| Automated Teller Machines (ATMs) | Automated teller machines
(ATMs) are electronic devices employed to withdraw funds automatically
without the need to complete withdrawal documentations. ATM works through an
electronic system where an account holder is assigned specific code and
identity that ensures access to the account for withdrawal by the account
holder. One of the advantages of ATM is that it can be installed at any
location outside the bank office, especially in super markets and other
public places, ensuring withdrawal of funds at any time for immediate use
without recourse to the bank that holds the accounts. In such environment,
security of the machines is important so also is constant supply of
electricity to power the machines. |
| Cheque: | Defined in Section 73 of the
Nigerian Bills of Exchange Ordinance 1958 as "a bill of exchange drawn on a
banker and payable on demand". |
| Clearing: | A process in which banks meet
on banking days at specified hours to exchange payment instruments,
particularly drafts and cheques. The designated centre where this is done is
known as a clearing house. |
| Credit Transfers: | Credit transfers are non-cash
payments, in paper or electronic form used for both non-recurring and
recurring payments. A variant of this is the standing order arrangement in
which a bank effects necessary credit transfer on a regular basis to a
specific customer for a specified amount. For corporate customers, this is
referred to as direct credit arrangement and is used mostly for payment of
wages and salaries of employees. Another variant is the electronic credit
transfer for time critical and high-value payments.
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| Currency: | The component of the money
supply consisting of bank notes and coins.
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| Draft: | A debt instrument drawn by a
bank on itself. It is issued at the request of a customer who wishes to
transfer money from his account to that of another person or for cash
payable at another location. |
| Electronic Funds Transfer (EFT) | Another important component of
the payments system, especially in the developed countries, is the
electronic funds transfer. It involves the use of computers to transfer
large sums of money. The efficient operation of this mode of payment depends
critically on the reliability of telecommunications and electricity supply.
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| Payment Cards: | Payment cards consist of credit
cards - which indicate that the holder has been granted a line of credit by
the card issuing bank; debit cards- which enable the holder to have access
to his bank account; and pre-paid cards - which incorporate a computer chip
/ integrated circuit on which value is loaded, either from the card holder's
bank account or in return for cash; while value is then removed from the
card as purchases are made, using special point of sale terminals.
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Standing Order:
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An instruction in writing, given by a current account holder to his banker to make periodic payments. |
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