The term "Balance payment" refers to the total amount of visible trade and invisible trade that takes place between or among the countries during a given period of time, Balance of payments broad concept in comparison to the balance of trade. Beside visible items, it consists of invisible items like international bank fees, the reward for services, capital transfer, tourism expenses, transportation services, payment of interest on borrowed capital, gifts, donations, remittance of money, etc. which are exchanged from country to country. Thus the comprehensive record of the economic transaction is known as balance of payments.
The account of balance of payments is classified into three terms, current account, capital account, and cash account.