Payments

Means of payment consist of cash and other payment instruments which enable the purchase of goods and services through the movement of funds from a payment account or electronic money.

Most common means of payment

Cash

Cash (banknotes and coins) is a universally accepted means of payment, unlike other payment instruments, such as payment cards, which may not be accepted by merchants.

Cards

Cards are payment instruments issued by credit institutions or by other entities authorised for this purpose and made available through a contract that establishes the conditions for their use.

• Debit cards: The debit card is a personal, non-transferable card associated with a payment account that allows various types of transactions to be made, such as cash withdrawals, payments for goods and services, checking account balances, among others. Use of the debit card implies the immediate deduction of the transaction value directly from the associated account.
• Credit cards: In addition to allowing payments for goods and services and, in some cases, cash advances, these cards have an underlying contract that allows the use of credit up to a previously agreed maximum limit. The amount used is repaid on the date and under the conditions agreed with the card issuer. After payment, the customer is again able to use the credit within the established limit.
  
  

Bank Transfers

Credit transfers allow the movement of funds between payment accounts. Transfers can be as follows, according to their type:

• Intrabank: between accounts of the same payment service provider.
• Interbank: between accounts of different payment service providers. Interbank transfers can also be internal (within the same country) or cross-border (between different countries).
  
  

Transfers can be defined as follows, depending on the payment model:

• Single Euro Payments Area (SEPA) transfers: Euro transfers made through harmonised systems in the SEPA area.¹
  
• Non-SEPA transfers: Transfers in which at least one or both of the service providers (of the payer or the payee) are not based in the SEPA area, or the transfers are in a currency other than Euro, even if the payment entities are located in the SEPA area.
  
  

Transfers can also be traditional or immediate:

• Traditional transfers: The funds become available on the day the payment order is received - in the case of transfers between accounts held at the same payment service provider - or by the end of the subsequent business day - in the case of transfers between accounts held at different providers.
• Immediate transfers: The funds are made available in the beneficiary's account within a maximum of 10 seconds, regardless of the day and time the transaction is carried out, up to a maximum amount of 100,000 euros per transaction.

Direct Debits

Direct debits allow the debtor customer (payer) to make periodic payments by means of a debit authorisation on the bank account, by means of a pre-established agreement with the creditor entity.
The debtor may make payments resulting from long-lasting and sporadic agreements. Direct debits can also be used to make one-off payments.

Cheques

Cheques are a means of payment that allows the movement of the funds that are available in the accounts of the respective holders and which entitle the payee to receive the amount indicated therein.

The supply of cheques is based on the establishment of an agreement between the bank and the customer, but banks are not obliged to provide this service to their customers.

It should also be noted that cheques are being gradually replaced by more efficient and safer payment instruments, such as payments made using cards, bank transfers or by direct debit.

¹ The SEPA area covers the 28 countries of the European Union, the overseas territories - French Guiana, Gibraltar, Guadeloupe, Martinique, Mayotte, Réunion, Saint Barthelemy, Saint Martin and Saint Pierre and Miquelon - as well as Iceland, Liechtenstein, Norway, Switzerland, Monaco and San Marino.