What is Overdraft? Overdraft is a type of personal line of Credit. When you have an Overdraft protection attached to your bank account, you can spend more money than the balance in your account. Banks often charge you each time you borrow on your Overdraft. Borrowers are also charged an annual interest rate. Suppose you …
What is Loan? A loan is an amount borrowed from a lender and paid back in installments, usually with interest. The borrower’s commitment to pay back the loan is typically in a series of regular installments over time or all at once. The lender may be a bank, credit union, or other financial institution. The …
What is Loan? A loan is a type of financial assistance that a bank, credit union typically provide or other financial institution. It is an amount of money that is lent to a person or a business, usually with interest, over a certain length of time. Many different types of loans are available, including personal, …
What is Internet Banking? Internet banking is a banking service provided by a financial institution that allows its customers to conduct various financial transactions via the internet. It is also known as online, electronic, or internet banking. It is convenient for customers to access their bank accounts, make payments, transfer money, and manage their finances. …
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What is CD? A CD is a financial instrument issued by a bank or other financial institution. It is a type of savings account that pays a fixed rate of return for a pre-determined period. CDs are FDIC insured and are considered a low-risk investment option. CDs are generally used as a safe way to …
What is a Bank Guarantee? An assurance between two external parties, a buyer or a seller, in the form of a contract that the bank provides as a security for an applicant or beneficiary, is called a bank guarantee. It acts as a risk management tool for the beneficiary or applicant because if the applicant …
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What is ATM Card? An ATM card is also referred to as a payment card, ATM card is issued by the bank for the customer to access their bank accounts via (ATMs) automated teller machines to make necessary transactions. ATM cards are sized plastic cards and have a magnetic stripe, achieved on the card and …
What is ACH? The Automated Clearing House (ACH) is a monetary network that facilitates online payments and bank transactions. Installments sometimes referred to those as “direct payments,” are a method of transferring funds from one bank account to another without the need for paper checks, bank card systems, electronic payments, or currency. Clients who engage a company …
What is ACH? During the 1970s, the United Nations of America devised a billing system based on an interconnected network to enable fast payment while drastically reducing the need for paper checks and invoices. The technique was gradually adopted by other economies and evolved into an electronically aided settlement mechanism. The ACH stands for Automated Clearing House, also …
What is Accounts Payable? In every organisation, Accounts Payable is a standard transaction that takes place. Regular payment for goods, raw materials, and services are not possible in large corporations because of the nature of their operations. All of these payments are made following the organisation’s billing schedule. Generally speaking, Accounts Payable in General Ledger …
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