cash transfer

Presented by Group 2

Banzuela, Alyza Margaux M.

Bañares, Ma. Angelica E.
Boco, Deserie D.
Bongat, Rosalyn C.

CBET-22-701P
i. cash transfer METHODS

Reporter:
Boco, Deserie D.
 What is meant by cash transfer
method?
➡️A cash transfer is a direct transmission,
settlement or payment of money to a qualified person.
Types of Cash Transfers
1. unconditional cash transfers made with no condition required for
the recipient.
2. conditional cash transfers made with condition that recipient
meets the required criteria such as school attendance.
There are 5 forms of cash transfer

A. Check Payments
B. Wire Transfer
C. ACH Payment
D. Procurement Cards
E. Cash Payments
 A. CHECK PAYMENTS
A check payment is made on a paper document, which has
traditionally been physically routed from the payer to the
payee, to the payee’s bank, and then back to the payer’s
bank.
Mechanics of a Check Payment /Check Process Flow
Processin Presentati Availabili
Mail float
g on float ty Float
 Check Payments through a Lockbox
• Remote Deposit Capture
• Remote Disbursement
B. WIRE TRANSFERS
A wire transfer is a way of sending funds to the
recipient’s bank account more easily than any other form
of payment, and is mostly used in international payment.
 The following information are needed in wire transfer:
• Sending company’s name, address, and account number
• Recipient’s name and account number
• Recipient bank’s name and bank identification number
• Amount of the payment
 C. ACH PAYMENTS
The ACH is an electronic network for the processing of
both credit and debit transactions especially in the United
States and Canada. ACH payments include:

• direct deposit payroll,

• Social Security payments
• tax refunds
• bills
 Letter of Credit
A letter of credit, or "credit letter," is a letter from a
bank that guarantees a buyer's payment to a seller
will be settled on time and for an accurate amount. If
the buyer fails to make a payment on the purchase,
the bank will be required to cover the full or
remaining amount of the purchase.
LETTER OF CREDIT PROCESS
 D. PROCUREMENT CARDS
This can involve the use of debit cards, which deduct cash directly from a
company’s bank account, but more commonly employ credit cards. Under this
system, the bank managing the procurement card program will bill the payer on
a monthly basis for all charges made during the month, while remitting funds
to the payee within a few days of each charge. If the payer pays the monthly
bill late, then the bank charges interest on the open balance. A procurement
card program is an excellent tool for any company making payments to its
suppliers, since it circumvents the lengthy and expensive process of issuing
purchase orders, matching receiving documents to supplier invoices, and
making check payments.
 E. CASH PAYMENTS
Inbound cash payments tend to be for very small transactions, though
possibly in very high volume, especially in retail situations. However,
business- to-business cash payments are not common.
If a company receives large volumes of cash, it is usually more secure to
hire a professional money transporter to move the cash to the bank on
behalf of the company. To do so, the company locks the cash into a cash
box, which the transporter takes to the bank. The receiving bank also has a
key for the cash box; the bank staff opens the cash box and then counts
and deposits the cash for the company.
iI. fees for cash transfers

Reporter:
Bongat, Rosalyn C.
fees for cash
transfers
The fees charged by banks vary considerably for different types of cash
transfers. Of these types of cash transfer, the value dating delay is usually
the shortest for wire transfers, though this can be delayed in some
countries where wire transfer processing is still accomplished manually.
The value dating delay is normally the longest for company checks,
though this can vary depending on the source of checks, as well as the
negotiated value dating terms between the payee company and its bank.
fees for cash
transfers
The key point regarding the fees associated with cash transfers is
that banks now charge their clients for both the initiation and
receipt of any type of cash, but the only difference is the amount
charged by the specific form of Cash Transfer

AC H B ANK C HE C K C OM PANY CHECK

LE TT
LE T TE R OF C REER OF PR
DIT C ROECU RE M EN T C AR D
DIT W IR E TRAN SF ER
fees for cash
transfers
fees for cash
transfers
fees for cash
transfers
CASH TRANSFER
METHOD
• In general, the ACH payment is the best alternative. ACH payment
is inexpensive and can transfer cash quickly. However, it requires
some initial setup time for a new payee.
• At the other extreme is check payments, where in the payee must
wait a number of days before the cash arrives in its bank account,
and it also involves extensive manual processing by the payer.
 iii. the philippine payments and
settlements - national retail payment
system

Reporter:
Banzuela, Alyza Margaux M.
 PSMB
- PAY M E N T S Y S T E M
MANAGEMENT BODY (PSMB)
D I R E C T LY R E G U L AT E S T H E
R E T A I L PAY M E N T S

ON 12 JAN 2018 A
MEMORANDUM OF
A G R E E M E N T WA S
ENTERED BY THE BSP
AND THE PHILIPPINE
PAY M E N T S
M A N A G E M E N T, I N C .
Payment streams in a Automated Clearing Houses
multilateral ACH (ACHs) under the NRPS

> P R O M O T E S G R E AT E R 1. P E S O N E T ​​
EFFICIENCY BETTER RISK E F T S Y S T E M AND
PHILIPPIN E
M A N A G E ​M E N T A T I O N S N E T W ORK
OPER
(PESONET)
>INTEROPERABILITY
C O M PA R E D T O S E PA R AT E
B I L AT E R A L A G R E E M E N T S 2. I N S TA PAY

3. BANCNET
iv. cash transfer controls

Reporter:
Bañares, Ma. Angelica E.
CASH TRANSFER CONTROLS
This section describes both basic and
enhanced controls for multiple types of
cash transfer.

a. Controls for Check Payments

The following controls should be used to
create and monitor check payments:
 Require a
Restrict access
Remove check stock manual signature on checks
to check - signing
from locked storage. exceeding a predetermined
equipment. amount.

Check signer
Implement Use electronic
compares voucher
package to check. positive pay. payments.

Reconcile the
checking account
every day.
 b. Controls for Remote Deposit Capture

Controls are needed in converting the checks to

an electronic format.

Verify receipt by the Train for handling of

bank foreign checks
 c. Controls for Electronic Payments

The controls for electronic payments:

Require signed approval

Restrict access to document for manually Verify ACH debit
master vendor file initiated electronic filter with bank
payments.

Require password Require an end - of -

Require additional
access to payment day payments review.
approvals.
software.
The following controls address these additional issues in electronic
payments such as unauthorized account debit and potentially incorrect or
fraudulent payments.

Impose an outright Use a separate bank

Request a daily Request notification
debit block on all account as the
cumulative limit for of duplicate debits.
company accounts. source of electronic
authorized trading
payments.
partner debits.
 d. Controls for Letters of Credit

The following controls should be implemented prior to finalizing a letter of

credit:
Minimize
Avoid approval by
Avoid tight dating. presentment
the buyer.
documents.

Require a Require payment prior

financially strong to buyer possession.
issuing bank.
The following control involves the creation of the seller’s invoice to the
buyer, to ensure that it will be acceptable to the bank:

Match the
Enter receipt in Reconcile
description of Fill out missing
procurement card transaction log with
goods on the receipt form.
transaction log.. monthly card
invoice to the letter
statement.
of credit.
 e. Cash Forecasting Controls

Investigate significant
Obtain the approval of
variances from the
a knowledgeable
preceding day’s
person.
forecast.