Analysis of Electronic Payment Systems

Analysis of Electronic Payment Systems

There are various categories of ecommerce such as business-to-consumer (B2C) electronic commerce that consist of products and services to individual consumers, such as online bookstores. E-commerce, business-to-business (B2B) e-commerce, electronic commerce consist of services and sales of good between businesses such as CarMax.com Web site that buys and sells. E-commerce consumer-to-consumer (C2C) electronic commerce consists of consumers buying and selling among themselves such as craigslist or eBay. E-commerce transactions mainly took place by using a wired computer. Then came along mobile -commerce or m-commerce that involves wireless handheld products such as smartphones and tablets; m-commerce is used to buy, and sell goods from anywhere.

The main types of electronic payment systems are: debit cards, credit cards and ACH (Automated Clearing House,) which relate to e-checks.

When you purchase a product online you input your credit card or debit card information and click submit. If your credit card has available credit or if your debit card (which is connected to your checking account) have enough funds the company will immediately send out an e-mail to confirm your purchase. There are some sites that will allow you to pay by e-check, one will input the account number and the bank routing number. The site will check with the bank to authorize payment, which will initiate an (EFT) an electronic funds transfer.

The electronic payment system, which I use the most, is credit card payment system. It is also the most appropriate for the organizations that I interact with regularly. I find it convenience to allow the Web site for which I frequent to save my credit card information, this save time and simplify the transaction.

Technology allows company to conduct business without meeting face to face. They can communicate with vendors half way around the world.