Traditional Payment Systems
Traditional payment systems refer to established, non-digital methods for transferring money between parties, such as cash, checks, bank transfers, and credit/debit card networks. These systems typically involve physical instruments, paper-based processes, and legacy financial infrastructure like Automated Clearing House (ACH) and wire transfers. They form the backbone of global commerce but often lack the speed, accessibility, and innovation of modern digital alternatives.
Developers should understand traditional payment systems when building or integrating financial applications that require compliance with legacy banking protocols, handling cross-border transactions, or ensuring backward compatibility for users in regions with limited digital adoption. Knowledge is crucial for roles in fintech, banking software, or e-commerce platforms that need to interface with systems like ACH, SWIFT, or card networks to process payments securely and reliably.