Non-Cash Payment System

Payment System is very close to our daily life. Almost every moment in everyday economic activities occurred transactions made by economic actors, as well as other public. Conscious or not, the transaction activity that we do is closely related to the payment system. The evolution of the payment system starts from the simplest economic system, known as barter, in which a person in need of a particular good can obtain it by exchanging it for different goods. As human needs arise, money emerges as a measure and a tool of exchange that can be used in commerce. Simple payment transactions involving only two parties/individuals directly can be made in cash, but the greater the value of the transaction, the use of cash is more inefficient, so people turn to non-cash payment instruments. Coupled with the development of reliable technology, you can already use the 소액 결제 현금화 system in your smartphone’s app without having to move or queue up in front of the ATM or Bank machine when you want a deposit and such.

The non-cash payment system involves intermediaries in order for the funds to be truly effective to move the party to the recipient. If both parties involved our customers in the same bank, then the transfer process is simpler, where the bank simply transfers from one account to another. But not so if both parties are bank customers at different banks. For this, we need another institution known as a clearing institution to accommodate the interbank transactions. The implication of a payment transaction is the presence of the paying party and the payee. In a non-cash transaction in which the transacting party usually uses the services of an intermediary institution such as a bank to make payments through interbank clearing mechanism and using bank instruments such as checks and bilyet giro as a non-cash payment instrument.

In a transaction like this one important factor in the operational mechanism that needs to be considered is how the settlement mechanism is done. The settlement is a process of transferring the value of money made by debiting the account of the payer and crediting the account of the beneficiary. With the settlement, the transaction will be final and irrevocable.