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number, he sends it to the foreign exporter by post along with the purchase order i.e. the
order of the goods then, after receiving the goods so imported, he pays the rest of the
money to his bank and the bank issues TT or draft to the exporter’s bank for the payment
of the specified money to the party concerned. In this way, the remittance of money is
made through this means.

Key Point Letter of Credit is a guarantee letter issued by the importer’s bank to the
foreign exporter for the remittance of the value of trade after getting the
goods imported.

iv. ATM Card (Automated Teller Machine)

It is an electronic device depositor to withdraw
money immediately at any time without the use of
cheque. It is a computerized device which provides
the financial services to the customers without the
involvement of human clerk. Different banks have
installed ATM in different public places like hospitals,
university, hotels, airports, departmental stores, etc.
The ATM card holder is given a Personal Identification
Number (PIN) by the bank which should be used for
withdrawing money from the ATM. The debit card is Automated Teller Machine (ATM)
the most common ATM card in these days. Some other
card used as means of withdraw and payment are; Master Card, credit card, VISA card,
SCT card, etc.

Key Point ATM card is a plastic coated magnetic card which provides withdrawal
facility to the customer using modern computerized device through
personal identification number.

v. Electronic Transfers

Banks, other financial institutions and
money transfer agents transfer money from Bank Wire
one place to another through special net based
transfer system by using special numeric Transfer
code. Electronic transfer is done by computer.
Transferring foreign currency from one Swift logo
country to another is done by the Society for
World Wide International Financial Transaction (SWIFT). SWIFT is an international
organization. The member banks of SWIFT can inter transfer foreign currency, e.g. for
transferring sterling pound from the bank at Japan to the bank at Singapore, one should
use the PIN code of Chartered Bank of England and with the help of SWIFT, the amount
can be transferred.
In case of transferring money from one place to another place of the same country,
the order is given by a bank to the another bank to transfer the amount through fax.

52 Aakar’s Office Practice and Accountancy - 10 Trade 53