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what is it thomas? A giro, also called a direct deposit, is a banking term for a method of payment. It is almost the opposite of a cheque, but whereas a cheque is given to the payee who deposits it in his or her bank, a giro is given by the payer to his or her bank, which transfers funds into the payee's bank, directly into their account. Giro is often used by post offices as well. A payment is the act of transfering wealth into another person or company. ...
Typical cancelled personal cheque as used in the U.S. A cheque, or (in American English) check, thought to have developed from Persian Ú†Ùƒ chek, is a negotiable instrument instructing a financial institution to pay a specific amount of a specific currency from a specific demand account held in the maker...
The First Provincial Bank of Taiwan in Taipei, Republic of China was formerly the central bank of the Republic of China and issued the New Taiwan dollar. ...
Small-town post office and town hall in Lockhart, Alabama A post office is a facility (in most countries, a government one) where the public can purchase postage stamps for mailing correspondence or merchandise, and also drop off or pick up packages or other special-delivery items. ...
The difference is one of 'push' versus 'pull'. That is, a cheque is a 'pull'-initiated transaction: the presentation of the cheque by the payee causes the payee's bank to seek the funds from the payer's bank, who then takes the funds from the payer's account if the funds exist. If they do not exist, then the cheque "bounces" (is returned to the payee with a message of insufficient funds). By contrast, a giro is a 'push'-initiated transaction: the payer directs his or her bank to take existing funds from his or her account and transfer them to the payee's bank, where the payee can then draw the funds out. As a result, a giro cannot "bounce", because the bank will only process the order if the payer has sufficient funds to cover the payment. However, this also means that the payer receives no benefit of "float". In economics, Float makes up the smallest part of the money supply. ...
History and concept
Giro systems have been used at least since Egypt in the 1st century AD and were the main method of money transfer in early banking[citation needed]. The 1st century was that century which lasted from 1 to 100 according the Gregorian calendar. ...
A payment is the act of transfering wealth into another person or company. ...
Please wikify (format) this article or section as suggested in the Guide to layout and the Manual of Style. ...
Postal Giro or Postgiro systems have a long and honourable history in European financial services. The basic concept is that of a banking system not based on cheques, but rather by direct transfer between accounts. If the accounting office is centralised, then transfers between accounts can happen simultaneously. Money could be paid in or withdrawn from the system at any post office, and later connections to the commercial banking systems were established, often by the convenience of the local bank opening its own account at the Postgiro. Centralization is the process by which the activities of an organization, particularly those regarding decision-making, become concentrated within a particular location and/or group. ...
By the middle of the 20th century, most countries in continental Europe had a postal giro service. The first postgiro system was established in Austria on the early 19th Century. By the time the British Postgiro was conceived, the Dutch Postgiro was very well established with virtually every adult having a postgiro account with very large and well used postgiro operations in most other countries in Europe and Scandinavia. (19th century - 20th century - 21st century - more centuries) Decades: 1900s 1910s 1920s 1930s 1940s 1950s 1960s 1970s 1980s 1990s As a means of recording the passage of time, the 20th century was that century which lasted from 1901–2000 in the sense of the Gregorian calendar (1900–1999...
Alternative meaning: Nineteenth Century (periodical) (18th century — 19th century — 20th century — more centuries) As a means of recording the passage of time, the 19th century was that century which lasted from 1801-1900 in the sense of the Gregorian calendar. ...
Scandinavia is a region in Northern Europe. ...
The term "bank" was not used initially to describe the service. The banks' main payment instrument was based on the cheque which has a totally different remittance model from the "Giro". The First Provincial Bank of Taiwan in Taipei, Republic of China was formerly the central bank of the Republic of China and issued the New Taiwan dollar. ...
In the banking model, cheques are written by the remitter and then handed or posted to the payee, who must then visit a bank or post the cheque to his bank. The cheque must then be cleared, a complex process by which cheques are sorted once, posted to a central clearing location, sorted again, and then posted back to the paying branch where the cheque is finally checked and then paid. In banking and finance, clearing denotes all activities from the time a transaction is made until it is finally settled (see settlement). ...
In the Postal Giro model Giro Transfers are sent through the post by the remitter to the Giro Centre. On receipt, the transfer is checked and the account transfer takes place. If the transfer is successful, the transfer document is sent to the recipient, together with an updated statement of account being credited. The remitter is also sent an updated statement. In the case of large utilities receiving thousands of transactions per day, statements would be sent electronically and incorporate a reference number uniquely identifying the remittance for reconciliation purposes. A public utility is a company that maintains the infrastructure for a public service. ...
Look up reconcile in Wiktionary, the free dictionary. ...
The rise of electronic cheque clearing (and debit cards as preferred instruments of payment) has made this difference less important than it once was. For example in some stores in the United States checks are scanned at the cash register and handed back to the customer while the funds are removed from the customer's account. A debit card is a plastic card which provides an alternative payment method to cash when making purchases. ...
UK usage -
In the UK a bank giro credit is a slip of paper similar to a cheque in layout which ensures payment is directed to the account of the payee[1]. Giro slips are often used to make payments to utility companies or other bills over the counter at the bank or post office. Payment is made by cash or cheque to the bank; the bank will stamp the bill or tearoff slip to confirm payment received; the bank forwards the giro slip to the payees account including the unique reference of the individual. The person paying the bill via giro payment doesn't need to have any kind of account with the bank; the clearing banks offer the service without charge. Girobank was founded in 1968 and originally was known as National Girobank. ...
The First Provincial Bank of Taiwan in Taipei, Republic of China was formerly the central bank of the Republic of China and issued the New Taiwan dollar. ...
Small-town post office and town hall in Lockhart, Alabama A post office is a facility (in most countries, a government one) where the public can purchase postage stamps for mailing correspondence or merchandise, and also drop off or pick up packages or other special-delivery items. ...
In banking and finance, clearing denotes all activities from the time a transaction is made until it is finally settled (see settlement). ...
Giro is also a term used by those on unemployment benefit or other state benefits to describe the cheque that they receive. The 'giro' is less commonly used now, as technology progresses and computers (BACS) phase the old system of payment out. Unemployment benefits are payments made by governments to unemployed people. ...
BACS (originally an acronym for Bankers Automated Clearing Services) is a United Kingdom scheme for the electronic processing of financial transactions. ...
Electronic bill payment Modern electronic bill payment is similar to the use of giro. Electronic bill payment is a feature of online banking, similar in its effect to a giro, allowing a depositor to send money from his demand account to a creditor or vendor such as a public utility or a department store to be credited against a specific account. ...
Advantages include:
- Instant access to the funds via an ATM or cheque card.
- There is no paper cheque that can be lost, stolen, or forgotten.
- Payments made electronically can be less expensive to the payer; typically electronic payments may cost around 25ยข (US) vs. up to $2 to generate, print and mail a paper cheque.
In the United States, the Automated Clearing House (ACH), operated by the Federal Reserve Bank, handles all interbank transfers, including direct deposit and direct withdrawal. Outdoor ATMs may be free-standing, like this kiosk, or built into the side of banks or other buildings An automatic teller machine, automated teller machine (ATM) or cash machine is an electronic device that allows a banks customers to make cash withdrawals and check their account balances without...
Cheque guarantee cards often look like, or are debit cards with the amount of guarantee on the back. ...
The Automated Clearing House (ACH) is an electronic banking network operating system in the United States. ...
Federal Reserve Districts The United States Federal Reserve System consists of twelve Federal Reserve Banks, each responsible for a particular district, and some with branches. ...
References - ^ www.finance-glossary.com
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