What does barter mean?

barter, the direct exchange of goods or services—without an intervening medium of exchange or money—either according to established rates of exchange or by bargaining. It is considered the oldest form of commerce. Barter is common among traditional societies, particularly in those communities with some developed form of market.

What is a barter system?

“Payment for even the cheapest of goods and services would require unwieldy piles of banknotes, and there simply are not enough of those in circulation.” In a barter system, people exchange goods and services for other products and services. They do not use money. To barter may also mean to haggle or bargain.

What is bartering & how does it work?

Bartering is the exchange of goods and services between two or more parties without the use of money. It is the oldest form of commerce. Individuals and companies barter goods and services between each other based on equivalent estimates of prices and goods. The IRS considers bartering to be a form of income that incurs taxes.