Before going through the topic first of all understand what is e-commerce payment system

E-Commerce Payment System – It is also called as electronic payment system that allows transactions over an electronic mode of payment in any shop with no use of cheques or physical money during the transaction or payment. Now, e-commerce websites use electronic payment which refers to paperless financial or monetary transactions across the world. The increased use of internet-based banking and purchasing also enhances the growth of several e-commerce payment systems across the world. This electronic mode of payment has been developed to provide, enhance, and improve safe e-payment transactions worldwide.

Electronic or e-commerce payment is very popular by lowering paperwork, worker cost, and transaction cost. Now, you can do online shopping in your home with the help of electronic payment which consumes less time as compared with manual purchasing and also helps companies to extend their market reach.

Different types of e-commerce or electronic payments – There are several types of electronic payments for online payment are discussed below –

1. Smart card – It is a plastic card that is embedded with a microprocessor, which contains the personal information of a customer. A smart card is similar to a debit or credit card but it contains a microprocessor chip fixed in it. The capability of a smart card to store personal or work-related information of a customer. Smart cards help in storing money and provide information about the deduction of the amount after each transaction. It also provides data storage, individual identification, authentication, and application processing. Smart cards may also offers a strong or top security authentication for SSC (Single Sign-On) in the companies.
2. Debit card – It is also one of the popular e-commerce payment systems across the world including India. A debit card is also called as ATM card or bank card or check card that is issued by banks. It is also used in withdrawing cash at ATMs that make other offline and online purchases. You can pay or purchase any things without physical cash by using a debit card. The banks issue a debit card for those individuals who have a saving account that is linked to their account. Debit cards are issued by a bank in collaboration with several companies such as Visa, RuPay, and Mastercard that contain expiry dates with a 3-digit CVV number at the back side of the card.
3. Credit Card – It is a type of credit facility that is provided by banks and is one of the most common modes of electronic payment. A credit card enables users for borrowing money within a pre-approved credit limit. It also allows users for making purchase transactions on goods and services. Several information contains in the credit card that includes an expiration date, CVC code, credit card number, cardholder’s name, signature, date, and many more. The main benefit of a credit card is that it is not linked to a bank account. Thus, whenever, you swipe your credit card after purchasing in any shop, the money is deducted from your credit card limit not in your bank account.
4. Electronic Fund Transfer – It is also one of the popular e-commerce payment systems for transferring money from one bank account to another bank account. Fund transfers may be done with the help of a computer or using ATM (Automatic Teller Machine).
5. E–Wallet – It is a prepaid account which enables consumers to store several debit cards, credit cards, and bank account numbers in a safe environment. So, it eliminates the requirement to key in account information each time during making payments. When any customer has registered and made an E-Wallet profile then they can make payment quicker.
6. Mobile payment – It is one of the best or latest ways of making online payments by using mobile phones. Customers can use a payment app on a mobile phone to pay several bills, including electricity bills, telephone bills, and many more without the use of cash and cheque. Customers can download an app of any mobile payment app including Google Pay, Paytm, and many more to purchase items and pay bills online by using mobile phones.
7. Net banking – It is also one of the popular or best ways of making e-commerce payments. Net banking is an easy way of paying for purchasing online from any shop directly from the consumer’s bank. This type of e-commerce payment does not need any card for payment purposes but requires to register with the bank for the net banking facility.