Definition (PBI APMK No. 11/11/PBI/2009, as amended by PBI No. 14/2/PBI/2012 concerning Card-based Payment Instruments):
Card-based payment instruments are payment instruments in the form of credit cards, ATM cards and debit cards.

​Definition (PBI APMK No. 11/11/PBI/2009, as amended by PBI No. 14/2/PBI/2012 concerning Card-based Payment Instruments):

A credit card is a card-based payment instrument used for payments of obligations arising from economic activity, including shopping transactions and/or cash withdrawals, in which the payment obligation of the cardholder is settled in advance by the acquirer or issuer and the cardholder is required to execute payment at an agreed term in a lump sum (charge card) or instalments.​

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Characteristics of Credit Cards:

Features of Chip-based Credit Cards
Obverse:

1. The chip is always located on the front of the card, which adds various applications to encrypt and secure the data
   
2. 16-digit credit card number
   
3. Name of Cardholder
   
4. Name of Card Issuer
   
5. Expiry Date of Credit Card
   
6. Network Logo of Credit Card
   

Reverse:

1. Magnetic Stripe, which can still be used for overseas transactions
   
2. Signature Panel containing the signature of the cardholder on the credit card
   
3. 3-digit Verification Code
   
4. Address of Issuing Bank
   
5. Name/Logo of Issuer
   

The mechanism for using a chip-based credit card has changed little since the previous iteration. During a transaction, pay attention to the following:

• Ensure the credit card handed over to the cashier is processed by dipping the chip-based card into the EDC machine.  At the moment of dipping, the credit card is encrypted before being linked and verified online with the issuer.
  
• After the verification process, the EDC machine will issue a sales draft which must be signed by the cardholder initiating the transaction.
  
• Transaction is complete

The mechanism is just as straightforward as the previous magnetic stripe technology.  The main difference is that cards are no longer swiped, they are dipped.  If your credit card is swiped, it implies the credit card or EDC machine are not equipped with chip technology.  If this is the case, immediately request a replacement card from the issuer listed on your credit card (***).

Definition (PBI APMK No. 11/11/PBI/2009, as amended by PBI No. 14/2/PBI/2012 concerning Card-based Payment Instruments):
ATM cards are card-based payment instruments that may be used for cash withdrawals and/or fund transfers in which the obligations of the cardholder are settled in real-time through a direct debit of the cardholder’s account at a bank or nonbank institution authorised to mobilise funds under prevailing laws and regulations.

Characteristics of ATM Cards:

Obverse:​

1. Multifunctional chip with enhanced security features
   
2. Card Number
   
3. Name of Cardholder
   
4. Name of Network
   
5. Expiry Date
   
6. Issuer Logo/Name
   

Reverse:

1. Signature Panel
   
2. Address of Issuer
   
3. Magnetic Stripe
   
4. 3-digit Verification Code
   

Definition (PBI APMK No. 11/11/PBI/2009, as amended by PBI No. 14/2/PBI/2012 concerning Card-based Payment Instruments):
A Debit Card is a card-based payment instrument that may be used for payments of liabilities arising from economic activity, including shopping transactions, in which the obligation of the cardholder is settled in real-time through a direct debit of the cardholder’s account at a bank or nonbank institution authorised to mobilise funds under prevailing laws and regulations.
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Obverse:

Reverse:

1. Signature Panel
2. Address of Issuer
3. Magnetic Stripe
4. 3-digit Verification Code

​​Cheques​

A cheque is an unconditional order by a bank’s customer to pay a specific amount on a certain date. The following general principles apply to cheques:​

a) ​Cheques consist of the following types:​

1. Order cheque (Aan Order), namely with the payee’s name written on the cheque. The drawee only makes a payment to the Payee written on the cheque.
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    Figure 2 : Contoh Cek Atas Nama
   
   In practice, an order cheque with a payee’s name but ‘or bearer’ not crossed out is treated as a bearer cheque
   
2. Bearer Cheque (Aan Toonder), namely with no payee written on the cheque. The drawee will make a payment to any bearer that presents the cheque to the drawee.
   
   
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   Figure 3 : Sample of a Bearer Cheque

 Figure 5 : Sample of a Specific Bank Crossed Cheque

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​- Verrekenings Cheque, which is restricted to a funds transfer. The distinction is made by writing “untuk dimaasukkan ke dalam rekening” or similar across the obverse of the cheque.

b) Cheques that do not meet the formal terms are not valid.

c) If the place of payment it is not explicitly stated on the cheque, the following regulations apply:

d) In practice, however, technology now allows the drawee to verify the drawer’s data nationally, therefore, the cheque does not have to be paid at the head office of the Drawee.

 

 Figure 7 Note

a) Banks are only legally required to honour cheques presented by the payee for up to 70 days from the date of issue. 

b) A 6-month grace period is given before the expiration of the cheque.

 

 Figure 8 Note 

a) As a security or negotiable instrument, cheques are transferrable. 

b) Transfer to Bearer is achieved by physically handing over the cheque to the bearer. 

c) Transfer to Payee is achieved using two methods: 

d) Endorsing a Cheque: 

e) By transferring the cheque, all payment rights are also transferred to the new payee.

The drawer can make changes to a cheque by crossing out the mistake, writing the correction above and initialling the correction.

 

 

a) A Drawer cannot cancel a cheque during the honour period.

b) A cheque can only be cancelled after the honour period has lapsed.

c) A cheque can only be cancelled by the Drawer by submitting a written cheque cancellation , request to the Drawee, containing information on the cheque number, date of issue, amount and date of cancellation. A photocopy of the account holder’s ID card must be attached to the cancellation request.

d) A Drawer can request to block a cheque payment as a result of loss or theft.

​​​  'Cessie is a transfer of rights in accordance with Article 613 of the Civil Law Code.

​​​​​​​​​​​​​Funds (GIRO) Transfers ​  

Understanding Funds Transfers and General Principles

1. An order to transfer funds
2. Non-transferable
3. Issued in rupiah
4. Written in Indonesian
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    Figure 1: Sample of Funds Transfer
   

Formal Terms of Funds Transfers

1. ​​​A Funds transfer must meet the following formal terms:​
1. ​​​​Name ‘Bilyet Giro’ and Bilyet Giro number.
2. Drawee Name.
3. Clear and unconditional order to transfer funds from the Drawer’s account.
4. Payee name and account details.
5. Name of Beneficiary Bank.
6. Amount to be transferred, expressed in numbers and words.
7. Date of Issue.
8. Effective Date
   The effective date must be within the honour period.
9. Drawer’s Name.
   The Drawer’s name can be pre-printed clearly by the Drawee on personalised funds transfer forms, which must be the same as the name registered with the Drawee. The name of the Drawer does not have to be written on the funds transfer form if it has been personalised by the Drawee. If the Drawer is a business entity, the name of Drawer is the name of the that entity.
10. ​​Signature of Drawer.
    The Signature of Drawer must match the specimen administered by the Drawee. If the Drawer is a business entity, the funds transfer form is signed by an authorised person in charge (PIC) representing the entity, the specimen of whom is administered by the Drawee. The signature of drawer may be complemented with a business stamp if stipulated in the account agreement.
2. The formal terms must be completed in Indonesian, with additional English equivalents permitted.
3. The formal terms referred to in points (1) – (3) are the responsibility of the Drawee when printing the funds transfer forms, while points (4) – (10) are the responsibility of the Drawer when issuing the funds transfer.
   
4. Funds Transfers forms that do not meet the formal terms are not valid. 

• Drawer: Account Holder who issues the Funds Transfer.
  
• Drawee: Bank instructed by the Drawer to transfer funds using a Funds Transfer.
  
• Payee: Account holder stated on the Funds Transfer Form who receives the funds.
  
• Beneficiary Bank: Bank administering the Payee account.
  
• Date of Issue: Date on the funds transfer form, representing the date of issue of the funds transfer.
  
• Effective Date: Date on the funds transfer form, representing the date upon which the funds can be transferred.
  

Responsibilities and Obligations when using Funds Transfers

1. Responsibilities and Obligations of Drawee:
1. ​​​Print the formal terms on the Funds Transfer Form, including Bilyet Giro name and number, name of Drawee as well as a clear and unconditional funds transfer order.
2. Administer the Drawer’s Account. 
3. Administer the Funds Transfer Forms provided to the Drawer.
4. Verify the Funds Transfer drawn by the Drawer.
5. Transfer the amount stated on the funds transfer order. 
6. Block a Funds Transfer payment based on a request from the drawer and/or authorised party. 
7. Reject a Funds Transfer, accompanied by
8. Administer the use of Funds TransfersMenatausahakan penggunaan Bilyet Giro.
2. Responsibilities and Obligations of Drawer:
1. Complete the formal terms of the Funds Transfer when issuing the funds transfer order. 
2. Ensure sufficient funds are available during the honour period.   
3. Inform the Drawee concerning a blocked payment.
3. Responsibilities and Obligations of Beneficiary Bank:
1. Ensure the formal terms on the Funds Transfer Form received by Payee are complete. 
2.  Verify the Funds Transfer Form received by Payee as follows:
• Check the number of corrections on the Funds Transfer Form.
• Check the effective date of the Funds Transfer.
• Ensure the bearer of the Funds Transfer Form is the Payee or party with power of attorney granted by the Payee.
3. Forward the Funds Transfer Order to the Drawee.
4. Reject a Funds Transfer order that fails to meet the requirements. 
5. Transfer the funds received from the Drawee to the Payee account.  
6. Disclose information to the Payee if the Funds Transfer has been rejected by the Drawee along with a valid reason for the rejection.
4. Responsibilities and Obligations of Payee:
1. ​Ensure the formal terms on the Funds Transfer form are complete. 
2. Reject a Funds Transfer order with incomplete formal terms on the Funds Transfer form. 
3. Request the Drawer to block the Funds Transfer, if required.
5. Drawee is responsible for losses incurred due to incomplete formal terms on the Funds Transfer Form that must be completed in full by the Drawee.
6. Drawer is responsible for losses incurred due to incomplete formal terms on the Funds Transfer Form that must be completed in full by the Drawer.
   

• Honour Period Effective Period of the Funds Transfer
  
• Effective Period: The period available during which the Drawer can order the Drawee to transfer funds to the Payee.
  
• Date of Issue: Date on the funds transfer form, representing the date of issue of the funds transfer.
  
• Effective Date: Date on the funds transfer form, representing the date upon which the funds can be transferred.

Difference between Cheques and Funds Transfers

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