Check cashing and money transfers involve the process of paying using negotiable instruments and transferring of funds through banks or other companies using different transfer systems. Check cashing can be done in banks as well as in check cashing stores. Money transfers, on the other hand, generally refer to cashless modes of payment or different payment systems which include wire transfer and electronic funds transfer among many others. Check cashing and money transfers are convenient ways of sending and receiving payments for payroll, bills, merchandise, services, and other bank-to-bank transactions.
Check cashing involves the use of negotiable instruments which also include bank notes and commercial paper. These automatically instruct a bank or other financial institutions to pay the specified amount in the specific currency from a specified demand account under the maker's or depositor's name. Checks have been in use since ancient times when the banking system first started. Bankers during this time issue orders as requested by their customers to pay money to identified payees. This was called the bill of exchange which gave convenience to merchants. They were able to go about their business without carrying large amounts of currency to buy goods and services. This is still quite true at present times that business people as well as individuals who have checking or current accounts use checks for different transactions.
Check cashing involves checking of its different parts:
place of issue
check number
date of issue
name of payee
amount of currency
signature of the drawer
account number
fractional routing number or transit number
Money transfer on the other hand, refers to different cashless modes of payment such as wire transfer, electronic funds transfer, e-mail money transfer, Giro, transfer by postal check or money gram. Wire transfer, which is the most common mode of money transfer, involves bank to bank transactions. The steps in the process of wire transfer include:
an individual who wishes to transfer money needs to go to the bank and give an order to transfer a certain amount of money to a given account using IBAN and BIC codes
the sending bank transmits a message using a secure system to the receiving bank requesting that the payment takes effect according to instructions given
the transmitted message also includes settlement instructions
the transfer of funds may take several hours to several days
Money transfer using banks is considered to be the safest way to transfer, send and receive money especially if the transaction involves country to country transfer or international payment methods.
Check cashing and money transfer must be done in banks to make all transactions safe and legal as well as convenient and will not cost you additional expense. Cashing checks in check cashing stores often charge 2% of the check's value while money transfer using other money transferring companies also entails paying a certain amount.
Ashley Conner is a writer for Zipcodez.com, a widely-used local business listings search portal. Zipcodez.com also features an efficient job, movie, and restaurant search covering over 100 major cities nationwide. Ashley has covered useful topics and resources from "Arts & Entertainment" to "Wireless & Telecommunications" for Zipcodez.com. You can easily find out what convenient and useful resources are in your neighborhood by visiting http://www.zipcodez.com.
Article Source: http://EzineArticles.com/?expert=Ashley_Conner
สมัครสมาชิก:
ส่งความคิดเห็น (Atom)
ไม่มีความคิดเห็น:
แสดงความคิดเห็น