Chapter 6 - Receiving and Checking Money

8/14/2019 Chapter 6 - Receiving and Checking Money

1/19

CHAPTER 6

Receiving and checking


2/19

g g

Contents

Control over receipts Remittance advices Receipts given to customers

Ways in which customers pay Cash: physical security considerations Cheques Receipt of cheque payments

Receipt of card payments EFTPOS Other receipts


3/19

Control over receipts

Ensure a good cash flowBanking (performed promptly and correctly)

Security (avoiding loss or theft)

Documentation (remittance advice)


4/19


5/19


6/19

Evidence of payment other


7/19

Receipt from customers

Main typesCash

Cheque

Credit or debit card

Other typesStanding order

Direct debit

Mail transfer andtelegraphictransfer

Automated credit

services


8/19

Cash: physical security

Forgery

Theft

Careful

examinationCash register

security, Safes

Protective glass('bandit screen')

Frequent banking

Problem How to deal


9/19

Cheques

A cheque is 'anunconditional order in

writing addressed bya person to a bank,signed by the persongiving it, requiring thebank to pay ondemand a sumcertain in money to orto the order of a

Dishonored

Cheque guaranteecards

Definition New related words


10/19


11/19

Cheques: physical security

Customers are asked to keep chequebooks and cards separate

The number of cheques in a book is

kept to a minimum.


12/19

Plastic card

Most retailoutlets whichaccept PLASTICcards now usean electronic

system knownin the UK asEFTPOS(ElectronicFunds Transfer

at Point ofSale).

CREDIT vs.DEBIT cards


13/19


14/19

EFTPOS

Electronic Funds Transfer at Point of Sale:makes possible the automatic transferof funds from a customer's bank

account to a retail organization at thepoint in time when the customerpurchases goods (or services) from it.

The EFTPOS terminal


15/19

Other receipts

Method of

payment availablefrom banks for afee

When a customer

needs a guaranteethat the paymentcannot be

Regular payments

Standing order canonly be changedby the payer

Direct debit can be

changed by thereceiver at will

Bankers draftStanding orders and directdebits


16/19

Discussion

Business: electricity company 'I am a domestic customer, and receive a bill from you

each quarter. I want to continue to pay quarterly, but Idon't want to go the trouble of writing out a cheque ormaking a special trip (for example to a bank or your

office) to pay the bill. However, I do need to know howmuch the bill is going to be before I am due to pay it.What method of payment would you suggest?

'You can pay by quarterly direct debit. You need tocomplete a direct debit mandate form whichauthorises us to debit amounts from your bank

account. We will send you a bill in the usual way eachquarter, and the amount due will be debited from youraccount 14 days after the date of the bill, so you'llknow how much is to be debited well in advance. If anerror is made, either the bank or ourselves must put it

'


17/19


18/19


19/19

Quiz

What is the function of a remittance advice?Shows which invoices a payment covers

Should cash be sent through the post in 'an

emergency'?No. Never!

Is it safe to send a cheque through the post?Yes. A cheque can be 'stopped' if it goes astray,

and 'traced' if deposited by an unauthorisedperson.

A banker's draft cannot be dishonoured. True

Chapter 6 - Receiving and Checking Money

Documents

Transcript of Chapter 6 - Receiving and Checking Money