FORMS AND TOOLS FOR BANK SETTLEMENTS

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Cashless payments: basic concepts, principles and forms​

Under the settlement refers to the exchange of information between the payer and the recipient of the money for the settlement of financial obligations on economic and other operations. The settlement operation ends with a payment, i.e. an unconditional and irrevocable act of transfer of money by the payer to the recipient, leading to a change in the owner of the amount of money.

In the case of a non-cash form of payments based on the function of money as a means of payment, payments for goods and services are carried out without the use of cash:

• 1) by transferring funds from the payer's bank account to the recipient's account based on the use of settlement documents in a unified form;
• 2) by offsetting monetary claims and obligations with the final transfer of the unsettled balance to the bank account of the creditor (recipient).

In modern conditions, non-cash payments cover the overwhelming part of the entire money turnover. In economically developed countries, the share of non-cash payments exceeds the share of payments using cash. According to experts, in Belgium and Holland non-cash payments account for more than half of all payments. At the same time, in the countries of Southern Europe, non-cash payments are less developed, they have a higher share of cash payments.

The degree of development of cashless circulation serves as a certain indicator of the general level of economic development and the maturity of the financial infrastructure and banking organizations. Cashless payments are economical, less expensive and better suited to automating operational procedures than cash payments. Thus, it has been calculated that servicing a cash-based payment system in the EU would lead to a loss of 0.4-0.6% of annual GDP [Catige, Nasatip, 2008], and in developing countries - 5-7%, respectively | Ba1akn5Unan, 2009]. As a result, the use of cash is gradually decreasing, although it continues to be actively used for small day-to-day transactions in the retail payments sector.

The important role played by the systems of non-cash payments in the effective functioning of the economic mechanism requires the establishment of general rules and norms for their regulation. This task is solved with the help of a set of laws and by-laws (government decrees, regulations of the central bank and other supervisory authorities) that determine the main forms, terms and standards of settlement legal relations.

The organizational foundations of the cashless settlement system in the Russian Federation are based on three components:

• 1) a set of principles for organizing cashless payments, which are mandatory for all its subjects of economic relations;
• 2) a system of accounts that allows payments and settlements in a non-cash form;
• 3) the system of payment forms, documents and document flow rules (see: Korobova, 2009, p. 228).

The principles of non-cash settlements that determine their basic rules and objectives include, in particular:

• 1) legal regulation of settlements;
• 2) carrying out settlements on accounts opened in banks by their clients;
• 3) temporary restrictions on the timing of payments;
• 4) security of payment due to the availability of funds in the bank account or the right to a loan;
• 5) the freedom to choose the form of settlement by the participants in the payment transaction and to fix it in the economic turnover.

Compliance with all these principles in the complex allows to ensure the timeliness, reliability and efficiency of calculations.

The payment turnover is organized and serviced by the system of commercial banks and non-bank settlement institutions. Settlement is one of the main functions of commercial banks, along with lending and accepting deposits | see: Federal Law No. 395-1-FZ]. At the same time, settlement operations are closely related to other operations and functions of banks and, first of all, to the function of creating means of payment, which are the most important element of the money supply in circulation.

The value of settlement transactions for banks is due to the following reasons. First, settlements provide the bank with most of the income in the form of commissions, fines, etc. In addition, by performing cash settlements for their clients, banks can offer them other operations and services and thereby expand their income base. At the same time, the execution of settlement operations requires significant costs from banks, since most of the personnel are engaged in this work (especially when manual labor predominates and the automation of operations is at a low level) 1 . Banks also spend significant funds on the purchase of expensive equipment and modern communication facilities [see: ESV, 2009a].

To perform the functions of settlement and cash services, banks open special accounts for clients. So, according to the Regulation of the Bank of Russia dated October 3, 2002 No. 2-P "On non-cash payments in the Russian Federation" (hereinafter referred to as the Regulation No. 2-P) [1] [2], non-cash payments in our country are carried out through credit institutions and / or through the Bank of Russia for accounts based on the client's bank account agreement or correspondent account agreement. A correspondent account is opened by one bank with another to carry out interbank settlements and provide mutual services.

The mode of maintenance and use of these accounts (settlement and correspondent) is regulated by banking legislation. Thus, funds can be debited from a client account only by order of the account holder. Cases when funds can be debited without agreement with the client are provided for in the law.

Money is debited from the account on the basis of settlement documents, which are provided for by regulatory enactments. Special mention should be made of electronic payment documents, the use of which has significantly increased in recent years due to the widespread use of computer technologies in the field of settlement transactions. The procedure for the use of electronic documents in the Russian Federation is regulated by special instructions [3].

Opening of client accounts under an agreement with a bank is carried out in accordance with Article 845 of the Civil Code of the Russian Federation (hereinafter - the Civil Code of the Russian Federation). According to the bank account agreement, the credit institution undertakes to credit the funds to the account and fulfill the client's orders to transfer money and withdraw cash from the account. At the same time, the Civil Code of the Russian Federation especially emphasizes that the bank cannot determine or control the direction of the use of clients' money, as well as impose restrictions on the right to dispose of these funds, which are not provided for by the contract. Such restrictions may be imposed in connection with the seizure of funds or the suspension of account transactions in cases provided for by law (Article 858 of the Civil Code of the Russian Federation).

An important element of account management is the procedure for debiting funds from the account. According to Art. 855 of the Civil Code of the Russian Federation, funds are debited without hindrance if there are sufficient funds to fulfill the client's order. If there are not enough funds on the account to make a payment, then the funds are debited according to the priority [4].

As already mentioned, any banking transaction must be documented. The bank performs most of the operations for transferring funds on behalf of the clients, but it can make transfers at the expense of its own funds, as well as use the clients' funds to carry out its operations. In this case, he must guarantee the client's right to freely dispose of his account.

In banking practice, much attention is paid to the timing of payment transactions. According to the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)" dated July 10, 2002, the deadline for making non-cash settlements in the redistribution of a constituent entity of the Russian Federation (region) is 2 business days, and within the Russian Federation - no more than 5 business days. The bank is responsible for the improper performance of transactions on the client's account (Article 856 of the Civil Code of the Russian Federation). If the bank untimely credited the received money to the client's account or unreasonably debited it, it must pay interest on this amount (Article 395 of the Civil Code of the Russian Federation).

Cashless payments are carried out in certain unified forms. Each form of settlement involves the use of special settlement documents, as well as the corresponding document flow - a system for the registration, use and movement of settlement documents and funds. Settlement documents can be issued both on paper and in the form of an electronic payment document. The settlement document contains:

• - the order of the payer (debtor) to his bank to transfer a certain amount of money to the account of the recipient of funds (creditor);
• - the requirement of the recipient of funds (creditor) to write off funds from the payer's bank account and transfer this money to the account specified by the recipient of funds.

There is a wide variety of types and forms of cashless payments. Their set in different countries is determined by both the level of economic development and traditions, historically established payment customs and stereotypes. In Western literature, the term "payment instrument" has become widespread . It is designed to initiate the transfer of money from the appropriate account of the payer and is presented in a document of the established form on paper or electronic media. CPSS includes checks, credit and debit cards, credit transfers and direct debit write-offs, electronic money as payment instruments.

The CPSS annually publishes the "Red Book" [5], which contains information on payment instruments. Additionally, within the framework of the "Red Book", reference information about payment systems of individual countries is periodically published. For example, in 2003 a publication was published that was devoted to the peculiarities of the functioning of the Russian payment system. Currently, the Bank of Russia, using the CPSS methodology, regularly publishes statistical data on the structure and operations of the Russian payment system. In turn, the European Central Bank publishes similar statistics for European countries in the so-called "Blue Book".

In the non-cash segment of the payment turnover of developed countries, such traditional payment instruments as bank checks and transfers in giro settlement systems continue to be used. These instruments characterize two different approaches to organizing the payment process. Checks, according to the international classification (see Chapter 1), belong to the category of debit transfers, and giro transactions - to credit transfers.

One of the reasons for the widespread development of check circulation, despite the length of the settlement period and high costs, is the benefit received by the drawer (payer) due to the emergence of an uncounted balance (float) in this form of settlement from the moment the check is issued until the moment it is paid. This deferral of debiting money from the payer's account according to the check consists of the time of sending the check to the beneficiary (recipient of money), checking and sorting checks in the bearer's bank, sending the check for collection, processing it at the payer's bank, etc. As a result, the drawer uses a free credit in the form of deferred payment for a certain period of time, which brings him significant benefits.

In the United States, check payments account for 51.4% of the total volume of non-cash transactions, and in Canada - 31.9% [B1S, 2009]. In countries with intensive check circulation, extensive operational structures have been created, which are necessary for clearing and collecting funds. A large number of financial institutions participate in them - banks, clearing houses, computer centers, communication networks, etc. (for more details see Chapter 4).

At the same time, there have recently been significant changes in the structure of payment turnover and in the use of various payment instruments in the money turnover of developed countries (see: Belousova, Usoskin, 2010]. This process is due to a number of factors. First, the power of computer technology has increased, which has facilitated the introduction of complex calculation algorithms, an increase in the speed of calculations, cost savings, etc. Secondly, the development of communication technologies provided payment system participants with the opportunity to quickly receive the necessary information, effectively manage cash flows, limit settlement risks, and increase the working hours of settlement systems | see: Krivoruchko, 2008].

These processes are especially clearly manifested in countries with developed check circulation, where this form of settlement is being replaced by new instruments. Thus, in the early 1990s, in the United States and Canada, among all forms of non-cash payments, by the number of transactions, settlements by means of checks prevailed. Check circulation in these countries accounted for 82% and 67% of all economic transactions, respectively [BIS, 1991]. At present, the share of check settlements by the number of transactions has decreased in the United States to 26%, and in Canada - to 13% | BIS, 2009].

In the EU countries, the use of checks is much less developed than in the USA, and accounts for 7.5% of the volume of non-cash payments, or 5.8 billion transactions [6]. Check settlements are more actively used in France, Italy and Great Britain, while in Germany, Belgium and Switzerland check circulation is insignificant and in recent years it amounted to 1.1% in terms of the number of transactions and 2.5% of the volume of all payments [see: BIS, 2009 ].

Among the main factors are the advantages of new payment instruments, which increase the speed of settlements, ease of use, etc. | Schuh, Stavins, 2009]. Checks are being replaced by payment cards (debit and credit) and direct transfers in electronic settlement systems.

Credit transfers are widely used in Western Europe, as well as in Japan and some other countries. They often take the form of fat calculations. This type of settlement originated in the 16th century in Italy. It is currently used in banks (bank giro) and postal systems (postal giro).

Calculations in fat systems are closed, circular in nature. Hence their name from the Greek word "guros" - a circle, a circuit. In the "giro" system, the transfer of funds is reflected in special giro accounts, which are opened for settlement participants in one or in different banks. Withdrawing and crediting funds is made using a giro ticket, which is similar to a payment order in Russia. The final settlement of settlements between financial institutions-participants is carried out through the clearing of counter payments through the head (settlement) bank of the system.

For example, in Germany, which has the most developed giro network in the world, all major groups of credit institutions - commercial and savings banks, credit cooperatives, and the post office - have their own giro systems. Currently, settlements are carried out in electronic form, processing is carried out by computer centers of giro networks. In the commercial banking sector, settlements are concentrated at the four largest banks, each of which has its own internal network of giro accounts, uniting the head office, branches of the bank and its subsidiaries. The results of settlements within the network are reflected in the accounts at the head office of the bank. The fat network operates in a similar way in the savings bank sector. Payments are made through special accounts in the head banks of the lands. The main savings bank participating in the clearing, is OeShite Cochinatelabk. Credit cooperatives conduct transactions in their giro account system through CO-Bapk (OeNbcbe-reckeraXenossensblockabank AC). In addition to banking systems "giro", in Germany there is a postal system of giro payments, through which a significant part of cash settlements is carried out. The German Post Bank - Deutisde RozLapk AO carries out interbranch settlements through its own network |

The central bank of Germany, DeVicie Vynbezhank with its 9 land banks and 71 branches, is at the center of the fat settlement system, facilitating the exchange of cash payments between groups of participants and settling transactions for banks outside the group systems. KT05 p1i!; , which will be discussed in Chapter 5, allows you to regulate the final net positions of participants in fat calculations.

In addition to the usual transfer of funds, there are two special forms of settlement used in giro payments: standing order and direct debit. The standing order is carried out by the owner of the giro account, who instructs his bank to make periodic fixed payments in favor of specific recipients: utility companies - for gas, water supply, electricity; insurance companies - in payment of insurance premiums; banks - to repay the loan, etc. In turn, companies use this form of payment to transfer wages to employees, pensions, social benefits, etc. to deposit accounts.

The second form of settlement is direct debit, which began to be carried out in practice in the 70s of the last century. The participants in the operation conclude a preliminary agreement, according to which the payer allows his bank to pay the payment claims submitted to him by the counterparty (for example, in repayment of loan installments, payment of utilities, etc.). This method of debt collection is convenient for both parties, and this is the reason for its growing popularity. In the EU, these settlements account for an average of 26% of total Benalic transactions. Direct debit is most widespread in Germany, where direct debit transactions account for 50% of all non-cash transactions. In the Netherlands, this figure is 25.8%, in the UK - 20.2% [see: BIS, 2009].

At the same time, the role of so-called electronic money in non-cash payments of individuals is increasing , which is a monetary value stored on electronic and magnetic media (see: Directive of the European Parliament and the Council of Europe, 2009/110 / EC). This value is accepted as a means of payment by legal entities and individuals, with the exception of the electronic money issuer.

Cashless payments using electronic money can be carried out through accounts opened in settlement organizations (for example, in commercial banks) or without the participation of banks | Electronic money .., 2009, p. 42].

Depending on the way of storing ED, there are:

• - ED on the basis of cards (card-based), when the monetary value is stored on bank payment multipurpose cards: smart cards, prepaid cards, flash cards, mobile phone SIM cards, etc .;
• - ED on the basis of networks (network-based), when hard disks with the use of special programs-wallets or the Internet with the use of the Web-interface act as information carriers [Electronic money .., 2009].

Singapore is the leader in payment transactions using electronic money based on cards, where the share of these payments in terms of the number of transactions in 2008 was 84.3%, and in terms of the volume of transactions - 0.3% or 1.6 billion US dollars | BIS, 2009]. In Russia, the electronic money market is growing rapidly. In 2009, the total turnover of payments using "electronic wallets" exceeded 40 billion rubles | Reshetnikova, 2010] [7].

In fig. 2.1 presents the main forms and payment instruments used both in Russia and abroad.

• [1] This edition of the manual does not take into account the activities of bank payment agents and subagents in the provision of money transfer services, federal postal organizations in the field of postal money transfers, payment agents for receiving payments, as suggested by Federal Law No. 161
• [2] Regulation 2-P is the main regulatory document for the organization and implementation of settlements.
• [3] The procedure for issuing and receiving electronic documents and making transactions with their use is determined by the Regulation of the Bank of Russia dated March 12, 1998 No. 20-P “On the rules for the exchange of electronic documents between the Bank of Russia, credit institutions (branches) and other clients of the Bank of Russia when making settlements through settlement network of the Bank of Russia ", and the procedure for processing these documents is governed by the Bank of Russia Regulation No. 36-P dated June 23, 1998" On interregional electronic settlements carried out through the Bank of Russia settlement network ", as well as the Bank of Russia Regulation No. 18 dated February 20, 1998 -P "On multi-trip processing of payments in the Moscow region."
• [4] First of all, the claims for orders of execution for compensation for harm caused to life and health, as well as claims for the recovery of alimony are satisfied.
• [5] See: | B15, 2009; V1B, 1991].
• [6] Hereinafter, unless the source is indicated, data on the structure of payments in the EU countries are given according to Electronic Payments International (2009, September).
• [7] A brief description of the main electronic money systems operating on the territory of Russia can be found in the work “Electronic money mobile payments. Encyclopedia".