The procedure for making payment will depend on the means of payments. payments may be made in cash, by cheque or by bank draft.
- Payments by cash: this refers to payments made using coins or currency notes. this method of payments is often used for settling bills or purchases involving small amounts. it is not advisable to carry cash about to settle bills, because of the risks involved. the money might be snatched by armed robbers. coins and currency notes issued by the federal government of Nigeria is legal tender. this means that a creditor is bound to accept the money in these forms in settlement of a debt or bill due to him or her. payment is usually made to the cashier, in large organizations.
- Payment by cheque: A cheque is another means by which payment can be made. cheques for settling bills by business organizations are normally prepared by a clerk in the cash office. they may also be written by private individuals in settlement of their individual bills. there are important rules that which must be observed when writing cheques, otherwise the cheque will not be valid.
- Payment through bank draft: payment can also be made by means of bank draft. A bank draft is a cheque drawn by the bank it self. the customer issues his own personal cheque to the bank or pays cash for the required amount and keeps the commission. this is generally more acceptable to individuals or organizations than a personal cheque. unlike a personal cheque, a bank draft may be payable on sight. the payment is made in settlement of a bill, whether by cash, cheque or bank draft, the payee is issued a receipt. a receipt is an acknowledgement that you the bill has been settled. the amount involved is written on the receipt both in words and in figures. for payments made by cheque, the cheque number and the date on the cheque must be also written on the receipt. other important method of payments but the above listed are the most important, especially in international and online business.
The three listed above are the basic modes of paying through banks and doing several financial transactions, and the listed ways are the most efficient and popular modes we can pay into or through the bank