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Title: Payment instruments

Essay Details:

Subject: Business
Author: Charles S
Date: November 9, 2016
Level: University
Grade: A
Length: 4 / 948

Essay text:

Their main advantage is that pre-authorisation means they are made electronically. While declining in importance, cheques are paper-based instructions to a depositor’s ADI to pay funds to settle a transaction (or to effect a withdrawal). They can be used only where the depositor has a cheque account. Their main advantage is that the depositor can make a record of the instruction. Debit cards allow their holder to settle transactions via EFTPOS machines that draw on funds in the depositor’s ADI account and to withdraw funds from ATMs. Their advantages are that they are processed electronically and their holder cannot overdraw their account...

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