Online payment systems support the financial development witnessed by the human being, an evolution that not only helped facilitate financial transactions, but also helped to change the image and expand the circle to the maximum extent, and there are multiple images of electronic payment systems, but the beginning to know what electronic payment systems
Unlike cash or paper checks, electronic payments are digitally routed from one bank account to another through payment systems. Rarely need manual labour, mail or fax to handle. As financial technology continues to innovate, accounts payable become paper-free and companies are exploring electronic payments as part of this transformation. Before your finance department decides to commit to paper-based payments and the risks involved, it is important to understand the additional and general benefits.
There are dozens of systems to send payments electronically quickly and safely. All have pros and cons. A few of the most popular include:
- ACH (Automated Clearinghouse).
- ACH transactions are electronically transferred from a verified bank account to another account. ACH users are verified by the National Clearing House (NACHA), a global US-based institution.
- VCC (Virtual Credit Card).
Instead of using a traditional credit card with expiration date and protection code, buyers can log on to their online banking portal to create a one-time use card.
Consumers add their credit card information to their mobile devices and pay with the click of a button in accepted companies. Security information is entered during the initial setup, so there is no need to enter your PIN or postal code.
Difference between E-cards and online payment
Credit cards are a popular payment method. They are used to pay the financial dues by the card provider, which is usually a bank. the credit card mechanism will pay the bank for the customer’s financial dues provided that the latter pays the agreed amount with additional taxes due to benefit from the service.
Credit cards took advantage of technological development as well and launched e-cards for online trading, but this development was met by many problems as follows:
1. Sustainable Needing of Expenditure The ease of purchasing without the need for adequate credit has led individuals to shopping addiction and falling into a huge amount of debt. As mentioned above, the debt repayment process is not carried out in accordance with the amount due, and some expensive fees are imposed which make the payment process very difficult.
2. Falling into the risk of fraud Although e-security is evolving in the world, fraud and identity theft are still on the rise. The risk of taking credit cards by hand, fraudulent electronic methods and stealing numbers have become commonplace and uncontrolled.
3. Rules of use are very confusing Some individuals agree to the specifics and rules for credit cards without being fully read. This is due to the length of the determinants and rules agreed upon,
These conditions may be subject to many legal issues if they do not make good use of cards without knowledge, and may also subject them to several financial taxes charged with their prior consent.
4. Difficulty controlling your financial transactions with credit cards You have absolute freedom to withdraw and spend your wealth, but when the time comes to repay, that freedom is robbed of you. You are surprised by the huge amount of money you have spent without care or consideration. The problem is that it is difficult to track your financial transactions through the use of credit cards. It is so vague that you think you are still in safety until you see how much debt you owe
Online payments may appear to be transferred instantly from one bank account to another without waiting, but different types of electronic payments vary in processing times.
Real-Time Payments (RTP)
Immediately to the authorized bank account – no waiting time. Consider P2P (peer-to-peer) payment methods such as Venmo, when the payment is transferred to the bank account immediately.
Instant electronic payments can be initiated at any time. It usually takes a few days or hours, depending on when you start paying. A good example of this is ACH’s standard discount or credit transactions