Electronic Payment

By: El Panda

What is an electronic payment?• Electronic money (also known as e-currency, e-money, electronic

cash, electronic currency, digital money, digital cash, digital currency, cyber currency)

is money or scrip that is only exchanged electronically.

In technical terms, electronic money is an online representation, or a system of debits and credits, used to exchange value within another system, or within itself as a stand alone system.

Types of electronic payment

• A hard electronic currency does not have services to dispute or reverse charges. Reversing transactions, even in case of a legitimate error, unauthorized use, or failure of a vendor to supply goods is difficult, if not impossible. Examples are TokenPay, Pecunix, Western Union, KlickEx and Bitcoin.

• A soft electronic currency allows for reversal of payments, for example in case of fraud or disputes. Reversible payment methods generally have a "clearing time" of 72 hours or more. Examples are PayPal and credit card. A hard currency can be softened by using a trusted third party or an escrow service.

Advantages

Safety

Delivery

It´s safer the electronic payment than travelling with many money on the pockets.

The payment can be stopped or reversed.

If the card is lost or stolen, you can simply cancel it and get another one. 

Money can be transferred through the Automated Clearing House, or some other network that the financial institution uses.

Internet and Electronic Payment Systems

The payment gateway allows your customers to enter their credit card information online. Gateway provides security for both you and your customer, protecting their credit card information and your company from fraud. Once that information is entered, your merchant account provider will process the transaction and get approval. Once approved, you get paid.

Telephone and Mail Order Electronic

Payments

Some customers don’t feel comfortable giving out their credit card information online, so they simply set in their ways of ordering by mail or over the phone. This requires that you have a virtual terminal to process credit card payments. A virtual terminal is essentially a software program that allows you to take credit card information over the phone or via mail and then enter it into the terminal.

Electronic Checks and Gift

Cards

An electronic payment system isn’t just for credit card processing. It can also be used for processing electronic check payments and even gift cards. In order to accept these kinds of payments, you do need to verify that your merchant account provider can process those types of payments.

Electronic payment is a popular method of making payments globally. It involves sending money from bank to bank instantly regardless of the distance involved.

Gateway service

Risks of using electronic payment

Bank Phishing

Phishing is attempting to acquire information (and sometimes, indirectly, money) such as usernames, passwords, and credit card details by masquerading as a trustworthy entity in an electronic communication.

Bank Phishing

Impulse Buying

Electronic payment systems encourage impulse buying, especially online. You are likely to make a decision to purchase an item you find on sale online, even though you had not planned to buy it, just because it will cost you just a click to buy it through your credit card.

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