Money is the main financial instrument through which all economic operations are carried out both within individual organizations and the state as a whole. Money turnover occurs using cash and non-cash types of payments. Cash and settlements are carried out using banknotes and coins. The system of cashless payments involves the use of bank accounts, that is, deposits, of any form. Cashless payments account for about 70 percent of all financial transactions.
The main principles of organizing cashless payments are the basis of all financial transactions related to the transfer of funds from the organization’s account to other accounts. Cashless payments have their undeniable advantages. First of all, these are speed, reliability, lack of risk and insignificant cost of these operations. Non- cash payment instruments are considered payment and settlement. Under the payment understand the act of transferring money to pay off obligations. Settlement is the action itself, the result of which is a monetary settlement. The difference between these concepts is significant. Calculation can be carried out both using cash and non-cash types of funds, and by offsetting. This is the process of crediting funds from the organization’s bank account to other accounts. At the same time, several banks may take part in the operation . Banks have an obligation to customers to provide cashless payments. This is the fastest and most efficient listing.
All banks and their branches, as well as other credit organizations involved in providing non-cash payments, make up the payment and settlement system. Thanks to her, the principles of cashless payments are preserved and operations occur quickly and in a timely manner.
The principles of organizing non-cash cash circulation are binding on all participants in financial transactions. Only then can the well-coordinated work of the entire financial system not only of a particular region, but of the whole country be guaranteed.
The main principles of organizing cashless payments are divided into five points:
- All non-cash payments should be carried out in accordance with existing legislation and legal standards. The legality of transactions cannot be violated. The rules for banking and cashless payments must also be taken into account.
- The right to choose any form of payment. The client has the opportunity to establish and apply the system of accounts and settlements that he considers acceptable in this situation. To make cashless payments, each participant in the operation must have an account or a system of accounts with a credit institution.
- Settlement urgency is a priority in conducting financial transactions. These terms are established by the legislation and rules for conducting bank cashless transactions.
- All operations that are carried out with customer accounts are performed only with his consent. Only the account holder decides on the advisability of making a cashless payment.
- Money on the account is entitled to manage only its owner. These are personal funds of the client, which he distributes at his discretion.
The principles of organization of cashless payments are considered mandatory for all participants in financial transactions. Banks and credit organizations are a link and a tool that provides cashless payments. They make sure that all existing principles of organizing cashless payments are respected in accordance with the legislative framework and the rules for conducting banking operations. At the same time, credit organizations themselves are responsible for the timely conduct of financial transactions.