Types of Transactions

Modified on Mon, 30 Oct 2023 at 02:37 PM


There are multiple avenues to perform a transaction. In this article, we will be breaking down the different types of transactions accepted by Pay Theory and the benefits of each.

In This Article, We’ll Look At:

  • Credit
  • Debit
  • ACH
  • Cash


A widely used type of transaction is with a credit card. Credit cards are money loaned out to a customer by a bank to help cover costs. These are typically short-term loans that are meant to be paid off monthly. They often come with a high-interest rate if not paid within the allotted time frame. These cards are used to make purchases, balance transfers, or cash advances. 

The repayment of this money directly corresponds with a measurement called a “credit score.” This is a number given to an individual based on the length of credit, amount of credit lines, percentage of credit utilization, and timeliness of repayment. The better the credit score, the higher the chance a person has of getting approved for a loan to buy a house, a car, or other large purchases.


A debit card is another type of transaction that one can use within Pay Theory’s portal. This card is directly linked to the money within your checking account with your bank. This is not a loan. It does not have an interest rate or have an impact on your credit score.


A significant transaction option that can be utilized with Pay Theory, but is not common with other systems is the use of an automated clearing house or “ACH.” This allows for one’s bank account to electronically transfer money to another bank account.


The last type of transaction is one made with cash. This does not involve the customer’s bank account or card information. It is only paper or metal money and allows for more privacy to be involved in the transaction.

1/3 of k-12 families rely primarily on cash payments. They are either unbanked or underbanked, making online payments difficult to make. With pay Theory, payors can choose “Cash” at checkout. A unique barcode is generated that can be taken to one of over 65,000 retail locations. Learn more here.

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