What does Proof of Payment Stand for?

There are tons of payment transactions every day . Your customers pay their bills, you have to pay your suppliers . A payment process can quickly no longer be traced or the receipt of an invoice cannot be determined. In this case, whether for business or pleasure, proof of payment can be very important.

What is proof of payment?

Proof of payment is a receipt that shows that a payment has actually been made. Receipts, confirmations of a transfer made and other types of receipts are accepted as proof of payment. The proof of payment can also be referred to as evidence .

Types of proof of payment

There are many types of receipts that serve as proof of payment in everyday private life or in business relationships. But what do these proof of payment mean and how legally binding are they?

Proof of payment for cash payments

When paying in cash, you will most often come across the receipt . Especially in retail, the receipt is a proof of payment for your customers. The receipt is very important for your customers, but for you as an entrepreneur there are a few things to consider. You have to know that a receipt is only accepted as a small amount invoice up to a total amount of 250 € including VAT . From 2020 , the receipt will not only be more important for you as a retailer as proof of payment. From 01/01/2020 , the so-called receipt requirement applies, ie you as a dealer are obliged to give every customer a receipt.

Proof of payment for direct debit

A direct debit authorization is also valid as proof of payment. The prerequisite, however, is that the transaction that has taken place can be verified using the relevant account statement. Of course, only the authorization for a direct debit is not proof.

Proof of payment for bank transfer

If a bank transfer is made by a bank or bank, the bank must balance the execution of the payment on the deposit slip, i.e. it must be confirmed. It is not sufficient as proof of payment to present a deposit slip on which only “Received” or “Accepted for transfer” was noted. In the case of transfers, the bank statement can also be submitted as proof of payment. However, you have to make sure that the actual execution of the transfer, the amount of the transferred amount and the name of the client can be seen on the account statement. Only in this case is the account statement a valid proof of payment.

Proof of payment for online banking

In online banking, the so-called turnover list , also called electronic bank statement, is one of the recognized proof of payment. In addition, an account statement with all the required data or a confirmation from the bank that the transfer has been made are valid as evidence. However, just the printout for the transfer order is not sufficient.

Proof of payment for credit card payments

There is also valid proof of payment when paying by credit card . You will receive this in the form of your credit card statement from the credit card company. The account statement, which is usually sent to you once a month with the credit card statement, is also valid.

What is the difference between proof of payment and confirmation of payment?

You need the proof of payment to prove to a supplier, dealer, etc. that the goods you have purchased have been legitimately paid for. The proof of payment is often confused with the confirmation of payment . But there is a big difference between the two. The payment confirmation is written information from your creditor that your payment has been credited to their account . The moment a payment confirmation is sent, a purchase process is considered complete. Receipts or receipts are also a confirmation of payment.

What does a receipt do for you?

The receipt is a receipt for a service or a delivery. Typically, the receipt is often issued for the receipt of an amount of money . The receipt serves the recipient as proof of payment. It does not matter what type of delivery or service it is. For example, your supplier can always ask you to issue a receipt. The receipt is used very often, especially in transactions with cash payments . The receipt not only serves as proof of payment, but also as proof to the tax office.


It is very important that when doing business, whether a private individual or a business person, proof of payment is always available. This is available in the form of a receipt, a receipt or a bank statement. An electronic extract is sufficient. It is also important to know that proof of payment must always be provided by the recipient of a service or goods.

Proof of Payment