A Brief Note on Electronic Payments

An Electronic Payment can be simply defined as paying for goods or services on the internet. It includes all financial operations using electronic devices. It comes with various methods, like credit or debit card payments or bank transfers. In fact one of the most popular and common online payment methods nowadays are credit cards.

An online payment solution helps to accept and process credit card payments.

How E- Payment works?

Online payments are made instantly. Therefore, it’s convenient and saves lots of time. However, the entire process behind the payment system is complex.

Here are the basics to make you understand it better-

• Customer action– The process begins when a customer visits the merchant’s site and adds to the cart items the products or services they want to buy. Thereafter, they need to fill out the payment form with certain information such as card number, expiration date etc.
  Depending on the payment method, the customer might be redirected to external service or bank’s website or continue the payment on the website or in an app.

• Payment authentication by the operator– The payment gateway checks whether the payment information is valid. If everything seems fine, the process continues and the payment gateway reports back the successful transaction. After which the customer receives a payment confirmation. The notification is usually displayed in real-time.

• Payment to the seller’s account– An online payment provider accepts a payment from a customer’s bank and transfers it to the merchant’s account.

Accepting electronic payments comes with lots of benefits for both merchants and consumers. These are highly effective for international transactions. It is cheaper, easier and faster than any other payment methods.