Payment

A acquittal is the autonomous breakable of money or its agnate or of things of bulk by one affair (such as a being or company) to addition in bargain for goods, or casework provided by them, or to accomplish a acknowledged obligation. The affair authoritative a acquittal is frequently alleged the payer, while the beneficiary is the affair accepting the payment.

Payments can be accomplished in a cardinal of ways, for example:

    the use of money, cheque, or debit, acclaim or coffer transfers.
    the alteration of annihilation of value, such as stock, or application barter, the bargain of one acceptable or annual for another.

In general, the beneficiary is at alternative to actuate what adjustment of acquittal he or she will accept; admitting frequently laws crave the payer to acquire the country's acknowledged breakable up to a assigned limit. Acquittal is best frequently accomplished in the bounded bill of the payee, unless if the parties accede otherwise. Acquittal in addition bill involves an added adopted bargain transaction. The beneficiary may accommodation on a debt, i.e., acquire a allotment acquittal in abounding adjustment of a debtor's obligation, or may action a discount, E.G: For acquittal in cash, or for alert payment, etc. On the added hand, the beneficiary may appoint a surcharge, for example, as a backward acquittal fee, or for use of a assertive acclaim card, etc.

Payments are frequently preceded by an antithesis or bill, which chase the accumulation of appurtenances or services, but in some industries (such as biking and hotels) it is acceptable accustomed for pre-payments to be appropriate afore the annual is performed or provided. In some industries, a drop may be appropriate afore casework are performed, which acts as a allotment pre-payment or as aegis to the annual provider. In some cases, beforehand payments are fabricated in advance, and in some cases allotment payments are accepted, which do not extinguish the payer’s acknowledged obligations. The accepting of a acquittal by the beneficiary extinguishes a debt or added obligation. A creditor cannot foolishly debris to acquire a payment, but acquittal can be banned in some circumstances, for example, on a Sunday or alfresco cyberbanking hours. A beneficiary is usually answerable to accede acquittal by bearing a cancellation to the payer. A cancellation may be an endorsement on an annual as "paid in full". The giving of a agreement or added aegis for a debt does not aggregate a payment. Etymology

The base chat "pay" in "payment" comes from the Latin "pacare" (to pacify), from "pax", acceptation "peace". In the Middle Ages, the appellation began to be acclimated added broadly, to beggarly "to allay one's creditors". As the Latin chat was fabricated allotment of Old French "paier", it retained the acceptation "appease" but acquired the acceptation "to pay" (as in advantageous a debt). The Middle English chat "payen", which came from French, was additionally acclimated in both ways.[1]
Methods

There are two types of acquittal methods; exchanging and provisioning. Exchanging involves the use of money, absolute banknotes and coins. Accessories involves the alteration of money from one annual to another, and involves a third party. Acclaim card, debit card, cheque, money transfers, and alternating banknote or ACH (Automated Allowance House) disbursements are all cyberbanking payments methods. Cyberbanking payments technologies accommodate alluring band cards, smartcards, contactless cards, and adaptable payments.
Parties involved

A acquittal may absorb added than two parties. For example, a pre paid agenda transaction usually involves four parties: the purchaser, the seller, the arising coffer and the accepting bank. A banknote acquittal requires at atomic three parties: the seller, the client and the issuer of the currency. A bargain acquittal requires a minimum of two parties: the client and the seller.
Providers

The basement and cyberbanking allowance methods are formed by the acquittal provider. Global acclaim agenda acquittal providers are Diners Club, Visa, American Express and MasterCard. Maestro and Cirrus are all-embracing debit agenda acquittal providers.

Blockchain additionally provides an basement for payments application agenda bill and potentially bigger security, beneath intermediaries, and lower transaction costs. [2]
Interbank

The axial coffer CB(Ccy) of a bill can advance a loro annual for a coffer (which the coffer would alarm a nostro account).
Direct

A coffer P (the payer) with a axial coffer nostro can pay anon to addition coffer R (the receiver) which has additionally a nostro with CB(Ccy) by instructing the axial coffer to accomplish a acquittal of N[Ccy] (or an bulk N in Ccy). The axial coffer about will alone acquire Ps acquittal apprenticeship if the antithesis B on P's loro annual afore the acquittal is B≥N. The acquittal itself is a booking in the loro accounts of the axial coffer area P's loro annual is debited with N (it will be B-N≥0 thereafter) and accompanying Rs loro annual is acclaim with N (its antithesis C will be C+N≥0 thereafter).

We denote the acquittal symbolically with [P→CB→R].
Indirect

If the payer P maintains a loro annual for addition coffer X, P can act as a acquittal abettor for X: X instructs P to pay to R; again P instructs CB(Ccy) to pay on annual of X: [X→P→CB→R].

In this archetype the aboriginal bisected of the acquittal is aberrant and the additional one (from CB(Ccy) to R) is still direct. If X would pay via P to R and assuredly to addition affair Y, the acquittal would be 'fully indirect': [X→P→CB→R→Y]. In practice, not every acquittal abettor ability accept a absolute nostro with the axial bank, appropriately rather awe-inspiring acquittal constellations can exist, which are adamantine to describe.
Directness accessory (p,q)

If we ascertain (p,q) area p is cardinal of parties on the sender ancillary and q on the receiver side, we can allocate the artlessness of payments.
Sn,Rm Description

We denote with Sn the senders and with Rm the receivers in a acquittal process, such that

R0=S0=CBCCY is the axial coffer of the bill which has 'no' ambit (n=m=0) to the acquittal process,

m,n=1: the absolute nostro agents of the sender / receiver: S1 is the absolute payer; R1 is the absolute receiver (or nostro agent)

m,n=2: the aberrant nostro agents of the sender / receiver: S2 is the aberrant payer; R2 is the aberrant receiver

m,n=3: the sender / payer coffer : S3 is the sender bank; R3 is the receiver bank

m,n=4: the sender / payer: S4 is the sender (payer); R4 is the receiver (payee)

Here is an (p=q=4) example:

[sender→sender coffer → aberrant abettor of sender coffer → absolute abettor of sender coffer → axial coffer → absolute abettor of receiver coffer → aberrant abettor of receiver coffer → receiver coffer → receiver(payee)]

or

[S4 → S3 → S2 → S1 → S0=R0 → R1 → R2 → R3 → R4]

Global market

In 2005, an estimated $40 abundance globally anesthetized through some blazon of acquittal system. Almost $12 abundance of that was transacted through assorted acclaim cards, mostly the 21,000 affiliate banks of Visa and MasterCard. Processing payments, including the extending of credit, produced abutting to $500 billion in revenue.[3] In 2012, almost $377 abundance anesthetized through noncash acquittal systems. This led to absolute annual and transaction revenues abutting to $524 billion.[4]
Debit cards

In the U.S., debit cards are the fastest growing acquittal technology. In 2001, debit cards accounted for 9 percent of all acquirement transactions, and this is accustomed to bifold to 18.82 percent in 2011.[5]
Cheques
Main article: Cheque clearing

Historically, cheques accept been one of the primary agency of acquittal for purchasing appurtenances and services, admitting its allotment in the acquittal mix is falling worldwide. In 2001, in the United States, cheques accounted for 25% of the U.S.-based acquittal mix; and in 2006, this was projected to abatement to 17%.[6]

In the United States, a cheque as a anatomy of acquittal can accurately be banned for any acumen (or no reason).[citation needed] A acquittal by cheque is not a "payment" until the cheque has been cashed (i.e., deposited) and austere by the cyberbanking system.
Timing

The timing of a acquittal has acknowledged association in some situations. For tax purposes, for example, the timing of a acquittal may actuate whether it qualifies as a answer in a taxpayer's adding of taxable assets in one year or the next.

For U.S. tax purposes, banknote payments about are taken to action at the time of payment. Acquittal may additionally action back a being transfers acreage or performs a annual to the beneficiary in achievement of an obligation.[7] A acquittal by analysis is frequently accounted to action back the analysis is delivered, as continued as the analysis is accustomed on presentation by the payee. This aphorism additionally about applies area the analysis is not presented to the coffer until the abutting taxable year, and alike admitting the payer could stop acquittal on the analysis in the meantime.[8] Postdated checks, however, are not advised acquittal back delivered.[9] Generally, payments by acclaim agenda booty aftereffect at the point of the auction and not back a payer is billed by the acclaim agenda aggregation or back the payer pays the acclaim agenda company's bill.[10] A business that letters on an accretion basis, would address assets in the year of auction admitting acquittal may be accustomed in a consecutive year.

Payment of best fees to government agencies by cheque, if permitted, usually takes aftereffect afterwards a set cardinal of canicule for approval or until the cheque is absolutely cleared. Payments by acclaim card, if permitted, and banknote payments booty actual effect. Normally, no added forms of acquittal are acceptable or accepted.