The electronic payment system has emerged with e-commerce, making electronic payment methods a key part of online buying and selling. Electronic payments have transformed financial transactions by reducing costs of labor and transactions. Common electronic payment methods include payment cards, smart cards, electronic cash, electronic wallets, and electronic checks.

2. The electronic payment system has emerged in conjunction with the
emergence of e-commerce, so electronic payment methods have become
one of the components of e-commerce that complement the electronic
buying and selling procedures. The electronic payment has revolutionized
financial transactions by reducing labor and transaction costs.
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3. • enable a customer to pay for the goods and services online by using
integrated hardware and software systems.
• An electronic payment is defined as a payment services that utilize ICT,
including cryptography and telecommunications networks .
• E-payment or Electronic payment is any digital financial payment
transaction involving currency transfer between two or more parties.
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4. • EPS increase efficiency, improve security, enhance customer
convenience and ease of use
• Implementation of electronic payment systems is in its infancy and
still evolving.
• Electronic payments are far cheaper than the traditional method of
mailing out paper invoices and then processing payments received.
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5. This level of e-commerce represents retail in normal trade and has
expanded significantly with the emergence of the Internet, there are
now so-called malls shopping offer goods and services for the benefit
of enterprises and carry out business deals in terms of buying and
selling for The Internet.
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6. • Payment Cards
• Smart Cards
• Electronic Cash
• Electronic Wallets
• Electronic Check
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7. • Electronic card that contains information that can be used for
payment purposes .
• Three forms of payment cards :
1. Credit Card
2. Debit Card
3. Charge Card
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8. • It is a Plastic Card having a Magnetic Number and code on it.
• has Some fixed amount to spend.
• Customer has to repay the spend amount after sometime.
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9. • Advantages :
1. You can use them practically everywhere, especially overseas.
2. They can boost your purchasing power because they can be used to
buy goods and services over the phone, through the mail and online.
3. They keep a record of your expenses, helping you to monitor your
financial activities.
4. They can help build your credit history.
5. You can buy through the card if there is a balance without paying
extra fees.
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10. • Disadvantages :
1. When you default on credit card payments, you are charged with
late fees and interest, increasing your debt load.
2. Credit cards are possible to affect your credit account if they are
not managed properly.
3. Credit card fraud is a possibility.
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11. • A plastic card which provides an alternative payment method to cash
when making purchases.
• Depends on the existence of actual balances of the customer at the
bank in current accounts to meet the expected withdrawals to the
cardholder's customer.
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12. Advantages and Disadvantages of Debit Card
• Advantages :
1. Nominal fee.
2. Alternative to cash.
3. Immediate transfer of funds.
4. Instant withdrawal of cash from an ATMs.
5. Its holder uses his own money and not any borrowed (loaned)
money. Unlike a credit card, here, no interest is charged. Hence,
its transactions are interest free
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13. • Disadvantages :
1. You needs to have enough money in his or her bank account to
cover for the amount of purchase done.
2. You has less protection if the debit card is lost or stolen as
compare to credit card.
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14. • A card used for making payments.
• Similar to a credit card expect that the balance must be paid
in full when the statement is received.
• no interest rate.
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15. • A plastic card embedded with the microprocessor that can be
loaded with funds to make transactions and instant payment of
bills. It is also known as a chip card.
• Used for health care, transportation, ID, retail, pay phones, loyalty
programs.
Embedded
Chip
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16. • Advantages :
1. High levels of security.
2. Reduced fraud.
3. Information and applications are updatable without having to
switch the card.
• Disadvantages :
1. We need a smart card reader.
2. Lack of universal standards for its design and use.
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17. • A system that allows a person to pay for goods or services by
transmitting a number from one computer to another . It is also
known as a digital cash.
• Issued by a bank.
• There are two different types of digital cash:
1. Anonymous Digital Cash.
2. Micro Payments.
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18. • Small online payments, typically under $10.
• Micropayment systems must be fast and cheap.
• Substitutes to Micropayments :
1. Aggregation
2. Direct payment
3. stored value
4. subscriptions
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19. • Software that stores credit card and other information to facilitate for
completion and payment for goods on the web.
• Types of Electronic Wallet :
Types of E-
wallet
Client Side Server Side
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20. • Client-side Electronic Wallet
 means that the action takes place on the user’s (the client’s)
computer.
 Many of the early electronic wallet were client side wallet that
require users to download the wallet software
• Server-side Electronic Wallet
 means that the action takes place on a web server.
 A server side electronic wallet stores a customer information on the
remote server belonging to a particular merchant or wallet
publisher.
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21. • Electronic mail signed and authenticated electronically, exchanged
between the drawer and the beneficiary by electronic means and an
electronic bank.
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23. • Refers to a situation where one business makes a commercial
transaction with another.
• Make large purchase.
• Will not pay with credit card or financial cybermediary .
• Use financial EDI.
• Pay for many purchases at once perhaps the end of the month.
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24. • Electronic payment methods used in B2B :
1. Electronic Data Interchange ( EDI) .
2. Electronic checks.
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25. • The direct computer-to-computer transfer of business information
between two businesses that uses a standard format.
• Can electronically exchange documents ( such as purchase orders,
invoices, shipping notices, and many others ) .
• Often use VANs ( Value-added networks ).
• A service that offers information sharing services among
organizations.
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26. 1. Speed :
• Information moving between computers moves more rapidly,
and with little or no human intervention.
• Integrating these data flows directly into the accounting or
Enterprise Resource Planning (ERP) system speeds up the
processing of orders, picking, packing, shipping, invoicing,
etc. even more!
2. Accuracy :
• eliminates the chance of data entry errors.
3. Economy :
• Reduction in the cost of transaction.
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