State 4 circumstances under which a customer would
prefer to be paid by a banker's cheaque
1. For large transactions: A customer may prefer to be paid by a banker's cheque for large transactions, such as purchasing real estate or expensive assets. Banker's cheques provide a layer of security as they are guaranteed by the bank, reducing the risk of dealing with large sums of cash or personal cheques.
2. When making international payments: Banker's cheques are often preferred for international payments as they are widely accepted and can be used as a form of payment in foreign countries. This can eliminate the need for currency conversion and provide a sense of security when dealing with unfamiliar banking systems in different countries.
3. When selling goods or services to unknown parties: Customers may prefer to receive payment through a banker's cheque when selling goods or services to individuals or companies they are not familiar with. This helps mitigate the risk of receiving counterfeit or fraudulent cheques, as banker's cheques are typically more difficult to forge and are backed by a reputable banking institution.
4. In situations requiring immediate clearing: If a customer needs immediate access to funds, such as in urgent financial situations or when dealing with time-sensitive payments, a banker's cheque can be beneficial. These cheques are often cleared expeditiously, providing quicker access to the funds compared to other payment methods.