Simple! LET'S FIND OUT THE DIFFERENCE BETWEEN A CHECK AND A WIRE TRANSFER! (part 1)

the importance of giro bills

We explain the differences between checks and money orders, which are similar but not the same, so you don't confuse these non-cash payment methods. Still confused between checks and wire transfers? Don't know the difference between a check and a money order? wire transfer checks are some of the free payment options that facilitate payment transactions. To better understand the difference between a check and a bank  transfer, we explain them in our article.

What is Bilyet Giro?

Have you ever seen an example of a gyroscope but still don't know what a gyroscope is? Nowadays, anyone can find examples of user accounts simply by relying on the Internet. In fact, at the same time, they learn the meaning of gyroscopes and how to get rid of them. Bilyet Giro is a payment instrument issued by a bank that can be used as a substitute for cash. Therefore, if necessary, payment vouchers can be transferred from the payment account to the recipient's account according to the nominal value indicated on the requested payment voucher.

The recipient cannot withdraw money directly by bank transfer. But transferring the book to his account. Although it has the same function as a check, the transfer is relatively simple. This is also the difference between a check and a transfer by payment or withdrawal. Similar to other non-cash means of payment, the demand deposit also has several functions.

Thus, these features distinguish wire transfers from other non-cash payment methods, including checks. Bilyet Giro cannot be paid in cash, but by bank transfer from the withdrawal account to the recipient's account. In addition, if you wish, the deposit can be paid on the due date. This means that the payment process cannot be completed before the deadline. Bilyet Giro is valid for 70 days from the date of issue and can be canceled unilaterally.

Bilyet Giro Terms and Conditions

Have you ever heard the term BRI Wire Transfer Bank but do not understand the requirements for wire transfer services? Even if you already know that bank transfer is a payment method? When withdrawing or transferring a client, one must pay attention to several requirements, namely:

•        Bilyet Giro is not classified as securities

•        The glass must meet the form requirements of the transfer ticket

•        There must be enough money in the box

•        The cashier must inform the bank about the cancellation or blocking of the account transfer

Giro Bilyet Rules

The Giro also has rules. Therefore, in addition to the banking rules mentioned above, there are several bank transfer rules to understand and follow, namely:

•        Valid up to 70 days from the date of issue

•        The maximum refund amount does not exceed IDR 50-0 million

•        The name of the publisher must be written immediately below the signature

•        It is not possible to copy the signature of the issuer of the bank transfer

•        The signature is written by hand, not as a digital signature, etc

•     Upon request, the issuer delivers the requested certificate of deposit directly to the banking company or represents it through an attorney or employee.

•        The Fund's payment process is not transferable

•        Maximum of three spelling corrections per column

•        The date of issue and validity of the disability guarantee certificate must be clearly indicated

•        Bilyet Giro cannot be cancelled, but it can be blocked

How to withdraw Giro

If there is no reason to refuse the check and payment receipt, the box can be exchanged for the nominal value written on the accompanying bank transfer. How to digest it? In principle, withdrawing a bank transfer is not difficult. However, you should know how to cancel the transfer as soon as possible. So that when the time comes, there will be no more problems or worries about not being able to pay the money. Fund transfers made on the basis of a payment voucher are considered if the requested payment voucher has been delivered to the bank within 70 days of the payment date. The bank then transfers the money from the current account to the recipient's account. So that the recipient can later withdraw money from their account. Simple, right?

How to cancel Bilyet Giro

The Bilyet Giro has clear and binding rules. Therefore, the certificate of deposit cannot be canceled on demand. However, BG may block for a number of valid reasons, such as if the check card is lost or stolen, becomes unusable or damaged, and the offer grace period has expired. Cancellation, cancellation or blocking must be accompanied by a letter addressed to the respective bank.

Make sure you include the bank  transfer invoice number, withdrawal date and send money. However, if you want to prevent this, because the shipment will be lost, the box must have a police report of loss. Meanwhile, a damaged transfer should include a transmission, regardless of the damage state.

What is a check?

According to BI, a check is an unconditional order from the customer to the bank to pay the nominal amount of the cheque. According to the bank, auditing has three principles:

•        As a means of ordering cash payments

•        Portable

•        In issued currency

According to the Norwegian Treasury, a check is like a written document or a similar indication that

what is written is true and has been verified. In other words, a check is a written order given by the

customer to the bank to withdraw the amount of money to be transferred to the recipient of the check,

either in cash or transferred to the account of the recipient of the check. [Check function]

Knowing the types of checks is important, but knowing the different functions of a check is not so important. This way you will learn even more that checks are more than just a means of payment. Here are some of the more common audit functions, especially for those who run a business.

 1. Speed ​​up the payment process

One of the functions of a check is to make it easy for users to withdraw money from the bank. If you want to make a large payment, the user of the check no longer has to worry about withdrawing the amount from the bank. By simply issuing a check, transactions can be completed quickly.

2. Facilitate payment transactions without a credit or debit card

 In addition to credit and debit cards, several non-cash payment methods are available, including check. Checks make it easy for a person or party to make a payment without a credit or debit card.

Using a check as a means of payment is considered more profitable than using two cards. Bring the signed check and clear it at the register. After that, the money is paid out immediately. Easy and quick, right?

3. Easy to move

Another characteristic of checks, which are widely used as a means of payment by businesses, is that they are easy to transfer. A check that meets these requirements is the relevant banker's check. Those with checks can become beneficiaries. If you can't withdraw large sums due to various factors, why not leave the aspect management to someone you can trust to manage your bank?

4. There are no special regulations regarding the delivery of checks to payees

Checks do not require the recipient to meet any conditions. However, you must pay attention to some necessary information such as the name, title and signature of the recipient. Thus, checks can be used to withdraw large sums of money if necessary.

Requirements Check

It is true that checks are an easy-to-use cash payment instrument. However, the conditions for using checks must be followed. These conditions are even clearly regulated in Sections 178-229 of the Indonesian Commercial Code. These conditions are as follows:

•        The name of the check should be inserted in the text

•        Unconditional money orders with a fixed face value

•        The name of the party that must pay for the transaction or invited the interested party

•        Indicate the place of payment

•        Date and place of check withdrawal

How to cash a check

Once you've identified the reasons why checks and bills bounce, and you're sure the check you're holding can be cashed, follow these steps and easy ways to cash a check.

 • Remember to bring original checks, including postmarked and signed checks, not drafts

• Then prepare the necessary ID for the withdrawal or payment process in the form of a ID CARD, SIM

or other ID that can be used as a substitute for a  or SIM.

•   Remember to go to the bank as indicated on the check

•   On and waiting for an invitation

•  Sign checks and perform all operations as instructed by the cashier, including a telephone number to contact the cashier

•  Pay administrative fees according to the allocation given by the treasurer, if there is a fee

•  Wait for payment

Please note that deposit confirmation usually occurs about a month before the funds are received. The bank will take some time to verify the check in your hand. You can get more detailed information from customer service or by calling the telephone service of each bank. This will give you an estimate of when the money will be paid by check.

How to cancel a check

To cancel a cheque, you must know certain information such as cancellation and blocking so that you do not have to use the cheque. One is that checks cannot be canceled during the cash period. This means that checks can be canceled after the grace period has expired. To cancel a check, a check cancellation request must be sent to this field.

The letter is written and contains information about the check number, the date on which the check was drawn, the face value of the check, and the effective cancellation date. In addition, a copy of the identity of the account holder must be attached. In the meantime, it can be held if the check is lost or stolen. This means that if one of these events occurs, the lottery can send a block request

If you want to block a lost check, submit a request to block a check with a police report, the original, not a copy. In the meantime, the bank will block checks suspected of crime or theft based on a letter from the competent authority. For complete information, contact the relevant bank or the bank that issued the check.

Differences between Sheki and Bilyet Giro

Although these are two common terms in the banking world, do not confuse a check with a money order. In fact, both are known not only in the banking world but also in various industries and companies. So what is the difference between a check and a bank transfer? In case you're wondering, here are some differences between a check and a money order.

 1. Period of validity

The difference between a check and a money order is the expiration date. The check is valid for 70 calendar days from the date of cancellation. Checks expire approximately 6 months after the end of the presentation period. Although bank transfers are valid for 70 days from the date of cancellation. During this time, the box cannot cancel the account transfer. In addition, there must be enough cash in the box to avoid the empty bank transfer withdrawal penalty. This can cause customers to be blacklisted by BI.

2. Method of payment

 The payment mechanism also distinguishes checks from bank transfers. Why then? Do you know? Checks can be cashed directly from the bank. However, this does not apply to mandatory payments that cannot be paid directly in cash.

3. Legal basis

 We also explore the difference between a check and a wire transfer based on their source or legal basis. Both have different legal bases. By law, checks follow KUHP or KUHP, while a bank transfer bill follows Bank Indonesia or PBI rules. So don't go wrong with checks and money orders!

 4. Transfer of ownership

 The difference between a check and a transfer is also a transfer of ownership. Where title checks can be transferred, but bank transfers do not allow this.

5. Obligation to provide funds

 There may still be many people who do not know that checks and money orders have different payment obligations. For checks, funds must be transferred from the payment date to the payment date, which is 70 days 6 months. This differs from demand deposits, where funds must be transferred on demand from the effective date stated on the current account until the current account expires.

Check the equation and Bilyet Giro

Although checks and money orders have some differences, they also have one thing in common. The equation for checks and demand deposits is:

•        Checks and demand deposits are means of payment in the form of payments made through demand deposits or securities

•        Validity is same 70 days after issue

•        Can be used as reference material in clearinghouses

•        As an arrangement that requires banks to make transfers to customers' accounts

So anyone looking for information about checks and demand deposits should be sure to focus not only on the differences between checks and demand deposits as securities, but also on their similarities, examples, rules and payment method. Learn how to better understand what checks and money orders are.