Online payment system ppt

E-commerce sites use electronic payment, where electronic payment refers to paperless monetary transactions. Electronic payment has revolutionized the business processing by reducing the paperwork, transaction costs, and labor cost. Payment using credit card is one of most common mode of electronic payment. Credit card is small plastic card with a unique number attached with an account.

Top 5 Challenges in Online Payments and How to Overcome Them

E-commerce sites use electronic payment, where electronic payment refers to paperless monetary transactions. Electronic payment has revolutionized the business processing by reducing the paperwork, transaction costs, and labor cost. Payment using credit card is one of most common mode of electronic payment. Credit card is small plastic card with a unique number attached with an account.

It has also a magnetic strip embedded in it which is used to read credit card via card readers. It is usually credit card monthly payment cycle. Following are the actors in the credit card system. Debit card, like credit card, is a small plastic card with a unique number mapped with the bank account number.

It is required to have a bank account before getting a debit card from the bank. The major difference between a debit card and a credit card is that in case of payment through debit card, the amount gets deducted from the card's bank account immediately and there should be sufficient balance in the bank account for the transaction to get completed; whereas in case of a credit card transaction, there is no such compulsion.

Debit cards free the customer to carry cash and cheques. Even merchants accept a debit card readily. Smart card is again similar to a credit card or a debit card in appearance, but it has a small microprocessor chip embedded in it. Smart cards are also used to store money and the amount gets deducted after every transaction.

Smart cards can only be accessed using a PIN that every customer is assigned with. Mondex and Visa Cash cards are examples of smart cards. E-Money transactions refer to situation where payment is done over the network and the amount gets transferred from one financial body to another financial body without any involvement of a middleman.

E-money transactions are faster, convenient, and saves a lot of time. Online payments done via credit cards, debit cards, or smart cards are examples of emoney transactions. Another popular example is e-cash. In case of e-cash, both customer and merchant have to sign up with the bank or company issuing e-cash. It is a very popular electronic payment method to transfer money from one bank account to another bank account.

Accounts can be in the same bank or different banks. Nowadays, internet-based EFT is getting popular. In this case, a customer uses the website provided by the bank, logs in to the bank's website and registers another bank account. Customer's bank transfers the amount to other account if it is in the same bank, otherwise the transfer request is forwarded to an ACH Automated Clearing House to transfer the amount to other account and the amount is deducted from the customer's account.

Once the amount is transferred to other account, the customer is notified of the fund transfer by the bank. E-Commerce - Payment Systems Advertisements. Previous Page. Next Page. Previous Page Print Page. Card brand company authenticates the credit card and pays the transaction by credit.

Merchant keeps the sales slip. Now the card brand company asks to clear the amount from the issuer bank and the amount gets transferred to the card brand company.

PRESENTATION ON ELECTRONIC PAYMENT SYSTEMS (EPS) MADE BY: NAIMIKSHA (wiacek.com.au IT – 1ST Yr). overview of electronic payment system. 1. To transfer money over the Internet. Methods of traditional payment. oCheque, credit card, or cash.

An e-commerce payment system or an electronic payment system facilitates the acceptance of electronic payment for online transactions. Also known as a subcomponent of Electronic Data Interchange EDI , e-commerce payment systems have become increasingly popular due to the widespread use of the internet-based shopping and banking. Credit cards remain the most common forms of payment for e-commerce transactions.

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An electronic payment is any kind of non-cash payment that doesn't involve a paper check. The ACH system comprises direct deposit, direct debit and electronic checks e-checks.

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An online payment system is an Internet-based method of processing economic transactions. It allows a vendor to accept payments over the web or over other Internet connections, such as direct database connections between retail stores and their suppliers--a common method of maintaining just-in-time inventories. Online payment systems greatly expand the reach of a business and its ability to make sales. Online payment systems typically are run by third-party corporations, such as PayPal, Google or Click2Pay. These companies make a profit by taking a small percentage of every transaction, or by signing contracts with institutions that need to make a large number of transactions.

Advantages & Disadvantages of E-Payment

Online merchants and consumers alike expect online buying and selling to be easy, efficient, and safe. Ecommerce transactions trigger complex automated processes that involve downstream players: banks and payment processors to name just two. In addition, technological advances in smartphones and e-wallets, shifting purchase patterns, and demand for cross-border, multi-currency electronic payments have fueled PSP competition to maintain and increase market share. New technologies have already simplified and smoothed business-to-business and business-to-customer experiences with mobile payments, e-wallets, and contactless cards. As the online payment processing market grows, user demands for additional payment features and options lead growth in multiple directions. Providers are under pressure to provide peer-to-peer payments beyond traditional banking models, and to facilitate a cashless society that can enable any purchase, even mechanical transactions such as parking meters or vending machines. These demands create technical challenges for merchants, processors, and users up and down the transaction path. Below is a list of the 5 main challenges in online payments and how to overcome them. Chargebacks, in addition to being costly, can damage business reputations; an excessive number of chargebacks can lead to closed merchant accounts, effectively killing the business. While chargebacks do sometimes happen for legitimate reasons, use of customer service practices based on know-your-customer principles, and merchant accessibility, can substantially reduce or eliminate chargebacks.

Electronic payment allows your customers to make cashless payments for goods and services through cards, mobile phones or the internet.

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E-commerce payment system

Sell On Amazon Start selling. What are the different types of e-commerce payment systems? When you purchase goods and services online, you pay for them using an electronic medium. This mode of payment, without using cash or cheque, is called an e-commerce payment system and is also known as online or electronic payment systems. The growing use of internet-based banking and shopping has seen the growth of various e-commerce payment systems and technology has been developed to increase, improve and provide secure e-payment transactions. Paperless e-commerce payments have revolutionised the payment processing by reducing paper work, transaction costs, and personnel cost. The systems are user-friendly and consume less time than manual processing and help businesses extend their market reach. The different types of e-commerce payments in use today are:. Credit Card The most popular form of payment for e-commerce transactions is through credit cards. To improve the security system, increased security measures, such as the use of a card verification number CVN , have been introduced to on-line credit card payments. Debit Card Debit cards are the second largest e-commerce payment medium in India. Customers who want to spend online within their financial limits prefer to pay with their Debit cards. E-Wallet E-Wallet is a prepaid account that allows the customer to store multiple credit cards, debit card and bank account numbers in a secure environment.

How Electronic Payment Works

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