Overview Of The Existing Payment Methods Essay

Money Payment

This is one of the most seasoned methods of installment. For this situation, the purchaser pays cash as notes and coins to the dealer. The merchant on receipt of money, issues money reminder or money receipt. This method of installment is reasonable just for little exchanges.

Transmitted Transfer or Mail Transfer

In this framework, the payer stores the cash alongside different charges in a bank which has a branch office at the payee’s place. On receipt of money and different charges, the bank telegraphically illuminates the branch office to credit the sum to the payee’s A/C. The payee is as needs be educated and can pull back the cash. The cash can likewise be transmitted via mail exchanges, which takes a little longer time. This strategy helps for speedy settlement, however it’s anything but a well-known one.

Cash Order or Postal Order

Installment can likewise be transmitted through cash orders and postal requests. Agents may incline toward a greater amount of postal requests in light of the fact that countless requests can be gathered and encased at once. Postal request is more secure than a cash arrange. Postal requests can be crossed for wellbeing reason. In any case, dealers ordinarily don’t utilize this strategy for installment.

Bill of Exchange

As per the Section 5 of Indian Negotiable Instruments Act, 1881, “A bill of trade is an instrument in composing containing an unlimited request, marked by the producer, guiding someone in particular to pay a specific aggregate of cash just to, or to the request of, someone in particular to the conveyor of the instrument.”

Promissory Note

A promissory note is an instrument in composing (not being a certified receipt or e cash note) containing an unqualified endeavor marked by the creator, to pay a specific whole of cash just to, or to the request of someone in particular, or to the conveyor of the instrument.

Check

Each specialist has a financial balance to encourage his business exchanges. At the point when the financial balance is opened, the bank gives a check book for making installments. check installment is an advantageous and more secure method of installment. To guarantee security the check might be crossed by and large or extraordinarily, so the installment to a wrong individual is anticipated.

Bank Draft

A Bank Draft is characterized as “A request to pay cash, drawn by one office of a bank upon another office of a similar bank for a total of cash payable to arrange on request.” Bank drafts are frequently utilized to transfer assets starting with one place then onto the next inside a nation or starting with one nation then onto the next. A bank draft is a request given by one endless supply of its branch bank arranged somewhere else to pay a specific whole of cash.

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