Different Modes or Types of Payment ↓
The payment tin flame travel made inwards many different ways similar past times giving Cash, doing Telegraphic Transfer or Mail Transfer, via Money Order or Postal Order, Bill of Exchange, Promissory Note, Cheque, Bank Draft, etc.
1. Cash Payment
This is ane of the oldest modes of payment. In this case, the buyer pays money inwards the shape of notes together with coins to the seller. The seller on receipt of cash, issues cash memo or cash receipt. This manner of payment is suitable entirely for pocket-size transactions.
2. Telegraphic Transfer or Mail Transfer
In this system, the payer deposits the money along alongside other charges inwards a depository fiscal establishment which has a branch role at the payee's place. On receipt of cash together with other charges, the depository fiscal establishment telegraphically informs the branch role to credit the amount to the payee's A/C. The payee is accordingly informed together with tin flame withdraw the money. The money tin flame equally good travel remitted past times postal service transfers, which takes a niggling longer time. This method helps for quick remittance, simply it is non a pop one.
3. Money Order or Postal Order
Payment tin flame equally good travel remitted through money orders together with postal orders. Businessmen may prefer to a greater extent than of postal orders because a large number of postal orders tin flame travel collected together with encashed at a time. Postal club is safer than a money order. Postal orders tin flame travel crossed for security purpose. However, traders usually exercise non usage this method of payment.
4. Bill of Exchange
According to the Section v of Indian Negotiable Instruments Act, 1881, "A pecker of telephone substitution is an musical instrument inwards writing containing an unconditional order, signed past times the maker, directing a sure enough mortal to pay a sure enough amount of money entirely to, or to the club of, a sure enough mortal to the bearer of the instrument."
Some Advantages of Bill of Exchange are :-
- The holder of the pecker tin flame have the money fifty-fifty earlier the due appointment of bill, by
discounting the pecker alongside his bank. - The pecker tin flame travel transferred to unopen to other person.
- It enables the buyer to purchase the goods without making actual payment. He bring the pecker & brand payment at a after date.
5. Promissory Note
A promissory notation is an musical instrument inwards writing (not beingness a depository fiscal establishment notation or e currency note) containing an unconditional project signed past times the maker, to pay a sure enough amount of money entirely to, or to the club of a sure enough person, or to the bearer of the instrument.
6. Cheque
Every human being of affairs has a depository fiscal establishment job organisation human relationship to facilitate his job organisation transactions. When the depository fiscal establishment job organisation human relationship is opened, the depository fiscal establishment gives a tally mass for making payments. blogspot.com//search?q=what-is-cheque-definition-kinds-and">cheque payment is a convenient together with safer manner of payment. To ensure blogspot.com//search?q=what-is-cheque-definition-kinds-and">safety the tally may travel blogspot.com//search?q=what-is-cheque-definition-kinds-and">crossed to a greater extent than frequently than non or specially, together with thence that the payment to a incorrect mortal is prevented.
7. Bank Draft
A blogspot.com//search?q=what-is-cheque-definition-kinds-and">Bank Draft is defined equally "An club to pay money, drawn past times ane role of a depository fiscal establishment upon unopen to other role of the same depository fiscal establishment for a amount of money payable to club on demand."
Bank drafts are frequently used for the purpose of transferring funds from ane house to unopen to other inside a province or from ane province to another.
A depository fiscal establishment draft is an club given past times ane depository fiscal establishment upon unopen to other of its branch depository fiscal establishment situated elsewhere to pay a sure enough amount of money.
The contents of depository fiscal establishment draft is to a greater extent than or less that of a cheque, simply it is signed non past times the payer simply past times the banker.
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