A financial transaction is an agreement, or communication, between a buyer and seller to exchange goods, services, or assets for payment. Any transaction involves a change in the status of the finances of two or more businesses or individuals.[1] A financial transaction always involves one or more financial asset, most commonly money or another valuable item such as gold or silver.[2]
There are many types of financial transactions. The most common type, purchases, occur when a good, service, or other commodity is sold to a consumer in exchange for money. Most purchases are made with cash payments, including physical currency, debit cards, or cheques.[3] The other main form of payment is credit, which gives immediate access to funds in exchange for repayment at a later date.[4]
- ^ "What Is a Transaction?". Investopedia. Archived from the original on 25 January 2023. Retrieved 8 February 2022.
- ^ "What is a Financial Transaction? (with picture)". Smart Capital Mind. Archived from the original on 9 November 2022. Retrieved 8 February 2022.
- ^ "Accounting Transactions". Corporate Finance Institute. Archived from the original on 28 September 2022. Retrieved 8 February 2022.
- ^ "What is credit? | CIBC". www.cibc.com. Archived from the original on 9 November 2022. Retrieved 8 February 2022.