ABSTRACT
One of the core traditional functions of banks is to accept deposits from and offer bank accounts to their customers. As such, banks operate a complex payment system which allows individuals and businesses to make and receive payments in various ways and to draw cash. This chapter discusses the legal nature of the relationship between banks and depositors, which is one of debtor-creditor and examines the various common types of bank accounts: current accounts, joint accounts and savings accounts. It considers the duties of the bank and the account holder and the consequences of fraudulent and other unauthorised transactions. It further analyses the right of banks to combine different accounts held by a customer, as a manifestation of the broader principle of set-off. The latter part of the chapter addresses common payment methods: cheques, debit cards, other payment cards and electronic transfers of funds, with an emphasis on the apportionment of liability in the case of unauthorised transactions.
