Internet shopping is the in-thing today. People buy everything from books to mobile phones on the Internet. The most common method of paying is using a debit or credit card. The evolution of payment systems started with the Barter System which saw the exchange of goods. For example, people with a bag of rice exchanged it to a sack of potato. With the creation of money, the debit and credit system of payment was created. When you buy something and pay for it then and there, this is called a debit system while buying on the basis of a promise to pay later is called credit system. Buying and selling became online and people started using the Internet for making their payments.
The Online Payment System
Millions of people use the Internet shopping and business transactions. Online shopping is a more frequent mode of buying things when compared to real-time shopping. It is kind of the same as using your debit card when you shop; you swipe your card and put your signature to validate the transaction. In case of paying online, the only difference is that you have to use a secure payment system. You can use either credit or debit cards for making different online payments. Other methods include Electronic Fund Transfer (EFT), Google Checkout, PayPal Technology, World Pay authorize.Net, etc. The different types of payment systems and their features are discussed below. Have a closer look.
Using credit and debit cards
The most common and preferred payment when it comes to Internet shopping is the use of credit and debit cards. Most of the people choose credit and debit cards to make payments because they are considered to be a safe and secure mode of payment. Credit cards are issued by banks when the account is approved by an authorized credit provider. The credit or debit card holders can use the card for making purchases either online or directly at the shops. If a person uses a credit or debit card in a shop, the merchant uses an electronic verification system to verify if the card is valid and has sufficient funds to make the purchase. The card holder needs to sign the payment or provide the necessary pin (if online) to validate the payment.
PayPal payment system
PayPal is a smart and secure online payment solution for Internet shopping. PayPal provides the user with an additional security by using leading data encryption technology. It is considered to be a safe and simple method to make payments. This mode of online payment is used quite frequently by users worldwide.
Using electronic fund transfer (EFT)
Electronic fund transfer is a common method of payment for Internet shopping. This method makes the user transfer funds from their respective account to the merchant through a computer-based system. The user will have a respective login ID and password to authorize the payment for security purposes. Electronic fund transfer is most commonly used to pay utility bills, mortgages, travel bookings, etc.