A bank transaction is an exchange of money that occurs between a bank account and another party. This can include deposits, withdrawals, transfers, and payments. For example, when you deposit cash into your bank account, it increases your balance, while a withdrawal decreases it. Transactions can be conducted in various ways, such as through ATMs, online banking, or in-person at a bank branch. Each transaction is recorded in your account statement, which helps you track your financial activity and manage your funds effectively.