How to Write Letter

Payment Confirmation Letter

Payment confirmation letter is a written statement that states the receipt of a payment for a purchase of product or services rendered. Usually this type of confirmation is sent through email and is also called a payment confirmation note.


Payment is an amount of money that you pay or receive either for purchase or selling of some product, or for some type of services offered and enjoyed. There are a number of ways you can make or receive your payment. You can make your payment through the credit card, cheque, demand draft or through electronic cable. However, sometimes it is just impossible due to some reason to make payment on time. In such a situation, you should at least take an initiative to inform your creditor or to whomever you owe.

When you are late to pay your mortgage, car loan, house rent or credit card payment, you should inform the party through a letter expressing your inability and requesting them some time in settling it. You can explain the reason for being late in making the payment. You should express your seriousness in fulfilling your obligations towards them. State the specific time you expect to make the payment. The best way to make your payment is through electronic online.

Today, most of the businesses accept online payment. The benefit of accepting electronic payment is both for the customer and the businesses. Firstly, paperwork is completely eliminated that helps to reduce the expenses incurred through the usage of envelopes and stamps. This way, the organization contributes their share towards protecting the environment. Secondly, sending invoices and receiving payment through online is much faster compared to snail mail. This further gives them enough time to concentrate on other important business aspects and to improve their customer service. Moreover, it is easier, safer and much secured way to keep a record of their transactions. In addition, it is also possible to set a reminder and generate automated notifications to the customer who are late in their payment.

After the payment is done, you will receive a payment confirmation letter through email. Though the confirmation through email is a valid proof of your payment, you can still request the party to send you a payment confirmation letter. Here is a sample of one such letter for your reference.

Payment Confirmation Letter

Mona Pierre
Manager, Personal Loan
ABC Bank Ltd.
2540 Sherman Avenue
Camden, NJ 18450

10 November, 2010

Linda T. Freeman
6500 Amesbury Street
San Diego, Ca 92114

Subject: Payment confirmation letter

Dear Freeman,

This is concerning your personal loan account number PL-1234 5478 7896 that you have with ABC Bank Ltd. The seven thousand dollars ($7000.00) loan amount is payable for a term of three years with an interest of 11% per annum. The premium of six hundred fifteen dollars ($615.00) on the borrowed amount is to be paid in first week of every consecutive month from the date of loan disbursement.

The significance of this letter is to confirm that we have received your first installment of $615.00 through electronic payment on 8th November, 2010. We are thankful for your payment and hope you continue this same practice until you finish off paying the loan amount. For any other requirement, please call at (750) XXX-4785.

Yours truly,
(Your Name)

Sometimes, there is a possibility that even after making the payment to your creditor or the party, you receive a payment reminder letter from them. If you are caught in such a situation, payment confirmation letter will help to get out through such a problem.

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