What is Electronic Payment System?
What is Electronic Payment System : E commerce site uses electronic payment, when you buy goods and services online, you pay for them using electronic means. This mode of payment without using cash or check is called e-commerce payment system and also known as online or electronic payment systems.
The increasing use of Internet- based banking and shopping has led to the rise of various e-commerce payment systems and techniques have been developed to enhance, improve and provide secure e-payment transactions. Paperless e-commerce payments have revolutionized payment processing by reducing paper work transaction costs and personnel costs. This system is user friendly and takes less time as compared to manual processing and helps the systems to reach their market.
Types of Electronic Payment System
1.Credit Card : – The most popular payment for e commerce transaction is through credit card. Using it is simple. A credit card is a small plastic card that has a unique number associated with an account. It is also fitted with a magnetic strip which can be used through the card reader Credit Card is read. When a customer Credit Card offers products through the credit card issuing bank pays the client side and then to the customer, there is a certain time period that Credit Card can pay the bills.
2 . Debit Card :- Debit Card is the second largest e commerce payment medium in India. Customers who want to spend online within their financial limits, prefer to pay with their Debit Card . With a debit card , the customer can only pay for the purchased goods with the money that is already available in his bank account, wherein the amount spent on the buyer is billed to him and is paid at the end of the billing period. have to pay till
3 . Smart Card : – A plastic card with a microprocessor in which the personal information of the customer is stored and it can be loaded with funds for conducting online transactions and paying bills quickly. The money loaded in the smart card reduces as per the usage by the customer and has to be reloaded from his bank account.
4 . E Wallet :- E Wallet is a prepaid account that allows the customer to store multiple credit card , debit card and bank account numbers in a secure environment . This eliminates the key to account information each time you make a payment. Once the customer is registered and creates E Wallet profile he can make fast payments.
5. E Money : – E Money transactions are transported from one financial entity to another financial entity without the status is on refers to the payment network and the amount of participation. E Money transactions are fast, convenient, and save a lot of time. Online payments made through credit cards, debit cards, smart cards are examples of E Money transactions. Another popular example is e-cash. In case of e- cash , both the customer and the merchant have to sign up with the e- cash issuing bank company.
- Net Banking :- This is another popular way to make E commerce payment. It is a simple way to pay for online purchases directly from the customer’s bank. Uses the same method as a debit card for disbursing money that is already in the customer’s bank. Net Banking is not the user need cards for payment purposes, but users of Net Banking are required to register with your bank for the facility only when the customer completes the purchase of its Net Banking ID and Pin Code has to be fed
- Mobile Payment :– One of the latest ways to make online payment is through mobile phone. All a customer has to do is send a payment request to their service provider via text message, instead of using a credit card or cash, the purchase is charged to the customer’s mobile account or credit card. To set up a mobile payment system, the customer just needs to download a software from their service provider’s website and then link the credit card or mobile billing information to the software.
- Electronic Funds Transfer :- A very popular electronic payment method to transfer money from one bank account to another bank account. Account one can be in the bank or banks with ATM using (automatic teller machine) new computer Funds Transfer can be. Nowadays, Internet based EFT is getting popular. In this case, a customer uses the website provided by the bank,
Logs on to the bank’s website and registers another bank account. He requests to transfer some amount to that account. The customer’s bank transfers the amount to the other account when it is in the same account, otherwise the transfer request is forwarded to one (automated clearing house) to transfer the amount to the other account and the amount is deducted from the customer’s account. Once the amount is transferred to another account, the customer is informed of Funds b by the bank .
- Amazon Pay : Another convenient and secure way to pay for online purchases is through Amazon Pay . Use the information you already have to log in to your Amazon account friendly and make payments on leading merchant websites and apps . Your payment information is securely stored with Amazon and accessible on thousands of websites and apps where you choose to shop.
Provides you the facility of payment for your products and services if you are planning to ship your products online. You can also consider shipping on Amazon, which is one of the most popular e- commerce platforms in the world .