Bosnia police are corrupt, so what your daughter experienced was probably a request for a bribe. She did the correct thing by not giving in.
That said, as mentioned above, there are places where on-the-spot fines are the norm, especially for foreign licenses. Portugal is one such place where some things are subject to on-the-spot fines. The police take cards and even have ATMs with them. When paying such fines a receipt will, of course, be issued, and the info will be recorded in a database, preventing the police from pocketing the cash.