Electronic Payment (e payment) epayment and its types

1. The capability of buying and selling products, information and services on
the Internet and other online environments.
 Electronic payment systems have been in operations since 1960s
Traditionally, a customer sees a product, examines it, and then pays for it by
cash ,
check, or credit card.
Payment (credit card,
cash, check)
Products/service
Costumer Businessma
n
Traditional payment
scheme

2. Payment
(EFT, E cash, E check, E
wallet, )
Products/service
Costumer Virtual Business
man
Electronic payment scheme
 In the e-commerce world, in most cases the customer does not actually see
the
concrete product at the time of transaction, and the method of payment is
performed electronically.

3. 1. Consumer buys e-cash from Bank.
2. Bank sends e-cash bits to consumer.
3. Consumer sends e-cash to merchant.
4. Merchant checks with Bank that e-cash
is valid (check for forgery or fraud)
5. Bank verifies that e-cash is valid
6. Parties complete transaction.
Merchant
Consumer
Bank
1
2
3
4
5
E-cash
Concept

4.  EPSs enable a customer to pay for the goods and services online by
using integrated hardware and software systems.
 The main objectives of EPS are to increase efficiency, improve security,
and
enhance customer convenience and ease of use.
 While customers pay for goods/services by cash, check, or credit cards
in conventional businesses, online buyers may use one of the following
EPSs to pay for products/services purchased online.

5. • PAYMENT CARDS:
Credit cards, debit cards, charge cards and electronic wallet. They are the
most popular tool for electronic payment transactions.
 Credit cards:
o A very common method of payment .
o Credit cards issued by credit card companies (e.g., MasterCard, Visa) and
major banks (e.g. United Bank , HBL etc).
o The customer uses these cards to buy goods and services or get cash
from the participating financial institutions.
o Unique 16-digit number (including check digits) and an expiration date
o Two limitations of credit cards are their unsuitability for very small or very
large payments.
o It is not cost-justified to use a credit card for small payments. Also, due to
security issues, these cards have a limit and cannot be used for
excessively large transactions

6. Debit cards
 Debit cards task similar to checks in that the charges will be
taken from the customer's checking account.
 The benefit for the customer is the easiness of use and
convenience.
 These cards also keep the customer under his budget
because they do not allow the customer to go beyond his
resources.
 The advantage to the merchant is the speed at which the
merchant collects these charges.

7. Charge Cards
 Charge cards are similar to credit cards
except they have no revolving credit line,
 so the balance must be paid off every month.
 Credit, debit, and charge card methods of
payments have been successfully utilized in
the pre-Internet period,
 and they are often used in the e-commerce
world as well.
 Some of the reasons for their popularity in the
e-commerce world are their availability , easy
of use, and acceptance. To use these cards
as an online payment system.

8. Electronic wallets
Electronic wallets being very useful for frequent online
shoppers are commercially available for pocket.
They offer a secure, convenient, and portable tool for
online shopping.
They store personal and financial information such as credit
cards, passwords, PINs, and much more.
Electronic wallets allow higher speed and efficiency for
online shoppers.

9. ALTERNATE CUNSUMER PAYMENT
OPTIONS
Although electronic payment is more convenient , internet
merchant’s that do not accept credit cards can accept
payments such as checks or money orders through the
mail.
Cash on delivery (COD) is another possible, but rarely
used , option for those hesitant to pay electronically.

10. Banks and businesses are also creating option for online
payment that do not involve credit cards.
Companies such as AmeriNet ( www.debit-it.com) allows
merchants to accept a customer ‘s checking-account
number as a valid form of payment .
AmeriNet provides authorization and account settlement,
handles distribution and shipping (known as fulfillment ) and
manages customer service inquiries.

12. The most common alternative payment methods are debit
cards, charge cards, prepaid cards, direct debit, bank
transfers, phone and mobile payments, checks, money orders and
cash payments.
Types :

13. THE END
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