(), or giro transfer
, is a payment transfer from one bank account
to another bank account and initiated by the payer, not the payee. The debit card
has a similar model. Giros are primarily a European phenomenon; although electronic payment systems such as the Automated Clearing House
exist in the United States and Canada, it is not possible to perform third party transfers with them. In the European Union
, there is the Single Euro Payments Area
(SEPA) which allows electronic giro or debit card
payments in euros
to be executed to any euro bank account in the area.
In the United Kingdom
and in other countries the term giro may refer to a specific system once operated by the post office. In the UK, the giro service was originally known as National Giro
. In due course "giro" was adopted by the public and the press as a shorthand term for the girocheque
, which was a cheque and not a credit transfer. Meanwhile, there were Bank Giro Credits
, which were instructions to credit a particular bank account: these were not instructions to debit another account, so they had to be accompanied with cash or cheques, and they could be used both for bill payments and as paying-in slips; when used for paying bills they were often free-of-charge to the payer when used at the payer's or payee's bank but with an administration charge at other banks. Read more...