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Payment system

 
Banking Dictionary: Payment System
 

Financial system creating the means for transferring money between suppliers and users of funds, usually by exchanging debits or credits among financial institutions. Also known as a payment mechanism. Checks and drafts commonly are referred to as the paper based payment system; electronic fund transfers, such as Automated Clearing House debits and credits, and Fed Wire transfers, are referred to as the electronic payment system or paperless system.

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Wikipedia: Payment system
 

A payment system is a system (including physical or electronic infrastructure and associated procedures and protocols) used to settle financial transactions in bond markets, currency markets, and futures, derivatives or options markets, or to transfer funds between financial institutions. Due to the backing of modern fiat currencies with government bonds, payment systems are a core part of modern monetary systems.

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Copyrights:

Banking Dictionary. Dictionary of Banking Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.  Read more
Wikipedia. This article is licensed under the GNU Free Documentation License. It uses material from the Wikipedia article "Payment system" Read more