People usually make payment by using the following methods. The following list summarizes the various methods of payment used in settling accounts
(b) Payments through the Post Office:
(1) postal and money orders (the latter for payment abroad only);
(ii) Giro transfers (postal cheques);
(iii) C.O.D. system ( Cash on delivery).
(c) Payments through banks:
(1) home trade: cheques, credit transfers (bank giro);
(ii) foreign trade: bankers’ transfers (mail, telegraphic and
Telex); bills of exchange and promissory notes, bank
commercial credits (documentary credits if a documentary
bill is used);
(iii) home and foreign trade: banker’s drafts; letters of credit.
A creditor is entitled to insist on payment in legal tender, that
is in the legally authorized currency of his country, but in practice is usually willing to accept payment in other forms from
The form of payment to be used is a matter for
arrangement between the parties.