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Types of E-Commerce Payment Systems

E-Commerce is the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the internet. E-Commerce business transactions occur either as business-to-business, business-to-consumer, consumer-to-consumer or consumer-to-business.

Types of E-Commerce Payment Systems 

Credit Card 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 so paid plus the other agreed charges. The card issuer creates a revolving account and grants a line of credit to the cardholder, from which the cardholder can borrow money for payment to a merchant or as a cash advance.

Debit Card is a plastic payment card that can be used instead of cash when making purchases. It is similar to a credit card, but unlike a credit card, the money comes directly from the user’s bank account when performing a transaction.

Smart Card is a card with a microchip in it. Such cards are used as a method of identification and authentication. Plastic cards that allow to take out money from an automated teller machine (ATM) often are smart cards nowadays Some of them still have a magnetic stripe which holds the same information.

E-Wallet refers to an electronic device or an online service that allows an individual to make electronic transactions. This can include purchasing items online with a computer or using a smartphone to purchase something at a store. An individual’s bank account can also be linked to the digital wallet.

Netbanking allows for customers of financial institutions to perform transactions online through a website interface. Net banking is changing the ways that people interact with financial institutions by enabling transactions to be performed through personal computers and mobile devices. 

Mobile Payment refers 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 a mobile to pay for a wide range of services and digital or hard goods.

Amazon Pay is an online payment processing service that is owned by Amazon. Amazon Pay uses the consumer base of Amazon.com and focuses on giving users the option to pay with their Amazon accounts on external merchant websites. it is a way for customers to purchase goods and services from US-based websites using the payment methods in their Amazon.com accounts, such as their Visa or MasterCard.