Collection is ... Documentary collection

Settlement payments - a banking operation by which a financial institution receives funds. Money is transferred to the client’s account from the payer for goods delivered to him / services rendered / work performed. We will consider in more detail below how payments are made for collection.

General information

Collection is the order of the creditor (seller) to his bank to receive it from the buyer (payer) through another financial company or directly a certain amount of money. This operation can also be presented as confirmation that the specified payment will be transferred by the due date. The grounds for collection are payment documents submitted by the client.

Classification

Depending on the payment documents provided by the client, the following forms of collection exist:

1. Clean. In this case, a check, a bill of exchange is attached.
2. Documentary. Collection in this case is carried out with the act of acceptance of work or an accompanying document to the goods.

Specificity

A bank that has received a client’s order and payment documentation takes appropriate measures to recover the required amount. The papers used for collection are a commission or a demand. It is applied to the payer account. Collection is a transaction that is combined with an acceptance type of payment. The latter assumes that the shipment of goods under the contract is carried out immediately, before receiving payment for it. The buyer deducts the required amount after accepting payment documents. At the same time, he verifies that the seller fulfills the terms of the agreement regarding the quantity, delivery time, price, product quality, etc. If the creditor violates certain clauses of the agreement, the buyer has the right to refuse to pay for the goods. If the payer has not fulfilled some condition of the contract, for example, delayed the deduction of funds, the seller can apply the appropriate sanctions. When the buyer declares a refusal of acceptance, the banking organization checks its motivation and validity. In case of non-receipt of payment by the due date, the payer's financial company informs the seller’s bank.

Collection: scheme

The operation is carried out in several stages. Documentary collection includes the following stages:

1. Conclusion of an agreement for the shipment of goods.
2. Dispatch of products.
3. Providing documentation.
4. Instruction for collection (the seller’s banking organization sends payment papers to the financial institution serving the payer).
5. Notification (advising) of the buyer that documents have been received.
6. Payment of the required amount (issuing an order).
7. Transfer of documentation to the buyer.
8. Entering funds on the account of the seller’s bank.
9. Notification to the creditor of the transaction.
10. Write-off of funds from the bank account and their transfer to the account directly from the seller.
11. Notification of the operation.

Collection is a profitable payment method for the buyer. This is due to the fact that the documents that the payer receives for verification are in the bank until the funds are transferred (acceptance accepted). In case of refusal to make money, the papers shall be returned to the seller’s financial institution indicating the reasons for non-payment. Among the shortcomings of such an operation, it should be noted the long duration of the documentation passing through the banks of the parties, the availability of the opportunity not to transfer the established amount.

Instructions

They apply:

1. For collection under the executive document.
2. In the case when the indisputable procedure for debiting funds is established in the legislation.This, among other things, applies to situations where the collection is carried out by bodies vested with control powers.
3. In cases provided by the parties to the transaction under the contract. At the same time, the bank that serves the payer should have the right to write off funds from the client’s account without agreement with him.

Design Features

The order is drawn up on the form for f. 0401071. If the collection is carried out in cases provided for in the legislation, a reference to a specific regulatory act is indicated in the column “Purpose of payment”, indicating the date of its adoption, number and corresponding article. When recovering according to an executive document, the details of his order shall be indicated in the order. In particular, the date of issue, the number of the sheet and the case on which the decision on enforcement is issued, the name of the authorized body that adopted it is affixed. When recovering by a bailiff executive fee the order must contain an appropriate instruction. The original IL or its duplicate is attached to the main package of papers. The Bank does not accept collection orders for execution if the documents are presented at the end of the period established by law.

Partial payment

The bank serving the buyer executes the received order with the writ of execution attached to it. In the absence of the necessary amount in the debtor's account to satisfy the requirements, a note is made on the IL on the partial or full non-fulfillment of them, indicating the reason. The order is placed in the card file for off-balance account No. 90902. Fulfillment of requirements is carried out as funds are received by the payer s / c.

Indisputable write-off

It applies to the obligations stipulated in the main contract, except for cases established by the Central Bank. Indisputable write-offs are subject to an additional agreement to the banking service contract. The payer must provide the financial organization with information about the recipient, who is entitled to submit the relevant collection orders, the obligation for which payments are made. In addition, data on the main contract (number, date and clause, which provides for undisputed write-offs) are transmitted to the bank. If the financial institution does not have the specified information, it has the right to refuse to fulfill the requirement.

Charge Suspension

It is carried out by the bank:

1. By decision of the authority performing control functions under the law.
2. For other reasons established in regulatory enactments.

In the document that is submitted to the bank, the details of the order shall be affixed, according to which the collection should be suspended. In case of resumption of the procedure, the requirement is fulfilled with the preservation of the priority group and the calendar sequence of receipt of securities within the category. Banks do not consider on the merits the objections of the payers regarding the undisputed withdrawal of funds from their accounts.

Executive documents

Papers for which payment has not been made, except for the termination of the relevant production or payment has been partially made, shall be returned with an instruction to the issuing bank. The latter must transfer the documents to the collector personally under the appropriate receipt or send by registered letter. At the same time, the performing bank makes a note on the date on which the IL was returned with the amount written off if there was a partial payment. Upon the execution or termination (in accordance with the legislation) of recovery, the document is sent to the body that issued it by registered letter. The executing bank must make a note on the date when the payment or refund was made, indicating the reasons, as well as the amount written off (in case of partial repayment).