Question

Briefly explain the different modes through which the merchant collects payments from customers.

Hint:

Modern payment systems include cash, cards, and digital methods like UPI and wallets.

Answer 1

Step 1: Cash payments.
Customers can pay directly using physical cash at the store.

Step 2: Card payments.
Debit and credit cards are used through POS machines for electronic transactions.

Step 3: Digital payments.
Payments can be made using mobile wallets, UPI, or online banking apps.

Step 4: Cheque payments.
Some merchants accept cheques as a mode of payment.

Step 5: Contactless payments.
Technologies like NFC allow quick tap-and-pay transactions.