I remittance payment by telegraphic transfer
The security of telegraphic transfer is relatively higher than that of letter transfer and draft. For telegrams and telexes, remittance banks only need to check the secrets as agreed. SWIFT has the function of automatically releasing fees, which will automatically check with the secrets stored in the computer, without manually releasing fees or adding the word "fees". However, the importing bank must check whether the message format it uses is an effective encryption format. The remitting bank should sign the "receipt" before notifying the payee, and the payee should sign the receipt when paying. The remittance bank shall check the signatures of the payee and the payee and make payment according to the matching payment method; If the signature is unclear, the remittance amount is large or there are other questions, the remittance bank should ask the payee to provide proof or guarantee before paying.
II. Remittance payment under the mode of bill payment
As for the remittance method of a bill of exchange, as long as the collecting bank can confirm that the number, grade and name of the signature on the bill of exchange are consistent with the reserved contents, and the bill itself conforms to the legal format, if there are endorsements and the endorsements are continuous, it will often pay. It is prudent to wait for the bank draft notice (stub) to arrive before checking, but this sometimes leads to delay in payment. In order to prevent forgery of bank remittance, banks in some countries even stipulate that the amount of a draft exceeds a certain limit. In addition to sending the remittance notice of the draft, you need to add a password to the draft. In addition, the remittance bank should also check whether the drawer's signature has been altered, whether the loss has been reported or stopped before payment, so as to prevent wrong payment.
Third, the meaning of payment.
In a letter of credit transaction, the beneficiary carries a full set of documents to the negotiating bank for "negotiation". After negotiation, the negotiating bank will send the full set of documents to the issuing bank, and the applicant (usually the importer) of the issuing bank will "pay" the documents for import settlement. With regard to stopping payment, when depositors deposit money by remittance, bills officially received or money transferred from domestic banks, banks debit "remittance payable" and then usually credit "depositor of current savings foreign exchange deposit" to "pay off".
In short, when the holder presents the draft to the issuing bank for payment, the holder will exchange it to the issuing bank after receiving the draft, and the issuing bank will verify that the draft is correct, which is called payment cancellation.