What best defines a deferred payment transaction?

A deferred payment transaction is best defined as one where the cardholder pays after receiving goods. This type of transaction allows the consumer to take possession of a product or service before payment is made, effectively permitting a period during which they can use or evaluate the product before completing the purchase financially. This approach can enhance customer satisfaction and increase sales, as it provides an opportunity for consumers to experience the product before making a financial commitment.

The other options do not align with the definition of deferred payment transactions. Immediate transactions occur at the point of sale and involve immediate payment, while face-to-face interactions are not a prerequisite for deferred payments, which can also take place in online transactions. Real-time credit approval relates to the immediacy of payment processing and does not specifically describe the deferred nature of payment. Therefore, the essence of a deferred payment is accurately captured by the definition that involves payment made after the goods are received.