An e-Commerce payment system facilitates the instant acceptance of online payment for online purchases. Also called a subcomponent of online data exchange, e commerce payment systems have grown increasingly popular because of the widespread usage of the internet-based shopping and financial services. Conventional systems are inefficient and slow, and the risk of fraudulent transactions increases with the volume of online payments made through credit cards and electronic money transfers.
Payment systems allow users to enter a transaction by entering their payment information. Payments can be performed in one or more currencies. Payment software is a packaged solution that includes components for accepting credit card payments, electronic checks, and electronic money transfers. The components of the payment system may include gateway software, such as the Electronic Fund Transfer Software (EFTS), the merchant account software, merchant service software, gateway connectivity software, and customer relationship management (CRM) software.
A wide variety of payment software is available. The most popular online payment processing systems are e-check and e-coupon systems. In e-check, a business process takes place between a customer and a business, where the customer provides monetary payments via a check, and the business processes the payment electronically. For online payments, the business process is usually done through a payment gateway.
Merchant accounts provide online payments using the credit card or debit card of a customer. The merchant account provider maintains an inventory of debit and credit cards that customers have purchased online. The payment gateway acts as a sort of online payment processor, receiving, processing, and confirming online payments from merchants and online shops. Payment gateway software allows multiple payments to be placed in a single payment transaction, making it a preferred payment method among many online buyers and sellers. The various payment gateway providers charge fees for their services.
The different types of online payments are pay pal, pay dotcom, check, ebay, and credit cards. The PayPal system, which is owned by eBay, facilitates secure, easy, and affordable online payments for all e-businesses. The system accepts transactions made via credit cards, electronic check, and cash. It also allows users to make electronic payments to other users through a specified web portal.
There are other online payment options such as credit card transfers, electronic check transfers, and transfers made through bank transfers. With the help of online payments, an e-business owner can reach his customers easily and effectively. More customers are making their purchases online. This has made business easier and smoother not only for the buyers and sellers, but also for the businesses. Hence, online payments are becoming a necessary part of e-business. With this, it has become possible for businesses to increase their profits and generate more revenue.