Payment mechanisms

Payment mechanisms are methods used to transfer money from a buyer to a seller during a transaction. Common types include cash, checks, credit or debit cards, bank transfers, and digital wallets. Each method varies in speed, security, and convenience. For example, cash is immediate and straightforward, while electronic methods like cards or online transfers offer quicker, contactless, and traceable payments. Businesses choose payment mechanisms based on factors like cost, security needs, and customer preferences, ensuring smooth and efficient financial exchanges.