Means of payment is used about different ways to pay for goods and services. One example is paying a supplier in cash, or receiving a bank transfer from a client.
The most common means of payments are cash, bank deposits, or credit cards. Other means of payment include online payment systems, such as PayPal or Google Pay.
Stocks, precious metals like gold and silver, and gemstones can also be considered means of payment—although you probably don’t want to carry around a treasure chest to buy your lunch or pay your suppliers.
Other words for means of payment are payment methods or payment modes.
Means of payment on an invoice
There are many ways for clients to pay you when you invoice them. A lot of clients will appreciate being offered several ways to pay you. Here are some examples:
- Bank transfer. This is a very common payment method, and you just have to list your bank account details on the invoice, including a SWIFT code if you’re invoicing across borders.
- PayPal, Apple Pay or similar. You can include a link to a payment gateway on your invoices. Clients can click this to go to a payment gateway operated by the service you use.
- Check. You can ask your client to send you a check for the amount owed.
You can also charge the client at the point of sale via cash, debit card or credit card. If you do this, your invoice should specify that the amount has been paid.
You can also take payment in advance, if you’ve agreed this with the client. This is called advance payment.
What are payment terms?
Payment term is a word for all the payment instructions in your contract and on your invoices. Payment terms include things like how you want the client to pay—the means of payment—the due date for the payment, late fees and interest for late payments, and so on.