An E-payment system is usually a method of securing a transaction, that is, to accept payment or pay for a product or a commodity by using an electronic medium, without the use of physical ways like cheques or cash. Also sometimes consider this as an electronic payment system or an online payment system.
The popularity of electronic payment systems has grown exponentially over the last decade due to the money crisis faced by most countries. The general hassle to withdraw currency from a bank has gone down. The widespread trends of using technology for most purposes have also helped grow the notion of electronic payment systems.
Nowadays, one can see electronic payment systems and payment processing devices of the same purpose present in most shops and is one of the only ways to make a purchase through a market that is increasingly becoming an online one.
Methods Of Electronic Payment Systems
Credit and debit card payments are the most popular form of online payment. Debit cards are small rectangular cards of plastic used to store a theoretically uncountable amount of money. Credit cards are used for the same purpose where the money is lent by the bank.
Besides these, there are methods that do not require the transactor to carry any physical items whatsoever, like bank transfers, bitcoin wallets (one of the most popular types of online currency, transactions made using these are always encrypted for safety). Bank transfers and net banking require the transactor to memorize his bank account number and his pin, along with the expiry date of the card.
Some of the most popular methods of Electronic Payment are:
Credit Card –
Credit Cards are very popular in first-world countries like the US, UK. And only given to businessmen in other countries. The transactor can use the limitless amount of money lent by the bank. The amount is repaid at the end of the month with a subscription fee.
Debit Card –
Similar to the credit card, in this, you get a rectangular plastic card. The transactor has to deposit money in the bank account to use it. Keep the account open with a minimum balance in it.
This is a popular form of prepaid account where money has to be deposited from a bank account. A smartphone simplifies the transaction process for everyone.
This is a digital version of an old, physical, cheque from a checkbook. It electronically transfers money from a bank account without having to carry a checkbook.
The Utility Of Electronic Transactions
- The business in question can reach more clients from across the world.
- The transactions are more efficient since they occur instantaneously.
- Nowadays, using online payment systems which have highly advanced firewalls is probably more secure than using most physical methods or carrying cash.