Traditional Payments
Traditional payments refer to conventional, non-digital methods of transferring money, such as cash, checks, bank transfers, and credit/debit card transactions processed through established financial networks. These systems rely on physical instruments or legacy electronic infrastructure, often involving intermediaries like banks and payment processors. They form the backbone of global commerce but are increasingly being supplemented or replaced by digital alternatives.
Developers should understand traditional payments when building or integrating with financial systems that require compliance with legacy standards, such as in banking, retail, or government sectors. Knowledge is crucial for handling payment gateways, fraud detection, and ensuring backward compatibility in applications that process transactions through methods like ACH, wire transfers, or point-of-sale systems. It's also essential for migrating or modernizing payment infrastructures to newer technologies.