Financial Instruments: Cheques, Bills, Notes, and Cards

1. Payment Process Methods

Payment methods can be categorized as follows:

• 1) Cash: Includes physical cash income deposited into the supplier's account, bank transfers, Cheques, debit cards, and credit cards.
• 2) Deferred: Includes financial instruments like the Bill of Exchange and the Promissory Note.

2. The Receipt Document

A receipt is a document issued by the person who collects the money and delivered to the payer as proof of payment for acquired goods or services provided. Receipts must be printed, typically using numbered receipt books (with a matrix or stub). The person paying must be given their receipt, while the matrix (stub) is held by the issuer to justify the payment.

3. The Cheque (Check)

A cheque is a document issued against a bank or credit institution that holds funds available to the drawer. It is issued in conformity with a tacit agreement, under which the drawer has the right to dispose of those funds via the cheque.

3.1. Parties Involved in a Cheque

• a) Drawer (Maker): The person who issues the cheque and orders payment to the bank.
• b) Drawee (Bank): The bank or credit institution ordered to pay the cheque.
• c) Payee (Holder): The person who possesses the cheque.
• d) Endorser: The person who transmits the cheque by endorsement and is distinct from the drawer.
• e) Guarantor (Avalist): The person who guarantees payment of the cheque.

3.2. Types of Cheques

• a) Bearer Cheque: Paid to whoever presents it for collection.
• b) Nominative (Order) Cheque: Payable only to the person named on the cheque.
• c) Crossed Cheque: Has two parallel bars across the face. It may be:
  • General: If nothing is written between the bars.
  • Special: If the name of a specific bank is written between the bars.
• d) Certified Cheque: One that carries the signature of both the drawer and the bank, obligating the bank to payment.
• e) Account Payee Cheque: The drawer or holder prohibits payment in cash by writing "Account Payee" on the front.

4. Debit and Credit Cards

1. Debit Card: Used for payments debited directly from the account holder's balance. The holder must maintain sufficient funds to cover transactions. Typically used for private transactions (e.g., Cajamar).
2. Credit Card: Used based on a credit limit granted, usually renewed monthly (e.g., El Corte Inglés).

5. The Bill of Exchange (Letter of Change)

A formal document issued by a person named the drawer (usually the seller) ordering another person, called the drawee (usually the buyer), to pay a specified amount to the payee (holder) on a specific date.

5.1. Parties Involved in a Bill of Exchange

• Drawer: The person who issues the payment order.
• Drawee: The person ordered to pay the bill (usually the buyer).
• Payee or Holder: The person who is entitled to receive payment of the bill.
• Endorser: The person who possesses the bill and transfers it to another party for collection.
• Endorsee: The person who receives the bill via endorsement.
• Guarantor (Avalist): The person who guarantees payment for a required party if they fail to pay the bill upon maturity.

6. The Promissory Note (Pagaré)

A private document by which one person undertakes to pay another an agreed amount on a specified date. The most common types are banking notes, company notes, and Treasury notes.