Are you choosing a payment system and want to know their types? An e-commerce payment system facilitates the acceptance of electronic payment for online transactions. It is a financial exchange that takes place online between buyers and seller. Payment systems play an important role in making online payments in any e-commerce platform, by making a channel between receiving and making payments. A normal payment system has a procedure for receiving and making payments. They first require customers to fill in some of the details like credit/debit card number, CVV and the expiry date. Read on to find out the different types of ecommerce payment systems.
- Credit Cards
The most common way for the customers to pay the money online is credit cards. People find it easier to use it for any online payment. Without the use of cash, it is an e-payment system, which requires the use of the card issued by a financial institute to the cardholder for making payments online. To improve the security system, increased security measures such as the use of a card verification number have been introduced for online credit card payments.
- Debit Cards
This is the second largest payment system in India used by all the customers to pay online. Customers prefer to pay with their debit cards when they want to spend online within their financial limits. The money that is already in the bank account of the customer will be used in the online payments.
- Smart Cards
Also known as chi card, it is a plastic card with a microprocessor that can be loaded with funds to make transactions. All the personal information of the customer is stored in the card and used for instant payment bills. The money that is loaded in the smart card reduces as per the usage by the customer and has to be reloaded from his/her bank account.
- Net Banking
Another way of making e-commerce payments is net banking. The simplest way to pay online directly through customer’s bank. When a customer opens an account in a bank, he is given with a net banking id and password, which they can use for online payments just like debit cards. There’s no need for any card for net banking; the only thing you need is the id and password or pin.
Electronic wallet is the latest method of ecommerce payments. This allows the users to store multiple debit cards, credit cards and all their bank account details/ numbers in it. It is secured and keeps everything safely. Using e-wallet lets you make your online payment easier as you don’t need to put bank account details every time you make online payments. There are so many e-wallets available like G-pay, PhonePe, Paytm, and many more.
These are the various types of payment systems that you can use on ecommerce sites.