Method of Payment

The particular medium one party uses to provide funds for a transaction is called the method of payment. The act of exchanging money or other compensation for goods or services can take many forms. One of the oldest methods of payment would be barter: an equal trade of goods or services. Today's monetary system, however, emphasizes payments made with currency.

Common methods currently in use include cash, checks, wire transfers, and credit, debit, or gift cards. While these have long been the most popular payment solutions, an increasing number of consumers are turning to alternative payment methods such as digital wallets, Buy Now Pay Later (BNPL), direct debit payments, and cryptocurrencies.