Cards and Cheque Protection System

Consumers are in dire need of protection when making payments to settle bills, children’s school fees and other necessities. Legislation is prayed for as a means to devise laws to protect its users against fraud and mistakes. It is not uncommon to hear clients complaining about banking services that do not necessarily serve their best interest. However, as we try to investigate, much of these complaints evolved from the lack of information on the services offered by most banks.

The client should acquire enough knowledge regarding these matters to limit miscommunication. One way of achieving and extending consideration to the client is to provide quality information about the potential disadvantages of using credit cards and cheques in the settlement of their payables. When the constant pleas to the government to pass bills that necessarily provide protection to the country’s payments system in the form of cards and cheques is still on deaf ears, it is the sole duty of the institution to wage an information drive regarding this matter.

To settle bills, clients usually do so by paying through cash, credit card or cheques. Most often, the most common mode of payments employed is through cheques and cards. Cheques still account for the method of choice when paying bills. The system is supported by the bank who agrees to pay the amount contained in the cheque when properly presented assuming there are enough funds in the issuer’s account to cover the amount issued in the cheque.

Under the Bill of Exchange Act 1882, a bill of exchange is an unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at a fixed or determinable future time a sum certain in money to or to the order of a specified person, or to bearer. The Cheques Act 1957 and 1992 considers the cheque as an “unconditional order” that is addressed by the issuing person to the bank. It is signed by the issuing individual and requires the bank to pay upon demand a certain sum of money to the drawer or the recipient .

In United Dominion Trust v Kirkwood , the three essential characteristics of a mutually beneficial banking service includes: collecting cheques for customers, paying them and keeping the customer’s current accounts which ultimately satisfies the consideration of an institution. Provisions in the act stipulated “that a cheque need not be dated” but it is now standard practice to require it. Likewise, it was provided that the amount payable must be stated clearly on the cheque .