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Electronic Payment Systems and How They Work

by Akriti Yadav Business Head
Electronic payment systems are integrated on websites that sell services and products. These enable acceptance of required payment, by online merchant from the customers. These systems also enable cancellation and refunding of a payment, in case a merchant was unable to honor a certain transaction. These payment systems have completely revolutionized the online payment processing method. They have lowered labor costs, transaction costs as well as paper work. These are also quite user friendly and consume very less time as compared to manually processing a transaction. Therefore, it a general consensus that electronic payment systems are helping online retailers and merchants in expanding market reach. In fact, these are considered the best solution if people want to engage in paperless monetary transaction. Thanks to being extremely secure, these payment systems ensure that sensitive financial information of the customer does not fall into the hands of a fraudulent person. This ensures safety for both the customer as well as the merchant.

In this age of Internet savoir-faire, there is no point denying that these online payment systems are susceptible to criminal attacks. A large number of spammers and hackers, with easy access to the Internet, have the sole purpose in life to carry out fraudulent transactions, which are a loss for the customer as well as the merchant. However, providers of e-payment systems are a step ahead of all the hackers and frauds. They add several layers of encryptions in order to secure sensitive data, effectively thwarting all attempts at fraud. Another great factor about these electronic payment systems is that they cover a large number of payment options such as debit cards, credits cards, IMPS, NetBanking options, cash cards and E-wallet options. In addition, retailers can opt for IVRS (Interactive Voice Response System), which is perfect if retailers are looking to accept payment from a customer via phone.

IVRS is quite a simple procedure! The transacting customer dials the merchant’s customer care number for placing the order. The merchant then creates an order and generates an invoice ID. Subsequently, the merchant would have to call the provider of the IVRS service and initiate the payment using the invoice ID. The customer would then verify the order details and punch the card details and OTP. The payment is then accepted and confirmation is sent to the merchant as well as the customer. This functionality of online payment systems ensures real-time web reporting and statistics as well as real-time credit card processing through a web interface. IVRS comes with a host of advantages including extension of payment retrieval hours, a visible increase in cash flow, enhancement of customer service, competitive advantage, and more.

The author has extensively written about the evolving e-commerce trends in India. She has valuable insights about Online Payment System in India and Electronic Payment System.Her articles and Blog features are a source of information for budding entrepreneurs and businesses that depend on online channels for revenue around the world.

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About Akriti Yadav Advanced   Business Head

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Joined APSense since, August 18th, 2014, From New Delhi, India.

Created on Dec 31st 1969 18:00. Viewed 0 times.

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