What distinguishes a push payment from a pull payment?

The distinction between push payments and pull payments centers around who initiates the payment. Push payments are characterized by being initiated by the payer, or account holder, who actively sends funds to the payee. This means that the payer takes the initiative to authorize and transfer money, giving them control over the transaction. Common examples of push payments include bank transfers, where the sender decides to send a specific amount to the recipient.

In contrast, pull payments involve the payee requesting funds from the payer, such as in the case of direct debits where a business pulls money from a consumer's account after obtaining permission to do so.

The other options focus on aspects that do not accurately reflect the fundamental mechanics separating push from pull payments. For instance, the idea that push payments originate from consumers does not encompass all scenarios, as businesses can also be push payers. Similarly, suggesting that push payments are usually more expensive overlooks the fees associated with various payment methods without making a clear comparison. Lastly, the notion of government approval pertains to regulatory aspects rather than the inherent nature of the payment types themselves. Thus, the accurate understanding is that push payments are defined by their initiation by account holders, illustrating the concept effectively.