E payment system makes payment transactions easier

E payment system makes payment transactions easier

- in Finance

incredible technical revolution that has happened over the last decade is unimaginable. Internet has literally taken the world by storm – things that were earlier restricted to only science fictions or sci-fi movies are now a reality. There’s also no stopping this revolution as scientists and engineers come up with new technical discoveries or gadgets every other month.

One of the major benefits of the advent of technology has been the culmination of payments with internet. In other word, e-payment, has overthrown all traditional ways of handling money and payment transactions. Some years back we only knew that in order to make a successful purchase one just needed to pay for it either by cash or a paper cheque.

Move over cash and cheques – it’s now the era of electronic payments! Back in 1958 the American Express Company introduced the credit cards and in the late 1970s the concept of debit cards and ATMs started gaining momentum. This was the start of the electronic payment system. As things gained speed, slowly credit and debit cards started replacing the traditional payment methods at merchant stores to pay against purchases.

E-payment or electronic payment also called online payment basically means paying against any type of purchase through the internet or any other electronic medium like credit or debit cards or a smart card or through net banking. The entire transaction happens without the physical presence of the individual concerned at the place of the transaction, there’s no swiping of the cards and without the using of cash or your cheque-book.

An e-payment system facilitates the processing of electronic payments over the internet in other words, for online transactions. As online shopping is gaining popularity as more and more e-stores are tying up with e-commerce payment systems to facilitate online payments or EDI (Electronic Data Interchange).

Is it safe?

Electronic payment systems are absolutely safe if the system that the merchant is associated with is safe and secure. It is highly necessary that the merchant selects his payment system prudently and keep the following in mind:

  1. The payment system is compliant with the PCI (Payment Card Industry) standard.
  2. The payment system is ably using encryption technology to safeguard the private information of their customers.
  3. Adequate measures are taken to ensure safe login screens
    Regular audit of the payment system from government approved audit companies and security updating of the business network is also critical.

Benefits of e-payment systems:

  1. It’s one of easiest and convenient process for making payments. People who are not very tech savvy too can carry out online transactions with little help.
  2. It helps the online stores to reach out to costumers the world over. Region or country is no longer a limitation.
  3. Easy reference-check for customers as they can check their transactions at any point in time. For merchants, it implies lower transaction and technology costs.
  4. Mostly the sites accepting e-payments are trustworthy and reputed ones.

The only ugly side of this system is the chances of fraudulence though minimal. Also, the fact that any kind of e-payment is dependent on the internet connectivity, any failure in connectivity will adversely affect the transaction.