Check

Checks are unconditional orders to pay an open item, and are effective when presented to the customer’s bank.

Direct Debit

Direct debit is an agreement between you, the customer, and the customer’s bank that regular amounts are to be debited from the customer’s account to settle open items. Direct debits can be in paper or electronic form. Direct debits are automatic payments, and use the electronic payment formats (bank file).

Draft

The draft or bill of exchange is a negotiable security signed and dated by its issuer (the bank). It contains an unconditional order or instruction for the customer, who draws upon it to pay a fixed amount on the agreed due date. The customer accepts the draft by signing it. Once signed, the draft is considered a collection instrument. Its form, content, and legal consequences are governed by law.

Promissory Note

The promissory note is a promise of payment made by the customer, instead of an unconditional payment order. The promissory note carries more risk for the beneficiary and has fewer legal consequences for the issuer if payment is defaulted.

Summary Statement

The summary statement is sent to the customer by a third party, and used when the third party is responsible for the collection of amounts. For example, factoring companies and banks that provide credit card services use summary statements.

Credit Card

A credit card payment is a customer payment by credit card that has been validated by QAD Customer Self-Service (CSS). See Credit Card Payments.