings, websites to visit a place/ Facebook
Pages for info etc…

Foreign bank notes

Cash of the country that you are visiting

Advantages Disadvantages

• Excellent for immediate • Very risky/can be stolen or

payments /can be used at any lost.
place.
Credit cards
Very safe

Visa and Master Card are accepted worldwide

at most hotels/ restaurants.

Access to cash in a foreign country.

Bank costs for each transaction

Excellent for large /expensive purchases.

Advantages Disadvantages

• Can buy expensive goods • Not accepted everywhere

without saving (pay off) • Easy to spend too much.
• Not necessary to carry lots of • Transaction fees.
cash (safer) • Card skimming: copying of
• Most companies accept it. information by criminals.

Debit Cards (Loaded in advance with foreign currency)

All banks issue it and load it with foreign currency

Can only spend the amount that is on the card

Can be used any place in the world

Advantages Disadvantages

• No debt. • High banking fees.

• The money is on the card – • Sometimes fee to be paid
safer option. when using it.
• PIN protects the money. • Difficult to load foreign
• Cards cab be cancelled if lost. currency without internet
Travelers Cheques
Issued by financial institutions

Switched for cash at cashier (signatures must correlate)

Amount printed on cheque

Safe and comfortable.

Signature of owner of account needed.

Valid passport might be needed.

Advantages Disadvantages

• No debt. • High banking fees.

• The money is on the card – • Sometimes fee to be paid
safer option. when using it.
• PIN protects the money. • Difficult to load foreign
• Cards cab be cancelled if lost. currency without internet

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