Examples for business, study, careers, love, and more...
Examples :: Business Letters :: Demand for method of payment

Demand for method of payment

The bouncing cheque and its credit card equivalent are perennial problems for business. The bouncing payment also creates expensive amounts of extra work.

Generally, terms of payment for transactions are stipulated, and a payment which bounces is a non payment. Declined payments result in non delivery of goods for customers, etc.

However, in many business accounts, payments start off OK and go bad. That leaves the business with a difficult situation. Even though the business is well within its rights to decline service without payment, losing customers because of what may be a temporary payment problem isn't the best response.

The usual response is what is effectively a demand for an acceptable method of payment. It may not be phrased like a normal demand, but that's what it is. The demand really translates into 'No Credit', or 'Debit Only'.

Types of demand for payment can take several forms, but the bottom line is that the money transferred is in a form guaranteeing payment. Payments by certified cheque, PayPal or some other third party where the money has to be available to be processed are the normal result.

The example below is a relatively tactful but clear letter explaining to a client the requirements for payment.



Your reference
Our reference


Required forms of payment

Your attention is drawn to recent transactions in which payments were not honored by your credit provider.

Please note: You will appreciate that we are not able to service your orders under these circumstances. Payment must be verified prior to shipment.

Your custom is appreciated, and we suggest that in order to avoid further instances of these problems payment is made in the following forms:

  • Certified cheque.
  • Third party facilities like PayPal or another online source making verified payments.

If you have any queries regarding these forms of payment, or would like to discuss payment options for your account, please contact me on the above phone number or email.

Yours sincerely



Please note:

  • This text is intended for advisory and guideline purposes only.
  • Any business letter can become a legal document, so check your content properly before issuing.
  • Any executable or statutorily defined document should be checked for compliance with legal requirements, and you should seek legal advice regarding its contents.