Electronic payment has become widespread in many countries in the past few days and many electronic payment systems have emerged, which we will explain in this article.
Electronic payment systems is a way to conduct physical transactions through the Internet and pay for purchases without paper transactions as it is safer and faster.
Types of Electronic Payment Systems
The electronic payment system has increased over the last few years because of the widespread online shopping and internet-based banking. a lot of e-payment systems have been designed to improve, increase, and provide safe and secure electronic payment transactions while lowering the percentage of cash and check transactions. the types of these systems are:
Automated clearing house (ACH) is an electronic funds-transfer system run by NACHA, formerly the National Automated Clearing HouseAssociation, since 1974. This payment system deals with payroll, direct deposit, tax refunds, consumer bills, tax payments, and many more payment services in the United States.
Wire transfers is an electronic transfer of money. A traditional wire transfer goes from one bank or credit union to another using a network such as SWIFT or Fedwire. But the term wire transfer gets used for other types of transfers as well, to clarify the requirements if somebody asks for a wire transfer.
Item processing (IP) Some financial institutions define batch processing based on a certain number of items rather than a specific time of day. Proof operators process the transactions. The item-processing centre MICR encodes, proves, and balances the teller and departmental work before receipt by operations for batch processing.
Remote deposit capture (RDC) is a system that allows a customer to scan checks remotely and transmit the check images to a bank for deposit, usually via an encrypted Internet connection. Banks typically offer RDC to business customers rather than to individuals.
FedLine Access Solutions provide organizations with direct access to Federal Reserve Bank Services critical payment and information services and applications. More than 100,000 users in nearly 10,000 organizations leverageFedLine Solutions for delivery of payment and information services.
Automated Teller Machines is an electronic telecommunications device that enables customers of financial institutions to perform financial transactions, such as cash withdrawals, deposits, transfer funds, or obtaining account information, at any time and without the need for direct interaction with bank staff.
Card Services is a payment card issued to users to enable the cardholder to pay a merchant for goods and services based on the cardholder’s promise to the card issuer to pay them for the amounts plus the other agreed charges like ATM, credit, debit, and prepaid.
Mobile Payments refer to payment services operated under financial regulation and performed from or via a mobile device. Instead of paying with cash, cheque, or credit cards, a consumer can use mobile to pay for a wide range of services and digital or hard goods.