What Do U Mean By Electronic Payment System?

What are the basic functions of online payment systems?

Payment cards (credit cards, debit cards, charge cards) are used to purchase items/service from internet websites that sell items or services, pay loans, insurance, and other bills.

These cards can also be used to send money online.

Payment cards are accepted worldwide and it has built-n security for merchants..

What is an electronic payment system why is it important?

Electronic payment systems allow financial institutions, businesses and the government to offer a variety of payment options to their customers. These systems include automated teller machines, debit cards, credit cards, mobile banking and payment of bills through the phone.

What is electronic payment called?

ACH and EFT payments are both types of electronic payments. … ACH stands for the Automated Clearing House and is the process of moving funds from one bank to another. EFT payments are an umbrella term that include ACH payments, wire transfers, and all other types of digital payments.

What are the risks in electronic payment system?

Risk of E-paymentStolen Payment credentials and passwords.Dishonest merchants for financial service providers.Disputes over quality of services and products. Fraud. Electronic payment systems are prone to fraud. The payment is done usually after keying in a password and sometimes answering security questions.

Is it secure to use electronic payment system?

1. TLS Encryption. Data security on e-commerce websites or an online payment system begins the moment a user lands on the site. The TLS Certificate tells users that the data transmitted between the web server and their browser is safe.

How does electronic payment system work?

E-payments are orchestrated by an electronic funds transfer (EFT), which is the process of transferring money from one bank account to another without any exchange by hand. Online payment methods that use EFT include: Credit and debit cards. Businesses must have eCommerce software to accept payments online.

What are the types of payments?

Payment OptionsCash.Checks.Debit cards.Credit cards.Mobile payments.Electronic bank transfers.

How do I use e payment?

There are two main ways that e-payment accounts work. You either: Pay money into your e-money account using a payment card. When you shop online the money is deducted from your balance – or if you’re selling things, it’s added to your balance, or.

What are the 3 methods of payment?

The three most basic methods of payment are cash, credit, and payment-in-kind (or bartering). These three methods are used in basic transactions; for example, one may pay for a candy bar with cash, a credit card or, theoretically, even by trading another candy bar.

What is the most secure method of payment?

What Are the Most Secure Payment Methods?Payment Apps. Mobile payment apps are designed to free you from cash and credit cards by allowing you to digitally transfer funds to family, friends, or merchants. … EMV-Enabled Credit Cards. … Bank Checks. … Cash. … Gift Cards.

What are the types of electronic payment system?

Types of Electronic Payment SystemsAutomated clearing house.Wire transfers.Item processing.Remote deposit capture.FedLine Access Solutions.Automated Teller Machines.Card Services (ATM, credit, debit, prepaid)Mobile payments.

What are the features of electronic payment system?

The basic characteristics of e-payment system are applicability, ease of use, security, reliability, trust, scalability, convertibility, interoperability, efficiency, anonymity, traceability, and authorisation type.

What are the advantages and disadvantages of electronic payment system?

Advantages & Disadvantages of E-PaymentAdvantage: Increased Speed and Convenience. E-payment is very convenient compared to traditional payment methods such as cash or check. … Advantage: Increased Sales. … Advantage: Reduced Transaction Costs. … Disadvantage: Security Concerns. … Disadvantage: Disputed Transactions. … Disadvantage: Increased Business Costs.

What is the best method of payment?

Is There a Best Method of Payment?Credit Cards. Pros: Credit cards are a very popular form of payment, and they let you pay on our own schedule. … Debit Cards. Pros: Debit cards use funds from your checking account. … Checks. Pros: Checks can be used to pay anyone from your checking account. … Cash. Pros: You can make nearly every in-person purchase with cash.