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The New Mode of Payment

The idea of the electronic payment system was birthed when the power of the micro central processing unit and the internet were integrated together to form a functioning mode of payment. The result of this mode of payment was that one did not have to carry money when they need to buy something or get a service. This, in turn, meant that the long queues that customers for a product or clients of services would not witness them longer as by through a swipe or pressing a few keys and they were sorted and done. Through a study that was conducted, it was identified that businesses that involved in electronic commerce were increasing at an annual rate of around twenty three percent. What this means is that electronic payment is here to stay with us rather than it being a passing phrase.

When it comes of the types of electronic transactions classification that exists, we mainly have two of them. In the first classification, it is known as a one-time vendor payment. In this form of payment, when the client is making any form of payment, they will enter their banking information and then make the payment. This method of electronic payment is mostly common on commercial websites. The next category of transactions that are electronic is the recurring customer vendor payment. In this mode of transacting, when one makes enters their banking details, they will also make sure that the transactions will happen continuously. What will then happen is that periodically money will be paid out as stated. This continuous form of transactions tends to be more appealing where the items of purchase are insurance, loans or phone bills.

On matters concerning the type of payment mode one can have, it all comes down to what one will prefer to use as there are a couple. The most commonly used mode of electronic payment is that of a credit card. The main sections that constitute a credit card is a magnetic strip from which swiping on a card reader details can be extracted and digits that are unique from others which are used to link to a particular bank account. When the need arises that the owner of the card wants to do some transactions, they will put their card in a card reader, then key addition information to make the transaction(s) complete.

Another fast mode of payment is the electronic money. The way in which this transfer of funds of realized, Is through transacting through a network between at least two entities. The middle party who was formerly required is no longer needed for the transaction to go through in this form of payment. What this means is that less time is taken as it brings convenience and the same time makes the payments to be fast.

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