Payment Systems E -Commerce

E -commerce sites or e-commerce using electronic payment where electronic paperless payment refers to monetary transactions. Electronic payment has revolutionized the treatment of undertakings by reducing paper work , transaction costs , the costs of labor. Be user-friendly and less time consuming than manual processing , helping to organize the company to expand its market reach / expansion. Some of the electronic payment modes follow.

Credit card

Debit Card

smart Card

E- Money

Electronic funds transfer (EFT)

Credit card

Payment by credit card is one of the most common mode of electronic payment. Credit card is a small plastic card with a unique number associated with an account . It also has an integrated magnetic stripe which is used to read the credit card through the card reader . When a customer buys a product by credit card, bank credit card issuer pays on behalf of the client and the client has a certain period of time after which he / she can pay the credit card bill . It is generally the credit card payment monthly cycle . Here are the actors in the credit card.

The cardholder - Customer

Merchant - product seller can accept payments by credit card.

The issuer of the credit card - bank card holder

The acquiring bank - the bank of the merchant

The card brand - for example, visa or mastercard .

Process payment by credit card

Step Description

Step 1 questions and active bank credit card customer on his / her request.

Step 2 customer provides information for credit card merchant site or trading him / she wants to buy a product / service.

Step 3 Merchant validates the identity of the client requesting the approval of the card brand company .

Step 4 card brand company authenticates credit card transaction and paid by credit card. Merchant retains the sales slip .

Step 5 merchant submits the bill of sale to the purchaser gets the banks and chargers services paid to him / her.

Step 6 Acquiring bank requests the company brand card to erase the credit and receive payment .

Step 6 Now the card brand company asks to erase amount of the bank of the issuer and the amount is transferred to the card brand company .

Debit Card

Debit card as credit card is a small plastic card with a unique number mapped to the bank account number . It is necessary to have a bank account before getting a debit card from the bank. The main difference between debit card and credit card is that when paying by debit card , the amount is deducted from the bank account immidiately map and there should be a sufficient balance in the bank account of the transaction to get completed . While in the case of credit card , there is such a constraint .

Debit cards customer free carry cash , checks and even merchants accept cards more easily flow. Have restriction on quantity being in the bank account also helps customer to keep a check on spending / her .

smart Card

Smart card is like credit card and debit card in appearance, but it has a small microprocessor chip embedded in it. It has the ability to store customer related work / personal information. Smart Card is also used to store money which is reduced by the use .

Smart card can be accessed only with a PIN code of the customer. Smart cards are secure because they store information in an encrypted format and are cheaper / faster processing.Mondex provides cash and Visa cards are examples of smart cards.

E- Money

Transactions of electronic money refers to the situation where the payment is made on the network and the amount is transferred from one financial institution to another financial institution without the intervention of an intermediary. E-money transactions are faster , convenient and saves a lot of time.

Online payments made ​​by credit card, debit card or smart card transactions are examples of electronic money . Another popular example is electronic money. In the case of e- cash, both customer and merchant have both signed with the bank or issuing company e-cash .

Electronic funds transfer

It is a very popular method of payment for electronic transfer of money from one bank account to another bank account. Accounts can be in the same bank or a different bank . Transfer of funds can be done using ATM (Automated Teller Machine) or using a computer.

Now a day , Internet-based EFT getting popularity . In this case, the client uses the site provided by the bank. Client connections to the website of the bank and other records of bank accounts. He / she then places a request to transfer certain amount of this account. Bank transfers of customers amounted to another account if it is the same bank transfer request is sent to ACH (Automated Clearing House) to transfer the amount to another account and the amount is deducted from customer's account. Once amount is transferred to another account , the customer is informed of the transfer of funds by the bank.