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Payments may be classified by the number of parties involved in a transaction.

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A cash payment requires a minimum of three parties (the seller, the purchaser, and the issuer of the currency).A barter payment requires a minimum of two parties (the purchaser and the seller).The payee may compromise on a debt, i.e., accept a part payment in full settlement of a debtor's obligation, or may offer a discount, for example, for payment in cash, or for prompt payment, etc.On the other hand, the payee may impose a surcharge, for example, as a late payment fee, or for use of a certain credit card, etc.The Middle English word "payen", which came from French, was also used in both ways.

There are two types of payment methods; exchanging and provisioning.

Payment is most commonly effected in the local currency of the payee, unless if the parties agree otherwise.

Payment in another currency involves an additional foreign exchange transaction.

In trade, payments are frequently preceded by an invoice or bill.

In general, the payee is at liberty to determine what method of payment he or she will accept; though normally laws require the payer to accept the country's legal tender up to a prescribed limit.

Credit card, debit card, cheque, money transfers, and recurring cash or ACH (Automated Clearing House) disbursements are all electronic payments methods.