The system of credit transfers operated by the banks is in many ways similar to the postal cheque (Giro) system and is now commonly referred to as bank giro. The payer completes a credit-transfer or giro-transfer slip for each separate payment and enters it on a list, which he passes (in duplicate), together with the slips and a cheque for the ‘total amount, to his banker. The banker then distributes the slips to the banks of the payees concerned, whose accounts are then credited. Payees receive the transfer slips from their bankers. A separate advice of payment by the payer is therefore unnecessary though some payers make it their practice to send one.
Sample of Payment by credit transfer (bank giro)
I am pleased to inform you that a credit transfer has been made to your account at the Barminster Bank, Church Street, Dover, in payment of the anunt due for the goods you
supplied on 2nd May and charged on your invoice No 1524.
Acknowledgment of this transfer will not be necessary.