Means of payment

 

Commerce SSS3 First Term

WEEK 4

Means of payment

Performance Objectives

The student should be able to:

     1. Discuss the different means of payment.

Content

Means of Payment

Payment is the settling of financial transactions or the settlement of outstanding debt between a creditor and a buyer.

Factors Affecting the Method of Payment

1. The total amount of money

2. The cost of the means of payment

3. The urgency of payment

4. The type of account kept by the debtor

5. The safety of money

6. The date of payment

7. Distance between the payer and receiver.

Various Means of Payment

1. Legal tender: A form of payment in which the creditor is compelled by the law…