Key Types of Electronic Payment Methods

Posted by Payment on March 29th, 2018

E-payment systems have made it easier to do transactions for goods and services without using checks or cash. The increasingly growing payment system is also known as electronic payment system or online payment system. The increase in the growth of online payment solution has also been due to the growing speed of Internet-based banking and shopping. One can expect the rise of electronic payment systems as well as payment processing devices even more due to the advancements in the technology.

The increasing use of online payment transactions in all industries across the world makes it evident that these are the most secure payment methods in comparison with the check and cash transactions. In fact, the consistent improvement in innovative electronic payment solutions will eventually decrease the use of manual transactions.

Electronic payment methods

Credit and debit cards are among the most popular payment forms available online. Apart from these, bank transfers, smart cards, electronic wallets, and cryptocurrency wallets are also quite popular across the globe.

Mainly, e-payment methods could be classified into two parts, cash payment systems and credit payment systems.

Cash Payment Systems: Direct debit is a kind of financial transaction in which the bank of the account holder is instructed upon to collect a specific amount of money from his account electronically to pay for specific goods or services. E-check is a digital version of an old paper check that is used to do the electronic transfer without the use of the paper check. E-cash is another form of an electronic payment system, where the payable amount of money is stored on the device of a client and is made accessible for online transactions. A stored-value-card is a card with a certain amount of money that is used for transactions in the issuer store. Gift cards are the most common example of these card payment systems.

Credit Payment Systems: One can do e-payment through credit cards, for which one needs to have the card that is issued by a financial institute to make payment through an electronic device, without using the cash. An e-wallet is a form of prepaid account that makes an online transaction easier by storing user’s financial data such as credit card and debit card information. A smart card is a plastic card with a microprocessor that can be loaded with funds in order to complete transactions.

All the above solutions are among the most innovative electronic payment solutions that one can use for paying to an individual or for purchasing goods and services. Banking and payment systems are continuously becoming more and more complex. In order to comply with an ever-growing number of technical standards and payments, multiple technologies are being used along with diverse platform applications. One can get Hong Kong payment gateway services from an acknowledged name in the industry as they are considered the best by industrial leaders for overcoming greatest challenges in their way.