METHODS OF PAYMENT CREDIT CARDS SWITCH CARDS CHEQUE: BANK TRANSFE DRAFT BANK GUARANTEE LETTER OF CREDIT (2 pagine formato doc)
They are issued by credit card companies.
They permit to buy goods and services and to pay them the following month.
They are plastic cards issued by a bank to bank account holders.
They are used in cash machines and in shops to buy the goods.
The money spent is directly deduced from the bank account.
Is an order to a bank to pay a sum of money to a named person or organisation.
The person who makes the order is the Drawer.
The bank that pays the money is the Drawee.
The person who gets the money is the Payee.
It is an irrevocable order of payment issued by the debitor's bank to a bank in the creditor's country.
It can also be called SWIFT because it is sent electronically by SWIFT (Society for Worldwide Interbank Financial Telecommunication)
It is also called Bill of Exchange. Is the document that orders a bank to pay a fixed sum of money on demand or a certain date.
The Parties are:
the drawer: the company that orders the draft and will receive the money
the drawee: the company that receives the draft and who will pay.
the payee: usually the same as the drawer.
A draft must contain these elements:
the name of the drawer,the drawee and the payee;
the signature of the drawer and the drawee
sum of money
date and place of issue
date of maturity
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