For What Reasons an E-Payment System is Known?

For What Reasons an E-Payment System is Known?

In this technology world, there has been an increasing rate of crime, including thefts, murders, etc. This has given rise for the individuals to keep up the virtual wallets and introduction of the e-payment system. An e-payment system is the system promoting cashless monetary transactions. This system is being used by every company or entrepreneur running an e-commerce business. This has been trusted by millions of businesses across the world that is selling their products online.

An e-payment system is gaining popularity because of the given reasons:

  • Beautiful and instantly responsive themes
  • Low pricing
  • Transparent pricing
  • Trusted over millions of individuals

The huge spread of internet based banking as well as shopping has given rise to the demand for an e-payment system. This has given rise to the payment processing devices as well as e-payment systems. An increase, improvement and ever secure online payment transactions will lead to a decrease in the cash payment transactions.

There are different methods of making electronic payments, including the classic as well as the modern methods. The most important and popularly used payment mode is the use of debit card or credit card. There are also alternative methods besides this. Like one can make IMPS, bank transfers, smart cards, Bitcoin, electronic wallets, etc. These payment methods are generally classified into two areas, i.e. cash payment systems and credit payment systems.

Some of the credit payment systems include:

  • Credit card: this is a card issued by the financial institute to the cardholder, in order to make the payments online without making use of cash.
  • Smart card: this is a plastic card with microprocessor chip that be loaded with funds, so as to make a transaction. This is also known as a chip card.
  • E-wallet: this is a form of prepaid account storing financial data, like credit or debit cards, in order to make an electronic or cashless transaction.

Some of the cash payment systems include:

  • E-cheque: it is a digital version of paper Cheque. It is a way to transfer money electronically from a bank account.
  • Stored value card: A card that is available with certain sum of money and can be used for performing the transactions in the issuer store. Gift cards are a perfect example of stored value cards.
  • Direct debit: this is a system in which the account holder instructs the bank for collecting some amount from his/her account electronically, so as to pay for goods and services.
  • E-cash: This is a form of electronic payment system, where some amount is stored on the device of the client and is made accessible for online transactions.

An e-payment system has proven very beneficial for the individuals, as it provides them with an awesome shopping experience without even losing the comfort of their home. This system can be used and accessed for 24×7. This has helped in boosting the sales and increasing the number of users all over the world.

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