INSTRUMENTS OF PAYMENT

G ROUP M EMBERS

 Anastasia Robinson
 Mercedes Lowe
 Addieshan Gaynor
 Odale Campbell
  TELEBANKING

Telephone Banking is an automated facility, in which the customer can

access account information and also perform various routine
transactions using a keypad or touch-tone telephone without actually
going to the bank branch or ATM, or accessing a mobile
application/website. Telebanking;
1. Reduces the queue of the customers at the bank counters.
2. Enables its customers to get instant feedback regarding their
accounts while staying at their home or office.
3. Reduces transaction handling cost.
4. Reduces the workload of the bank staff.
5. Informs customers about the new activities or events of the bank.
  ELECTRONIC TRANSFER

An electronic funds transfer is the process of moving money from one bank
account to another using computer-based technology. Electronic fund transfers
eliminate the need for paper transactions, including paper checks. They also do
not require in-person interaction with bank tellers. Anyone with a bank account
can initiate an electronic funds transfer.Using an electronic funds transfer can be
quicker, more secure, and more convenient than sending or receiving paper
checks.
Every transaction has a starting point. The starting point happens anytime a
money transfer is initiated through an electronic system such as; Automated teller
machine (ATMs), computers, telephones,remote banking programs, or magnetic
tape (the black data stripe on the back of credit and debit cards). Anyone with a
bank account can initiate an electronic funds transfer. Using an electronic funds
transfer can be quicker, more secure, and more convenient than sending or
receiving paper checks.
When making a Electronic fund transfer you’ll need to provide your name, your
routing/ Bank routing number(ABA number), your account number, account type
& transaction amount.
  BILL OF EXCHANGE

A bill of exchange is a written order binding one party to pay a fixed sum of
money to another party on demand or at some point in the future. A bill of
exchange often includes three parties; the drawee is the party that pays the sum,
the payee receives that sum, and the drawer is the one that obliges the drawee to
pay the payee. A bill of exchange ;
1. Must be In writing:
2. There must be an express order to pay and not a mere request to pay.
3. The order must be definite and unconditional.
4. The order must be to pay a certain sum.
5. The order must be to pay money only.
6. Certain three parties: The three parties (i.e., drawer, drawee and payee)
must be certain and must be mentioned in the instrument. It may be noted that
the drawer and payee can be the same person but the drawer and drawee cannot
be the same person.
7. Must be signed by the drawer.
  MONEY TRANSFER

A bank Transfer is when money is sent from one bank

account to another. Transferring money from your bank
account is usually fast, free & safer than withdrawing and
paying cash. This facilitates money transfers electronically
across a network of banks or transfer agencies around
the world.
Examples include: Direct debit, Automated clearing
house(ACH) and NEFT.
  M-MONEY (MONEY MOBILE)

This is electric money that can be used as payment

goods or services at merchants. Mobile money is an
electronic wallet service. It is available in many
countries and allows users to store, send, and
receive money using their mobile phone. The safe
and easy electronic payments make Mobile money a
popular alternative to bank accounts.
  E-COMMERCE (ELECTRONIC COMMERCE

E-commerce (electronic commerce) is the buying and selling of goods and

services, or the transmitting of funds or data, over an electronic network,
primarily the internet. These business transactions occur either as business-
to-business, business-to-consumer, consumer-to-consumer or consumer-to-
business.
Business-to-Business (B2B)
B2B is one of the most common types of e-commerce. This is when a
transaction of goods or services occurs between two businesses. Examples
of B2B are Manufacturing materials, clothing etc.
B2C (Business-to-consumer)
B2C businesses sell directly to their end-users. Anything you buy in an
online store as a consumer — from wardrobe and household supplies to
entertainment — is done as part of a B2C transaction.Amazon, Meta
(formerly Facebook), and Walmart are some examples of B2C companies.
Consumer to consumer (C2C)
(C2C) is a business model in which third-party companies facilitate
transactions for products or services between private consumers without a
business participating on either end of the sale. Some examples of c2c
services are eBay, Etsy, Ali Express, and Amazon Marketplace.
C2B (costumer to business)
Consumer-to-business is a business model in which consumers create value
and businesses consume that value. For example, when a consumer writes
reviews or when a consumer gives a useful idea for new product
development then that consumer is creating value for the business if the
business adopts the input. Google AdSense and Shutterstock are some real-
world examples of C2B services.
  CHEQUE

The cheque is an instrument with an unconditional order,

addressed to the banker. It is signed by the person who
has deposited cash in the bank. A cheque can be issued
for a current account or the savings account and can be
used to deposit or pay money to other people through
the bank
  MONEY ORDER

Much like a check, a money order is a paper payment. Unlike a check, money
orders can’t bounce. You purchase a money order with cash or another
guaranteed form of payment, such as a traveler’s check or debit card.
When purchasing a money order, you must provide the payee’s name (the
recipient), and the issuing financial institution’s name must be on the order.
Having both pieces of information printed on a money order makes it difficult for
anyone other than the payee to cash it. This makes money orders safer than cash.
Just make sure to keep your receipt, so you can track and recover funds if your
money order is lost or stolen.
Money orders have certain limits. For example, at the United States Postal Service
(USPS), you can’t purchase a money order for more than $1,000. If you buy more
than $3,000 worth of money orders in a single day, you’ll be required to complete
a special form and produce a government-issued photo ID.
How to Fill Out a Money Order
Like paper checks, money orders require that you include specific information.
Money orders have empty spaces, where you’ll fill out these details:
Payee name
Payee address
Date of purchase
Amount you’re paying
Your name and address
Reason for payment
Your signature
Generally, you can expect to fill in your name in a spot labeled either “purchaser”
or “from,” and you will fill in the reason for payment in the “memo” line.
It’s important to fill out the money order carefully since you may be unable to
correct a mistake.
How Does a Money Order Work?
When you purchase a money order, you must prepay the face value of the order
along with the issuer’s fee. This means a money order can’t be returned for
insufficient funds, unlike a check that can bounce. In most cases, you must pay
with cash or a debit card, although some providers allow you to buy a money
order with a credit card.
  BANK DRAFT

A bank draft is a payment instrument that carries a guarantee of

funds from your financial institution. It’s a paper document that
looks a lot like a regular cheque. The main difference is that
someone who receives a bank draft has a guarantee that the
funds are available, as opposed to a regular cheque, which could
bounce. Bank drafts are made out to the person receiving the
money. Your name and the amount will also appear on the
draft.
  TELEGRAPHIC TRANSFER

Telegraphic transfers are electronic payments of cleared

funds that are credited directly to a nominated bank
account. It's a fast and reliable way for you to make
international payments almost anywhere in the world.