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Classify Different Systems of an E-Payment System!!!

Before knowing about the advantages or disadvantages of an e- payment system, it is essential to know what an e-payment system is. Ane-payment system is a way to make transactions or paying for goods as well as services with the help of an electronic medium without even making use of cheque or cash. It is also known as an online system or electronic payment system. It has been observed that there has been a considerable growth in the e-payment system. This is due to the increasing use of online shopping as well as internet banking. 

This is helpful in facilitating the users with safe as well as secure payment transactions reducing the cash payment transactions. With the advancement in technology, there has been an introduction to several new payment systems. The e-payment systems have been classified into two areas, including:

·         Cash payment system
o   Electronic fund transfer: this is an electronic system of transferring money from the account of a person to other accounts without making use of cash. This includes the given concepts of the payment system, including:
§  E-check: This is a digital version of paper check. This is a way to transfer money electronically from a bank account. This can be done without even making a paper check.
§  Direct debit: this is a transaction that takes place according to the instructions given by an accountholder to his/her bank. The payment in this cannot be deducted without the instructions of the accountholder.
§  Electronic billing: this is a type of system used by most of the businesses as well as companies for collection of funds from their customers.
§  E-cash: this is a form of electronic payment system in which some amount is stored on the device of the clients and made accessible for internet transaction.
§  Stored value card: This is most commonly used by the stores.

·         Credit payment system: this is another form of e-payment system in which a card issued by a financial institute issued to the cardholder is used for making transactions online.
·         E-wallet
·         Smart card
The use of e-payment system has proven very beneficial to the individuals. But, as a universal fact, everything has some advantages as well as disadvantages. 

Some of its advantages are listed below:

ü  Advantages
1.   It has made everything simple as well as convenient for the individuals. It promotes efficient as well as effective transactions. These transactions saves time, as can be done in just a few minutes
2.   It reduces the overall transaction cost.
3.   The payment gateways as well as payment providers offer highly effective security as well as anti-fraud tools for making the transactions reliable.
4.   It can be used easily by a non-technical person as well. It is very ease to be operated and implemented.
It has been observed that the industry of e-commerce is expanding at a very rapid pace. It is now very easy for the e-commerce shoppers to pay online.

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