What Is The Exchange? What Are The Characteristics Of The Exchange Settlement?

Remittance is a way of settlement by which remittance units entrust banks to remit funds to different places.

The exchange can be divided into two types: Mail Transfer and telegraphic pfer according to the different ways of pfer and the way of delivery.

Mail remittance is a remittance settlement method that the remittance holder applies to the bank and pays a certain amount and fee, sending the letter of remittance to the remittance bank by mail, and authorizing the remittance bank to settle a certain amount of money to the payee.

Telegraphic pfer is a way of remittance into a remittance bank where a certain amount of money is paid to the remittance bank. The remittance bank sends a telegram or telex to the destination's branch or agency (remittance), instructing the remitting bank to pay a certain amount of remittance to the payee.

In these two methods of exchange and exchange, the cost of exchange remittance is low, but the speed is relatively slow, and the pmission has the advantage of fast speed, but the remittance should bear a higher telex charge, which is usually applied only in an emergency or when the amount is large.

In addition, in order to ensure the authenticity of the telegram, the remittance password is added to the telegram.

The exchange settlement has wide application scope, simple and convenient procedures, flexible and convenient. Therefore, it is a widely used settlement method at present.

First, exchange settlement, whether it is mail pfer or telegraphic pfer, does not have the limitation of starting point, and it can be used no matter how much money is available.

Second, exchange settlement is a way of settlement for remittances to make payments in different places.

It is very convenient for adjusting funds, clearing old debts and settling accounts between different units.

The exchange settlement method is also widely used for paction settlement after remittance.

If the sales unit does not have a clear understanding of the creditworthiness of the purchasing unit or the commodity is relatively tight, the purchase unit can make the remittance first, and then deliver the goods after receiving the payment, so as not to return the goods.

Of course, when purchasing units adopt the mode of paction after remittance, they should have a thorough understanding of the unit's credit standing and supply capacity, so as not to blindly remit funds but not receive the goods.

If there is a lack of understanding of the status and supply capacity of the sales unit, the funds can be remitted to the purchasing place, and temporary depositors shall be opened at the place of purchase, and the people shall be supervised and paid.

Third, the exchange settlement method not only applies to the allocation of funds between units, but also can be used for individual payment related units such as retirement wages, medical expenses, various labor costs, remuneration and so on. It can also be applied to personal payments to other units, such as mail order goods, books and periodicals.

Fourth, exchange settlement procedures are simple and easy to handle, and units or individuals are easy to handle.