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A payment system is a system for the transfer of money. What makes it a “system” is that it employs cash-substitutes; traditional payment systems are negotiable instruments such as drafts (e.g., checks), credit cards and other charge cards, documentary credit (such as L/C) and electronic funds transfers. Some payment systems include credit mechanisms, but that is essentially a different aspect of payment. Payment systems are used in lieu of tendering cash in domestic and international transactions and consist of a major service provided by banks and other financial institutions. In the US, they are regulated by different state statutes (UCC) and Federal regulations.