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
1. 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
2. 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 3 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
3. 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
4. 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
5. Parts of cheque


CHECK - CHEQUE
6. 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
6. 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
6. 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.


CHECK - CHEQUE
6. Types of cheque



General crossing


CHECK - CHEQUE
6. Types of cheque

 Special crossing


CHECK - CHEQUE
7. Samples of cheque


CHECK - CHEQUE
7. Samples of cheque


CHECK - CHEQUE
8. Procedure of cheque payments (Transfer cheque)
- Cheque is transferred through a bank

BANK
BANK

(4)

(5)
(3)

(2)
BUYER
BUYER

SELLER
SELLER
(1)


CHECK - CHEQUE
8. Procedure of cheque payments
- Cheque is transferred through two bank
(2)
SELLER
SELLER

BUYER
BUYER
(1)

(3)

(6)

(5)

(4)
SELLER’S
SELLER’S BANK

BANK

BUYER’S
BUYER’S BANK
BANK
(5)


CHECK - CHEQUE
9. Related regulations

Global: Convention Providing a Uniform Law for Cheques (19 Mar 1931).
Vietnam: + Decision No.30/2006/QĐ-NHNN on check supply and use.
+ Ordinance No.28/2005/PL-UBTHQH11 on foreign exchange control.
+ Circular No.46/2014/TT-NHNN on 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 CARD
2. Characteristics of using payment card

Convinient and safe: reduces the need to carry cash or use an ATM;
Lost or stolen cards are quickly replaced and any unauthorized

purchases are

refunded;

Chip and PIN technology

makes it difficult for an unauthorized person to use your

card;

Payment card anf current account statements provide a record of spending to help
manage finances;

Payment

card are widely accepted and thus reduce the need to purchase foreign
currency or travellers cheques.


PAYMENT CARD
3. Types of payment card

Based on using place: Domestic card & International card.
Based on issuer: Card is issued by financial organization

& Card is issued by

nonfinancial organization.

Based on technology: Embossing card,Magnetic Stripe card & Smart card.

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
4. Procedure of card payment

(1)

(2)

(3)
(4)

(6)
(7)

(8)

(5)


PAYMENT CARD
4. Procedure of card payment


PAYMENT CARD

5. Structure of payment card

1. Issuing Bank Logo
2. EMV chip (only on "smart cards")
3. Hologram
4. Card number
5. Card Network Logo
6. Expiration Date
7. Card Holder Name
8. Contactless Chip

1.
2.
3.

Magnetic Stripe
Signature Stripe
Card security code 


PAYMENT CARD
6. Organizations issuing payment card


BILL OF EXCHANGE
1. Definition

An

unconditional order written by an drawer (exporter) in structing a drawee

(importer) or its agent to pay a specificed amount of money at a specific tine to a
specific party (beneficiary). Thus it is the exporter’s formal demand for payment
from
the
importer.