Packing Credit

A bank loan given to the beneficiary of a documentary credit to enable him to purchase raw materials. The beneficiary is usually requested to deposit the credit with the bank as security.

Paid

Items that are certain to be honoured. The only way to ensure that cheques are 'paid' is to pay for them to be 'specially presented' - this will produce an final and binding decision from the paying bank, although it does not shorten the clearing cycle and the system depends on the delivery of the cheque at the other bank by the postal service.

PAN

Primary Account Number (of cards). This is card account number embossed on the card.

Pari Passu

A legal undertaking to ensure that the Bank will be placed on an equal footing with other secured creditors.

Part-time Occupation

This is when you or any named drivers have a part-time occupation in addition to your/their full-time occupation. For example, a full-time student may have a part-time occupation working in a public house or a full-time shop assistant may have a part-time occupation working as a sales representative. Although we are currently unable to offer a quotation for additional occupations online, if you contact us on 0800 085 5522 one of our sales advisors will be able to assist.

Past Due

Bill or loan that has not been paid on the maturity date/due date.

Patch

Correction of a mistake in the original coding of a computer program. Also known as a bug fix.

PAYE

PAYE stands for Pay As You Earn. It is the system used for the taxation of nearly all employees. It is not used for self-employed workers (taxed under the Self Assessment system), nor for companies (who pay Corporation tax instead). PAYE is a way of spreading employee income tax over the tax year. The tax year starts on 6 April of one year and ends on 5 April in the next. Under PAYE, employers take tax from the employee's weekly or monthly earnings and pay it over to the Inland Revenue. All employees can earn some money each year without paying tax, using their annual personal allowance and any other relevant allowances.

Paying bank

The term used to describe the bank or building society that is paying or honouring a payment on behalf of themselves (draft) or one of their customers. For example, if you issue a cheque to pay someone, this is an instruction to the bank to debit your account in favour of the other party (payee). Your cheque will be paid in by the payee and presented for payment through the clearing system. Your bank will usually pay the cheque, i.e., the paying bank. Note the bank could also return the cheque unpaid. It can also be the bank which is to pay under a documentary credit. It can be the issuing bank itself (i.e. the bank that opened the documentary credit at the request of its customer, the applicant) or a bank nominated by the issuing bank, usually the advising bank (i.e. the bank through which the issuing bank advised the letter of credit).

PDF file

Adobe Portable Document format is a universal file format that retains all fonts and formats of a source document regardless of the application used to create the document.

Pension Provider

The company offering the product. For example HSBC Bank plc is a pension product provider.

Pension-Linked Loans

Similar to an endowment mortgage in that payments are made to the lender to cover interest charges whilst additional payments are made into a pension fund. When the loan has matured, the tax free cash amount of the pension is used to pay off the mortgage.

Peppercorn Rental

A very low or nominal rental. In leasing it refers to the much reduced rentals allowed during the secondary period of a finance lease.

Performance Guarantee

A Guarantee issued on behalf of an Applicant allowing the Beneficiary to claim payment where the Applicant fails to fulfil his underlying contractual obligations. 

Perils of the Seas

A term used to describe accidents or casualties of the sea caused by the extraordinary actions of winds and waves, e.g. heavy or tempestuous weather on a voyage.

Personal Accident

For Insurance purposes this option is available under most types of policy to business partners directors and employees against death, loss of limbs, sight, speech or hearing, permanent total disability or temporary total disability caused directly by accidental physical injury. Can also cover a director partner or employee injured during an attack whilst carrying goods or money on behalf of the business( Personal Accident assault) Cover is available in units, such as £5000 for injuries, £50 weekly benefit, in the event of disability.

Personal Contract Purchase

Personal contract purchase for company car drivers is a personal agreement with an optional balloon payment where title to the vehicle rests with the finance company until the final repayment is made. See also Contract Purchase.

Personal Pension

This allows self-employed and employed individuals who are not members of a company occupational pension scheme to set aside money on either a regular or ad hoc basis for retirement. They were established in July 1988.  

Personal Possessions

Clothing, baggage, money, credit cards, guns, sports equipment, pedal cycles and other similar items worn or used, and in either case carried about the person in everyday life, including portable prams, pushchairs and carrycots or travel seats - all of which belong to you.

PIN

Personal Identification Number, issued with certain cards to enable use at cash machines and, increasingly, at some retail outlets overseas. 

PKE

PAN Key Entry The action of manually keying a card number via the terminal keypad, where a card failed to read correctly when swiped.

Plant and Equipment

A form of fixed asset, e.g. machinery, fixed installations such as overhead cranes.

Plug in

Extra browser function to allow it to play music, speech, video or animations.

Polling

A process, typically overnight in the case of card transactions, where the retail terminals download the day’s sale and refund details to a bank’s systems.

POP

The language used by your email program to get messages from your ISP. 

Power of Attorney

An authority given to one party to act for another. 

Premises

The address named in the schedule.

Premium

The cost of purchasing an option, usually paid with spot value from the initial transaction date.

Pre-payment

An advance payment made before related goods or services have been received. Sometimes pre-payments are made to take advantage of offers such as discounts or allowances.

Presentation

The act of presenting a financial instrument (e.g. bill of exchange) or documents to a party. 

Presenting Bank

The bank that presents a bill of exchange to a drawee for payment or acceptance.

Principal

The party who initiates the transaction, e.g. the opener of a documentary credit or the person who arranges for the issue of a guarantee.

Principal Amount

The gross amount covered by a transaction.

Priority Payment

A fast and efficient overseas service, with payments usually reaching the beneficiary within three or four days, depending upon the destination country. Priority payments can be arranged through most bank branches. If you regularly send priority payments and want to send them from your own computer, then Hexagon, HSBC Banks’ global electronic banking system may suit your needs.

Processing Cycle

The length of time, in working days, it takes to process a payment instruction – from the time the instruction is instigated (or enters the payment system) to the point it is paid (as opposed to returned) by the paying bank. 

Processor

The 'engine' of the computer. For example, Pentium III.

Products Liability

The object of products liability insurance is to protect you against your legal liability for injury to third parties or loss or damage to third party property caused by goods sold, supplied, repaired, serviced or tested by you or your employees.

Profit and Loss account

One of the three main financial statements legally required to be produced by a company (the other two being Balance Sheet and Statement of Sources and Applications of Funds). Rules define the content and format of Profit & Loss Accounts. The Profit & Loss Account shows the revenue and expenses of a company during a specific period of time. It will also show taxation and dividends due. 

Program

A set of instructions to your computer, which will allow you to do something. Written in one of the many computer languages.

Promissory Note

A signed undertaking promising to pay a stated sum to a specified party on a specified date or on demand.

Protected Rights Fund

Protected Rights funds are made up of contributions received in respect of contracting out of the State Earnings Related Pension Scheme (SERPS). These payments are funded by National Insurance contributions paid by you and your employer and are based on your level of earnings and your date of birth. We receive these payments from the National Insurance Contributions Office (NICO) and pay them into your pension. The pension you can receive and the time when you can receive it is determined by the NICO rules.

Protest

Also known as Noting. The first stage in protest of a dishonoured bill: if instructed to protest for non-payment/ non-acceptance, the collecting bank must send the bill to a notary public who will represent it to the drawee on the same day it was refused, or the next business day. If the drawee still refuses the bill the notary public “notes” on the bill: the amount of his/her charges, the date and his/her initials. The reason for refusal is shown on a note attached to the bill. The bill is then protested.

Public Liability

Covers your legal liability for accidental loss of or damage to third party property or for death, injury or disease to third parties arising out of the business either at or away from the insured premises, should negligence be proven.

Purchase Agency

A legal agreement which allows one party to acquire goods or services on behalf of another.

Put

The right to sell the currency under the terms of an option contract.

PWCB

Purchase with cashback. A facility which can be set up to allow customers to draw cash against their card account at the same time as making a purchase. This can increase business and reduce the amount of cash in the till which in turn could reduce business insurance costs.