Secure Payment Methods in Sales Transactions
In a sale-purchase obligation, the major involved parties (seller-buyer) are obligated as follows: the seller delivers the goods, and the buyer pays the price. Payment can be made as agreed between the parties:
Down Payment
This is a form of immediate delivery, typically in cash (banknotes, legal tender, coins, etc.).
Payment on Credit
This is done at a time or deadline posterior to the goods’ delivery, as agreed upon between the parties. As a rule, the price of the merchandise undergoes a small increase for late payment.
The Bill
It is used as a means of payment when the articles sold are of short value or when relations between the customer and supplier are continuous and stable, and there is trust between both. It serves as proof that the customer is paying.
The Check
This is a document ordering a person’s bank to pay an amount to another person. Currently, issuing a bad check is a crime. There are some special types of checks:
- Bank Check: A check issued by a bank and signed by its authorized representatives. In this form, the bank becomes the direct debtor.
- Confirmed Check: A check issued by the debtor to the creditor, where the bank guarantees payment with a stamp on the back.
- Crossed Check: A check for which recovery can only be credited to an account. Crossed checks are marked by drawing two parallel oblique lines across them. The purpose of crossed checks is that if the check is lost, anyone except the owner cannot cash it.
Bank Transfer
This is an order a person gives a bank to transfer an amount of money from their bank account to another account.
Credit and Debit Cards
These cards are plastic and permit making payments in commercial establishments with adequate e-card terminals.
- Credit Card: The bank pays the debt on behalf of the debtor by automatically granting credit, usually with a monthly limit.
- Debit Card: Payment is made against the money the debtor has in the account at the bank issuing the card.
Remittance of Trade Effects
When a bank manages the charge of trade effects, a consignment is delivered. Commercial consignments group effects of the same nature (checks, etc.). Once the due date arrives, a form is filled out for each batch of these effects, along with a remittance form.
Bill of Exchange
This is a commercial effect issued by the creditor or drawer, in which the fundamental data of the credit against the debtor or drawee is collected. This data includes the amount, payment date, payment place, and the drawer’s address. Generally, the drawer includes the letter containing the debtor’s acceptance conditions for payment validity against third parties. Credits between merchants are warranted through bills of exchange when creditors need some security that the debtor will fulfill their obligation to pay.
The Promissory Note
This is a document containing the unconditional promise of someone to pay someone else a given amount of money within a determined time. The requirements of the promissory note are:
- Mention that it is payable.
- Contain the unconditional promise to pay an amount of money and its interests.
- The document must include the beneficiary’s name.
- It should indicate the debt payment.
- The place and date where the promissory note is signed.
- The signature.
It is transmissible and can be processed for the total amount of the promissory note.