Final answer:
A layaway program is a payment system that allows customers to make a deposit on merchandise and pay for it over time, with the merchandise staying at the retailer until fully paid. It is an effective budgeting tool that avoids accruing debt from credit card usage.
Step-by-step explanation:
The service described in the question is a layaway program. This is a payment system where customers can deposit money on merchandise and then cover the remaining cost over time. The merchandise remains with the retailer until it has been fully paid off. Once the item is paid in full, the customer can take possession of the merchandise. Layaway programs are beneficial in financial planning and budgeting, as they allow customers to reserve high-demand items or manage payment in installments without using a credit card, which could incur additional debt and interest charges.
Other terms related to transactions include credit card, which is a form of short-term loan that transfers money from the credit card company's account to the seller, and warranties or service contracts that sellers may offer to repair or replace goods within a certain timeframe.