Money Transmission

1. Unit 6 Money Transmission Facilitator Support Materials for Money Transmission

2. Unit Aim The aim of this unit is to introduce the learner to a range of money transmission services and develop their knowledge of how money transmission systems operate. This unit is 20 Guided Learning Hours

3. Unit Description In this unit the learner will be introduced to the variety of ways in which money can move around the economy and how financial services organisations help the process of money transmission by providing products and services such as cheques; standing orders; direct debits; credit cards; debit cards; charge cards; Automated Telling Machines (ATM’s); bankers drafts; telephone banking. Learners will understand the advantages and disadvantages of the different forms of money transmission from their work towards outcomes 1 and 2.

4. Learning Outcome 1: Know the different forms that money can exist as Amplification of the Learning Outcome: Cash: liquidity; uses Cheques: definition; clearing process; their decreasing use due to the growing popularity of debit cards and direct banking Standing Orders: definition; purpose; components of a specimen form; also used by some customers to transfer funds from their operating account to a designated savings account Direct Debits: definition; purpose; component parts of a specimen form; differences to standing orders

5. Assessment Criteria for Learning Outcome 1 Assessment Criteria: 1.1 Define cash, cheques, standing orders and direct debits Open discussion with Learners 1.2 Describe the liquidity of different forms of money Open discussion with Learners

6. Learning Outcome 2: Know the money transmission services offered by financial services organisations Amplification of the Learning Outcome: Operation of money transmission services: cash; cheques; standing orders; direct debits; credit cards; debit cards; charge cards; Automated Telling Machines (ATM’s); bankers drafts; telephone banking; internet

7. Assessment Criteria for Learning Outcome 2 Assessment Criteria: 2.1 Describe how money transmission services operate

8. Learning Outcome 3: Understand the advantages and disadvantages of different forms of money transmission Amplification of the Learning Outcome: Financial Services point of view: study of the advantages and disadvantages of cash, cheques, standing orders, direct debits, credit cards, debit cards, charge cards, ATM’s, banker’s drafts, telephone banking, internet banking from a financial services organisations point of view

9. Amplification of the Learning Outcome 3 Continued • Customer’s point of view: Study of the advantages and disadvantages of cash, cheques, standing orders, direct debits, credit cards, debit cards, charge cards, ATM’s, banker’s drafts, telephone banking, internet banking from a customer’s point of view

10. Assessment Criteria for Learning Outcome 3 Assessment Criteria: 3.1 Explain the advantages and disadvantages of the different forms of money transmission from the point of view of a financial services organisation Open discussion with Learners 3.2 Explain the advantages and disadvantages of the different forms of money transmission from a customer’s point of view Open discussion with Learners

11. Appropriate Books Retail Banking, Book One (England and Wales)

12. Appropriate websites www.bankofengland.co.uk/ www.bba.org.uk/bba/jsp/polopoly.jsp;jsessionid=az3XEMccpMo_?d=103 www.fsa.gov.uk/ www.hm-treasury.gov.uk/ www.projects.exeter.ac.uk/RDavies/arian/origins.html