About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

23 S. Afr. Mercantile L.J. 64 (2011)
The Mode of Payment of Insurance Premiums: Different Methods Compared

handle is hein.journals/safrmerlj23 and id is 68 raw text is: The Mode of Payment of Insurance Premiums: Different Methods Compared WG SCHULZE* University of South Africa 1 Introduction It is trite that after cash, the electronic transfer of funds is fast becoming the most popular method of paying debts. By way of a general background to the present discussion, it is necessary to distinguish between an electronic transfer of funds in the wide sense, on the one hand, and, incorporated in it, an electronic transfer of funds in the narrow sense, on the other hand. An electronic transfer of funds in the wide sense includes all methods of payment which involve some form of electronic intervention in the transfer of funds from the debtor's bank account to the account of the creditor. The electronic transfer of funds in the wide sense would thus include payment by means of debit and credit card, cheques, stop and debit orders, as well as the electronic transfer of funds where no payment card or other document (for example, a cheque or debit order form) is involved. In the case where there is no payment card or other document involved in effecting the transfer of funds from the debtor's bank account to that of the creditor, one might conveniently refer to such transfer as an electronic transfer of funds in the narrow sense. This will be the case where the debtor, by means of an electronic device, including a telephone or mobile banking facility, or a home computer, or an automated teller machine ('ATM'), keys in a password or a personal identification number ('PIN'), followed by a payment instruction to his bank's computer which is linked to the electronic device employed by the debtor. The instruction given by the debtor to his bank would be to transfer a certain amount from his account to that of the creditor. The proliferation of electronic transfer transactions worldwide, and also in South Africa, stands in stark contrast with the decline in the use of some of the more conventional methods of payment, such as credit cards and cheques. This phenomenon may be illustrated by the following statistics. During 1999, there were 306 963 million electronic magnetic-tape transactions in South Africa with a total value of R2 088 479 billion. These figures include all electronic transfers, such as electronic salary payments, and all debit and credit transactions settled among banks, including debit orders and client-initiated electronic transfer of funds, but excludes intra-bank transactions. They are therefore not limited to electronic fund transfers in the * BLC LLB (Pret) LLD (Unisa). Professor in the Department of Mercantile Law, School of Law, University of South Africa. 64 0 2011. All rights reserved. Cite as: (2011) 23 SA Mer LJ 64-81.

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most