There are millions of buyers who prefer online buying. Hence internet can be used to sell the products in an effective and efficient manner. This is possible if retailers use a secure payment system. There are number of online payment systems available in the market. Credit and debit cards are the most popular and commonly used payment systems. Others include Electronic Fund Transfer (EFT), PayPal Technology, Google Checkout and World Pay authorize.Net etc. There are different modes of online transfer available to cater to customers need and requirements.
Some of the different online payment systems and their features are outlined below.
Credit and Debit Card
The most common and preferred online payment system types are credit and debit cards. People choose credit and debit cards to make payment since this is considered to be the safest and secure mode of payment. Credit cards are issued by a bank once the account has been approved by the authorized credit provider. The card holders can use the card for making purchases either online or directly at the shops. If the purchaser uses the credit card in a shop, the merchant by using an electronic verification system verifies whether the card is valid and the customer has the sufficient credit limit to make the purchase. For added security, the consumers can choose a secure password to authorize the online payment.
Debit cards are linked directly to the user's bank account and require electronic authorization of every transaction. Once the user uses the debit card, the debit will be reflected in the card holder's account immediately. The card holder has the online secure password which can be used for safety and authorizing the payments.
Electronic Fund Transfer (EFT)
Electronic Fund transfer is another common mode of online payment system used by consumers. In this method, the user can transfer the funds from their respective account to the merchant through computer based systems. Again, the user has a respective login id and password to authorize the payment for security purposes. Electronic fund transfer is used commonly to pay utility bills, mortgages, car insurance, railway bookings etc. EFT is used when the merchant does not have credit or debit card capability available for such online transactions.
Pay Pal Payment system
Pay Pal is another smarter and secure online payment system used to transfer funds. PayPal provides the user an added layer of security by using the leading data encryption technologies. It is considered to be one of the safer and simpler methods to transfer funds. This mode of online payment is used quite frequently by the users worldwide.
Payment Service providers
PSP (Payment Service Providers) help the consumers make online payments through various modes such as debit cards, credit cards. PSP provide consumers with the most reliable and safest online services to make payments. In short, the consumers or shoppers can link various modes of payments to a single source. PSP protect the shoppers from online fraud and theft. PSP link to various payment networks and manage the technical applications and relationships with external network for a smoother and safe payment system which consumers can rely on.
Some of the different online payment systems and their features are outlined below.
Credit and Debit Card
The most common and preferred online payment system types are credit and debit cards. People choose credit and debit cards to make payment since this is considered to be the safest and secure mode of payment. Credit cards are issued by a bank once the account has been approved by the authorized credit provider. The card holders can use the card for making purchases either online or directly at the shops. If the purchaser uses the credit card in a shop, the merchant by using an electronic verification system verifies whether the card is valid and the customer has the sufficient credit limit to make the purchase. For added security, the consumers can choose a secure password to authorize the online payment.
Debit cards are linked directly to the user's bank account and require electronic authorization of every transaction. Once the user uses the debit card, the debit will be reflected in the card holder's account immediately. The card holder has the online secure password which can be used for safety and authorizing the payments.
Electronic Fund Transfer (EFT)
Electronic Fund transfer is another common mode of online payment system used by consumers. In this method, the user can transfer the funds from their respective account to the merchant through computer based systems. Again, the user has a respective login id and password to authorize the payment for security purposes. Electronic fund transfer is used commonly to pay utility bills, mortgages, car insurance, railway bookings etc. EFT is used when the merchant does not have credit or debit card capability available for such online transactions.
Pay Pal Payment system
Pay Pal is another smarter and secure online payment system used to transfer funds. PayPal provides the user an added layer of security by using the leading data encryption technologies. It is considered to be one of the safer and simpler methods to transfer funds. This mode of online payment is used quite frequently by the users worldwide.
Payment Service providers
PSP (Payment Service Providers) help the consumers make online payments through various modes such as debit cards, credit cards. PSP provide consumers with the most reliable and safest online services to make payments. In short, the consumers or shoppers can link various modes of payments to a single source. PSP protect the shoppers from online fraud and theft. PSP link to various payment networks and manage the technical applications and relationships with external network for a smoother and safe payment system which consumers can rely on.
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