Different Modes Of Payment - What Are Types Of Payment?

Different Modes or Types of Payment ↓

The payment tin hold upward made inward many different ways similar yesteryear 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 inward the shape of notes as well as coins to the seller. The seller on receipt of cash, issues cash memo or cash receipt. This trend of payment is suitable entirely for modest transactions.

2. Telegraphic Transfer or Mail Transfer

In this system, the payer deposits the money along amongst other charges inward a depository fiscal establishment which has a branch purpose at the payee's place. On receipt of cash as well as other charges, the depository fiscal establishment telegraphically informs the branch purpose to credit the amount to the payee's A/C. The payee is accordingly informed as well as tin withdraw the money. The money tin likewise hold upward remitted yesteryear shipping service transfers, which takes a footling longer time. This method helps for quick remittance, merely it is non a pop one.

3. Money Order or Postal Order

Payment tin likewise hold upward remitted through money orders as well as postal orders. Businessmen may prefer to a greater extent than of postal orders because a large number of postal orders tin hold upward collected as well as encashed at a time. Postal lodge is safer than a money order. Postal orders tin hold upward crossed for security purpose. However, traders unremarkably practice non usage this method of payment.

4. Bill of Exchange

According to the Section five of Indian Negotiable Instruments Act, 1881, "A neb of telephone substitution is an musical instrument inward writing containing an unconditional order, signed yesteryear the maker, directing a surely individual to pay a surely total of money entirely to, or to the lodge of, a surely individual to the bearer of the instrument."

Some Advantages of Bill of Exchange are :-

1. The holder of the neb tin have the money fifty-fifty earlier the due engagement of bill, by
   discounting the neb amongst his bank.
2. The neb tin hold upward transferred to or as well as then other person.
3. It enables the buyer to purchase the goods without making actual payment. He convey the neb & brand payment at a subsequently date.

5. Promissory Note

A promissory annotation is an musical instrument inward writing (not existence a depository fiscal establishment annotation or e currency note) containing an unconditional project signed yesteryear the maker, to pay a surely total of money entirely to, or to the lodge of a surely person, or to the bearer of the instrument.

6. Cheque

Every human being of affairs has a depository fiscal establishment line of piece of employment organization human relationship to facilitate his line of piece of employment organization transactions. When the depository fiscal establishment line of piece of employment organization human relationship is opened, the depository fiscal establishment gives a depository fiscal establishment jibe majority for making payments. cheque payment is a convenient as well as safer trend of payment. To ensure safety the depository fiscal establishment jibe may hold upward crossed to a greater extent than ofttimes than non or specially, as well as then that the payment to a incorrect individual is prevented.

7. Bank Draft

A Bank Draft is defined every bit "An lodge to pay money, drawn yesteryear ane purpose of a depository fiscal establishment upon or as well as then other purpose of the same depository fiscal establishment for a total of money payable to lodge on demand."

Bank drafts are ofttimes used for the purpose of transferring funds from ane house to or as well as then other inside a solid position down or from ane solid position down to another.

A depository fiscal establishment draft is an lodge given yesteryear ane depository fiscal establishment upon or as well as then other of its branch depository fiscal establishment situated elsewhere to pay a surely total of money.

The contents of depository fiscal establishment draft is to a greater extent than or less that of a cheque, merely it is signed non yesteryear the payer merely yesteryear the banker.