Skip to main content

Explain Different Types of Popular e-Payment Systems

What are the popular e-payment systems? Explain.



Explain Different Types of Popular e-Payment Systems
Explain Different Types of Popular e-Payment Systems



The following are the most popular e-payment systems
1) Credit Card 2) Debit card 3) EFT 4) Stored value cards and e-cash 5) e-checks


1: Credit Card

 
What are different types of e-payment systems in e-commerce
What are different types of e-payment systems in e-commerce

The Credit Card is plastic credit card with a magnetic strip issued by a bank or financial institution. Holders of a valid credit card have the authorization to purchase goods and services up to a predetermined amount, called a credit limit. The vendor receives essential credit card information from the cardholder, the bank issuing the card actually repays the vendor, and eventually the cardholder repays the bank through regular monthly payments. If the entire balance is not paid in full, the credit card issuer can legally charge interest fees on the unpaid portion.

2: Debit Card:


A debit card is a plastic card issued by banks to customers. The card allows instant purchase, removing the correct balance from the user’s attached bank account. Debit cards are distinct from credit cards in that they allow purchase based on available funds in the account to be deducted immediately, instead of by using a line of credit that can be repaid at a later time. Debit card/Check card is used instead of cash in shopping. The Buyer’s account is instantly debited. It is an alternative to carry cash or check book.
Advantages:

  • Obtaining Debit card is easier then Credit card.
  • Debit card frees you from carrying cash.
  • Merchants prefer debit card then check.

3.ELECTRONIC FUND TRANSFER (EFT):


Electronic fund transfer is used to transfer money value from one account to another in same or different bank electronically. EFT refers to any fund transfer initiated by an electronic terminal, including Credit card, ATM, Point of sale terminal or Internet based EFT.
EFT is safer, secure, efficient and less expensive. While it costs the U.S Govt $1.03 to issue each check payment. It costs only .05 cents to issue on EFT payments.

4. Stored value cards & E-Cash:


E-Cash is cash usually stored in smart card or E-Wallet. It can be used for micro E-Payments. Suppose a consumer has purchased a digital picture or listened a song for $.25 fee.
Now the minimum cost to process E-Payment by credit card is about $1.00 which should be charged to seller. In such cases E-Cash payment system can be used.

5. Electronic Check or e-check:

A form of payment made via the internet that is designed to perform the same function as a conventional paper check. Because the check is in an electronic format, it can be processed in fewer steps and has more security features than a standard paper check. Security features provided by electronic checks include authentication, public key cryptography and digital signatures. Electronic checks have been developed in response to the e-commerce transactions. Electronic checks can be used to make a payment for any transaction that a paper check can cover and are governed by the same laws that apply to paper checks.This is the first form of internet-based payment that the U.S. Treasury uses for making large online payments.
An eCheck is an electronic order to your bank to pay the amount specified from funds in either your checking or savings account. This is also referred to as a web check or an ACH payment.
To process an eCheck, you must enter your bank information into the student eCommerce system. The bank information needed is your bank's 9-digit bank routing number and either your checking or savings account number.

Comments

Jack said…
Very nice post. I am currently studying about how e payments are made secure, what is the mechanism that is followed behind it. With the help of this article I have learn so much about the protocols that offers the protection for online transactions.
e signatures

Popular posts from this blog

Explain different types of storage devices

Topic: Explain different types of storage devices in Computer systems Storage Devices Storage devices are used to store data and instructions permanently. Storage devices are also called secondary storage devices / backing storage devices / external storage devices or auxiliary storage devices. Examples of storage devices include Hard Disk, CD and DVD etc. Why Secondary Storage Devices are Used? Secondary storage devices are used because: Primary memory(RAM) is volatile and temporary. When computer is switched off, all data in ram is erased. Storage devices can store large amounts of data and instructions permanently whereas Primary memory has less capacity of storing data. Types Of Storage Devices There are three main types of storage devices:  Magnetic Tape   Magnetic Disk   Optical Disk   Flash Memory storage devices 1. Magnetic Tape Magnetic tape is the oldest storage device. It is made of plastic coated with magnetic material. Data is stored on mag

What are uses of computer at Home

Uses of Computer Today, computer is used in almost every field of life. The use of computer has made different tasks very easy for us. Computer can be used at home in the many different ways. Explain different uses of computers at Home Computer has made a very vital impact on our society. People are using computers for performing different tasks quickly and easily. In fact, computer has made our life more comfortable.   Uses of Computer at Home Computer can be used at home in the following ways: 1.  Home Budget Computer can be used to manage the home budget. What are the Uses of computer at home You can easily calculate your expenses and income with the help of a software like Microsoft Excel. In MS Excel you can prepare a simple worksheet to calculate your daily expenses and income. 2. Computer Games An important use of computer at home is playing games. Different types of games are available. And if you have internet connection, then you can play games online

Find Your Correct Age From Date of Birth

First of all click on First two digits to type Month number from keyboard like any number from 1 to 12. . Now click on next two digits and type day number of month that is date from 1 to 31. In the last step type the year of your birth in four digits like 1995.  Now click on the blue button with text "Calculate Age". Your accurate age will be displayed below the button. For example. If today is 09-16-2023 that is September 16, 2023 and you type birth date as 11-01-2000 that is November 1, 2000, your accurate age will be displayed as:Your age is 22 years, 10 months, and 15 days. Age Calculator Age Calculator Calculate Your Age Now! Enter your date of birth: Calculate Age As shown in the image below: