Finance
  • Accounting
Home Finance Banking Electronic Payment Systems – The New Age Payment Methods

Electronic Payment Systems – The New Age Payment Methods

Electronic payment systems are found to be beneficial to both merchants and customers. Merchants are assured of being paid by the customer while the customer enjoys the convenience of shopping without carrying lots of cash.

Electronic Payment SystemsPHOTO BY FLICKR.COM/ARANAMI

Electronic Payment Systems - Making Shopping Convenient

Businesses which make use of electronic payment systems are able to take advantage of credit card processing solutions such as point-of-sale terminals, online account reporting, e-commerce systems and check verification. This system can be availed of by stores with a physical presence or are only located online. They also provide businesses with a wider range of clients since clients located out of state or country can still make purchases and paying them online. Such transactions don’t involve actual cash but electronic money. Debit and credit appear on ledgers without bills changing hands in reality. Electronic payment systems may also charge lower fees, provide cash deals and terminal rentals. Security is also provided against fraudulent transactions and data loss. Moreover, clients can pay online.

Electronic Billing - Reasons for their Growth

Reducing overhead or maintenance costs, corporate social responsibility, faster and convenient account reporting are the main reasons why businesses opt for electronic billing. They may be customer service providers or banks which offer electronic banking. Electronic banking allows customers to pay their utility bills, insurance premiums and other merchants to be paid through the bank accounts consumers maintain without the hassle of lining up and going to several companies. Electronic billing likewise lessens mistakes involved in paper billing. Customers can still see the details of the transactions covered by the bill and ask companies for clarifications regarding the bill in less time.

Automatic Payments - Hassle Free Transactions

When making automatic payments, having a bank account from which to source one’s funds is necessary. Such payments take out the necessity of remembering due dates especially if one has many bills to pay with differing due dates. One can also choose an auto debit arrangement where a recurring bill warrants payment every month. Instead of personally performing the chore, the merchant bills the bank and the account owner allows the bank to deduct the billed amount from his or her account and pays the merchant. The transaction is basically performed by the bank and the merchant under one’s name. Credit cards or debit cards also expedite automatic payments.

Written by Nelly Kendrick

Your feedback on this article

*

Suggest a Topic

What topic would you like to read about here?

Name

Email