What is the methods of Electronic Payment System?
An e-payment system is a way of making transactions or paying for goods and services through an electronic medium, without the use of checks or cash. It’s also called an electronic payment system or online payment system. Read on to learn more.
The electronic payment system has grown increasingly over the last decades due to the growing spread of internet-based banking and shopping. As the world advances more with technology development, we can see the rise of electronic payment systems and payment processing devices. As this increase, improve, and provide ever more secure online payment transactions the percentage of check and cash transactions will decrease.
METHODS OF ELECTRONIC PAYMENT SYSTEM
One of the most popular payment forms online is credit and debit cards. Besides them, there are also alternative payment methods, such as bank transfers, electronic wallets, smart cards or bitcoin wallet (bitcoin is the most popular crypto currency).
E-payment methods could be classified into two areas, credit payment systems and cash payment systems.
- Credit Payment System
- Credit Card —A form of the e-payment system which requires the use of the card issued by a financial institute to the cardholder for making payments online or through an electronic device, without the use of cash.
- E-wallet —A form of prepaid account that stores user’s financial data, like debit and credit card information to make an online transaction easier.
- Smart card —A plastic card with a microprocessor that can be loaded with funds to make transactions; also known as a chip card.
- Cash Payment System
- Direct debit —A financial transaction in which the account holder instructs the bank to collect a specific amount of money from his account electronically to pay for goods or services.
- E-check —A digital version of an old paper check. It’s an electronic transfer of money from a bank account, usually checking account, without the use of the paper check. E-cash is a form of an electronic payment system, where a certain amount of money is stored on a client’s device and made accessible for online transactions.
- Stored-value card —A card with a certain amount of money that can be used to perform the transaction in the issuer store. A typical example of stored-value cards are gift cards.
