A Domestic Transaction is defined as which of the following?

A Domestic Transaction is best defined as a transaction where the issuer and acquirer are located in the same country. This definition highlights the geographic consideration of the transaction, emphasizing that both parties are subject to the same national regulations and operational standards.

In a domestic transaction, the payment processing typically follows the domestic payment networks and regulations, making the transaction generally simpler and often less costly compared to international transactions, which must navigate cross-border fees, foreign currency exchanges, and international regulations. Understanding this concept is crucial, as it directly affects pricing, compliance, and processing efficiencies within the payments ecosystem.

The other options refer to elements that indicate international participation or the use of different currencies and methods—none of which align with the criteria that define a domestic transaction.