Thuyết trình chủ đề payment instruments

PAYMENT INSTRUMENTS GROUP 5: PHAM TAM LONG VU NHAT ANH DUONG QUOC HUNG NGUYEN TUAN ANH BUI VIET ANH NGUYEN XUAN MINH DAO TRUNG ANH LECTURER: Ph.D NGUYEN DIEU CHI CONTENTS CHEQUE - CHECK BILL OF EXCHANGE PAYMENT INSTRUMENTS PROMISSORY NOTE PAYMENT CARD CHECK - CHEQUE Definition Cheque is an instrument in writing containing an unconditional order, addressed to a banker, sign by the person who has deposited money with the banker, requiring him to pay on demand a certain sum of money only to or to the order of certain person or to the bearer of instrument CHECK - CHEQUE Charecteristics of cheque Cheque is an instrument in writing Cheque contains an unconditional order Cheque is drawn by a customer on drawer’s bank Cheque must be payable on demand Cheque must mention exact amount to be paid Payee must be certain of whom payment is made Cheque must be duly dated by customer of bank Cheque has parties: Drawer, Drawee & Payee + Drawer: A drawer is a person who draws a cheque; + Drawee: A drawee is a bank on whom a cheuqe is drawn; + Payee: A payee is a person in whose favour a cheque is drawn CHECK - CHEQUE Regulations to issue cheques Have money in banking account; Have money in paying account at the bank; Issued cheque with value is less than the value of the account; Check needs to have a heading; Check date and time need to be written clearly CHECK - CHEQUE Parties to a cheque  Drawer: A drawer is a person who draws a cheque  Drawee: A drawee is a bank on whom a cheuqe is drawn  Payee: A payee is a person who is entitled to receive the payment of the cheque  Indorser: When the holder transfer or indorses the cheque to anyone else, the holder become “indoser”  Indorsee: The person to whom the bill is indorsed is called an “indorsee” CHECK - CHEQUE Parts of cheque CHECK - CHEQUE Types of cheque Based on payment method : + Cash cheque: A form of cheque only exchange for money over the counter in one of the bank’s branches + Certified cheque: A form of cheque for which the bank verifies that sufficient funds exist in the account to cover the cheque, and so certifies, at the time the cheque is written + Personal cheque: A form of cheque that you can write an amount of money on and sign in order to make a payment from your own bank account rather than the bank account of an organization Based on verified beneficiary: + Named Cheque: A cheque where the name of beneficiary is wrote on it + Bearer cheque: A cheque where the money can be paid to any person who presents it to the bank, not just to a person named on the cheque + Order cheque: A cheque which is payable to a particular person The payee can transfer an order cheque to someone else by signing his or her name on the back of it CHECK - CHEQUE Types of cheque  Another types: + Traveler’s cheque: Kind of an open type bearer cheque issued by the bank which can be used by the user for withdrawal of money while touring CHECK - CHEQUE Types of cheque  Another types: + Crossed cheque: Crossing is a popular device for protecting the drawer and payee of a cheque Both bearer and order cheques can be crossed Crossing prevents fraud and wrong payments Crossing of a cheque means "Drawing Two Parallel Lines" across the face of the cheque Thus, crossing is necessary in order to have safety Crossed cheques must de presented through the bank only because they are not paid at the counter BILL OF EXCHANGE Types of BoE 6.1 Based on the issuer of BoE: - Trade Bill of exchange: is issued by exporter, and require the importer to take a payment for the beneficiary - Bank Bill of exchange: is issued by bank, and require the correspondent bank to take a payment for beneficiary 6.2 Based on attached documents: - Clean Bill of exchange: The taking a payment on BoEs without documents - Documentary Bill of exchange: The taking a payment on BoEs with documents that include documentary Against Payment (D/P) and documentary Against Acceptance (D/A) BILL OF EXCHANGE Types of BoE 6.3 Basel on transferability of BoE: - Order Bill of exchange : This BoE writes “pay to order” of beneficiary, and is transferred to other beneficiary by endorsement - Nominal Bill of exchange: This BoE writes full name of beneficiary and does not have transfer ability by endorsement - Bearer Bill of exchange 6.4 Based on duration payment of BoE: - At sight Bill of exchange - On demand bill of exchange: when the drawee has seen this BoE, this person must have to take a payment - Time Bill of exchange - After sight BoE: After someday or period since the drawee has seen this BoE, this person have to take a payment BILL OF EXCHANGE Acceptance of BoE  After the draft was issued, it must be deliver for drawee so as to drawee accepts take a payment, with maturity- draft  Form of acceptance the draft : + Sign in the front of BE + Acceptance by separate document BILL OF EXCHANGE Procedure of BoE  At sight BoE: Exporter delivers goods; Exporter issues and entrust export bank to collect; Importer pays through the Import Bank after seeing the BoE  After sight BoE: Exporter deliver goods and commercial documents; Exporter issues BoE and entrust the Bank to require importer to sign acceptance; Exporter Bank return accepted BoE to the Exporter; Exporter Bank requests Importerto maturity BoE; Importer pays expense of BoE, import Bank debits account of the Importer and export Bank credits account for the exporter PROMISSORY NOTE Definition Promissory note is a legal instrument( more particularly, a financial instrument), in which one party( the maker or issuer) promisses in writing to pay in determinate sum of money to the other (the payee), either at a fixed or determinable future time or on demand of the payee, under specific terms If the Promissory note is unconditional and readily salables, it is callea a negotiable instrument A promissory note typically contains all the terms pertaining to the indebtedness, such as the principal amount, interest rate, maturity date, date and place of issuance, and issuer's signature PROMISSORY NOTE Circulation characteristics As a promising tool to pay, is not a tool for money For easy circulation, need payment guarantee of a Reputable organization As a promising tool to pay, there will be no payment acceptance like BoE The importer draws the bill before the exporter delivers the goods Term is specified May be drawn by one or more signatories to commit payment to another There is only one original PROMISSORY NOTE Components of promissory note The term "promissory note" inserted in the body of the instrument and expressed in the language employed in drawing up the instrument An unconditional promise to pay a determinate sum of money; A statement of the time of payment; A statement of the place where payment is to be made; The name of the person to whom or to whose order payment is to be made; A statement of the date and of the place where the promissory note is issued; The signature of the person who issues the instrument (maker) PROMISSORY NOTE Sample of promissory note PROMISSORY NOTE Sample of promissory note PROMISSORY NOTE Related regulations Global: + Convention Providing a Uniform Law of Bills of Exchange and Promissory Note (07 Jun 1930) + United Nations Convention on International Bills of Exchange and Promissory Note (09 Dec 1988) + Article 57 of the CCC 2005 Vietnam: + Circular No.34/2013/TT-NHNN on domestic issuance of promissory notes, B/E, CDs and bonds by credit institutions, foreign bank braches + Circular No.16/2016/TT-NHNN amendments Circular No.34/2013/TT-NHNN QUESTION & AnSWER Question 1: How many element of BoE? A B C D 10 11 12 QUESTION & AnSWER Question 2: Who is exactly that receive money from BoE? A B C Drawee Beneficiary Endoser QUESTION & AnSWER Question 3: Is special crossed cheque better than general crossed cheque? A B C Yes No Uncertainly QUESTION & AnSWER Question 4: Which answer is true statement about promissory note? A B C D There is only one original There are one original and one copy There are one original and many copies All not correct ... non-cash payment services PAYMENT CARD 1.Definition  A payment card is a device (usually an embossed plastic card) that allows its owner (the cardholder) to make an electronic payment PAYMENT. .. Based on payment capacity: Debit card, Credit card & Cash card Other types of payment card: Travel card, Entertainment card, Gold Standard card,… card, PAYMENT CARD Procedure of card payment. .. CARD Procedure of card payment (1) (2) (3) (4) (6) (7) (8) (5) PAYMENT CARD Procedure of card payment PAYMENT CARD Structure of payment card Issuing Bank Logo EMV chip (only on "smart cards")