Who can authorise a payment
A payment needs the right person's approval before it leaves the bank. Learn how limits work and what is checked first.
Task 1The mandate and the limits4 questions
- Bank mandate
- the business's written instruction to its bank, naming who may approve payments from the account
- Authorised signatory
- a person named on the mandate
- Authorisation limit
- the largest payment a person may approve
| Size of payment | Who must approve it |
|---|---|
| Up to £250 | Lena Hart, shop manager |
| Over £250, up to £2,000 | Priya Nair or Dan Okoro, the owners |
| Over £2,000 | Priya Nair and Dan Okoro together |
The bigger the payment, the more senior the approval. The largest payments need two people.
Task 2What is checked before approving3 questions
Task 3Online payments and cheques2 questions