Payment methods

economic-dictionary

A means of payment is an instrument either that allows you to buy a product, hire services or cancel all kinds of debts.

Therefore, we can say that it is a good, such as money, or an instrument, such as a credit card, that allows you to buy something or pay a debt. Money, in fact, serves as a means of payment and as a means of exchange and even as a form of savings. In the last decades, a multitude of instruments have been born considered like this and more with the proliferation of the Internet.

Origin of the means of payment

Before the emergence of money, it was barter that allowed goods to be exchanged for each other. Over time the coins and bills appeared. These had their antecedent in products such as salt and later in precious metals such as gold and silver.

But everything is evolution and money gave rise to other more sophisticated ways of paying for goods or contracting services. Debit or credit cards are a clear example. With digital development, there are other instruments such as Internet payment platforms. All of them have the objective of facilitating economic transactions.

It is not a means of exchange

A medium of exchange serves a time and place, facilitating commercial exchanges. When we talk about means of payment for a good or service, in this case these instruments must be used anywhere and at any time. Therefore, the principal is money and its equivalents, such as a check, although this has more limitations.

Examples of means of payment

Among the most prominent examples of means of payment are:

  • Money, coins and bills that, as we have already mentioned, in turn act as a medium of exchange.
  • Checks, in all its forms.
  • Credit or debit cards.
  • Internet payment instruments such as Paypal are also means of payment.
Difference between credit and debit card

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