How to define
In short, e-payment can be simply defined as paying for the purchase of goods and services on the Internet. It includes all financial operations using electronic devices such as computers, mobile phones or tablets.
How e-payment works?
Electronic payments include various methods, like card payments, credit transfers or through payment providers, which are intermediary between the customer’s bank and the retailer.
The basic online payment process can be presented in these three steps:
- Customer action – The process begins with the visit to the merchant’s site. The user defines what he or she is paying for and then fills in the payment form with their credit card information. Depending on the payment method chosen the user is either being transferred to their bank’s website or continues the payment in the app or e-shop.
- Payment authentication by the operator – The payment gateway checks if the credit card number is valid. If everything’s OK, the process continues and payment gateway reports back the successful transaction. Next, the user receives payment confirmation (usually the notification is shown in real-time).
- Payment to the seller’s account – online payment provider receives payment from customer’s bank and transfers it to the merchant’s account (or merchant receives a transfer directly from customer’s bank).
E-payments are effective, especially if we talk about international transactions. It is generally cheaper, easier and faster than other payment methods. As a seller, you don’t have to worry about specific customer details, currency conversion or high commission. What is more, payment is made instantly, so it saves your time.
Looking for an e-payment solution? Try out SecurionPay.com
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