Payment System

A payment system is a set of institutions, rules, and technologies that transfers monetary value between parties. It includes payment instruments, transaction processing, and arrangements for settling obligations.

Payment Transaction: An exchange in which a payer instructs a transfer of monetary value to a payee. It is the basic event that payment-system rules and infrastructure process.
Central Bank: A public institution that manages a country's currency and monetary system and often provides settlement services to banks. Central banks commonly provide the settlement asset for interbank payments.
Automated Clearing House: An electronic network for processing batches of domestic credit and debit transfers. ACH systems handle recurring and other account-to-account payments at scale.
Cash: Physical currency, such as banknotes and coins, used to make payments directly. Cash transfers value without an electronic intermediary or account-based settlement.
Financial Inclusion: The availability and use of suitable, affordable financial services by individuals and businesses. Accessible payment services can enable people to participate in the formal economy.
Payment Clearing: The exchange, matching, and calculation of payment instructions before settlement. Clearing determines which participants owe one another after transactions are submitted.
Commercial Bank: A financial institution that accepts deposits and provides services such as loans and payments. Banks hold customer accounts and connect them to many payment systems.
Real-Time Gross Settlement: A system that settles individual payments continuously and finally, one transaction at a time. RTGS systems support urgent, high-value transfers between financial institutions.
Barter: The direct exchange of goods or services without using money as an intermediary. Barter settles an exchange through goods rather than a monetary payment system.
Payment Fraud: Deception or unauthorized activity that causes a payment or payment account to be misused. System design and operating rules influence how fraud is detected and losses assigned.

Linked from 18 pages