A cash transaction is a straightforward exchange where goods or services are paid for immediately using physical currency, such as cash or coins. This type of transaction does not involve credit or financing, meaning the buyer must have the full amount available at the time of purchase. Cash transactions are common in everyday situations, like buying groceries or paying for a meal at a restaurant. They provide instant payment and can simplify the buying process, as there is no need for additional paperwork or waiting for funds to clear, making them a popular choice for many consumers.