Non-cash payments are a special type of payments that do not use cash. All payments are made by transferring funds from account to account in credit institutions or, for example, by offsetting mutual claims. Initially, they were introduced to facilitate and accelerate capital turnover, as well as to reduce the amount of cash. The circulation costs associated with cash also decreased. Government institutions also promote non-cash payments for the reasons listed above (increasing the speed of cash turnover plus saving on their maintenance).
Cashless payments and payments
The very first non-cash settlements and payments were settlements and payments using checks and bills. Afterwards, clearing houses were introduced - organizations that carry out transactions between different banks. Then, in most developed countries, giro payments spread as a subtype of non-cash payments (through giro banks, commercial banks, savings banks).
Non-cash payment transactions are the main type of banking operations. There are collection, transfer, and letter of credit operations.
Non-cash payments and payments are regulated by law. In Russia, this is the Civil Code of the Russian Federation (from Article 861 to Article 885), the Federal Law “On the Central Bank of the Russian Federation”. The federal law “On Banks and Banking Activities” and other regulations also apply.
What is cashless payment?
A non-cash payment is considered to be a settlement using non-cash money circulation (in non-cash form - that is, in the form of an entry on the corresponding account). Non-cash payment is carried out according to several principles:
- in the legal field,
- on bank accounts,
- in accordance with liquidity at the level of uninterrupted payments,
- voluntarily (with the consent of the payer),
- at a certain time,
- with control over the correctness of calculations according to the order in which they are performed,
- on contractual terms.
The full definition and all conditions for making such payments are indicated in the current Regulations on non-cash payments (approved by the Central Bank of the Russian Federation).
Types of non-cash payments
Initially, non-cash payments were made in the form of bills or checks. Today they apply
- payment orders and order requirements,
- checks, letters of credit,
- collection orders,
- electronic payments.
A detailed list of settlements (payments) is indicated in the corresponding document of the Bank of Russia dated June 19, 2012. Regulation No. 383-P “On the rules for transferring funds” specifies all types of non-cash payments, except the last one (electronic), however, the Federal Law of June 27, 2011 No. 161, as amended on July 23, 2013, also applies - “On National payment system." According to this document, electronic payments (using electronic money) have also become a form of non-cash payments.
Refund of non-cash payment
By law, it is permissible for clients served by a bank to revoke their payment documents. However, in practice, returning a non-cash payment entails a whole series of procedures.
- If the money was transferred incorrectly, the transaction was carried out and the funds were credited, the return of money via non-cash payment is made in court. At the same time, it is important to prove that no services were provided (when funds were credited to the company’s account).
- If a return is required by a store customer returning an item, then several options are possible: transfer of the required amount by the seller to the buyer by non-cash method (for example, return transfer to a card) or in cash.
Attention. Often, companies operating in the trade sector enter into an agreement with the bank that services the terminals about the possibility of returning funds for non-cash payments.
From the client in whose favor a refund is to be made, a current account number, bank name and correspondent account number, INN and BIC of the recipient, and his full name are usually required.
Payment by bank transfer
Payment by bank transfer can be made in several ways: using
- payment order or demand,
- letter of credit,
- collection order,
- check (checkbook).
Payment by bank transfer is carried out in the form of a transfer of funds from the sender’s account to the recipient’s account, which can be in this or another bank. At the same time, a payment order is the most frequently used form of payment.
A payment request means a request from the recipient to the payer to pay a certain amount. Used for the convenience of non-cash payment for goods and services. The payer must provide acceptance (agree to pay the amount) or refuse - then the claim is returned without fulfillment.
Collection orders are issued by government agencies based on a court decision.
A letter of credit is an obligation to make a payment upon presentation by the recipient of certain documents (acts, delivery documents).
Accepting non-cash payments
Non-cash payments are accepted in several ways: either by crediting to the organization’s account through a bank, or through a terminal (cash register, bank pinpad). In addition, today organizations are trying to automate the transfer of funds as much as possible in order to eliminate errors and the “human factor”. The commission for non-cash payments, in contrast to payment systems that charge up to 5%, is 0%. To accept non-cash payments, organizations solve several problems:
Preparation of invoices and contracts (optional),
Control of funds transfer,
Preparation of closing documents.
To accept payments, you need the organization's INN, current account number, BIC of the servicing payer bank, legal and postal address.
Problems of non-cash payments
The main problems of non-cash payments are:
- the difficulty of establishing a settlement and payment system,
- risks arising in connection with payments,
- the presence of non-payments (their changes affect the budget deficit),
- speed of payments (including taking into account failures and delays, errors made by both senders and recipients of funds, and the payment centers themselves),
- priority of payments and its regulation, causing damage to other creditors,
- insufficient development of the regulatory framework for making non-cash payments (for bills of exchange and letters of credit).
In addition, enterprises are responsible for compliance with loan agreements, as well as established payment discipline. If an organization does not fulfill its payment obligations, it may be declared insolvent.
Accounting for non-cash payments
When making payments between organizations in the form of non-cash payments (by transferring from account to account), there is a need to account for non-cash payments using special payment documents. They are the basis for calculation and can be issued in the form of an order:
- payer (this can be either a client or the bank itself),
- recipient of funds, or claimant.
Enterprises themselves determine the appropriate forms of documents for recording non-cash payments; only the presence of details is required -
- name of the enterprise,
- document number,
- name of the paying bank, MFO, RCC, current account number,
- name of the recipient, recipient bank, its details.
Accounting for such transactions is carried out using account 51 “Current accounts” (both receipts on debit and disposals on this account).
The basis or primary document for accounting is a bank statement or payment order. This is true for different types of payments:
- receipt of money in payment for services or goods,
- depositing cash into a current account,
- receiving advance funds,
- receipt of the authorized capital,
- payment of bills from suppliers, contractors,
transfers to the budget of mandatory payments, contributions to the Pension Fund and other organizations (FSS, FFOMS, TFOMS).
Non-cash payments under letters of credit, collection, payments by payment orders: features and advantages
Cash payments using cash registers and strict reporting forms
Cash limit: who should count and how to do it
Cashless payments
Non-cash mutual settlements are used by legal entities and individual entrepreneurs more often than others, since there are practically no restrictions on their implementation, unlike cash payments. Non-cash payments on the territory of Russia are carried out on the basis of the Regulations on the rules for the transfer of funds, approved by the Bank of Russia No. 383-P on June 19, 2012 (hereinafter referred to as the Regulations).
Forms of non-cash payments are chosen by organizations independently and may be provided for in agreements concluded by them with their counterparties.
Settlements under a letter of credit
Letter of Credit- this is an order from the payer’s bank to the recipient’s bank to make payments, by order and at the expense of the client’s funds, to an individual or legal entity within the specified amount and on the terms specified in this order.
Four entities are involved in transactions under a letter of credit:
1) payer buyer who, by opening a letter of credit, fulfills obligations to his creditor (seller);
2) issuing bank- the bank in which the buyer’s current account is opened and which, at the buyer’s request, opens a letter of credit for him;
3) Executing bank— the bank in which the seller’s current account is opened;
4) salesman- payment receiver.
The letter of credit calculation scheme is shown in Fig. 1.
Procedure for settlements under a letter of credit:
1. The buyer submits an application for opening a letter of credit to the issuing bank where he has a current account. The bank deposits the amount specified in the application in a special deposit account, i.e. opens a letter of credit.
2. Funds are debited from the buyer's account and transferred to the bank serving the seller (executing bank) to a special account opened for settlements under the letter of credit. Money is transferred to the executing bank by a payment order from the issuing bank, which contains information to establish the letter of credit, including its date and number.
3. The seller receives a notification from the fulfilling bank that funds have been credited to his account, which is a signal to fulfill his part of the contractual obligations (for example, to ship goods).
4. The seller ships the goods to the buyer.
5. The seller submits to the executing bank the shipping documents that were specified in the terms of the letter of credit.
6. The executing bank checks the shipping documents provided by the seller (the period for checking documents is no more than 5 business days following the day of receipt of the documents), after which it credits the money to the seller’s bank account and transfers the documents confirming the shipment to the issuing bank. Notifies the issuing bank of the use of the letter of credit.
7. The issuing bank notifies the buyer about the use of the letter of credit and provides him with documents evidencing shipment.
Example 1
Iskra LLC (buyer) buys restaurant equipment from Planet-Service LLC (seller) under a supply agreement in the amount of RUB 1,500,000. The supply agreement provides that:
- payments under the agreement will be made from an irrevocable letter of credit;
- payment can be made after submitting shipping documents to the bank for shipment and transportation of equipment.
The Iskra company sent to Kranbank, in which it has a current account (issuing bank), an application for opening an irrevocable letter of credit, where it indicated the following information:
- equipment supply agreement No. 12 dated February 27, 2018;
- irrevocable covered letter of credit;
- seller - Planeta-Service LLC;
- seller's bank (executing bank) - Bank Soyuz;
- a list of shipping documents that the seller will have to provide to confirm shipment - a bill of lading;
- list of goods for payment for which a letter of credit is opened - kitchen equipment;
- Letter of credit amount - RUB 1,500,000.
Kranbank deposits funds from Iskra LLC in a special account in the amount of 1,500,000 rubles, i.e. opens an irrevocable letter of credit. The bank's commission for opening a letter of credit is 0.85% of the amount of the letter of credit, i.e. 12,750 rubles. (RUB 1,500,000 × 0.85%).
By payment order, the issuing bank writes off funds in the amount of RUB 1,500,000. and transfers them to the executing bank - Bank Soyuz to the account opened by the executing bank for making payments under the letter of credit.
Planet-Service LLC receives from its bank a notification about the crediting of funds under the letter of credit, which is a signal for it to fulfill its part of the contractual obligations - the shipment of equipment. Planet-Service LLC ships equipment and provides Soyuz Bank (executing bank) with a TTN for the shipment of kitchen equipment.
The executing bank, in turn, transfers them to Kranbank (issuing bank). The issuing bank checks the shipping documents and, after verification, transfers them to the buyer - Iskra LLC. From the account opened by the executing bank for settlements under the letter of credit, money is credited to the settlement account of the seller - Planeta-Service LLC.
Postings under a letter of credit from Iskra LLC:
Debit of account 55 “Special accounts in banks” sub-account “Letters of credit” Credit of account 51 “Settlement accounts” - 1,500,000 rubles. — funds were transferred to a covered irrevocable letter of credit;
Debit of account 60.1 “Settlements with suppliers and contractors” / LLC “Planet-Service” Credit of account 55 “Special accounts in banks” sub-account “Letters of credit” - 1,500,000 rubles. — money was transferred to the seller from a special account;
Debit of account 91.2 “Other expenses” Credit of account 51 “Current accounts” - 12,750 rubles. — the commission for opening a letter of credit is taken into account.
Payments for collection
Collection is one of the forms of settlement between the seller (of goods, works, services) and the buyer, when the settlement is carried out not by the parties to the transaction, but by their banks.
Payments for collection represent a banking operation when the bank, on behalf of its client, on the basis of settlement documents, receives funds due to the client from the payer for goods (work, services) shipped to his address and credits them to the client’s bank account.
Note!
The main difference between collection and other non-cash payments is that the order to carry out the operation comes from the recipient of the money, and not from the payer.
Collection sides:
- principal (principal) - the party who instructs the bank to process collection and acts as the final recipient of the payment (exporter or seller);
- payer - the person to whom the presentation of documents must be made in accordance with the collection order (importer or buyer);
- remitting bank (seller's bank) - the bank to which the principal entrusted collection processing;
- collecting bank - any bank that is not a remitting bank and participates in the process of processing a collection order (buyer’s bank);
- presenting bank - a collecting bank that presents documents to the payer (buyer's bank).
The collection calculation scheme is shown in Fig. 2.
E. V. Akimova,
auditor
The material is published partially. You can read it in full in the magazine
Despite the global trend of a sharp increase in the number of non-cash payments, people are still wary of them. And there are good reasons for such an attitude. Cashless payments, you won’t limit us!
Irrational connection
Some technologically developed countries already record up to 97% of transactions using non-cash payments. But in general, the world is in no hurry to abandon banknotes and coins.
Thus, according to the BBC, from 2007 to 2012, cash turnover in the United States increased by almost one and a half times; in G7 countries such as Canada, France, Germany and the USA in 2012, from half to 80% of transactions were carried out with bills and coins. In Britain in 2015-2016, cash and non-cash payments were distributed approximately equally.
By the way, although artificially limiting cash payments seems to be a convenient tool for controlling taxpayers, not all governments agree to use this method. The USA, Britain, and Germany do not impose any restrictions on cash payments for their citizens (of course, they have a number of other methods of financial control).
Video on the topic:
Who to trust if not yourself
Cash combines ease of use and storage, and also provides anonymity or confidentiality of payments. In addition, they themselves are free. Not a single electronic currency, and certainly not a single banking instrument, has such properties.
The first noticeable disadvantage of non-cash payment is the associated payments. An entry in the electronic register costs literally pennies. But this entry must be made by the employee who needs to pay the salary; the data server must be serviced by a specialist; and the entire structure, be it a bank or an issuer of electronic currencies, expects to earn profit for its owners. Because of this, in a world that has not completely switched to cashless payments, any purchase not for cash can cost 3-5% more. ThatYes, when buying an apartment for $20 thousand, you can lose up to $1 thousand on various conversions and commissions.
Neither banks nor financial startups still have, at least in our country, a sufficient level of trust. Savings stored “under the pillow” and in foreign currency are objectively subject to only one risk: being physically stolen or destroyed (in a fire, for example). Money from a bank account can also be stolen, but besides this, the bank can fall into liquidation or go bankrupt at any time, the regulator can suddenly introduce new rules, when transferring money can go “in the wrong place” or “freeze” for several days... And if A person is responsible for the bills “under the pillow” himself, but in other cases he trusts his well-being to third parties, who are not always reliable and stable.
Cashless payment: Fast, profitable, convenient
The widespread use of cashless banking requires a developed and constantly functioning infrastructure: ATMs, terminals, mobile networks, even simply the Internet. And in addition - increasing computer literacy of people of all ages, strata and places of residence. Meanwhile, even the legal requirement that has existed for several years in our country to provide all retail outlets with card payment terminals has not been implemented everywhere, even in large cities. According to the Interbank Association of Payment System Members, in the fall of 2016, 80% of business entities did not accept non-cash payments! For comparison: in Denmark, the government is discussing whether to give some entrepreneurs the right not to accept cash - only cards. And here, 10 km from the city, you often can’t buy a glass of water with a bank card. And in the center of a metropolis, if there is a failure in the network of a bank, mobile operator, or even the power grid, the person with the card has nothing to do.
Finally, for many it is simply much more convenient to pay in cash than to use bank transfer! According to recent surveys and studies, about 30% of our compatriots believe that paying cash is faster, and for 25% it is the best way to control their expenses. In some areas, for example, in cafes and bars, cash payments have almost become part of the tradition.
Cash ritual
Successful crowdfunding projects prove that fellow citizens are ready to donate to charity, social and cultural projects using bank cards and wire transfers. However, a large segment of donations exists only thanks to cash: charity concerts, fundraising in public places, fundraising at meetings of public and religious organizations. Naturally, there is also a lot of room for fraud in this. But it is also obvious that such tools are in demand and are not rejected by a large part of society.
The centuries-old connection of a person with banknotes and coins is already irrational: physical possession of money, transferring it from hand to hand are peculiar rituals. The practical advantages of cash, together with the irrational attitude towards it, serve as a guarantee that the amount of “cash” can be a value tending to zero, but not reaching this zero. At least for the foreseeable future. ⓂⒷ
In everyday life, do you more often pay with cash or do you prefer non-cash payments?
Minimum order amount in the online store: 5,000 rub.
Cash payment for individuals
After placing your order you can:
- Come to the pick-up point and pay for your order.
- Pay the order to the courier upon delivery.
If you pick up the order yourself, then pay for the goods at the office at the address: Moscow, Varshavskoe highway, 125D building 2, office: 315 (pickup point)
- When you pay for your order, you receive sales and cash receipts.
Cash payment for legal entities
Payment method for settlements with organizations:
As in the case of individuals, you can pay for your order to the courier upon delivery or in the office.
- Payment is made only in rubles.
- To receive the goods, you must provide the original power of attorney from the paying organization or certify our copy of the delivery note with the seal of the paying organization.
- When you pay for your order, you will receive a cash receipt, delivery note and invoice.
Payment by bank transfer for individuals
How to pay an individual by bank transfer:
Individuals can pay for their order by bank transfer to our bank account (bank commission is possible). After paying for the order, be sure to inform us about payment by phone +7 495 215-50-52 or email
- Upon receipt of your order, you receive sales and cash receipts.
Payment by bank transfer for legal entities
How to pay a legal entity by bank transfer:
To pay for your order by bank transfer, you must provide the full details of your company at . The manager will issue you an invoice and send it in the manner agreed upon with you. The invoice and reserve for goods is valid for three banking days.
The goods are released after funds are credited to our bank account. To receive the goods, you must provide the original power of attorney from the paying organization or certify our copy of the delivery note with the seal of the paying organization.
- Upon receipt of your order, you will receive an invoice, delivery note and invoice.
Electronic payments
We pay through: Sberbank, Alfa-Bank, Webmoney, Qiwi, Visa and MasterCard, etc.:
Electronic payments- a convenient service that allows customers to pay for their online purchases with electronic currencies.
You can pay with us using payment systems:
- Sberbank
- Alfa Bank
- Webmoney
- Visa and MasterCard
Note! Some payment methods apply a fee.
Non-cash payments began to be used to speed up the turnover of funds and reduce the cash supply.
Their history began in 1775 in Great Britain with the introduction of bills and checks into circulation. Subsequently, each country developed its own characteristics and procedures, and developed certain types of non-cash payments based on the economic situation.
The Civil Code of the Russian Federation (as amended on July 26, 2017) defines non-cash payments as payments made by banks (credit institutions) through the transfer of funds either with the opening of bank accounts or without opening them. Physically, the procedure looks like an entry on an account.
Non-cash payments throughout the world are regulated by law, banking rules and agreements. They have been developed because they have advantages from the point of view of each participant in economic processes:
- the state can control money circulation;
- the banking system is expanding credit opportunities;
- business entities accelerate the turnover of funds and material resources.
Forms of non-cash payments
Credit institutions conduct transactions on customer accounts on the basis of settlement documents, which in essence are:- order of the payer (bank client) to write off funds from his account and transfer them to the recipient’s account;
- order of the recipient (collector) to write off funds from the account of the payer (bank client) and transfer them to the account indicated by the collector.
For each type of non-cash payments, certain payment documents are used. In other words, each form has its own document.
The following types of non-cash payments are used in Russia:
- payment orders,
- payment requirements,
- checks,
- bills,
- letters of credit,
- collection orders (collection),
- plastic cards,
- electronic money.
Legal regulation of non-cash payments
The rules for conducting non-cash payments are established by the Central Bank of the Russian Federation. Particular attention in regulation is paid to settlements between legal entities.To make a non-cash payment, a legal entity is required to open a bank account. There is no such requirement for individuals. They can make payments without opening accounts, which is not very convenient for constant transfers.
In order for a bank to be able to transfer funds on behalf of or at the request of a client, it must open a correspondent account in its division or in another bank. In addition, each bank opens a correspondent account with the Central Bank for interbank settlements.
Bank clients open for their needs:
- current accounts (commercial enterprises);
- current accounts (budgetary enterprises).
Principles of non-cash payments
- Legality. All non-cash payments are carried out only according to the schemes specified in the laws.
- Adequacy of funds. There must be sufficient funds in the payer's account to make the payment.
- Acceptance. Funds are debited from the account either with the consent or with prior notification of the account holder.
- Agreement. The relationship between the bank and the owner of funds is prescribed in advance in the cooperation agreement.
- Urgency of payment. Payment is made within the agreed period.
- Freedom of choice. The settlement participant selects the type and form of payment.