Types of E-Commerce Payment Systems

E-commerce sites use electronic payments, when you buy goods and services online, you pay them using electronic means. This mode of payment without using cash or check is called an e-commerce payment system and is also known as an online or electronic payment system.

The increasing use of Internet-based banking and shopping has led to the growth of various e-commerce payment systems and technology has been developed to enhance, improve and provide secure e-payment transactions.

Paperless e-commerce payments have revolutionized payment processing by reducing paperwork, transaction costs, and personnel costs. These systems are user-friendly and take less time than manual processing and help businesses reach their market.


Credit Card

The most popular payment for e-commerce transactions is through a credit card. It is easy to use. A credit card is a small plastic card with a unique number associated with an account. It also has a magnetic stripe which is used to read the credit card through the card reader. When a customer purchases the product through a credit card, the credit card issuing bank pays on behalf of the customer and the customer has a fixed time period after which he can pay the credit card bill. This is usually the credit card monthly payment cycle.

  • Card Holder - Customer
  • Merchant - the seller of the product who can accept credit card payments.
  • Card Issuing Bank - Card Holder's Bank
  • Familiar Bank - Merchant Bank
  • Card brand - for example, Visa or MasterCard.

Debit card

Debit Card is the second largest e-commerce payment medium in India. Customers who want to spend online within their financial limit, prefer to pay with their debit card. With a debit card, the customer can only pay for the goods purchased with money that is already available in his bank account, the amount the buyer spends is billed to him and he gets it until the end of the billing period. Have to pay

Smart Card

It is a plastic card with a microprocessor in which the customer's personal information is stored and can be loaded with funds for online transactions and quick payment of bills. The money loaded in the smart card reduces as per the usage by the customer and has to be reloaded from his bank account.


An e-wallet is a prepaid account that allows a customer to store multiple credit cards, debit cards, and bank account numbers in a secure environment. This eliminates the key of account information every time you make payment. Once a customer is registered and creates an e-wallet profile, he can pay faster.


E-money transactions refer to the situation where payments are made over the network and the amount is transferred from one financial body to another financial body without participation. E-money transactions are fast, convenient, and saves a lot of time.

Online payments made via credit card, debit card, or smart card are examples of e-money transactions. Another popular example is e-cash. In the case of e-cash, both the customer and the merchant have to sign up with the bank or company issuing the e-cash.

Net banking

This is another popular way of making e-commerce payments. It is a simple way to pay for online purchases directly from the customer's bank. It uses the same method like a debit card to pay money that is already in the customer's bank. For net banking, the user does not need a card for payment purposes, but the user has to register with his bank for the net banking facility, the customer only has to enter his net banking ID and PIN while completing the purchase. |

Mobile Payment

One of the latest ways to make online payments is through mobile phones. Instead of using a credit card or cash, all customers must send a payment request to their service provider via text message; Purchases are charged from the customer's mobile account or credit card. To set up a mobile payment system, a customer simply needs to download software from their service provider's website and then link the credit card or mobile billing information to the software.

Electronic Fund transfer

It is a very popular electronic payment method for transferring money from one bank account to another. Accounts can be in the same bank or different banks. Funds can be transferred using an ATM (Automated Teller Machine) or computer.

Nowadays, internet-based EFT is becoming popular. In this case, a customer uses the website provided by the bank, logs into the bank's website, and registers another bank account. He requests to transfer some amount to that account. The customer's bank transfers the amount to another account if it is in the same account, otherwise, the transfer request is sent to an ACH (Automatic Clearing House) so that the amount can be transferred to another account and the amount is deducted from the customer's account. Once the amount is transferred to another account, the customer is informed of the fund transfer by the bank.

Amazon Pay

Another convenient, secure way to pay for online purchases is through Amazon Pay. Use your information in it to log in to your Amazon account credentials already and make payments on leading merchant websites and apps. Your payment information is stored securely with Amazon and is accessible on thousands of websites and apps where you like to shop.

If you are planning to sell your products online, Amazon provides you the facility of payment for your products and services. You can also consider selling on Amazon, one of the world's most popular e-commerce platforms. To sell on Amazon, please register yourself for free.


I am an engineer by profession but being a blogger is my old day's dream to create my site for those who are more curious about my birthplace than I am coming from (India). the current city lives in Navi Mumbai, India

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