Bankovní Institut Vysoká Škola Praha Non-cash payment system Bachelor’s degree work Baltabay Aisultan Leden 2018 Bankovní Institut Vysoká Škola Praha Banking management Non-cash payment Bachelor’s degree work Author: Aisultan Baltabay Banking management Supervisor: Ing. Marcela Soldánová Praha 2018 Declaration: I declare that I have elaborated my bachelor’s thesis “Non-cash payment” independently and stated all the literature used. I attest by my signature that the submitted electronic version of the thesis is identical with its printed version, and I am aware of the fact that the thesis will be archived in the library of the BIVŠ, and further, made accessible to third persons throught the internal database of electronic university works. In Prague, January, 2018 Baltabay Aisultan Acknowledgement I am grateful to my supervisor Mrs. Marcela Soldánová, whose expertise, understanding, generous guidance and support made it possible for me to work on a topic that was of great interest to me. Finally, I would like to thank my family for their unconditional love and support during the last seven years. I would not be able to complete this thesis without their love and encouragement. Annotation: The main purpose of my thesis is the study the theory and the existing mechanism of non- cash settlements used by commercial banks, to identify emerging trends and problems, to identify possible areas for improvement in order to increase the profitability of banking operations, accelerate settlements, and reduce distribution costs. In accordance with the purpose of the course work, the following tasks are identify: - to study theoretical bases of the organization of non-cash settlements; - to consider modern types, forms of non-cash settlements and conditions for their use; - to study the organization of the system of non-cash payments in the Republic of Kazakhstan; - to identify the main directions of development and ways to improve non-cash payment turnover in second-tier banks of the Republic of Kazakhstan. The subject of research in this paper are existing and new forms of non-cash payments in the economy. The object of the study of the work are all subjects of the economy carrying out non-cash payments. Key words: Non-cash payment, the National Bank, payment card, Kazakhstan. Anotace: Cílem práce je studium teorie a existujícího mechanismu bezhotovostního vypořádání používaného komerčními bankami, identifikace vznikajících trendů a problémů, identifikace možných oblastí pro zlepšení s cílem zvýšit ziskovost bankovních operací, urychlit osídlení a snížit distribuční náklady. V souladu s účelem kurzu jsou identifikovány následující úkoly: - studovat teoretické základy organizace bezhotovostních osad; - odhalit pojetí a ekonomický význam bezhotovostních osad při modernizaci obratu peněz; - zvážit moderní typy, formy bezhotovostních dohod a podmínky jejich užívání; - studovat organizaci systému bezhotovostních plateb v Republice Kazachstán; - určení hlavních směrů vývoje a způsobů, jak zlepšit obrat bezhotovostních plateb v druhotných bankách Republiky Kazachstán. Předmětem výzkumu v této práci jsou stávající a nové formy bezhotovostních osad v ekonomice. Předmětem studie práce jsou všechny subjekty ekonomiky, které provádějí bezhotovostní osídlení. Klíčová slova: Bezhotovostní platba, Národní banka, platebny karty, Kazachstán. Content Introduction......................................................................................................................... 3 1 Theoretical bases of the organization of non-cash payments.......................................... 7 1.1 The concept and economic significance of non-cash payments in modern money turnover ............. 7 1.2 Forms of non-cash payments .......................................................................................................... 8 1.3 E-money and e-commerce ............................................................................................................ 10 2 Authorization and settlement of non-cash payment transaction. ................................. 17 2.1 Legislative and setlle legal acts on non-cash payments in the Republic of Kazakhstan .................. 17 2.2 Rules for the implementation of non-cash payments. .................................................................... 18 2.3 The results of the acception of a new law about the payment system and rules for non-cash payments ........................................................................................................................................... 20 2.4 Analysis of non-cash payments in Kazakhstan after the new law .................................................. 22 2.5 Interbank money transfer system .................................................................................................. 24 2.6 The system of interbank clearing (ICS) ........................................................................................ 28 3 Feature of application of non-cash payment system in Kazakhstan ............................ 31 3.1 Analysis of trends in performance indicators of payment management operations ........................ 35 3.2 The procedure for reflecting non-cash payments in accounting transactions using plastic cards..... 37 Conclusion ......................................................................................................................... 41 List of image ...................................................................................................................... 46 List of Charts ..................................................................................................................... 46 List of Table....................................................................................................................... 47 Annexes.............................................................................................................................. 47 2 Introduction To analyze the application of non-cash payment system as a payment instrument and characterize the issuing of non-cash payment system in Kazakhstan. The economy of any state is a wide-branched network of various economic entities. The basis of these relationships is payments. And it is the creation of a highly efficient reliable payment system that ensures the realization of their economic opportunities. The main components of the payment turnover are divided into cash and non-cash payments. Today, non-cash money turnover is gradually supplanting cash-money payments in monetary systems of different countries. This is facilitated by low costs compared to cash payments, the speed of their implementation, the extensive network of banks, as well as the state's interest in their development. To date, about 80% of payments account for non-cash money turnover. The bulk of non-cash payments are accounted for by commercial banks. It is they who own the most important payment and payment function in the state payment system. The term "non-cash payments" can be defined as "legal relations, the prerequisite of which is the right of claiming the account holder of a certain amount of money for the specified details at a certain time and for a fee, as well as the bank's obligation corresponding to this right." The term payment system became common to bank employees in the second half of the 1990s, and it essentially replaced the previously used term "cashless payments system". There are several definitions of the payment system: - a set of rules, institutions and technical mechanisms for the transfer of money; - a set of mechanisms for fulfilling obligations assumed by economic entities when they acquire material or financial resources; - a set of mechanisms that carry out the movement of the monetary funds of instruments through which value transfers are realized in value transfers within the framework of commitments; - a set of adequate software, communication lines, computing facilities, work organizations, economic and legal support for the transfer of money. The concept of a payment system is broader and more complicated than the concept of non- cash payments, since the payment system includes not only the object (money), but also the procedures with this object, and the subjects that perform these procedures. 3 The system of clearing payments can be defined as the set of instilled institutions that form the mechanism of non-cash payments and ensure their implementation. These definitions show some identity, continuity of these concepts. Currently, two national payment systems operate on the territory of the Republic of Kazakhstan: the Interbank Money Transfer System (ISMT) and the Interbank Clearing System (ICS). The development of market relations in the economy required a change in the fundamentals of the system of non-cash settlements, including the principles of their organization. The first principle of non-cash settlements in market conditions of managing consists in their implementation by bank accounts, which are opened to customers for the storage and transfer of funds. This principle is combined from the first principle of non-cash settlements of the planned system of management, the essence of which was to conduct all settlements of enterprises and organizations through the establishment of the bank. In the market economy, settlement through the bank should be determined by economic expediency, combined with the economic independence of market participants and their material responsibility for their actions. It is important to emphasize that