Cheque (Element of a cheque
Important to know the element of a cheque…
Element of a cheque
Important to know the element of a cheque since a duly completed and signed cheque acts as an authority to the drawee bank to withdraw from the account for payment to the payee.
Part of cheque
- Place of issue
- Cheque number
- Account number MICR (Magnetic Ink Character Recognition)
- Data of issue
- Amount of currency
- Signature of the drawer
Valid for six month after the date
- No transaction.
a. Insufficient funds in your account, you will be subject to a penalty
b. Persistently, your banking institutions can take action to close your account
c. Safeguard the integrity of cheques as a reliable mode of payment.
Stop Payment Instruction
You may give the instruction by phone, but your bank would require you to confirm you to stop payment instruction writing
Closure of a Current Account
- On account holder's request
- On discretion of the bank
A notification letter also be sent to the account holder on the account close.
The DONT'S when using cheque
- Don't sign any blank cheque.
- Don't fold, pin or staple
- Dont' use laser printer, felt tip pen, erasable pen or pensil
- Don't write below the MICR
- Don't issue payments in foreign currency
Returned Cheque/ Rejected Cheque
- Insufficient funds in your account for clearance
- Missing signature(s)
- Signature(s) differ from specimen signature
- Stale cheque
- Amount in words and figures differ
- Alteration on the cheque
- Issuance of stop payment instruction
- Account closed or 'legally blocked' account
Do's when using cheque
- Write clearly
- Account has sufficient funds
- No amendments
- End the word with "only"
- No cheque is removed without your knowledge and spoiled cheque
- Keep your cheques in a safe place
- Conduct reconcilitation
- Immediately report if there the missing cheque
Tips on how to minimise your credit card charges
- Shop around for the best deal
- Use your ATM card to make cash withdrawals
- Avoid unnecessary credit card costs
- Settle your outstanding balance in full to avoid paying interest
- Limit the number of credit cards
- Be alert of the changes in policies and rates
Factor to consider when getting a credit card
- Card meet your lifestyle needs?
- Understood the terms and conditions
- 'free for life'
- 'balance transfer scheme' understand lower interest rate works and the condition
- Read the fine print
- Compared the carrying cost (annual fee)
- Pay your credit card bill conveniently?
- Quality service
Understanding the charges applicable for credit card
- Joining fee
- Annual fee
- Finance charges (interest charges)
- Cash advance fee
- Late payment charge
What is A Credit card and How it work
- A credit card is a payment instrument that enable you to make purchases of good and payment for services instead of using cash.
- Credit card issuer will pay the merchant
- You are required to settle at least the minimum repayment amount by the due date.
- Interest free period.
- Finance charges (interest) on the outstanding amount if it not paid by the due date.
- Used for cash advances. Also no interest free period for cash advance. The finance charge is calculated from the cash advance date.
- Monthly credit card payment.
- 21 years old or above
- Earn an income of at least a minimum of RM18000 per year
- Comply with any other requirements
- Submit your business registration detail and other documentary proof of income, and be subject to other requirement such as placement of a fixed deposit.
- The card issuer will need to carry out a credit assessment on you based on the information you've provided
- Registered mail or requested to collect the card at the card issuer's head office or branch.
TERM AND CONDITION
- Terms and conditions
- Charges to help minimise unnecessary charges
PERSONAL IDENTIFICATION NUMBER (PIN)
- PIN separately from your credit card to make cash advance