What are the basics of online payment system?
Here's how online payment processing works: Firstly, the customer chooses an item to purchase and completes the checkout process. They'll choose to pay via credit/debit card and enter their card details on your payment page. Next, the card information is transferred to the payment gateway.
The customer authorises payment via an online form allowing the business to automatically collect the funds when due. The business' bank and the customer's bank communicate and action the payment request when the payment is due, ensuring the correct amount is debited from the customer and credited to the business.
- Confirmation web page for terms and conditions.
- Data base with credit card no., e-mail address, and phone no.
- Document the complete online transactions.
- Trustworthy logistics partner.
- Unique key for online shipping digital merchandise.
What Is an Electronic Payment System? Simply put, electronic payments allow customers to pay for goods and services electronically. This is without the use of checks or cash. Normally e-payment is done via debit cards, credit cards or direct bank deposits.
Online payment systems are a way of facilitating payments for goods and services online. These systems consist of three parts – the payment gateway, the payment processor, and the merchant account – which between them handle the entire transaction.
Cards are still the most-used payment method, with American Express, Mastercard, Visa as large global card schemes. Even though they're recognized globally, other payment methods like online banking, direct debit, digital wallets, or Buy Now Pay Later (BNPL) are more common elsewhere.
The payment processor receives the transaction data from the payment gateway and validates the information. It then forwards the transaction details to the acquiring bank, which sends the information to the card network for validation and authorization.
The online payment systems allow the seller to accept payments and the buyer to send payments over the internet. Examples of online payment companies include PayPal, Alipay, WeChat Pay, Paytm, Google Pay, and Apple Pay.
- Create your payment gateway infrastructure. ...
- Choose a payment processor. ...
- Create a customer relationship management (CRM) system. ...
- Implement security features.
A few of the tools are Paytm, Mobikwik, or PayuMoney. Online transactions are a type of payment where funds are transferred electronically via the internet.
How many types of online payment systems are there?
They can use different types of online payment methods, including debit/credit cards, wire transfers, net banking, and digital wallets. Online payments can be done at the discretion of consumers.
- Credit Card. The most popular form of payment for e-commerce transactions is through credit cards. ...
- Debit Card. Debit cards are the second largest e-commerce payment medium in India. ...
- Smart Card. ...
- E-Wallet.
Using secure communication methods and tokenization, payment gateways communicate between your online store/website and your bank. Customer data is collected, validated, approved, and then the payment is accepted, debiting your customer's account.
PayPal leads the race
PayPal is a leading global digital payment provider that enables users to make online, mobile, and peer-to-peer payments. It is a popular payment method for digital purchases on e-commerce sites such as eBay and Amazon.
- Credit cards. Credit cards remain one of the safest options for online purchases. ...
- PayPal. For peer-to-peer transactions or when shopping on sites that accept it, PayPal is a wise choice. ...
- Apple Pay/Google Pay. ...
- Gift cards.
- Stripe: Best overall payment gateway.
- Adyen: Best omnichannel option.
- Helcim: Best interchange-plus pricing for businesses of all sizes.
- PayPal Payflow: Best for payment processor integrations.
- Square: Best if you also have a storefront.
The 'payments system' refers to arrangements which allow consumers, businesses and other organisations to transfer funds usually held in an account at a financial institution to one another.
The Automated Clearing House (ACH) is the primary system that agencies use for electronic funds transfer (EFT). With ACH, funds are electronically deposited in financial institutions, and payments are made online.
Create an online payment system: step-by-step
Set up a hosting platform and apply for a Secure Socket Layer (SSL) certificate. Build the payment form/payment page. Find a payment processor that gives you the ability to process different types of payments, from credit and debit cards to Direct Debit.
- Direct Debit.
- Card payments.
- Digital Wallets.
- Cash & Cheques.
- Online payment gateways.
- Email invoices.
What is online payment and how does it work?
Online payment is the electronic transfer of funds via the internet, usually between a merchant and a consumer. These payments can be made in various ways, such as via credit and debit cards, banking apps or web pages.
Mobile wallets offer a useful way for people without bank accounts to send and receive money. There are lots to choose from, with some of the most well-known being Apple Pay, Google Pay and Samsung Pay. It's a kind of digital wallet where card information is stored on an app on your phone.
Online transaction process (OLTP) is secure and password protected. Three steps involved in the online transaction are Registration, Placing an order, and, Payment.
Zelle® is a fast, safe and easy way to send and receive money with friends, family and others you trust - no matter where they bank1. It's important that you know and trust those you send money to. Because once you authorize a payment to be sent, you can't cancel it if the recipient is already enrolled in Zelle®.
| Company | Platform |
|---|---|
| Paytm | Online, POS, Mobile, QR |
| PayU | Online |
| PayZapp | Online, POS, Mobile, QR |
| PhonePe | Online, POS, Mobile, QR |
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