A cash transaction is a type of financial exchange where payment is made immediately using physical currency, such as cash, coins, or banknotes. This method is straightforward, as it does not involve credit or digital payment systems. Cash transactions are commonly used in everyday purchases, like buying groceries or paying for services. In a cash transaction, both the buyer and seller complete the exchange at the same time. The seller receives the cash, while the buyer receives the goods or services. This method is often preferred for its simplicity and the immediate transfer of funds, making it easy to track spending.