What is Electronic Payment and The Benefits of Using E-Payment System

Read this article and discover what electronic payment is the benefits of using this type of system! Get all important information here!

About Electronic Payment – What is E-Payment System?

The electronic payment system or the e-payment system is a solution of making paying or transactions for products and services through an e-commerce website or electronic medium without the need to use cash or check. The e-payment system is also known as an online payment system.

Additional Reading: What is a payment gateway?

The electronic payment system has increased over the last few years because of the widely spread of the online shopping and internet-based banking. As the digital age grows, a lot of e-payment systems, as well as, payment processing devices have been designed to improve, increase, and provide safe and secure electronic payment transactions while lowering the percentage of cash and check transactions.

The electronic payment methods can be divided into two different areas: the cash payment system and the credit payment system.

  • Cash Payment System – This system is used to move money from one bank account to another without any cash. This system is also known as EFT or Electronic Funds Transfer and it includes direct debit, e-check, electronic billing, electronic cash, and stored value card.
  • Credit Payment System – This is another form of the electronic payment system which demands the use of the credit card issued by banks to the cardholder for completing payments online without the use of cash. This system includes credit card, e-wallet, and smart card.

The Perks of Using the E-Payment System

There are many e-commerce websites that use the e-payment system to make things simpler and more convenient for them and for their customers. The electronic payment system comes with many advantages:

  • More sales by reaching new customers
  • More efficient and effective transactions – Everything is made in just a few minutes and without wasting customer’s time
  • Convenience – All customers can pay for product or service at anytime and anywhere
  • It lowers the whole transaction cost
  • It is easier to add payments to the websiteYou don’t need any special knowledge or experience to add payments to your website
  • Highly effective securityThe payment providers and the payment gateways offer safety and security and antifraud tools in order to make the transaction as reliable as possible.

If you run an online business then you need to provide the most relevant and convenient e-payment system!

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