When organizing cash and non-cash payments with buyers and customers, it is necessary to take into account the rules for conducting cash transactions for cash payments, the limit of cash payments between legal entities, and the procedure for conducting non-cash payments. The norms and practice of their application are in this article.
Accounting for cash and non-cash payments to buyers and customers
In relations with clients, cash and non-cash payments are possible. You are obliged to give the buyer the right to choose the form of payment - cash or non-cash.
You have the right to accept payments only in a form convenient for you if the revenue excluding VAT or the book value of the company’s assets for the last year amounted to no more than 60 million rubles.
In all other cases, it is necessary to provide for the possibility of accepting payments in different forms. Including, you will need to work with plastic cards.
When choosing a cash register, look for whether the device has a function for accepting non-cash payments.
It is convenient to keep track of settlements with buyers and customers through the automation program Business.Ru. When trading using cash registers, data on each cash and non-cash cash transaction is automatically received from cash devices (POS terminals or fiscal recorders) and accumulated in the program, providing an up-to-date picture of sales.
In the case of non-cash payments under contracts, the entire history of settlements with a specific counterparty is reflected on a separate page. You can track the general status of settlements directly from the main page of the automation program, and, if desired, detail the information on the positions that interest you.
The program also generates settlement reports in a form convenient for you, which allows you to track the status of accounts receivable.
Organization of non-cash payments
Non-cash payments are different in that neither party to such cash payments sees real money. All payments are made through the bank.
When making non-cash payments, the order of payment is observed. If there is not enough money in your bank account, the bank will transfer funds for obligations in the order of payment priority.
The accountant enters it in the appropriate field of the payment slip. You cannot influence the order of payment in any way - it is established by law and looks like this:
- first priority – compensation for harm to life and health and payment of alimony;
- second stage – severance pay and royalties;
- third priority – wages and settlements with the state for taxes and contributions (mostly overdue);
- fourth stage - payments under other executive documents;
- fifth priority – all other payments, including current taxes and contributions.
The bank processes documents of one queue in the order in which payments are received. In general, no matter how much you would like, say, to repay the loan as quickly as possible, keep in mind that the salaries of employees will still be more important for the bank.
Forms of non-cash payments are selected by the bank client (that is, you) from the general available list, which is approved by the Bank of Russia. When making non-cash payments with the buyer, the form of payment is specified in the contract.
Cashless payments also include the organization of payments in a retail store using payment cards. When accepting a card payment from a buyer, you are required to give him a cash receipt, and if you work without cash register equipment, then a corresponding strict reporting form.
Try the online cash register Business.Ru with the ability to work with both stand-alone banking terminals and connecting the terminal to the program. Create discounts and bonus cards and remotely monitor the operation of the store.
In addition, the terminal for accepting bank cards issues a receipt (slip check). One copy remains with you (the cashier), the second is received by the buyer.
If the customer's signature is required on the slip check, your employees should definitely ask the customer to sign. To do this, each cashier’s workstation must have a writing pen.
If you have a large percentage of card payments and you want to surround your customers with comfort and care, also offer them special backings with flat surface, which are more convenient to sign than on the free surface of the cash register or on the counter.
Cash settlements with customers in 2019
Cash payments are made using “live” bills and coins, without the participation of banks. When making cash payments to customers, cash register equipment is used.
In addition to accepting cash payments from individuals in retail, cash payments between legal entities are also possible. That is, in principle, you can accept cash payments from legal clients.
However, keep in mind the current limit on cash payments between legal entities. Now it is 100 thousand rubles.
If paying in cash, you are required to give the buyer a cash receipt. If you have the right to work without a cash register, instead of a cash receipt, you issue the corresponding BSO.
However, the individual buyer may ask you for additional supporting documents. In this case, you are dealing with an accountable person who, in these sales and purchase relationships, represents not himself, but his company.
Cash and non-cash payments in 2019
Consequently, the restriction on cash payments between legal entities is again in effect.
In this case, the limit does not apply to the amount of one payment, but to all payments under the same agreement. Even if payments under one contract are spread out over time and made in parts, the total amount of cash that you have the right to accept from a specific client-legal entity under this transaction should not exceed 100 thousand rubles.
For example, this applies to paying for goods in installments or payments under rental agreements.
According to current legislation, cash cash from the cash register can only be spent on certain purposes. In this regard, there may be difficulties with returning the buyer's money when processing the return of goods.
If the client paid for the purchase in cash, you have the right to return the money to him in cash. If the buyer paid with a card, it is prohibited to give him cash from the cash register upon return.
This will be regarded as a violation of cash discipline. In this case, the refund must be transferred to the client’s bank account.
Read more on the topic of calculations:
Cash payments are made by the organization either in cash or in the form of non-cash payments.
Non-cash payments are carried out through non-cash transfers to clients' current, current and foreign currency accounts in banks, a system of correspondent accounts between different banks, clearing offsets of mutual claims through settlement fees, as well as using bills of exchange and checks that replace cash. Non-cash payments are carried out mainly through banking, credit and settlement operations. Their use can significantly reduce the cost of money circulation, reduces the ability to hold cash, and ensures their more reliable safety.
Non-cash payments are carried out for commodity and non-commodity transactions. Commodity transactions include the purchase and sale of raw materials, supplies, etc. They are recorded in accounts 60 – “Settlements with suppliers and contractors”, 62 – “Settlements with buyers and customers”, 45 – “Goods shipped”, etc.
Non-commodity transactions include settlements with municipal institutions, research institutions, educational institutions, etc. They are recorded on account 76 - “Settlements with various debtors and creditors.”
Depending on the location of the supplier and buyer, non-cash payments are divided into non-resident and same-resident (local).
Non-resident refers to settlements between organizations served by bank institutions that are located in different localities, and same-resident refers to settlements between organizations serviced by one or two bank institutions that are located in the same city. locality.
The forms of non-cash payments are determined by Article 862 of the Civil Code of the Russian Federation and the Regulations of the Central Bank of the Russian Federation:
1) settlements by payment orders;
2) settlements for collection;
3) calculations according to;
4) payments by checks.
Forms of non-cash payments are chosen by organizations independently and are provided for in agreements concluded by organizations with banks. Within the framework of non-cash payments, payers and recipients of funds (collectors), as well as banks and correspondent banks servicing them, are considered as participants in settlements.
All transactions on bank accounts are carried out only on the basis of payment documents.
A settlement document is an order issued on paper or electronically (E-mail, fax):
The payer – about debiting funds from his account and transfers to the recipient’s account;
- recipient – about debiting funds from the payer’s account and transferring them to the account specified by the recipient.
The regulations of the Central Bank of the Russian Federation set out the requirements for the execution of settlement documents on paper (settlement documents, except checks) must be filled out only on a typewriter or computer in black font; checks are filled out using a pen with paste, black or blue ink, or on a typewriter in black font; Corrections, erasures, blots, and the use of correction fluids are not allowed; settlement documents must contain the mandatory details established by the Regulations, etc.
Payment documents must be submitted to the bank within 10 calendar days, not counting the day of issue of the settlement document. The bank is provided with as many copies of settlement documents as necessary for all participants in the settlements. Copies of settlement documents can be made using carbon paper, copying equipment or a computer.
The first copy of the payment document (except for a check) is signed by two authorized persons (or by one person if the organization does not have a person with the right of a second signature). In addition, a seal imprint is placed on the document.
The procedure for registration, acceptance, processing of electronic payment documents and making settlements using them is regulated not by the Regulations, but by other regulations of the Central Bank of the Russian Federation, as well as agreements between banks and clients.
Settlements by payment orders
A payment order is an order from the account owner (payer) to the bank servicing him to transfer a certain amount of money to the recipient's account opened in this or another bank.
Payment orders are the most common form of payment.
Payment orders can be used to transfer funds:
For goods supplied, work performed, services rendered;
- to budgets of all levels and to extra-budgetary funds;
- for the purpose of returning / placing loans and borrowings, deposits and paying interest on them;
- by order of individuals or for the benefit of individuals;
- for other purposes provided for by law or agreement.
In accordance with the terms of the main agreement, payment orders can be used for advance payment of goods, work, services or for making periodic payments. Payment orders are accepted by the bank regardless of the availability of funds in the payer's account. If there is no or insufficient amount of funds in the payer’s account, payment orders are paid as funds are received in the order established by law.
The Regulations establish a new form of payment order form.
Payments for collection
Collection settlements are a banking operation through which the bank, on behalf and at the expense of the client on the basis of settlement documents, carries out actions to receive payment from the payer.
Collection payments are made on the basis of payment requests and collection orders.
Payment requirements are applied when making payments for goods (work, services), as well as in other cases provided for in the agreement between the payer and his counterparty.
A payment request is a settlement document containing the demands of the creditor (recipient of funds) under the main agreement to the debtor (payer) for the payment of a certain amount of money through the bank.
Settlements through payment requests can be carried out with prior acceptance and without the payer’s acceptance. The period for accepting payment requests is determined by the parties under the main agreement (but not less than 5 working days). If there is no such period in the contract, the period for acceptance is considered to be 5 working days. The payer has the right to refuse, in whole or in part, to accept the payment request on the grounds provided for in the agreement.
The payer has the right to refuse to accept the invoice for the full amount if the supplier ships products that were not ordered, of poor quality, non-standard, incomplete, early delivery of goods or early provision of services, the supplier presents a non-commodity demand, there are no prices for goods and services approved or agreed upon in accordance with the established procedure, and etc. Partial refusal of acceptance may occur if the supplier violates prices, discounts, makes arithmetic errors in the request or shipping document, receives part of illegal, substandard, non-standard products, etc.
The payer's refusal to pay the payment request is formalized by a statement of refusal to accept the established form, which is drawn up in triplicate. The first and second copies of the application are drawn up with the signatures of the relevant officials and the payer's seal.
If acceptance is completely refused, the payment request is returned to the issuing bank on the same day along with a second copy of the statement of refusal to accept for return to the recipient of the funds.
The first copy of the application, together with a copy of the payment request, remains in the payer's bank, and the third copy of the application is returned to the payer.
In case of partial refusal of acceptance, the payment request is paid in the amount accepted by the payer. The first copy of the application for refusal to accept, together with the first copy of the payment request, remains in the payer's bank, the second copy of the application is sent to the issuing bank, and the third copy is returned to the payer.
The payer is responsible for unjustified refusal to pay payment requests.
If a refusal to accept payment requests is not received within the established period, they are considered accepted and are paid from the payer’s accounts on the next business day after the expiration of the payment period, and if there are insufficient or unavailable funds, in the order established by law.
The advantage of the acceptance form of settlements with payment requests is that it allows the payer to control the supplier’s compliance with the conditions stipulated by the contracts. Its disadvantage is the relatively slow receipt of funds to the supplier's account (5 days for acceptance and double postage).
Settlement of payment requests, paid without acceptance, are made, as a rule, on the basis of relevant laws. In this case, the recipient must indicate in the payment request the number, date of adoption and name of the relevant law. As a rule, claims for gas, water, electricity and heat, sewerage, telephone use, postal and telegraph and some other services are paid from the payer’s accounts without acceptance.
Settlements by collection orders
A collection order is a settlement document on the basis of which funds are written off from the payer’s accounts in an indisputable manner.
Collection orders are applied:
1) if an indisputable collection procedure is established by the relevant laws;
2) for collection under enforcement documents;
3) in cases provided for by the parties to the main agreement.
The collection order is drawn up in the form prescribed by Regulation (8). The instruction must make reference to the relevant law, executive document or its duplicate.
In the absence or insufficiency of funds in the payer’s account, the collection order is executed as funds are received in the order established by law.
Banks suspend the write-off of funds indisputably in the following cases:
1) by decision of the body exercising control functions in accordance with the law, to suspend collection;
2) in the presence of a judicial act on the suspension of collection;
3) for other reasons, provided for by law.
When making payments by payment orders and settlements for collection, settlements with suppliers are reflected as sales of products, i.e. using accounts 45 – “Goods shipped”, 90 – “Sales”, 62 – “Settlements with buyers and customers”, etc. The buyer uses accounts 60 and 51, respectively, “Settlements with suppliers and contractors” and “Settlement accounts”, etc.
Letter of credit payment form
The letter of credit form of payment is used in two cases: when it is established by the contract and when the supplier transfers the buyer to this form of payment in accordance with the provisions on suppliers of industrial and technical products and consumer goods.
A letter of credit is a conditional monetary obligation accepted by the issuing bank on behalf of the payer to make payments in favor of the recipient of funds upon presentation by the latter of documents that comply with the terms of the letter of credit, or to authorize another bank to make such payments.
Banks can open the following types of letters of credit:
Covered (escrowed) and uncovered (guaranteed);
Revocable and irrevocable (can be confirmed).
When opening a covered letter of credit, the issuing bank transfers, at the expense of the payer's funds or the loan provided to him, the amount of the letter of credit at the disposal of the executing bank for the entire period of validity of the letter of credit.
When opening an uncovered letter of credit, the issuing bank grants the executing bank the right to write off funds from the correspondent account maintained by it within the amount of the letter of credit in the manner determined by the agreement between the banks. A revocable letter of credit is one that can be changed or canceled by the issuing bank on the basis of a written order from the payer without prior agreement with the recipient of the funds. An irrevocable letter of credit can only be canceled with the consent of the recipient of the funds.
The procedure for settlements under a letter of credit is established basically by an agreement that reflects the main conditions (name of banks, recipient of funds, amount of the letter of credit, its type, validity period, method of notifying the recipient of funds about the opening of a letter of credit, a complete list and exact characteristics of documents submitted by the recipient of funds, etc. .).
A letter of credit is intended for settlements with one recipient of funds. The terms of the letter of credit may provide for acceptance by a person authorized by the payer. The form of the letter of credit is established by the Regulations.
Payments under the letter of credit are made during its validity period at the supplier's bank in the full amount of the letter of credit or in parts against the registers of accounts and transport or acceptance documents submitted by the supplier certifying the shipment of the goods. Registers of accounts must be submitted by the supplier to the bank institution servicing him, as a rule, the next day after shipment (release) of the goods. The letter of credit is accounted for on account 55 – “Special accounts in banks”, subaccount 1 “Letters of credit”.
A letter of credit can be issued at the expense of one’s own funds and at the expense of a bank loan.
In the first case, the issuance of a letter of credit is documented using the following accounting entry:
Account credit 52 – “Current accounts”
When a letter of credit is issued against a bank loan, the following entry is made:
Debit of account 55 – “Special accounts in banks”, subaccount 1 “Letters of credit”;
Credit account 66 “Settlements for short-term loans and borrowings.”
Payment of supplier invoices from a letter of credit account is recorded using the following entry:
Debit of account 60 “Settlements with suppliers and contractors”;
Credit to account 55 “Special accounts in banks”, subaccount 1 “Letters of credit”.
The balance of the unused letter of credit is returned to the purchasing organization and credited to the current account if the letter of credit is issued at the expense of one’s own funds, or transferred to repay the loan debt if the letter of credit is issued at the expense of a bank loan.
The disadvantages of the letter of credit form of payment include the freezing of buyer funds for the period of validity of the letter of credit until its actual use, as well as the possibility of delaying the shipment of products by the supplier until the receipt of the letter of credit. At the same time, it guarantees immediate payment of supplier invoices and promotes compliance with settlement and payment discipline.
Payments by checks
A settlement check contains a written order from the account owner (check drawer) to the bank servicing him to transfer the amount of money indicated in the check from his account to the account of the recipient of the funds (check holder). This form of payment in last years is increasingly used in single-city settlements (especially for settlements with transport organizations).
The procedure and conditions for the use of checks in payment transactions are regulated by the Civil Code of the Russian Federation, and in the part not regulated by it, by other laws and banking rules established in accordance with them.
Check forms are strict reporting forms. Their storage is carried out in the manner established by regulations of the Bank of Russia.
In accordance with the Regulations, checks issued by credit institutions can be used for non-cash payments. These checks can be used by clients of this credit institution, as well as in interbank settlements in the presence of correspondent relations. However, they cannot be used for settlements through divisions of the Bank of Russia settlement network.
Upon receipt of goods (provision of services), the payer writes out a check from the book and passes it to the representative of the supplier or contractor, who becomes the check holder. The check holder presents the written check to his bank office, usually the next day from the date of issue, for the money to be credited to his current account.
The deposit of funds when issuing check books from the payer is accounted for in account 55 “Special accounts in banks”, sub-account 2 “Check books”, from the credit of accounts 51 “Current accounts”, 66 “Settlements for short-term loans and borrowings” and other similar accounts. As debts are paid by checks, they are written off from the credit of account 55 to the debit of account 76 “Settlements with various debtors and creditors” and other similar accounts.
Accounting for transfers in transit
Some organizations cannot deposit cash during business hours with their bank. In this case, organizations, in accordance with concluded agreements, deposit prepared cash into the cash desks of credit institutions, savings banks or post office cash desks, as a rule, through bank collectors and post offices.
During the period from the moment of transfer of funds to collectors or directly to credit institutions, savings banks or post offices, the deposited funds are recorded in the active synthetic account 57 “transfers in transit”. The basis for accepting funds for accounting under account 57 are receipts from a credit institution, savings bank or post office, copies of accompanying statements for the delivery of proceeds to collectors or other similar documents.
The movement of funds (transfers in foreign currency) is recorded separately in account 57.
Amounts of cash deposited with credit institutions, savings banks or post offices are written off to the debit of account 57 from the credit of account 50 “cash”.
From the credit of account 57, funds are written off to the debit of account 51 “current accounts” (according to the bank statement) or other accounts depending on their use (50,52,62,73).
Cash flow statement
Organizations prepare a cash flow statement (form No. 4 of the annual report). The report consists of four sections.
I. Cash balance at the beginning of the year.
II. Cash received - total and including by type of income (revenue from the sale of goods, products, works, services, from the sale of fixed assets and other property, advances received from customers, budgetary allocations and other targeted financing received free of charge, loans and loans, dividends and interest on financial investments, other income).
III. Directed funds - in total and including by areas of expenses (for payment of purchased goods, works, services, for wages, deductions for social needs, issuance of accountable amounts, issuance of advances, payment for business participation in construction, payment for machinery, equipment and transport funds, financial investments, payment of dividends and interest, settlements with the budget, payment of interest on loans received and other payments and transfers).
IV. Cash balance at the end of the reporting period.
Cash flow information is presented in foreign currency Russian Federation– rubles – according to accounts 50 “cash office”, 51 “current accounts”, 52 “foreign exchange accounts”, 55 “special bank accounts”. Cash flow is shown by type of activity - current, investment, financial.
Current activities mean the activities of the organization in production, trade, catering, etc. Investment activities are associated with capital investments and long-term financial investments, and financial activities are associated with short-term financial investments. The cash flow statement is important for monitoring the financial performance of an organization. Reference information from the cash payment report, including using the cash register (Cash Register), allows you to control the cash flow.
Cashless payments– a payment made without the use of cash, that is, money is credited to the recipient’s Bank account from the payer’s bank account through the bank. Non-cash payments are carried out through the bank, using mutual offsets, clearing settlements, credit cards, checks, bills. The functions that non-cash payments perform: accelerates the circulation of funds, reduces the need for cash when making transactions; reduces cash circulation costs. The non-cash movement of money is difficult to hide from regulatory authorities, therefore the state promotes the growth of the share of non-cash payments in the country's monetary circulation.
To make most non-cash payments, an individual must open a current account with a bank. The bank can make a money transfer on behalf of an individual and without opening an account (this option will be discussed below), with the exception of postal transfers. A current account is opened on the basis of a bank account agreement providing for settlement transactions not related to the implementation of entrepreneurial activity. To open a current account (conclude a bank account agreement) an individual The following documents are submitted to the bank:
— passport or other document proving identity in accordance with the legislation of the Russian Federation;
— “Card with samples of signatures and seal imprints” of form 0401026 of the All-Russian Classifier of Management Documentation OK 011-93 (hereinafter referred to as f. 0401026), drawn up in the manner established by the Bank of Russia (Instruction of the Central Bank of June 21, 2003 No. 1297-u “On the procedure for issuing cards with samples of signatures and seal impressions");
— other documents provided for by law and/or bank account agreement.
If the data specified by an individual in the bank account agreement changes, he notifies the bank about this in the manner and within the time frame established by the agreement. When changing the last name, first name or patronymic, an individual presents to the bank a new identification document, on the basis of which a new f. card is issued. 0401026.
An individual has the right to grant another individual (trusted person) the right to dispose of funds in his current account on the basis of a power of attorney, which is certified by the bank in the presence of the principal and certified by the bank's seal. The power of attorney can also be certified by a notary. If a power of attorney is used, an additional card f. is provided to the bank. 0401026. The principal can terminate the power of attorney to manage the current account by submitting a corresponding application to the bank.
The bank writes off funds from the current account of an individual by order of the account owner or without his order (for example, by court decision) on the basis of settlement documents within the limits of funds available in the account. If there are no funds in the current account of an individual at the time of debiting the funds, as well as the right to receive a loan, including an overdraft, provided for in an agreement between the bank and the individual, settlement documents are not subject to execution and are returned to payers or collectors in the manner established by Regulation No. 2 -P.
Non-cash money is finance allocated to individuals or legal entities and used by them to pay for purchases, services or conduct monetary transactions. Non-cash payments include absolutely all payments made without printed banknotes. In other words, financial transactions are carried out through corresponding records of the accounts of payers and recipients without the use of cash.
The essence and purpose of non-cash money
The functions of non-cash money are no different from the properties of cash, therefore their purpose is described by five features:
- Measure of value. It is formed during price formation, i.e. the value of goods expressed in monetary terms. Due to this, products are compared with each other. Price formation is influenced by the conditions of production and exchange. In order to be able to compare prices, it is necessary to bring them to a common denominator or a single unit of measurement.
- Expressing the value of goods in monetary terms is necessary for their sale. And in market relations, exchange is impossible without financial intermediation.
- Means of payment. This function includes the previous one. With the development of loans, it is becoming increasingly stronger, and non-cash payments only strengthen its position.
- A means of savings. Formation of a certain reserve
- World money, finance used in international payments.
The most common in the modern economy are only 3 functions: means of calculation, savings and a measure of value. And money as a means of circulation fades into the background. In many ways, this situation is facilitated by non-cash money. calculations becomes more relevant.
Carrying out non-cash payments
So, the movement of cash and non-cash money is significantly different. But there is nothing complicated about non-cash payments. The mechanism of how non-cash money works is quite transparent.
Simply the required amount is withdrawn from one account and credited to another. Such transfers are impossible without the participation of banks, but they greatly simplify the movement of money. There is no need to have large amounts of cash and ensure their safety. This method is ideal for business transactions.
Types of non-cash payments
Non-cash money is finance that requires documentary support in the form of:
- The document obliges the bank to transfer the specified amount from the payer’s account to the recipient.
- Letter of Credit. A special account in which there is an amount sufficient to pay for specific goods and services, which is transferred to the seller only after providing supporting documents about his fulfillment of the terms of the transaction.
- Collection order. Used to collect debts. The claimant is obliged to present to the bank Required documents to confirm their right of access to the debtor’s funds.
- Checkbook. This type can be classified as cash-non-cash transactions, since finances are not necessarily transferred from the check holder’s account to the check bearer’s account, but can be issued in cash, but only within the limits of the amounts in the check book owner’s account.
- Electronic money. These types of non-cash transfers are also carried out through the intermediary of financial organizations and must be carried out taking into account all the requirements of the law.
Controls and regulates the movement of non-cash funds of the Central Bank of the Russian Federation. As a rule, transactions carried out with accounts within the country take place within two business days.
Electronic money
Non-cash money also includes electronic money, which has been widely used in recent years. Their main advantage is mobility. They are also used to pay for goods and services. You can use them at any time, anywhere. The only condition for access to such finance is to have the Internet at hand.
The circulation of electronic money occurs through the mediation of various payment systems. They may establish some additional rules for the circulation of funds, but these requirements should not contradict the conditions established by the Central Bank. In fact, electronic money, as with other non-cash transactions, is transferred from one account to another.
Non-cash payments of citizens
Individuals use bank cards as opposed to cash, which can, in turn, be debit, credit, or even mixed.
A credit card contains bank funds that are provided to the client under certain conditions and require repayment. For release credit card The solvency of the person is checked and an agreement is concluded, which specifies all the conditions for using this loan product.
Debit cards are often used for everyday transactions: cash withdrawals, payments for goods, money transfers. But this is done within the limits of the client’s personal finances only, without involving bank funds. Such cards are used in salary projects.
Mixed cards perform the same functions as debit cards, but have a limited overdraft, i.e. additional (credit) funds. The amount of the overdraft is specified by the bank separately.
The difference between non-cash payments
Everyone knows how settlement transactions are carried out when there is cash. Non-cash forms of money have their own characteristics.
The main difference is the presence of the bank. In addition to the seller and buyer, all transactions are accompanied and controlled financial institution who opened the account.
Advantages and disadvantages
The following advantages can be highlighted in the translation system:
- All transactions with funds in the account are supported by bank documentation, so they can be tracked and proven if necessary.
- It is possible to conduct several simultaneously financial transactions, even requiring payment of additional fees and commissions.
- There is no way for counterfeiters to replace banknotes.
- The costs of storing, accounting and transporting money are reduced.
- Unlimited storage period for finances in a bank account.
- There is no need to purchase and maintain a cash register.
But there are also disadvantages to cashless payment, including:
- Payment of commission fees for bank intermediary services.
- There is a danger of technical failures that will block funds and make their circulation impossible.
- The need for constant cash flow for timely payment of banking services and other basic payments, which is inconvenient for small entrepreneurs.
However, non-cash money is convenient, and with the right approach and choice of bank, the negative aspects can be minimized.
Technology development has an impact on all areas human life. To a greater extent, these changes are positive, such as non-cash payments - it is convenient, fast and safe. How does this system work? What are its pros and cons? About this and much more in the article.
In the Russian Federation, the non-cash payment system is the sphere of competence of financial and civil law. Cashless payments are regulated by 3 regulations:
- Civil Code of the Russian Federation, where Chapter 46 “Settlements” contains the necessary information about this type of payment.
- Regulations on the rules for transferring funds and Regulations on the issuance of payment cards approved by the Bank of Russia. They discuss the forms, procedures for non-cash payments in the Russian Federation and requirements for payment documents.
Participants
The organization of non-cash payments is designed in such a way that its participants can make payments without spending a lot of time.
According to the above documents, participants in non-cash payments can be:
- individuals;
- legal entities;
- entrepreneurs;
- the shops;
- other institutions.
Participants in non-cash payments after carrying out monetary transactions receive payment documents confirming the fact of the transaction. They contain the following mandatory information:
- account details and BIC of the transfer recipient;
- name of the payer's bank;
- TIN of the account owner from which funds will be debited;
- name and account number of the credit institution.
Concept
Based on the content of the above documents, it can be noted that non-cash payment is a payment that is made without the use of cash through the transfer of money from the payer’s bank account to the recipient’s bank account. This type of payment is available to everyone - individuals and legal entities, entrepreneurs. But the payment process is possible only in banks and credit institutions that have a license to carry out such operations.
Principles
Cashless payment is a system that is based on certain principles. Compliance with them ensures the order and security of non-cash payments. So, the organization of non-cash payments is based on the principle:
- Acceptance, which implies mandatory consent or notification of the account holder for debiting money from the account. Even requests from government agencies are subject to this rule.
- Urgency, which presupposes the presence of a time frame established by the payer within which the funds must be written off. If they are violated, the bank is responsible.
- Freedom of choice, which implies the possibility for participants to choose the form of payment.
- Legality, which implies the mandatory compliance of all operations carried out with current legislation.
- The principle of liquidity, which implies maintaining the necessary amount in the account for uninterrupted payments.
- Control, which implies the need to monitor the correctness of transactions and compliance with established provisions on the procedure for non-cash payments.
- Liability, which implies the presence of material or non-material liability for non-compliance with the terms of the agreement between the parties to the transaction.
Forms
Forms of non-cash payments are transfers or payments through:
- payment request and order;
- direct debit;
- electronic money;
- letter of credit settlement;
- check books;
- collection.
A payment request is a requirement of the recipient of funds (creditor) to pay a certain amount through the bank for goods delivered, work performed or services rendered.
Direct debit is a debit of funds from the payer’s account in favor of the recipient of the funds (creditor), provided that the payer has provided the bank payment order, which contains information about to whom, when and in what amount funds need to be paid.
Electronic money is a virtual replacement for cash that can be used to pay through an electronic wallet if you have access to the Internet.
Letter of credit settlement is a settlement under a letter of credit (instruction) of the payer, which specifies the amount and terms of payment for the recipient of funds.
A checkbook is a brochure consisting of 25 or 50 sheets - checks, each of which contains information about the payer - the holder of the book. One sheet, signed by the payer, allows you to receive the amount indicated on it to the account of the recipient of the funds.
Collection is a bank service by which it undertakes to transfer a payment from the payer’s account to the recipient’s account without the participation of the latter, but with the presence of an order and other necessary documents.
Kinds
Cashless payment is a type of payment that has practically no boundaries and time, since in this way you can pay for goods and services in one country, but be in another, not to mention the city. Based on this fact, all types of non-cash payments can be:
- Non-commodity, which includes payment utilities, training in educational institution, consultations and treatment in a medical institution and other similar services.
- Commodity, which includes payment for things intended for exchange for money or other products and services: raw materials, materials, finished products.
- Interstate, which includes settlements between the payer and the recipient of funds whose correspondent accounts are located in different countries.
- Intra-republican, which include settlements between the payer and the recipient of funds whose accounts are located in the same federal district.
- Guaranteed, in which the payment amount is reserved in the payer’s account and transferred to the recipient of the funds after he fulfills his obligations to the payer.
- Non-guaranteed, which includes payments that are not documented.
- Instant, which includes payment made at the time of purchasing a product or receiving a service.
- Deferred, in which payment for goods or services is made after the time specified in the contract, and not immediately. This form of payment includes a loan, installment plan, or mortgage.
Methods
Payment methods for non-cash payments can be contact and contactless:
- calculations bank cards via POS terminal;
- payments using NFS technologies using a smartphone;
- transfer of funds from a card using PayPass and Pay Wave technologies;
- services provided by Internet banking;
- payment via card details using Internet access;
- transferring money through online wallets using terminals.
Payment
Non-cash payment is a transfer of funds from one correspondent account to another, which reflects information about the sender, recipient, transfer amount and name of the product or service. If the seller does not fulfill his obligations to the buyer, the amount will be returned to the client minus the banking system commission.
According to legal documents, payment by bank transfer is based on the following principles:
- all transactions must be carried out on the basis of an agreement between the bank and the owner of the correspondent account;
- payment is transferred from one correspondent account to another only if there is an amount sufficient for payment;
- transactions are carried out on a first-come, first-served basis;
- participants of non-cash payments have the right to choose any of the available forms of non-cash payments, regardless of their field of activity;
- Non-cash payment participants have the right to dispose of available funds at their own discretion.
Refund
A product or service purchased by bank transfer may be of poor quality. In this case, the client has the right to return the money spent. To confirm the purchase or purchase of a service, the client must provide a receipt, passport (or other identification document) and a warranty card to the store or organization. If the service or purchase was made online, the client sends scanned documents via mail to the company’s warehouse address. The seller either exchanges the product for the one the buyer needs, or returns the money to his bank account.
But the client is not always right, since the seller of the product or service has the right to refuse to return the money spent. Such cases include:
- the product is food and is of good quality;
- the product is a non-replaceable product and cannot be returned;
- documents on the transfer of money to the seller’s account are lost;
- The product has been used and has lost its presentation.
Advantages
Cashless payments are an already proven payment method that has earned the trust of users due to its undeniable advantages. These include:
- a flexible system allows you to make both one and several transactions in the form of a “chain” with the possibility of additional payment;
- there is no need for a cash register and, therefore, you can save on its maintenance;
- provability of non-cash payments, since you can obtain the necessary bank documents if necessary;
- funds can be stored in bank accounts for an unlimited time;
- security, since there is no possibility of fraudulent activities using counterfeit money;
- reduced distribution costs;
- the need to transfer cash to the bank within three days after they arrive at the cash desk, it saves time, since there is no need for additional transactions with the bank.
Flaws
Despite the large number of advantages of non-cash payment, this method of payment for services also has a number of disadvantages:
- the banking system, like any other, is not immune to operational interruptions, which can lead to problems when transferring money or withdrawing it from an account;
- Constant interaction with the bank leads to additional and, possibly, mandatory payments.
This method of payment may be unprofitable for beginning entrepreneurs, since it assumes the presence of a regular cash flow to pay salaries to employees and pay for bank services.