Financial transaction

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]