Which of the following best describes 'physical equipment' in contrast to data processing?

Physical equipment refers to the tangible components that you can touch and see in a technological or operational framework. In the context of payments and data processing, this would primarily include the hardware components, such as computers, servers, point-of-sale systems, and peripheral devices. These components are essential for carrying out the physical functions necessary for processing transactions and managing data.

While software applications, documentation, and data transmission protocols are all integral to the overall system, they do not fall under the category of physical equipment. Software applications are intangible programs that run on hardware, documentation and manuals serve as guidance for users, and data transmission protocols are rules that govern how data is communicated over a network. None of these can be considered physical in nature, which clearly differentiates hardware components as the correct descriptor for physical equipment in this scenario.