Glossary
Payment Method
A payment method refers to the form of payment a consumer uses to complete a transaction when purchasing goods or services from a seller. This can encompass a variety of instruments that facilitate the transfer of funds between the buyer and the merchant. Common payment methods include:
Each payment method offers distinct advantages and may be preferred in different contexts based on factors such as transaction security, convenience, record-keeping, and acceptance by merchants. For example, credit cards offer consumer protections like fraud prevention and the ability to dispute charges, making them ideal for online purchases. In contrast, cash may be preferred for small, immediate payments where no digital trace is desired or necessary.
As technology advances, new payment methods continue to emerge, including digital wallets and cryptocurrencies, which offer enhanced convenience and can sometimes provide additional security features. Choosing the right payment method depends on the specific needs and circumstances of the consumer and the transaction environment.