Giro Agreement

The Giro systems originate at least from Ptolemy Egypt in the 4th century BC. Public grain storage deposits functioned as an early banking system in which current payments were accepted, with a central bank in Alexandria. [6] Giro was a common method of transferring money into the early bank. In the case of a bank transfer, the person who sends the funds (pay part) sends a request to the company to which he transmits the money. This request is sent to the Giro Center. The Giro Center verifies that the funds are available on the account of the payable party, and then debits them immediately. Postgiro or Postgiro systems have a long history in European financial services. The basic concept is that of a banking system that is not based on cheques, but on a direct transfer between accounts. When accounting is centralized, transfers can be made simultaneously between accounts. The money could be deposited in any post office or removed from the system, and subsequent links with professional banking systems were established, often simply by the local bank that opened its own Postgiro account. An often shortened giro transfer to Giro (/d`a`ro,[1] is a transfer from a bank account to another bank account and by the payer, uninitiated by the beneficiary. [2] The debit card has a similar model. Giros are mainly used in Europe; Although electronic payment systems such as the Automated Clearing House exist in the United States and Canada, it is not possible to make third-party transfers with them.

In the European Union, there is a single euro payment area (SEPA), which allows electronic payments by debit or debit card in euros to be made on every euro bank account in the region. Credit risk for the actual transfer of physical currency is assumed by transfer operators, such as banks, as interbank credit risk. For the payer and Le Denentus, the Giro does not include creditworthiness, unlike cheques or credit cards. This is both an advantage and a disadvantage. It is not necessary to assess the solvency of the payer, as he can only initiate the transaction if he already has sufficient resources. As such, the payer does not have the advantage of paying on credit. But the downside is that the transactions are unsecured. The payer does not have protection against dishonest payers who come with credit cards. Transactions cannot be recalled or challenged after the fact. As a result, people-to-people trade is relatively straight as simple.

B and current payments should only be made to known and trustworthy beneficiaries. Although the transfer can be fast within the bank, interbank transfers can take several days and are often executed only on business days, unless both parties are members of a rapid transfer system such as the UK Faster Payments Service.

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