Types of Payment Methods: Various kinds of e-payment are there. They include:
• Automated Teller Machines.
• Card Services (ATM, credit, debit, prepaid) Mobile payments
E-payment methods can be credit payment and cash payment systems or Pre Paid or Post Paid E-Payment System. Prepaid means the scheme in which the customer buys credit in advance before availing services.
In postpaid, the customers are billed at the end of the month for the services availed by them.
Examples include plastic card, online transactions, concerned bank, Cyber Cash, encrypted payment and cheques for deposit.
Credit Cards:
Credit card, a plastic card, is issued by a bank to customers. It is used to purchase goods/services from the authorized stores.
The bill is presented by the store to the bank which informs the customer about the debit. The customer pays the amount to the bank at the end of the month.
Cyber Cash :
In Cyber cash system, the customer makes payment to the merchant through credit card without disclosing the credit details to him.
The credit details are sent to the merchant in encrypted form. The merchant forwards the encrypted payment with his private key to the bank’s Cyber Cash gateway server.
The bank’s Cyber Cash gateway server decrypts the information, processes the transaction and forwards it to the merchant’s bank
Internet Cheques :
Internet cheque or electronic check, or e-check is a form of payment made via the Internet. An electronic check is part of the larger electronic banking field and part of a subset of transactions referred to as Electronic Fund Transfers (EFTs).
This includes not only electronic checks but also other computerized banking functions like ATM withdrawals and deposits, debit card transactions and remote check depositing features.
The transactions require the use of various computer and networking technologies to gain access to the relevant account data to perform the requested actions.
Smart card:
A plastic card with a microprocessor, it is loaded with funds to make transactions. It is also called a chip card.
Cash Payment System:
A. Direct debit: The account holder instructs the bank to collect a specific amount of money from his account electronically to pay for goods or services.
B. E-check: It’s an electronic transfer of money from a bank account.
C. E-cash: Certain amount of money is stored on a client’s device and made accessible for online transactions.
D. Stored-value card: A card with a certain amount of money is used online for payment. Gift card is an example of this.
E-Wallet:
E-wallet is a software-based system that securely stores users’ payment information and passwords for numerous payment methods and websites.
By using a digital wallet, users can complete purchases easily and quickly with nearfield communications technology. RBI has categorised e-wallets into three types: Closed, semi-closed and open.
Closed wallet can be used to buy goods and services only from one company. A semi-closed wallet can be used to buy goods and services at specified merchant locations.
Open wallets can be used for buying goods and services, including at merchant locations or point of sale terminals. These wallets can only be issued by banks.
Money can be added using net banking, and credit or debit cards. Prepaid wallets have transaction limits and validity periods.
Crypto Currencies :
A crypto currency is a digital asset designed to work as a medium of exchange wherein individual coin ownership records are stored in a ledger existing in a form of a computerized database using strong cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership.
Cryptocurrencies are rapidly gaining interest as a payment method for online transactions.
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