A giro , or gyro transfers , is the transfer of payments from one bank account to another and instigated by the payer, not the payee. Demand deposits are primarily European phenomena; Although electronic payment systems such as Automated Clearing House exist in the United States and Canada, it is not possible to transfer third parties with them.
In the UK and in other countries, the term giro may refer to a particular system that was once operated by the post office. In the UK, the gyro service was originally known as the National Giro. In time "demand deposits" are adopted by the public and the press as a short term for girocheque, which is an examination and not a credit transfer. In the meantime, there is a Bank Giro Credit , which is an instruction to credit a particular bank account: this is not an instruction to debit other accounts, so they must be accompanied by cash or checks, and they can be used either for bill payment and payment slip; when used to pay bills they are often free of charge to the payer when used in the paying or paying bank but with administrative fees at other banks.
The use of check and paper checks is now declining in many countries for electronic payments, which are perceived to be faster, cheaper, and more secure as they reduce the risk of fraud.
The 'Giro' is also used in Investment Giro , where 'Giro' is used for non-bank administrative accounts where investments and transactions are registered.
The word Giro in this context has its origins in the Netherlands. Demand deposits are used in names such as: Giro Investasi, Giro Investor, Demand Deposit Account, and in Dutch for Beleggers giro, Beleggingsgiro and used as synonym for Investment or Investor administration, Transfer Agent Service or for Dutch 'Bewaarinstelling'. Read More Giro Investasi
Video Giro
Etimologi
The word "giro" is borrowed from the Dutch "giro" and/or German "giro" , both of which are Italian "giro" meaning "money circulation". The Italian term is derived from the Latin "gyrus" meaning "gyre" from the Greek "gyros" meaning "circle".
Maps Giro
History and concepts
The Giro System dates back at least to Ptolemaic Egypt in the 4th century BC. The granary of state deposits serves as an early banking system, in which demand deposits are received, with a central bank in Alexandria. Giro is a common method of money transfer at the beginning of banking.
The first appearance of the book money is not known for certain. The gyro system itself can be traced back to "bancherii" in northern Italy, especially in the Rialto (financial center, resembling modern Wall Street). Initially this is a money changer sitting on their desk ("bancus" = bench) that can be changed by the customer. They offer additional services to save money and to allow direct transfers from one store to another by checking accounts in their storage books. Literally they opened a book, withdrew some money, opened another book where the amount was added. This handling is naturally a very regional system but allows money to circulate in books. This eventually led to the foundation of "Banco del Giro" in 1619 (in Venetian language, Banco del Ziro) which provided a blueprint for a similar banking system. Usage in German can be seen at Banco del Giro established in Vienna in 1703 (to expand the financing business brought by Samuel Oppenheimer of Venice in 1670).
Postal or post giro postal systems have a long history in European financial services. The basic concept is a banking system that is not based on examination, but with direct transfers between accounts. If the accounting firm is centralized, then transfers between accounts can occur simultaneously. Money can be paid or withdrawn from the system at any post office, and then connections to the commercial banking system are established, often only by local banks opening their own postgiro ​​account.
By the mid-20th century, most continental European countries had postal giro services. The postgiro ​​system was first established in Austria in the early 19th century. By the time postgiros UK is conceived, postgiro ​​is very well established with almost every adult having a postgiro ​​account, and postgiro ​​operations â € <â € The term "bank" was not used initially to describe the service. The bank's primary payment instrument is based on checks that have a completely different remittance model with demand deposits.
Model
In the banking model , check is written by the paying party and then submitted or sent to the payee, who then must visit the bank or check letter to his bank. Checks then need to be emptied, a complex process where the checks are ordered once, sent to the central clearing location, sorted again, and then sent back to the payments branch, verifying that the funds are available and paying the paying bank.
In the post giro model , the paying party sends a request to pay the payee (called gyro transfers ) to the gyro center, which verifies that the funds are available, debits the payer's account with the requested amount, and crediting the amount to the payee's account. The checking center then sends the giro transfer document to the recipient, and the account's account statement to the payer and the payee. In the case of large utilities that receive thousands of payments per day, the reports are sent electronically and enter a unique reference number for each payment for reconciliation purposes.
In the United States, the emergence of electronic clearance checks (and debit cards as the preferred payment instrument) has made this distinction less important than ever. In some stores in the United States, checks are scanned at the checkout and handed back to the customer. The scanned information is forwarded to the payment processor, which transfers the money using the Automated Clearing House (ACH) network.
Unlike the banking model, the post giro model allows one to transfer money directly into someone else's bank account, provided the sender has the recipient's account details. The recipient is not required to approve or acknowledge the transfer or visit the bank to claim it. As a result, checks are rarely used in countries with large demand networks, such as Germany, the Netherlands, Belgium and the Nordic countries.
The direct deposit system as commonly used in North America, on the other hand, requires explicit consent of the recipient, usually provided by filling in the form. Transferring funds from one personal bank account to another personal bank account usually requires a physical check or wire transfer, which may incur significant costs and require the paying party to visit the bank.
Credit risk with respect to actual physical currency transfers is assumed by a demand deposit operator, such as a bank, as an interbank credit risk. For payers and payees, demand deposits do not involve credit, unlike checks or credit cards. This is both profit and loss. The credit worthiness of the payer does not need to be evaluated, as he can start a transaction only if he already has enough funds. Thus, the payer has no benefit paying the credit. However, the loss is an unsecured transaction. Payers do not have any kind of protection against dishonest payees that comes with credit cards. The transaction can not be withdrawn or debated after the fact. So, do a fraud on mis. interpersonal trading is relatively easy, and the demand deposit should only be made to a known and trusted payee. In addition, although interbank transfers can be made quickly, interbank transfers can take several days, and are often done on weekdays only.
Electronic bill payment
Modern electronic bill payment is similar to the use of demand deposits.
Benefits include:
- Instant access to funds via ATM, debit card or check card.
- No paper checks can be lost, stolen, or forgotten.
- Electronic payments can be cheaper for payers; usually electronic payments may cost around 25 ¢ (US) while it can cost up to $ 2 (US) to produce, print and send paper checks. The bank may not charge at all for this service; for example many banks in the European Union do not charge any fees for electronic payments within SEPA (Single Euro Payment Area), as long as the appropriate BIC and IBAN account numbers are used.
- The payment errors and subsequent reconciliation issues decrease significantly.
In the United States, the Automated Clearing House (ACH), governed by NACHA and the Federal Reserve Bank, handles all interbank transfers, including direct deposit and direct debit.
In full electronic bill payment, the payer receives the invoice - either physically by mail or electronically from the website (electronic bill). Then, the payer reads the information from the bill, either manually or by using barcodes on the bill (eg: EPC QR code in the EU), puts it into a form on the bank's website, and submits the form. Payments are immediately deducted from the account balance.
Cultural significance
Before the use of electronic payment transfers became the norm in the United Kingdom, a biweekly "giro" payment was the normal way to distribute payment of benefits. When unemployment peaked in the 1980s, large numbers of people would receive their payouts on the same day leading the concept of Giro Day, characterized by small debt settlement and a marked increase in drinking, partying, and festive activity. This is the focus of the 1996 movie Waiting for Giro .
See also
- Girobank
- hawala
- Money order
- Pay stub
- Pay pay
- remittance
- Investment Giro
References
Source of the article : Wikipedia
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