What are the 4 forms of payment?

What are the 4 forms of payment?

Payment methods in a business

Every day, more and more people are not only paying in cash, but also using other forms of payment to make their purchases. This has led retailers to diversify the ways in which they can receive money (whether physical or digital) for the payment of services and products. This begs the question: how many payment methods are there? In the following lines we have put together a brief x-ray of the most important ones.

Possibly the best known (and oldest) form of payment. By means of banknotes or coins (known as fiduciary, since people assign them and trust that they have the value indicated by their denomination, regardless of the materials they are made of), people buy or contract goods and services.

The idea of the check is basically the same regardless of the type (personal, bank, etc.): the buyer issues a certified document with the amount to be paid to the bearer, which he exchanges for cash.

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In the UK, credit/debit card payments are also the predominant method of payment (63%), followed by Paypal/Wallets (23%), bank transfer (5%) and other means. In this case, online consumers represent 88% of the population, and average spending is 1,157 euros per consumer.

For starters, the use of credit/debit cards will drop, and instant payment, a new way to send money and pay instantly in the EU, without the waits typical of bank transfers, which received a big boost after the approval in November 2018 by the European Central Bank of the TARGET instant payment settlement system (TIPS) will grow considerably

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Curious is the case of wallets. Strong growth is expected until 2,022, and yet after this approximate date their use could decline slightly. The following graph shows this very clearly. Other systems, such as those based on tokenization (encryption) of credit card data, will account for 12% of total spending through electronic means of payment.

What are the payment methods

The Payment Methods are the different means through which you can pay for the products purchased or services received. This transaction includes both conventional forms of payment, such as cash, and electronic forms of payment, including credit cards.

In fiscal terms and to correctly manage your accounting, the SAT Payment Method refers to the code that the Tax Administration Service assigns for the specific form of payment in electronic invoicing.

These concepts can generate confusion, but in reality it is very easy to distinguish them. As you can see, the forms of payment indicate how you paid for a good, while the method of payment expresses when you did it.

Main forms of payment

Every day, more and more people are not only paying in cash, but also using other forms of payment to make their purchases. This has led retailers to diversify the ways in which they can receive money (whether physical or digital) for the payment of services and products. This begs the question: how many payment methods are there? In the following lines we have put together a brief x-ray of the most important ones.

Possibly the best known (and oldest) form of payment. By means of banknotes or coins (known as fiduciary, since people assign them and trust that they have the value indicated by their denomination, regardless of the materials they are made of), people buy or contract goods and services.

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The idea of the check is basically the same regardless of the type (personal, bank, etc.): the buyer issues a certified document with the amount to be paid to the bearer, which he exchanges for cash.