What are Payments

To understand payments fraud, you first need to understand payments. Simply put, payments are how we pay for things. While there are several different ways of making payments, all payments fall into two major categories: 1. those we initiate ourselves (to make a payment); and 2. those we receive (to get a payment).

Examples of payments we make:

  • Using a credit and/or debit card to buy something
  • Writing checks
  • Paying via non-banking services, like PayPal
  • Using a gift card
  • Using online bill payment services (typically offered by banks)

Examples of payments we receive:

  • Having a paycheck directly deposited into a bank account
  • Grandma sending us a birthday check
  • Receiving cash from friends who owe you – such as paying you back for lunch