Electronic payment
What is electronic payment??
Electronic payments are any kind of non-cash payment that doesn't involve a paper check. Electronic payment are also payments that are made directly to payee from the bank accounts using security features over the Internet to process the transactions. it starts with an arrangement the users make with their financial institutions to have funds withdrawn from their account and sent to a payee. By using electronic payment users will also be able to set up electronic bill payments through their financial software so when users enter a payment in the software, the transaction goes through and the bill is paid in the amount and on the date users specify. Using electronic payment is very convenient. Users do not have to write check, swipe a credit card or handle or handle any paper money they only have to do is enter some information into their Web browser and click the mouse.
There are three main types of transactions on electronic payment:
· one-time customer-to-vendor payment
is commonly used when you shop online at an e-commerce site such as Amazon
· recurring customer-to-vendor payment
pay a bill through a regularly scheduled direct debit from your checking account or an automatic charge to your credit card. Some long-term contracts require this type of automated payment schedule like those at gyms or fitness centers.
· automatic bank-to-vendor payment
your bank must offer a service called online bill pay. You log on to your bank's Web site, enter the vendor's information and authorize your bank to electronically transfer money from your account to pay your bill. In most cases, you can choose whether to do this manually for each billing cycle or have your bills automatically paid on the same day each month.
So, using electronic payment is more convenient easy and it also saves the time of users
