Everything You Need To Know About E-payment System

E-payment system

E-payment system is a kind of advanced payment mode that allows the consumers to make transactions for the services as well as goods through an electronic medium. There is no need to use cash or checks. E-payment system is also considered as the online payment system. Standing in the 21st century, it is very important to understand each and every aspect of the E-payment system.

E-payment System

Well, the popularity of the e-payment system otherwise known as the electronic payment system is growing rapidly day by day. People in this technologically advanced era has already embraced technology and therefore, nowadays, it is very difficult to see cash transaction. People rely on the e-payment system even for purchasing a small item. Due to the reliability and advanced security, the number of online credit card payments is increasing and on the other side, the number of cash transactions is being decreased.

E-payment Methods

E-payment system allows the customers to make bill payments with credit cards and debit cards. But, along with these, there are many other options that are inextricably associated with the e-payment system. Well, if we specifically talk about the e-payment methods, it can be classified into two parts- Credit Payment System and Cash Payment System

Credit Payment System

When it comes to the credit payment system, you will have different options. These options are as follows:

  • Credit Card: Well, the credit card is a kind of e-payment system. It is generally issued by the bank and the identity of the cardholder is required to make payment with a credit card. After swiping the credit card, the necessary information goes to the merchant processor through an online payment gateway. The merchant processor shares the information with the credit card network such as American Express, MasterCard, Visa and many more. The credit card network then shares the information with the credit card issuing bank. The bank finally declines or approves the transaction. After approving or declining the transaction, the credit card issuing bank shares the same information with the credit card brand. The brand finally shares the same information with the merchant processor solution. Thus, credit card transaction works.
  • E-Wallet: E-wallet is an electronic wallet that supports prepaid transactions. The customers can load their e-wallet with credit cards or debit cards. An E-wallet is a faster and more reliable to way to make payments. It also supports contactless transactions. You just need to hover your device and the balance will be deducted from your E-wallet. Well, E-wallet is an application and therefore, you need a mobile phone to access it. It supports IOS and Android.
  • Smart Card: Smart card is quite similar to an e-wallet but, in such a situation, you don’t need to have a mobile device. It is a plastic card that consists of a microprocessor and you can add funds to your cards to make online transactions. It also has an advanced EMV chip card. So, it is highly secured as the fraudsters will not be able to crack the data that remains in an encrypted form.
Cash Payment System

The cash payment system is an inextricable part of the e-payment system. We have elaborated different kinds of cash payment system below:

  • Direct Debit: In case of direct debit, the customer directly instructs his or her bank to deduct a specific amount of money and credit into the account of the merchant. The entire process is made electronically.
  • E-Cash: E-cash is an advanced form of e-payment system. Here, the customer can store a specific amount of money that can be used to make an online transaction.
  • E-Check: E-check is another way through which customers can make an online transaction. Well, we all are familiar with the old paper check. Now, E-check is actually the digital version of the paper check. The customer can transfer funds from one bank account to another bank account without the need for any paper.
  • Stored-Issued Card: Stored-issued card is a card that is issued by a specific store. It is a plastic card that consists of a certain amount of balance. Customers can use it in the stores that issued the card. A gift card is another form of a stored-issued card.
Advance Payment Terminals

Advanced payment terminals and e-payment systems are inextricably related to each other. We at International Payment Solutions offer various types of payment terminals such as credit card machines, virtual terminal, online payment processing and many more that support e-payment systems. If you want to start your business online, you must have these payment terminals. It will help you in taking your organization to a whole new level of supremacy.

Not An IPS Merchant?

Well, having just any payment terminal will not be enough. You need to get in touch with a payment processor like International Payment Solutions for the best experience. Undoubtedly, they are the best payment processors and have the capability to give you satisfactory outcomes.  So, what are you waiting for? Look for none other than IPS and take your business to the next level.

Start accepting credit card online and/or in your store today! , Fill out the below form for a free consultation, we will get back to you shortly:



    Online Transaction Vs Offline Transaction

    Online transaction

    The online transaction has become one of the efficient ways to make bill payments nowadays. But, before the arrival of advanced payment terminals and online transactions, people used to make offline transactions. Standing in the 21st century, most people still believe that offline transaction is one of the secured ways to make transactions. However, different people have different perspectives and this is why the debate over online and offline transactions will always remain active. We at International Payment Solutions understand the current situation very well and we always promote the right things. The online mode, as well as the offline mode, has its own advantages as well as disadvantages and we want to highlight the major differences between these two types of transactions in order to give you a concrete idea. So, don’t miss to go through the following points:

    Offline Transactions

    Most of the time Offline transaction refers to cash transactions, however,

    The credit card machines can take offline payments from credit cards (Visa, MasterCard, Amex and etc.) for up to 7 days.

    The offline payments option is enabled by default for:

    When a connection becomes available, your device automatically submits offline payments for authorization, and once authorized, you receive your deposits and your customers receive receipts.

    and you might be surprised to know there is a lot of fraud happening across the globe through offline transactions.

    Well, we have made research and highlighted the core advantages of using offline transactions.

    Cases that offline transaction would help:

    -Airlines to take payment from passengers while they are onboarded.

    -In case the internet connection is down

    Advantages: The advantages of offline transactions are as follows:
    • Transparent: Transparency is something that keeps the offline transaction ahead of the online transaction. Consumers can transparently make the transactions and it means that the receiver as well as the lender will be sure about the cash transactions while dealing. Moreover, it is a traditional method and so, people have a deep trust in it. Technology might not break this trust within a short period of time.
    • Direct And Simple: The best part of the offline transaction is that it is very simple. And here, the payment method is direct. It means that the consumers as well as the merchants will not have to rely on any other type of payment terminals such as a virtual terminal, online payment gateway and many more. The entire transaction will be hand to hand.
    • Easy To Use: The best part of the offline transaction is that it is very easy to use and therefore people belonging to different ages can easily make transactions. When it comes to online transactions, people must have a little bit of technology. Therefore, from this perspective, the offline transaction is far better than the online transaction.
    Disadvantages: Well, the disadvantages of the offline transaction are mentioned below:
    • Huge Limitation: Well, there are many limitations to an offline transaction. the offline transaction is only Pin verified, it meant that in order for the transaction gets completed the credit card machine needs to be online and complete the authorization.
    • Too much risk: If you are a merchant and you willing to take a payment offline you are taking risk due to not complete transaction, you might get declined once the terminal gets online due to not sufficient balance in the cardholder account!
    • Not Suitable For Big Transaction: even though offline transactions require cardholders to sign the sales receipts but If you are making a big transaction, The offline transaction will not be suitable for you. Yes, risking a big amount of money will not be good for you and there will be a chance of chargebacks or decline. In such a case, you have to make an online transaction.
    Online Transaction

    Well, the disadvantages of offline transactions and the advancement of technology are the main reasons behind the arrival of the online transaction. People in the 21st century are familiar with online transaction modes such as credit card transactions, debit card transactions, mobile wallet payment, QR code payment and many more. We have added the advantages below in order to give a concrete idea about such a transaction.

    Advantage: Online transaction has endless advantages and we have highlighted some of them below:
    • Quick And Easy: Online transaction is very quick as well as easy. You can transfer funds in just a few taps. Moreover, if you want to make a big transaction, you can still make it with the help of online modes. Online transactions allow consumers to transfer a big amount of money.
    • Track All The Transactions: Well, in the case of online transactions, merchants can easily track all the transaction. There will be a record of all transactions. It lets them understand the growth of business easily.
    • Accepts All Forms Of Payments: If you see the ecosystem of offline payment, you will understand that, it does not allow the merchants to accept all forms of payments. But, on the other side, if you have your online payment gateway and advanced payment terminals, you will able to accept all forms of payments easily.
    Disadvantages: Well, an online transaction is not completely devoid of negative aspects. We have added some of them here:
    • Card Fraud: Well, when you are making online transactions, there will be a chance of fraudulent activity. But, with the advancement of technology, online payment modes have become more secure.
    • Person’s Identity: You cannot let others make the online transaction with your cards. Your personal identity is required.

    So, these are the differences between online transactions and offline transactions.

    Not An IPS Merchant?

    International Payment Solutions is one of the best payment processors. If you want to accept online payments in your business, you must get in touch with IPS as early as possible.

    Start accepting credit card online and/or in your store today! , Fill out the below form for a free consultation, we will get back to you shortly: