Payment System

A payment system is a system used for transferring money. What makes it a "system" is that it employs cash-substitutes; traditional payment systems are negotiable instruments such as drafts (e.g., checks) and documentary credits such as letter of credits. With the advent of computers and electronic communications a large number of alternative electronic payment systems have emerged. These include debit cards, credit cards, electronic funds transfers, direct credits, direct debits, internet banking and e-commerce payment systems. Some payment systems include credit mechanisms, but that is essentially a different aspect of payment. Payment systems are used in lieu of tendering cash in domestic and international transactions and consist of a major service provided by banks and other financial institutions.

Payment systems may be physical or electronic and each has their own procedures and protocols. Standardisation have allowed some of these systems and networks to grow to a global scale, but there are still many country and product specific systems. Examples of payment systems that have become globally available are credit card and automated teller machine networks. Specific forms of payment systems are also used to settle financial transactions for products in the equity markets, bond markets, currency markets, futures markets, derivatives markets, options markets and for transfer funds between financial institutions both domestically using clearing and Real Time Gross Settlement (RTGS) systems and internationally using the SWIFT network.

The term electronic payment can refer narrowly to e-commerce - a payment for buying and selling goods or services offered through the Internet, or broadly to any type of electronic funds transfer.

Other articles related to "payment system, payment, systems, system, payments":

Central Bank Of Montenegro - The Mission
... To prescribe and undertake measures, and regulate and supervise payment system, settlement and inter-bank clearing in the Republic ... out and supervise the domestic and international payment system ... including monetary, fiscal, financial and balance of payment studies of the Republic economy, and to give recommendations in the area of economic policy to the Republic ...
Real-time Gross Settlement - Existing Systems
... Below is a listing of countries and their RTGS systems Albania - AECH, RTGS Australia - RITS (Reserve Bank Information and Transfer System) Bosnia and Herzegovina - RTGS Bulgaria ... evening.) China - China National Advanced Payment System ("CNAPS") (also called "Super Online Banking System) Chile - LBTR/CAS (Spanish Liquidación Bruta en ... TARGET2 (Trans-European Automated Real-time Gross Settlement Express Transfer System) in 26 countries of the European Union TARGET2 is the Real Time Gross ...
Transantiago - Details - Payment System and Finance Administration
... The main payment system of Transantiago is a Contactless smart card called Tarjeta Bip! similar to the Multivia card, which was previously operated by the metro ... reduced or free transfer fares is only possible when using this card, as the electronic system associated to the card automatically recognizes if users ... In this way, the system can determine whether the basic fare is to be charged or if a transfer or free fare applies ...
Central Bank Of Somalia - Payment System
... and the subsequent re-establishment of the Central Bank of Somalia in 2009, the nation's payment system is actually fairly advanced due primarily to the ... This will serve to broaden the scope of the national payments system to include formal cheques, which in turn is expected to reinforce the effectiveness of the ...

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