E-Payments In Commerce including their pros and cons.pptx

This is a presentation on E-commerce and various ways to facilitate online business. It includes introduction to various payment methods and provides information on pros and cons of such methods. This presentation was made for e-commerce class on the topic of various methods used for payment in online platforms and has helped increase my knowledge on said topic.

1. E-Payments In Commerce An e-payment or Electronic Payment system allows customers and sellers to pay and receive p ayments for the services via electronic methods. They are also known as online payment systems. It is a cashless payment system allowing for various types of ways for monetary exchange ranging in convenience and security with ease to any and all people among customers and sellers.

2. E-payments in India In India’s journey towards E-payments, digitization, merchants, as well as customers, are getting comfortable adopting new digital technologies. With customers are getting comfortable with online shopping, nowadays, an e-Commerce site and online payment acceptance is a must to have for any business. Customers are happy with browsing and shopping at any time from anywhere with just a few clicks and along with this rise of online shopping and e-Commerce, E-payments are gaining widespread popularity. However, if you are a business and want to accept e-payments, you have to work on your electronic payment system to provide better and secure service for your customers.

3. Types Of E-Payments E-wallet :- In this way of payment, funds are purchased from the bank and stored in your e-wallet to pay for goods and services at merchants that support your e-wallet provider. Ex- Paytm , Phonepe , Freecharge etc. E-Checks :- An electronic check is a form of payment made via the Internet, or another data network, designed to perform the same function as a conventional paper check. Since the check is in an electronic format, it can be processed in fewer steps. Additionally, it has more security features than standard paper checks including authentication, public key cryptography, digital signatures, and encryption, among others.

4. Credit Card:- A credit card is a physical card which maybe plastic or metal with distinct number per customer. It is issued by any bank or finance service to an individual based on their credit score and purchase activity. The customer is given a fixed spending limit based on credit score which they can spend and must pay at a given definite time at a later date to avoid additional charges and bad credit score. This card can be used to purchase, pay bills and utilise other financial facilities online through e-payment. The customer only needs to enter credit card details on any payment gateway they want to use and money is deducted from your credit amount. However convenient, a credit card if not secured properly through OTP verification and pin can be used by anyone who knows the card details or has the physical card in possession.

5. Debit card :- A debit card is similar to credit card only in appearance being plastic or metallic. It has a distinct card number and cvv code per customer, per card. However, in terms of usage it is completely different from a credit card. A debit card does not provide a definite spending limit but is linked to your savings account in the bank and the money is deducted directly from the amount you have deposited in said account. It is secured by a pin code set by the customer. It can also be used as mode of e-payment to purchase goods and services but unlike credit card, debit card cannot be used to make any purchase without pin or OTP as it is mandatory.

6. Smart Card :- A smart card, chip card, or integrated circuit card (ICC) is any pocket-sized card with embedded integrated circuits. Smart cards can provide identification, authentication, data storage and application processing. Smart cards have been rapidly integrated in payment because of the ease of access they provide. These cards may be contact (physical contact required with payment kiosk or machine) or contactless (integrated with rfid technology). These cards are integrated into credit and debit cards to allow ease of payment. However, they are prone to security risks if physically acquired by an unknown person.

7. EFT (electronic fund transfer) is used to move money from one account to another. The transaction is completed electronically, and the two accounts can be at the same financial institution or different financial institutions. However, the term “EFT” doesn’t refer to a specific type of payment. It’s actually an umbrella term that covers a broad range of electronic payments, including debit/credit card payments, atm deposits, wire transfers e tc. E F T

8. A C H ACH’s full form is ‘Automated Clearing House’. The simple meaning of ACH is electronic transfer of funds. It coordinates direct e-payments and automated money transfers. This is a more reliable and efficient alternative to credit card networks, wire transfers, paper checks, or cash. Most commonly used for direct deposit, payroll, consumer bills, tax payments and refunds, and many other payment services, ACH is a safer form of transaction. It is used mostly for emi payments, loan payments, mortage loan payments etc.

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