Chapter 11: Payment Account Flashcards

1
Q

Balance directly available

A

Money in a payment account can be spent immediately

Due to this, Bank does not pay high interest or any interest on this

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2
Q

Third party access

A

Account holder has control of the account

Controls who else has access or who can diposit

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3
Q

Debit balance

A

Bank only carries out payment if there is enough balance
Can arrange an overdraft agreement for a fee

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4
Q

Opening a payment account

A

General procedure:
1. Inventory
2. ID and verification
3. Customer profile
4. Register name
5. Current account agreement
6. Banking conditions
7. Product conditions

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5
Q

Inventory procedure

A

Identify needs of the customer:
* Joint account or individual
* People with power of attorney
* Credit facility need
* Payment account options e.g. bank statements
* Are you switching from another bank

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6
Q

ID and verification

A

Bank must ask for proof of identity (money laundering and terrorist financing prevention act)
* Dutch id (passport or ID card)
* Verfiy identity matches e.g. documents/physical features/signature
* Check with the VSI system for stolen identities

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7
Q

Secondary identification

A

When another bank carries out verification

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8
Q

Customer profile / risk profile

A

Bank checks for risks to the bank e.g. money laundering

Bank creates a risk profile using registration systems:
* internal profile of previous incidents
* external reference application (fraud activity database)
* Bureau for Credit Registration

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9
Q

Registered name on the account

A

Only a single name on the account
* If person is unable to take care of account (e.g. illness) then power of attorney can be given for management only (e.g. make payments)
* Death of account holder = frozen account and “heirs of” will be added

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10
Q

Current account agreement

A

After previous procedures, agreement is signed = legal relationship

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11
Q

General Banking Conditions

A

The banking conditions (ABV) are issued to the customer
* obligation of due care (customer interests)
* Customer / representatives must provide signature upon request
* Complaints procedure
* written notice from either party to close account

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12
Q

Product conditions

A

Product conditions apply to certain products and services
e.g. Loan or savings account will have additional conditions to supplement ABV

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13
Q

Opening savings account

A

similar to payment account

Main difference = customer must nominate an existing payment account to act as the “contra account” for transfers

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