Electronic Commerce Payment Systems

Electronic Commerce Payment Systems is the process through which buyers and sellers transact business through the use of an automated network, mainly the internet. In this case, the transaction can either happen between business to business or even customer to customer. Still, in most instances, it is through the business organization to its clients whereby they will transmit the funds or data through the electronic network. Currently, most business organizations have adopted these forms of payment system because it is an efficient and time-saving mode of the payment system (Turban et al., 2018). Additionally, it has enabled a valuable connection between businesses and global clients. Through the use of modern technology, there are various forms of e-commerce payment systems that have been developed, thereby eliminating the use of bank cheques and cash transactions. The system is more friendly to multiple businesses which have adopted it due to increase efficiency and reduce personnel cost. There are different categories of Electronic Commerce Payment Systems, as listed below.

Credit Card

A credit card is the most common form of e-commerce transaction method, which is majorly used by clients. It is mostly preferred by many since it is easy to use, whereby you only need to enter the correct data of the credit card number and the expiry date in the right place on the seller’s web page. Due to certain factors involving security breaches, the concern organization came up with a sufficient measure or system that ensures increased security measures. Through this, they introduced the use of a card verification number (CVN). This number, CVN, assist in detecting any form of fraud that may involve the credit card by making a small comparison between the CVN number and the information of the cardholder. In credit card, the buyers can make the purchase even without cash in their cards since the amount he spends are paid at the end of the billing period.

Debit card

After credit cards, the debit cards are the second largest in use. It is mostly used by those clients who prefer to spend within their financial limits. As opposed to credit cards, in debit cards, clients are only able to paid or purchase the given goods or services with the money currently available in his or her bank account. In contrast, in a credit card, he can spend beyond what is available in his account.

Smart Card

Smart Cards are also frequently used by the majority, mostly those who like purchasing things regularly. This form of card is made of plastic, which has been embedded with a microprocessor. The microprocessor contains customer’s personal information like his or her full names, bank account number and even the relevant signature and serial number. This form of card can be loaded with funds at any given time to make possible any purchase or to make online transaction easy (Klopfenstein, 2018). People also do prefer the use of Smart Card due to the fact they can easily pay bills like electricity, network and even house rets instantly rather than going along way of depositing in a bank or paying in cash at their various shops. The customer need to reload the card from his bank account frequently in relation to its usage since its value depreciate depending on the number and amount of purchase or transaction made through it.

E-Wallet

E-Wallet is a form of prepaid account which enable the customers to store their various cards like the credit card, debit card and bank account numbers in a well secure environment. This form of payment is preferred by a good number of clients mostly those who owns multiple cards. They do prefer it due to the fact that it saves them the act of keeping on keying in different account information every time they use any in making payment. In this case, once the customer has registered and created his or her own E-Wallet profile, he is then free to make the payment very fast from his account based on the numerous cards (Turban et al, 2018).

Net-banking

This is the most common form of e-commerce payment system used by global clients or customers in making payment to their partners or customer organizations. It is somehow like the debit card I that, in its case, there must also be money available in the account for the transaction to be done. The customer need to top up the account or ensure there are funds to enhance transaction process (Khan et al, 2017). Difference with the debit card is that in this system, net-banking, the customer need not to have a card, he only need to register with his or her bank for networking services or facility and once the transaction is over, the bank will just make the transfer of money from his or her account to the client or the other party after he has keyed in te net banking id and pin.

Mobile payment

Mobile payment is one form of e-commerce payment system which is also used by a large number of individuals or clients. It is majorly used by local clients in making their payments. This form of payment involves the use of a mobile phone in which the client will have to upload or download the software from the service provider’s website then he or she links his credit card or mobile billing information to the software (Turban et al, 2018). The client or customer will have to send the payment request to the service provider via message through which his mobile account or credit card has been charged for the transaction.

Amazon Pay

This mode of e-commerce payment system involves opening an Amazon account which you will later use in login in and making payment at various merchant websites and apps. The payment information is not accessible to many people as it is safely stored with Amazon and it is only accessible on those relevant websites in which you prefer shopping at. This system of payment is preferred by many due to the fact that it is very convenient, quick and secure. Amazon is also preferred by may since it is a platform where both the buyers and sellers do meet therefore it makes it easier for one to find a product ad make payment through the site.

Basically, the Electronic Commerce Payment Systems is an online payment system which has been developed over the years and it is one of the best innovations within the business industry. Some of the potential players in this case involves the clients, who are the customers or consumers who make the payment via the online system or electronic system. Banks are also another key player (Khan et al, 2017). They play a big role by making the transaction possible through depositing funds in to the relevant cards and also transmitting them to where they are required. Banks also play a key role of providing both the debit, Smart and credit cards which are used by the clients. Another potential player are the business organizations who provide the services or products to the customers. These businesses do design their website or apps through which, the clients can link and make the payment. Additionally, they also do accept online transaction via banks for example, through net banking, credit and even debit cards. Lastly, other potential players are organizations like the Amazon which provide a business platform through which buyers and sellers do meet and transact business, they also facilitate payment transaction.

The electronic commerce payment systems have been adopted by a number of business organizations and clients due to various factors which has influence their attitude towards the system. Generally, a good number of clients are attracted by the following factors into using the electronic e-commerce payment system.

Time saving

Through this system, the payment process is done right away within few seconds as opposed to the old methods or cash/cheque in which people used to stand in long lines within the bank or post offices before they are able to present the money or cheque in which the full transaction will take some hours or even days for the beneficiary to be in full possession of the money (Klopfenstein, 2018).

Expenses control

Through the electronic payment method, you can effectively control your expenses through the use of electronic wallet which has the ability to record all the expenses and transactions made. It therefore makes it easy for individuals to manage their expenses more easily than in a case where they are using cash in payment where they will have to record their daily expanses.

Reducing the risk of losing money

E-payment system eliminates the risk that comes with handling cash like theft, robbery or even loss through negligence. Through the use of electronic wallet, it is not possible for someone to lose his or her money since they are virtual therefore no worry of being stolen or getting lost, the customer only need to have a secure e-payment account (Turban et al, 2018).

Low cost of transaction

People do prefer electronic payment method due to the low cost of transaction involved. The electronic payment system has got no additional charge in making payment as opposed to payment through cheque. Basically there is a small fee involved when you swipe your card and make a payment through the e-payment account online.

Increased Convenience

The electronic payment methods have increased convenience in various sectors mostly within the business sector whereby customers can easily make purchase and payment within a short period of time without having to line up for a long period of time. The fund transfer can be done at ay give time through this system and the receiver gets full possession of the fuds immediately without any delay like in the case of cash or cheque transaction which has to wait for three to four days before it matures (Khan et al, 2017).

Additionally, the electronic commerce payment systems have been adopted by numerous business organizational and individuals due to the fact that it enhances an increase in sales through which it has provided platform and made it easy for business to be transacted globally without any form of geographical or time limit. It also allows individual to be in possession of the goods even if they luck funds through credit cards. Lastly, people can make instant payment to various bills and even small purchases through the electronic payment system which also assist in saving money by helping various business organization in optimizing work flow and also by saving time.

In conclusion, Electronic Commerce Payment Systems is an online system which has been adopted by various business organization and individuals globally. It mostly attracts people and businesses due to the fact that it is well convenience, secure and faster rate of transaction. It enables the global clients to make payment easily. Some of the common form of Electronic Commerce Payment Systems include Credit cards, debit cards, smart cards, net banking and even Amazon pay. Some of the potential players in this form of payment system, the electronic commerce payment systems, include the clients who do make the purchase and pay through the system, the business organizations that sale the products or services and accept the payment through the system via their website into their bank accounts and lastly, some of the organizations that provide good platform where buyers and sellers do meet and transact business.