Banking Services: Confirming, Checks, Credit Cards, ATMs
Confirming
Confirming is a service through which a bank manages payments from a client (medium and large companies) to its suppliers. This involves both financial and administrative management.
Benefits for the Supplier
- There is no default risk since the advance appropriation was made by the bank to the supplier <<no recurso>>.
- Elimination of traditional costs of rotation effects, bills of exchange, and commissions.
Advantages for the Bank
- Customer loyalty.
- Possible increase in customer base.
Checks: Banking, Travel, and Gasoline
Checks
Checks are a highly secure means of payment for the legitimate holder. The drawer is always a bank that issues the check to the signature of their parents, so the liability rests with the deposit entity. In practice, this is extensively used for payment of real estate transactions as it provides total security with respect to the collection of the document.
Traveler’s Checks
Traveler’s checks are a class of credit issued by financial institutions in any convertible currency. They are provided in fixed amounts and are made out in the name of an individual.
Gasoline Checks
Gasoline checks are exclusively used as a form of payment for fuel at service stations.
Credit Cards
In the displayed bank credit cards, among others, the following figures appear: separate the holder or owner of the brand (Visa, Mastercard, Red6000) that are often highly prestigious multinational companies, introduced in most countries. On the other hand, the bank issuing the card, which usually operates under a franchise agreement whereby as consideration for using the brand chosen and also include your own name as an issuing bank, pay a fee.
Benefits of Credit Cards
- Procurement of goods and services.
- Obtaining cash.
- The addition of free insurance.
- Limitation of liability.
- Details to customers.
Access, Ownership, and Granting of Credit Cards
Credit cards have a cost to the owner, which is an annual fee for the service offered. It is customary for the first year of utilization to be free. A legal entity (a corporation) may also hire this service, called corporate credit cards, for use by certain directors or employees.
Widespread ATM Networks in Spain
- Telebanco 4B: Its ATMs also accept many other cards, like Servired, those of Red6000, and Cirrus cards.
- Servired: The principal entity that has Servired is BBVA-Red6000.
Effects in Collection Management
This is a typical banking transaction through which a credit institution manages the collection of the effects that a client presents for this purpose (bills, notes, receipts, checks). A ticket for betting or a lottery prize can be delivered to the bank to manage the amount awarded.
Interbank Clearing System
Currently, the system allows for the detention of many of the effects, not being required submission documents and orders transmitted by computer processes. This is known as truncation or elimination of paper documents or magnetic computer keys. The National Electronic Clearing System (SNCE) allows the system to compensate for much of documents and payment, transfers, money orders, debits, and standing orders. The compensation system is in a single-chamber and the Spanish Service for Interbank Payments for compensation payments and cross-border and domestic documents.