oboloo Glossary

Cash Debit Or Credit

oboloo Glossary

Cash Debit Or Credit

Cash, Debit, and Credit are the three ways to make payments. Cash allows you to pay with physical money—coins and paper currency. Debit is defined as a payment from an individual or business’s bank account that is electronically transferred to the recipient’s bank account. Credit is defined as a payment made using borrowed funds to purchase goods or services, which the consumer must repay in the form of interest over a specified period of time. Cash, Debit, and Credit transactions provide businesses with flexibility when it comes to receiving payments from customers. They also help businesses track their spending patterns, as well as maintain accurate records for budgeting and accounting purposes.