PAYING FOR TRAVEL

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PAYING FOR TRAVEL

• UNIT 7B

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How Are Things Paid For During A Trip?

• Certain expenses cant
• be paid for in advance,
• eg
• Taxi fares
• Restaurant bills
• Refreshments
• Car parking
• These can be paid for
• using

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Cash

• Sterling () or the
• local currency .
• Foreign Currency can
• be purchased from
• Banks/Building Societies
• Travel Agents
• Post Office

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Advantages Disadvantages

• Advantages
• Useful for small purchases
• Convenient

• Disadvantages
• No protection/insurance against loss or theft
• Coins can be bulky

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Credit Cards

• Such as Visa and
• Mastercard
• Credit cards allow people to purchase goods and
  services on credit
• A statement will be sent every month stating how
  much is owed
• An individual can use a company credit card

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Advantages Disadvantages

• Advantages
• Safer than carrying cash
• Purchases are covered by insurance
• In cash of emergency more cash may be available

• Disadvantages
• Not accepted by all businesses
• Interest is charged on balance owed each month
  unless paid back in full

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Debit Card

• Such as Switch or Delta
• Payment is automatically deducted from the
  account by the bank
• Can also be used to withdraw money in many
  countries

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Advantages Disadvantages

• Advantages
• Safer than carrying cash
• Automatically deducted from the bank account

• Disadvantages
• Not accepted by all businesses

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Travellers Cheques

• Can be purchased from the same outlets as foreign
  currency
• Each is worth a fixed sum and must be signed on
  purchase
• They must be signed when being cashed along with
  ID (passport) being shown

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Advantages Disadvantages

• Advantages
• Safer than carrying cash
• Lost or stolen cheques will be replaced
• Unused cheques can be exchanged for sterling

• Disadvantages
• Commission may be charged when purchasing goods
• Exchanged for currency at a Bureau of Exchange,
  or bank when abroad. Commission may be charged.

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Claiming for Expenses

• Whenever a business traveller pays for
• something they must keep a receipt

Record of Purchase
Method of Purchase
Receipts
Cash
Copy of sales voucher
Credit Card
Record of Cheque Number
Travellers Cheques
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Expenses Claims Forms

• The traveller will claim back expenses using
• an expenses claim form. This will be
• checked by
• Ensuring all receipts/sales vouchers are attached
  to the form
• Check the receipts against the figures on the
  form
• Check the addition of items and the total claimed

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Paying Expenses

• When the form has
• been checked the
• employee will be
• reimbursed by
• A cheque
• Added onto wages
• Paid directly into his/her bank account