A payment is the tender of something of value, such as money or its equivalent, by one party (such as a person or company) to another in exchange for goods or services provided by them, or to fulfill a legal obligation or philanthropy desire. The party making the payment is commonly called the payer, while the payee is the party receiving the payment. Whilst payments are often made voluntarily, some payments are compulsory, such as payment of a fine.
Payments can be affected in a number of ways, for example:
the use of money, cheque, or debit, credit, or bank transfers, whether through mobile payment or otherwise
the transfer of anything of value, such as stock, or using barter, or personal data, the exchange of one good or service for another.
In general, payees are at liberty to determine what method of payment they will accept; though normally laws require the payer to accept the country's legal tender up to a prescribed limit. Payment is most commonly affected in the local currency of the payee unless the parties agree otherwise. Payment in another currency involves an additional foreign exchange transaction. The payee may compromise on a debt, i.e., accept part payment in full settlement of a debtor's obligation, or may offer a discount, E.G: For payment in cash, or for prompt payment, etc. On the other hand, the payee may impose a surcharge, for example, as a late payment fee, or for use of a certain credit card, etc.
Payments are frequently preceded by an invoice or bill, which follows the supply of goods or services, but in some industries (such as travel and hotels) it is not uncommon for pre-payments to be required before the service is performed or provided. In some industries, a deposit may be required before services are performed, which acts as a part pre-payment or as security to the service provider. In some cases, progress payments are made in advance, and in some cases part payments are accepted, which do not extinguish the payer's legal obligations. The acceptance of a payment by the payee extinguishes a debt or other obligation. A creditor cannot unreasonably refuse to accept a payment, but payment can be refused in some circumstances, for example, on a Sunday or outside banking hours. A payee is usually obligated to acknowledge payment by producing a receipt to the payer. A receipt may be an endorsement on an account as "paid in full". The giving of a guarantee or other security for a debt does not constitute a payment.
payment is commonly called the payer, while the payee is the party receiving the payment. Whilst payments are often made voluntarily, some payments are...
The National Payments Corporation of India is an organization that operates retail payments and settlement systems in India. The organization is an initiative...
Mobile payment, also referred to as mobile money, mobile money transfer and mobile wallet, is any of various payment processing services operated under...
A payment system is any system used to settle financial transactions through the transfer of monetary value. This includes the institutions, payment instruments...
Payment cards are part of a payment system issued by financial institutions, such as a bank, to a customer that enables its owner (the cardholder) to...
A payment service provider (PSP) is a third-party company that allows businesses to accept electronic payments, such as credit card and debit card payments...
Contactless payment systems are credit cards and debit cards, key fobs, smart cards, or other devices, including smartphones and other mobile devices...
In international economics, the balance of payments (also known as balance of international payments and abbreviated BOP or BoP) of a country is the difference...
A royalty payment is a payment made by one party to another that owns a particular asset, for the right to ongoing use of that asset. Royalties are typically...
A payment gateway is a merchant service provided by an e-commerce application service provider that authorizes credit card or direct payment processing...
Split payment (also split payment transaction) is the financial term for the act of splitting (dividing) a single and full amount of payment in two or...
Unified Payments Interface, commonly referred to as UPI, is an Indian instant payment system as well as protocol developed by the National Payments Corporation...
An advance payment, or simply an advance, is the part of a contractually due sum that is paid or received in advance for goods or services, while the...
Partial payment refers to the offering of a payment by check for less than the full amount claimed by the creditor. Such an offer for debt discharge by...
A payment card number, primary account number (PAN), or simply a card number, is the card identifier found on payment cards, such as credit cards and...
Delivery versus payment or DvP is a common form of settlement for securities. The process involves the simultaneous delivery of all documents necessary...
Prompt payment is a commercial discipline which requires businesses to: agree fair and reasonable payment terms with their suppliers ensure suppliers'...
A stop payment is an order by a customer of a financial institution (bank, savings bank, or credit union) or to a money order issuer to refuse to pay...
The Single Euro Payments Area (SEPA) is a payment integration initiative of the European Union for simplification of bank transfers denominated in Euros...
A payment bond is a surety bond posted by a contractor to guarantee that its subcontractors and material suppliers on the project will be paid. They are...
In macroeconomics and finance, a transfer payment (also called a government transfer or simply fiscal transfer) is a redistribution of income and wealth...
QR code payment is a contactless payment method where payment is performed by scanning a QR code from a mobile app. This is an alternative to doing electronic...
balloon payment mortgage is a mortgage that does not fully amortize over the term of the note, thus leaving a balance due at maturity. The final payment is...
services in: (POS -- Point of Sale) Payment gateway Payments as a service Ripple (payment protocol) "FAQ". Braintree Payments. Retrieved 2019-07-27. "Ecommerce...
Immediate Payment Service (IMPS) is an instant payment inter-bank electronic funds transfer system in India. IMPS offers an inter-bank electronic fund...
Payment in kind may refer to: Barter, exchange of goods or services for other goods or services Payment in kind loan, a type of loan which typically does...
The UK Payments Administration Ltd (UKPA) is a United Kingdom service company that provides people, facilities and expertise to the UK payments industry...
Global Information