03 September 2012
The difference is that in case of a pay order, the bank is issuer and directing the payee bank to pay the amount mentioned on the pay order to the person/organisation so mentioned or his order, i.e. any other person/organisation, while in normal cheque the issuer is directing the payee bank to pay the amount mentioned on the pay order to the person/organisation so mentioned i.e. any other person/organisation.