METHODS OF PAYMENTS AND IMPREST SYSTEM INTRODUCTION

The existence of people in a society and their daily interactions has made it possible for exchange and distribution of goods and services Therefore, people who engage in buying and selling of goods choose any methods of payment that would eventually enhance their means of settlement

Definition

Methods of payment refer to the mode chosen in the settlement of goods and services, as well as debt owed. The following methods of payment may be used in a business office
(1) Cash

(2) Cheque

(3) Bank

(4) certified

(5) postal order

(6) money order

(7)postage stamps

( inland telegraph money orders

(9) credit transfer

(10) credit carts

(11) Bills ofexchange the promissory note

(12) credit cards

(13) trader’s credit

(14) Direct Debit

(15) cheque cards

(16) cash card

(17) Traveller’s cheques

(18) Foreign currency

(19) Letter of credit

(20) Open Credit

(21) Mail or Telegraphie transfer

(22) Marked cheque

(23) Bank cheques.

1. CASH: coin and bank notes need no description, but few business concerns and a decreasing number of private individuals now make extensive use of the commodity. It is bulky to carry around and to store: it is easily lost and not so easily recovered and because of its negotiable character and the difficulty
in tracing it. It is a temptation to theft. Notes and coin, uncrossed cheques and Warrants payable to bearers, obliterated postage stamps, and the like may of course be sent through the post, but no compensation will normally be paid unless they are enclosed in one of the registered letter envelopes sold by the post office and are sent by registered letter post. Cash
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