Eurocheque

The Euro check (proper spelling: eurocheque ) was a cross-border guaranteed check of European banks, which was introduced in the 1960s and expired on 1 January 2002. The redemption of a Eurocheque was guaranteed by a guarantee agreement between payee and banker who was terminated by the payee and the check issuer, who identified himself as authorized by a special card ( Euro check card, ATM card).

The debit card has been added over time to the function of a debit card to withdraw cash from a bank or savings bank machines money can.

• 2.1 emergence of warranty
• 2.2 abstractness of the warranty claim

• 4.1 Eurocheque States
• 4.2 Euro check cards
• 4.3 Eurocheques

• 5.1 Reasons for phasing out

Historical Development

Background for card- guaranteed checks

Since the late fifties and early sixties resulted in non-cash wages, salaries and pension payments to a sharp increase in the number of private checking accounts. Check and statement were the need to ensure better availability of the funds or may be conferred an overdraft loan does not satisfy.

The availability of the credit was particularly hampered by the creditors of the check issuer who should receive the check for the correction of a liability of fulfillment sake, because of the Akzeptverbots case of a check ( check weakness) could not be sure if he at the check banker Exhibitor also could redeem. The solution to improve availability was the check guarantee card (short: check card ), which contributed to the traffic demand for a guaranteed acceptance of obligation of the related bankers for claims up to a certain maximum amount of liability statement.

Owing to the increased tourism initially intended only for the payments in the domestic cards guaranteed check was no longer sufficient. It was asked a means of payment, which could be used similarly and abroad as well as domestically.

Emergence of Eurocheque system

With the realization of a pan-European cards accepted guaranteed checks a single institution, a national group of institutions and even all banks and savings of a State were overwhelmed. Therefore, a network of bilateral agreements began to mutual redemption of guaranteed checks Europe to coat. With an increase of such intergovernmental agreements check cashing foreign checks exhibitors for bank teller would have been affected due to different redemption Guidelines little more manageable and with significant security risks.

To come to a better solution in the form of a standardized settlement, there was on May 10, 1968 Meeting between financial institutions and their associations from 15 countries about the possibility of cross-border cooperation in cards guaranteed checks. The German banks and savings banks, just encouraged by the successful conclusion of a joint institute neutral check guarantee card had invited to this meeting to Frankfurt am Main. There was a general agreement, which laid the foundation for the Eurocheque system was laid.

The key, however, was the next conference, which took place at the invitation of the French financial institutions on 17 and 18 October 1968 in Paris. Agreement was reached on the Eurocheque logo, the name Euro check and Euro check card, the redemption conditions and clearing.

Belgium, the Federal Republic of Germany, Denmark, Luxembourg, the Netherlands, Austria, Switzerland and Liechtenstein joined the procedure as " active states " and France and Monaco, Finland, Great Britain, Ireland, Italy and San Marino, Norway, Sweden and Spain as " Passive States " to.

The active states raised their individual credit-card systems in the Euro check system. The relevant checks were provided from the active states with the Euro check logo. The checks were as before the checks of the account-holding financial institution. So there was initially no standardized Euro check cards and no standardized Eurocheques.

Such checks could with a credit card that showed the Euro check - mark to be cashed at financial institutions in all participating states ( active and passive states ), where they were issued in the currency of the home country. The equivalent value minus a commission was paid in the local currency. Only in the particular State in which issued the Euro check card and the Eurocheques were issued, it was the Eurocheque cardholders possible to issue guaranteed checks even at trade and service companies.

In the passive states that had no credit card systems or the Eurocheque system zuführten later, the financial institutions involved by cashing checks at its offices at Eurocheque system. My motivation was mainly to give an extra boost to tourism through a convenient means of payment.

The guidelines for the Eurocheque system contained the general redemption requirements, which were the same for all check guarantee cards, the special provisions for each check guarantee cards (especially of the respective maximum amount ) as well as pictures of all the bank cards and checks.

The set-off of mutual check costs was settled bilaterally between individual financial institutions in the interbank market.

As of May 1, 1969 checks were issued as part of the Eurocheque system. The focus was from the beginning about 175,000 Paying Agents. In the following years took both the number of active states as well as those of the passive states to a total of 39. You are no longer limited to soon only to Europe but also included countries in the Middle East and North Africa.

Uniform Euro check and uniform Eurocheque card

1972, a joint check certificate and a uniform check guarantee card has been inserted into the active states. The purpose of this document standardization was that it would familiarize the users as well as the bills. The Single Euro check also brought the loss of the pre-printed currency symbol with it, which was a prerequisite for the cash payment in the local currency and cashless payment in trade and service industries. The non-banking sector was opened in 1975, this development is not all States completed the same speed. Thus, the function of an international non-cash payment means the Euro check has been added to the function of an international cash withdrawals agent.

As a result of exhibiting the Eurocheques in the local currency and the provisioning was changed. Got in issuing a check with the Euro check icon in the local currency of the checkbook participating financial institution the commission directly as a deduction from the amount paid, it was paid for the issue of a uniform Eurocheques the amount of the check or used for payment, without a commission was charged. This was the submitting financial institution under reciprocal cost allocation. The Eurocheque exhibitors commission was detected until the debit his checking account into account.

Due to increasing cross -border use of the Euro check and an effort to streamline the process a payment with a Euro check, mutual cost allocation of the banks was no longer performed in the interbank market but special Eurocheque clearinghouses. Your activity is the international transfer

• Of uniform Eurocheques issued in the currency of the respective country, and
• Of uniform Eurocheques from the respective State, issued in various currencies abroad.

The number of active states was further increased by these measures, but without that, it was possible to include all states in the issuance of Euro check cards. Some countries - such as France and Great Britain - were indeed de jure active states, but only a few Euro check cards have been issued. Other states, in turn, remained exclusively passive states.

Operation

The warranty card for the Euro check bridged the weakness of a check can not be accepted by the drawee to (Art. 4 ScheckG ). Data written to the check for approval is deemed unwritten. Therefore looking for ways to remove the Einlöserisiko the check taker. This was the conclusion of a guarantee agreement between payee and banker. A disadvantage of this method was that the banker had to bear the commercial risk.

Emergence of the warranty

The check issuer had the number of his warranty card entry on the back of the Eurocheques. Thus, the Bank was able to determine whether the person for whose solvency they should stand, an authorized client of hers was. The guarantee agreement between the payee and the bank came into existence in:

• Match the number, the signature of the issuer, the name of the financial institution and the account number on the warranty card and the form for the Euro check - certificate

• Exhibition of Eurocheques within the period of validity of the Warranty Card

• Timely submission of checks

The warranty card had the payee is not presented. The ownership of the warranty card had the check issuer as a representative of ( aA as Übermittlungsbote ) of the related bankers. The check issuer closed for the banker a guarantee agreement with the payee from. Neither the delivery of Eurocheques by the authorized check issuer to the payee the warranty claim of the payee up to 400 DM was a result of this configuration, the guarantee scheme of Eurocheques was no breach of Akzeptverbot.

Abstractness of the warranty claim

The demand of the payee of the guarantee agreement was abstract. Objections to the warranty claim, derived from the relationship between the bank and the check issuer ( coverage ratio), could not be charged by the bank. Such objections may, for example, consist in a lack of funds in the account of the check issuer or the revocation of checks by the exhibitor. Only if defects were presented in the conclusion or in the existence of the guarantee agreement that these were essential. This was, among other things be the case if the cardholder was not their rightful owners. Goods has been lost to the customer the forms for the Euro check and filled it an unauthorized person with the correct card number and forgery of the signature of, for example, came a guarantee agreement is not reached, because the lack of power of representation of the trespasser a rechtshindernde objection is concerning the establishment of the warranty agreement itself. The Bank adhered to the payee but for legal appearance point of view. Other objections concerning the emergence of the guarantee agreement, are all other defects in the establishment of the warranty contract ( lack of signature, etc.).

Euro check card as an electronic debit card

With the advent of ATMs since the late 1970er-/Anfang the 1980s, the Euro check card in several states has been - used as the operating medium - in addition to their traditional function as a guarantee card for Eurocheques. It was also thought in these States from authorizing the Euro check card for use at POS terminals. Thus, the third phase of development of the Eurocheque system was initiated and done the first step towards the abolition of Eurocheques.

1981 decided to Eurocheque Assembly to create the conditions for the international use of the Euro check card at ATMs. 1982/1983 a study was carried out, which had the national ATM networks as a starting point, the country-specific requirements on ATM standards into account and developed a common standard on this basis. Thus, from 1 June 1984 it was possible to carry out cross-border pilot tests. Soon it was this service under the " ec - icon " to a standard of Euro check cards and the European ATM. This cross-border ATM function " ec - icon " there was in consequence not only on Euro check cards, but it was also associated with bank cards that could perceive no Eurocheque guarantee function.

The next step in the evolution of the Euro check system in 1984 decided in the Eurocheque Assembly by the establishment of POS systems and analyzed for cross- border use of the Euro check card at POS terminals approaches should be considered. Concrete measures, however, could - be discussed only in 1987 and 1988 under way - due to the initially hesitant national implementation of POS systems. In a project was " edc ", an "electronic debit card " developed. 1989 Euro Card International was involved in the project in order to offer the European financial institutions a coordinated " Euro Package" and to be able to extend the applications of the " edc " function in cooperation with MasterCard International to non-European states. As a result of this project was implemented, with the leadership of Maestro International has been transferred. This company was founded for cross- border electronic debit functions (ATM and POS) and is 50 % owned by Europay International, a company in 1992 formed from the merger of Eurocheque International and Euro Card International, and 50% owned by MasterCard International.

This was " edc " as European POS function next to the " ec - icon " as European ATM function another function on the Euro check card as well as bank debit cards without Eurocheque function.

Due to the progressive globalization of the economy with special emphasis on cross- border payments were by Maestro International, in addition to the two European debit functions " ec - icon " and offered " edc " global debit functions for ATM and POS use under the logo "Maestro". The Maestro function supplanted the European debit functions very soon by both European Euro check cards as well as European banking loyalty cards.

The Euro check card was so that, although the national use retained the greatest importance to become a world-ready electronic debit card, the check guarantee function increasingly receded into the background.

Development of Eurocheque States, Euro check cards and cross-border Eurocheques

Eurocheque States

In the starting year of the Eurocheques, 1969, took 14 States on Eurocheque system part: Seven active card issuance and acceptance (Belgium, West Germany, France, Great Britain, Netherlands, Austria and Switzerland), seven passive only with acceptance (Denmark, Italy, Ireland, Luxembourg, Norway, Sweden, Spain). It is interesting that the Euro check mark then appeared on the Carte Bleue - and Barclaycard credit cards. After joining this nationally valid credit card to the Visa credit card system, these cards lost the Euro check function, which in 1983 and 1989 led to a decline in non-uniform Eurocheque cards.

The Europe-wide dissemination of Eurocheque system is demonstrated in the status at the end of 1998. At this time the Eurocheque system had 46 participating countries, of which 22 are active ( Belgium, Denmark, Germany, Finland, France, Great Britain, Ireland, Israel, Italy, Croatia, Luxembourg, Malta, the Netherlands, Austria, Poland, Portugal, Switzerland, Slovenia, Spain, Czech Republic, Hungary, Cyprus) and 24 passive ( Albania, Algeria, Andorra, Armenia, Azerbaijan, Bosnia - Herzegovina, Bulgaria, Georgia, Gibraltar, Greece, Iceland, Lebanon, Lithuania, Latvia, Morocco, Macedonia, Romania, Russia, Slovakia, Tunisia, Turkey, Ukraine, Belarus ). Thus, the Eurocheque system was present in almost all countries in Europe.

In the German Democratic Republic Eurocheques were admitted on August 25, first time in 1986.

Euro check cards

Initially, there was only - as they were later called - not uniform Eurocheque cards in the design of the particular bank card, printed with ec logo. As of 1972, the so-called uniform Eurocheque cards came with the known appearance on the market. As a result, more and more active states were added, usually first with non-uniform Euro check cards, which were subsequently converted into uniform Eurocheque cards. Cuts, there was 1983, when the British banks no longer furnished them their credit cards with the ec logo. The same thing happened in 1989 with the French credit cards, so that the last non-uniform Eurocheque cards disappeared from the market. After that there was only one standard Euro check cards, end of 2001, 72.0 million

Eurocheques

All numbers refer only to cross-border Eurocheques, give only a fraction of the importance of Eurocheques as cash back. For the Euro check was also the national check each used in most of the States are actively involved in the Eurocheque system. To exceed the number of cross-border Eurocheques usually in those states rarely 5% of all checks issued. 1988, the peak year of Eurocheques, should also be issued to the 50 million cross-border Eurocheques about 950 million Eurocheques in the respective States. Overall, the total amount of issued Eurocheques 1988 amounted to about 75 billion euros. As a result, the number of cross-border Eurocheques issued and represented by them check amounts are merely given.

Expiry of the Euro check guarantee

Due to the rapidly increasing electronic debit functions of POS and ATM and the decreasing importance of the paper-based Eurocheques decided on 22 April 1999, Euro check to adjust the warranty with the end of 2001, the Board of Directors of Europay International. As a consequence of this decision no Euro check cards were by European financial institutions issued with an expiry date beyond 2001 more and the number of unissued Eurocheque forms returned, so that with the end of 2001 only a small number of Eurocheque forms owned by beneficiaries had. Since the beginning of 2002 issued on a Euro check -form checks are only normal checks because of the individual check laws.

Reasons for phasing out

The major disadvantage for each credit- restricted cash is that it failed to make the check machinable. The Eurocheque system was conditionally always connected by paper-based processing with relatively high costs. These costs charged by the Eurocheque exhibitor fee were not covered by far, were initially taken by financial institutions due to the small number of pieces in purchasing. They had not expected such a high number of Euro check payments. Also, price increases could not solve this problem.

Another feature of the Eurocheque system was that the people who accepted a Euro check of performance, had not to contribute to the costs of payment transactions. For the Eurocheque cardholders this had the advantage that very quickly established a broad acceptance network. However, it also meant that the Eurocheque system was never even. The introduction of a filing fee has been only limited possible and thus not sufficient.

Then there were the risk of costs incurred due to loss, theft and forgery of Eurocheques and Eurocheque cards and what were the financial institutions unable to support himself entirely to an increasing extent. Wear self had the financial institutions the Delkrederekosten who through misuse of the Eurocheque exhibitor. This could only be reduced by issuing less Eurocheques because once issued a Euro check was guaranteed.

• Cashless payments
• Investment