Transaction Type

The transaction type is a critical element in payment processing that specifies the nature and intent of a payment or financial operation being conducted. Each type of transaction is defined by a unique set of actions and outcomes that impact the flow of funds and data between the involved parties, typically including merchants, banks, and consumers.

Here are some common transaction types:

Understanding the different transaction types is essential for businesses as it helps manage cash flow, customer satisfaction, and accounting practices. Each transaction type is suited for specific situations, providing flexibility and control over how payments are processed and managed.