Banking Double Signatures

Guideline comments only.

The model rules from the Office of Fair Trading for banking include a clause on double signatures. 
For cheque accounts this means two signatures on a cheque.
You need to register the signatories with the bank using the 100 point system after the changing of the guard at the AGM.
Banks may require a face to face meeting to change signatures when a new club executive is elected and the signatures are changed.
All cheques are needed to be documented in the committee meetings so a clear audit trail of transaction can be established.
Cheques are going so a banking review is required at club level.
Here is more details for online banking.  It is simple and quicker than cheques.

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Online banking.

Most people use online banking for personal accounts with one signature and maybe a dongle.
This is how I think you can get double signatures at the Commonwealth Bank's Netbank. 
The big 4  banks (CBA,NAB,ANZ,WBC) follow this procedure. 
The same procedure is used for the minor banks and credit unions.  CUA, ABA , Bendigo etc
Regional banks have a code of practice similar to the big banks. 
They have to compete for customers.
The tellers may give out the wrong answers so you have to ask the right questions.

Standard Two Signature

Having two signatures lessens the risk of illegal transactions to officers of a Garden Club.
Scams are becoming more sophisticated and prey on unsuspecting customers.
Having double signatures takes about the same amount of time as a single signature system if you know the system.

Two Signatures online 

Two or more committee members are authorised as online signatories to the clubs accounts.
This is the same steps are used for cheque accounts. 
Most banks allow you to use the cheque account (direct debit) for online transaction.
Once authorised you can work from home and that means you don't have to be at a branch to do the transactions.
Normally this is done on the home computer using your internet and the clubs' banking accounts.
There is a time limit for the transaction to be completed in the same manner as buying a ticket for an event.
This can be a couple of hours or maybe 24 hours depending on the banks regulations.

Step 1 decide that an electronic payment is required and set up authorisation with the bank.
That means two or more committee members need to be registered to view the Clubs' bank accounts.
The normal 100 points is needed to be a registered customer.
Usually the committee member visits the bank and fills in registration forms.
Registration often takes a couple of days to be processed. 
Usually the  President, Secretary and Treasurer are registered with the bank. 
Four signatories and any two to sign.
This is the same process as for a cheque account.
If you are a customer of the bank then this step is not required and you can use your bank ID.
You may need a face to face meeting to confirm this arrangement. That is good PR.
The cheque account can be used as the online bank account. 
Once registered as a banking customer with a banking ID the bank can then give you access to view the club's account online. 
If you have sub accounts then you will  need to assign access identity to each sub account. 
A separate set of identities is possible when there is a admin account and an event account. 

Step 2 two Netbank customers have to approve a transaction. Treasurer, Secretary, President or Vice President. T,S,P,VP
They must know online banking.
You can get 4 customers registered so that 2 can be out of town. say customers T,S,P,VP
At first do the transaction on together on the one computer.

Suggested transaction strategy online with separate computer sessions.

Step 3 send an email saying will do a transfer the same process as with customer say Tres and Pres doing the transaction.  S and VP are nor involved.
Step 4 Tres sets up the payment as a normal electronic transfer Name, Amount, BSB bank account etc
Step 5 Tres then phones/emails on mobile phone to Pres and confirms that he has made the payment request.
Step 6 Pres logs onto Netbank and confirms the payment.
It comes up as a pending transaction on P's screen.
Pres has say a set time to confirm this transaction (usually around 24 hours but bank configurable)
Step 7 Transfer goes through once pending button is acknowledged
Step 8 if confirmation is not validated within the set time the transaction goes stale. No charge.
Not sure on the set time mins time limit bank specific
Payments for a new customer may require additional authentication..
No new account is needed.
Works with current Garden Club account.
No need to change the constitution and conforms with Office of Fair Trading Model rules.
No extra charges for  this service.
The banks preferred transaction method and cheapest.

Credit card purchases

The Square (or similar process) for collecting payments at a show. 
Others are Zeller or the 4 big banks credit card systems.
For  this explanation I will use the square system.
If you are registered with the Office of Fair trading you will have a registered GST account number.
You need the GST number to register the Square card system.
The square can be registered on an event day so that the transactions are automatically transferred to the club accounts at the end of the day.
This means that the Square can be shared by other garden clubs if they run an event on a different day.
If the system is setup correctly then the clubs customer only needs to click his card and the square system will collect and record the money at the point of sale.
Get help in setting up the Square. (either WIFI or Mobile phone).
The square system allows the naming of the different types of transactions.
At the end of the day the money and transaction codes are transferred to the club's account.
You can view the individual transactions and you can get summary totals.
At a recent event the coffee shop claimed 2/3 of the payments were done via the Square. 

Credit card payments 

Often Internet providers demand an online payment via credit card.
If you email them early you can direct debit as above using the cheque account.
Single signature payments violate the OFT model rules.
You can get a EFTPOS account and transfer from the direct debit account to the EFTPOS account using the double signature approach. 
That means you make a payment using the double signature.
Then pay using the single EFPOS account.  This provides a traceable payment method authorised by a double signature and satisfies auditors.


I get  paranoid about these payments.  RBA and Government are suggesting these cost should be minimised.
Costs purchase of Square from $30 to $300 depending on options.
Monthly charge nil or $SIM card at $15 per month or $45 per month at the big banks.
Transaction fees 1 to 2% of money collected.
These cost  will vary over time.


Increased likelihood of payment when customers doesn't hold cash.
Demanded by customer.
Increased sales value by 10 to 25%.
John Keays April 2024

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