Mechanism of Making Payment through Internet | what is online payment methods

What is online payment mechanism

When we buy or purchase anything electrically or through online mode, we also pay the amount through internet i.e. online methods. Various ways or methods of giving payment online is called the mechanism of payment through online.

In today’s modern time, there are many ways for doing payment online. Various methods of online payments are:

Electronic methods of payment

Debit Card:  ATM card, also called, is used to access funds from a savings account. A debit card is similar in appearance to a credit card but serves as a cash or personal check. With this we use only the amount deposited in our bank. You use a debit card, you are withdrawing money from your bank account and you can only use up to the amount deposited in that account. All debit cards are used in retail stores, gas stations and hotels.

Advantages

•  Debit cards can be obtained more easily than credit cards.
• You do not have to carry much cash or your check when you        are out of the house and you can get it from ATM when you do not have currency.
• Debit cards are preferred by merchants over cheques.

 Credit Card: It is the first way of making payment through online. When you use a card to purchase goods, you are borrowing from the card issuing company. You put your signature on the back of the card and when you make a purchase you sign the purchase receipt. Then the two signatures are compared so that they can be seen to match. When you purchase items by e-mail, phone or internet, you provide the card's expiry date and security code number. Each card is issued with the consent of the user. Therefore the cardholder should know the terms of the card. The credit card issuing agency has to pay the amount at the end of each month after each purchase and each month you receive a copy of your account statement issued by the institution. It contains details of the amount paid by the institution and the interest or other expenses incurred on it.

Advantages

• With credit card you get access to more money when you go out.
•  A credit card is an important tool for paying off unforeseen expenses
• Credit cards can be used securely to get tickets for any airline, car rental and hotel room. Check card or if you use a credit card to make purchases, you have a record of expenses incurred

Mobile Banking: With Mobile Banking, users can view their bank account on their mobile screen. Daily transactions can be done by pressing a few numbers on the mobile. Mobile banking provides a variety of services such as savings account or current account information, check payment withholding or bill payment.

Telephone Banking: Telephone banking is another important service provided by e-banking. Telebanking is one such service in which banks can receive telephone calls during their working hours. This allows a user to transact from the comfort of their home. Under this service the user calls his bank on telephone and then the bank asks the user to press a special button to get a particular service. This system works with microprocessor technology. It does not require any special software. It recognizes Tone Signal and Pulse. Access to a bank computer is possible by telephone. Through the telebanking system the user can get information about their account balance, transfer between accounts, or bill payment etc.  

Advantages  

• The caller can get information about his account and credit card account.
• Electronic bank transfer allows the user to perform many transactions in a short period of time.
• It provides security to the user's accounts so that no non-person can get any information about the user. 

Electronic Fund Transfer: With the help of EFT s nation currency can be exchanged electronically from one user's account to another user's. This is done through electronic data transfer and involves a small exchange of data between the two users. With the old system of money transfer, time was running out. It took ten to fifteen days to transfer a check or currency. For one, it takes more time and more paperwork. Under this facility, one user gives the account number of another user. For currency transfer the user then contacts his local bank which initiates the transaction process and the local bank transfers the mass currency of internet supported to another user's account.

Advantages OR Benefits

• Transfer of currency from one bank account to another
• immediate payment of currency in the bank account
• Provides a lot of convenience to the consumer.
• Reduces the likelihood of errors and scams.
• EFT Facilitate monthly repayment of loans 

Electronic Cheque: In traditional check system, transfer of currency takes a long time. With the advent of e-banking, paper Cheque are no longer required. E- Cheque is an important feature. E- Cheque provides greater security and reduces costs. Payment is made online in e- Cheque system. This takes a few minutes. Separate accounts are used for paper and e- Cheque. For security of transactions, the bank combines e- Cheque information in its database.

Advantages

•  It reduces costs.
•  It enhances security.
• Provides online payment facility.
• Different accounts are used for paper and e-check.
•  The bank combines e-cheque information in its database to protect the transaction.

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. This eliminates the need to key in account information every time while making payments. Once the customer has registered and created E-Wallet profile, he/she can make payments faster.

Amazon Pay: Another convenient, secure and quick way to pay for online purchases is through Amazon Pay. Use your information which is already stored in your Amazon account credentials to log in and pay at leading merchant websites and apps. Your payment information is safely stored with Amazon and accessible on thousands of websites and apps where you love to shop.