Summary
Summary Methods of payment (NOTES)
- Course
- Institution
Notes on the methods of payments for Merc law 193 A2S2.
[Show more]
Seller
Follow
juliayates19
Reviews received
Content preview
CHAPTER 1: METHODS AND INSTRUMENTS OF PAYMENTChoice of method depends on :
•
Amount
2 .
Relationship
3. Distance
4. convenience
5. RISK
security
6 .
Trust
MODERN METHODS OF PAYMENT
General features of modern
payment methods :
TYPES OF MODERN PAYMENT :
◦ QUICK } efficient ( instant) 1 .
EFT transactions
◦
cost effective 2 . Credit cards
time ) 3
convenient Larry place E- money
•
any
.
,
o secure and reliable 4 . Mobile payments
◦
Interoperable
Erroneous transfers made by customers :
> possible to claim from beneficiary on grounds Of unjustified
payment instructions for enrichment
>
the transfer of Funds
Generally transactions can
only be reserved with permission of
electronic
by means
beneficiary .
N ra
&
I made by : cell -
phone ,
CREDIT VS DEBIT INSTRUCTIONS :
internet , home banking > Credit instruction = to transfer funds
services , ATM EFT TRANSACTIONS from of mandatcr
.
electronically account
to account of beneficiary e- g- Pmt of salaries
^ '
customer carries risk of Take place through Bankserv system
any :
unauthorised use of card Until electronic facilities between banks .
notified ( bank
>
bank Is Isn't liable Debit instruction =
person to whom payment is made
for unauthorised transactions ) may claim amt from financial Institution where
debtor has an account e. g. stop orders ,
debit
the
Regulated by : ECTA ,
National credit Act , consumer orders
Protection Act
,
principles of law of contract & SA Code * same advantages 1- Disadvantages
for Banking Practice as credit cards
, of ADVANTAGES :
DISADVANTAGES :
Method payment t form
have
of credit
1 DO not to
carry 1 More easily spend money and
cash around
1 Issuer settles debt with incur large debts
> can be used Overseas
supplier card holder refunds
>
security risks can be stolen ,
&
•
> Used for Internet purposes lost cloned fraud ( internet
issuer ,
3
-
transactions )
TWO PARTY CARDS :
&
>
Issued by large chain THREE PARTY CARDS :
stores to an account
°
CREDIT CARDS ' Issued by bank Other financial
holder institution .
If
3
1 2 parties = issuer ( supplier ) } card * Not
negotiable
> 3 parties = Issuer ( bank / financial
holder ( customer ) instruments Institution ) , supplier } card holder
> '
To make purchases at the store 1
Regulated by To make purchases at
any place where
up to a certain credit limit National credit card is accepted up to a certain
credit Act & credit limit .
C- CTA .
Issued banks do a number of transactions
by
=
Electronic purse me until available balance is used
%
e. g. gift vouchers , loyalty cards
,
" "
su card =
money is loaded
onto the card
E-MONEY
A
payment intermediaries
> e.
g. PayPal ,
Apple Pay = consumer does not
divulge
M
virtual currencies e.
g. Bitcoin banking credit card details and
payment
( not yet considered legal payment is made through intermediary .
method in SA )
B.
Reserve Bank LSARB )
According to the SA ,
e-
money
E- function legal tender if issued
money monetary can only as it is by a bank
=
value that is stored on receipt of funds } can be redeemed for physical
electronically .
cash or a deposit into a bank account on demand
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller juliayates19. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $2.77. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
53068 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now