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In the non-cash payment system money is transferred from a payer's account to a payee's account. This means that the operating of the non-cash payment system is reserved to financial institutions - banks with which clients deposit their money on accounts. Banks execute the payments based on their clients' instructions transmitted in the form of a written document (payment instruction forms, cheques, etc.), or by technical means (instructions transmitted on data media, electronically via computers linked with the bank, vocally by phone, or via a special banking applications by mobile phone, or using a payment card, which may also be considered an electronic payment instruction). If both the payer and the payee have their accounts at the same bank, that bank will execute the money transfer (account settlement) in its own clearing centre. If the payer and the payee have accounts with different banks, the payer's bank has to use the "interbank clearing centre" for the transfer.

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17y ago

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