Bank draft

§  It is a cheque drawn by one bank on another bank, demanding that the latter pay a specified sum to the payee named on the draft.

§  The advantages of using the bank draft to remit money are the same as those of a cashier's order.

§  It can be used to remit money to other towns in the same country or even abroad.

Debit cards

This is an example of the Electronic Funds Transfer at the Point Of Sale (EFTPOS). Payments are made electronically from personal accounts to retailers’ accounts. Connect and Switch are examples of debit cards. For this system:

·                     There should be electronic equipment installed at the retail outlet.

·                     There should be cards with Personal Identification Numbers issued to bank’s customers.

·                     There should be a system for transmitting messages from the retailer’s terminal to the bank’s terminal.

The customer’s card is inserted in the retailer’s terminal and if there is sufficient money in the customer’s account, the right amount will be transferred from the customer’s account to the retailer’s account.

Credit cards:

This enables the customer to obtain instant credit and also cash advances. The bank charges interest from the day cash is withdrawn or from the day goods are bought on credit. The advantage to the retailer is the increase in sales. The best- known credit cards in UK are Barclaycard, Access and Trust card.

The bank gives the credit card to the customers, who can then get credit from retailers. The retailers prepare three copies of the bill. One is sent to the bank, one is given to the customer and one is kept by the retailer. The bank pays the retailer immediately on receiving the copy of the bill. At the end of the month the bank sends the statement to the customer who has to pay the money within 25 days on receiving the statement. Interest is charged on the amount of goods purchased.

Electronic Fund Transfers
EFT offers several services that consumers may find practical:

• Automated Teller Machines or 24-hour Tellers are electronic terminals that let you bank almost any time. To withdraw cash, make deposits, or transfer funds between accounts, you generally insert an ATM card and enter your PIN. Some financial institutions and ATM owners charge a fee, particularly to consumers who don't have accounts with them or on transactions at remote locations.

• Pay-by-Phone Systems let you call your financial institution with instructions to pay certain bills or to transfer funds between accounts. You must have an agreement with the institution to make such transfers.
   
• Personal Computer Banking lets you handle many banking transactions via your personal computer. For instance, you may use your computer to view your account balance, request transfers between accounts, and pay bills electronically.
   
• Point-of-Sale Transfers let you pay for purchases with a debit card, which also may be your ATM card. The process is similar to using a credit card, with some important exceptions. While the process is fast and easy, a debit card purchase transfers money - fairly quickly - from your bank account to the store's account. So it's important that you have funds in your account to cover your purchase. This means you need to keep accurate records of the dates and amounts of your debit card purchases and ATM withdrawals in addition to any checks you write. Your liability for unauthorized use, and your rights for error resolution, may differ with a debit card.