What is a pay order letter?
The pay order letter is a formal letter that a company, particularly a bank issues to its clients. These details are generally issued upon the request of the client. This letter is considered important because it tells the recipient how much amount he is required to pay. It is a type of order that is given by a bank to someone who needs to make a payment to someone.
This letter is a clear message to the recipient that he is entitled to pay a specific amount mentioned in the letter. It is not important to write a letter always. However, when a payee or the company has asked you to write the pay order, then you can write the letter.
What information should be provided to the payment order letter?
Date of pay order issuance:
For keeping track of payments made and payments received, the letter mustn’t miss the date of pay order issuance.
Details of the issuer:
As a matter of fact, not everyone is allowed to issue the Pay order. The payee will not pay on receiving the pay order from everyone. So, if you are eligible to write this letter, don’t forget to mention your details. You can also use the letterhead of your company instead of giving your details.
Details of the payee:
Don’t forget to give out details of the payee in this letter. Sometimes, the payee wants to confirm if this letter has been issued to him. So, when he sees the details given in the letter, he can confirm.
Pay order details:
After giving basic details in the letter, give pay order details including the unique order number, the total amount to be paid, the date by which amount should be paid, the terms and conditions of the Pay order, and many other details.
Additional details:
If you want to add some more content to the letter such as a formal request for quick processing of the payment, you can mention the details in the letter.
What are the benefits of the pay order letter?
It protects the payer and the payee:
The pay order is proof as to who has issued the order of the payment, how much the payee is entitled to pay, and much more. Since everything is recorded, both parties involved in the agreement feel protected.
There is no chance of fraud:
The pay order is generally issued by the bank which acts as a third party between two parties in agreement. They keep the bank between them because of trust issues. The bank does not let both parties not scam each other.
It is convenient for the payee:
The payee often wants to see the pay order before he makes the payment for his satisfaction. So, when he knows that the bank can issue him the pay order, he can simply request it.
Below is a sample letter for your assistance.
Sample pay order letter with details:
Subject: Requested pay order with details
Respected Mr. Johnson,
This letter is being written on behalf of the Company (mention the name of the company) upon your request to issue you the pay order. The said company is a small vendor who has sold you its raw material to you on (mention the date). The total amount that you were to pay was (mention the total amount) including GST.
Kindly pay the said amount to the official account of the company you have purchased products from. The account details are:
Name of the company:
Account number, account type, name of the bank, branch code, and some other important details.
For your satisfaction, a receipt issued by the vendor is also attached with the letter. You are requested to make the payment by the 10th of next month. However, quick processing of payment will be appreciated. If you don’t agree with the details given above, you can contact the bank and the bank will collaborate with the vendor. Feel free to contact the bank on its official phone number.
Regards.
File: Word (.docx) & iPad
Size 24 KB
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