Development of Internet technologies has contributed to emergence of electronic money and online business. For those who work on the internet resources, e-currency is important, and the choice of e-payment system is particularly responsible.
The main types of electronic payment system represent different ways to transfer money the client:
Credit scheme. Typically, this type involve card payment system. The peculiarity of this type of electronic payment system is the presence of the card regulator (VISA, MasterCard, Maestro, Delta etc.) during the payment processing. In a nutshell, the funds arrive in the merchant account, and the processing center is responsible for the money transaction and the card data processing.
If you need to connect your business to the card payment system, the first thing to do is to apply to the processing center, but not the bank. There are several reasons for it:
- It is much more difficult to set things right with the bank because, this organization is responsible to the interbank and card regulators, and the processing center carries far less responsibility.
- The bank may refuse to deal with a business that does not fall under the certain categories. And it is impossible to get to know it in advance. In this case, the threat hangs over many new ideas for online businesses.
- The processing center is more flexible in the approach to working with the clients. In addition, they have IT-specialists, who will always be able to answer your questions.
In addition, usually the processing center is cooperating with several banks. So it is better to choose a processing center first (in fact, this organization will be responsible for the money transfer), and then the choice of a bank will be determined. Otherwise it will take a long time to conclude an agreement with the bank, and then there will be only hope that the bank is cooperating with a reliable processing center.
Debit scheme. This type includes payment systems that use electronic checks. Electronic checks have the same functions as the paper ones: it is an obligation of a bank to transfer money from the payer’s account to a payee. The only difference is the electronic form of a check and digital signature.
The process of such payment looks like this:
- A payer writes a check, puts a digital signature on it.
- A payee presents a check to a payment system or a bank he work with.
- After checking the authenticity of a digital signature, the funds are transfered to the payee.
There are some payment systems that work with electronic checks like NetCash, NetChex, NetBill etc.
The system of electronic wallets. When it comes to this type of electronic payment system, you can successfully avoid the red tape, since each particular electronic payment system combines the operation of several types of organizations: responsibility, control and conditions of payment processing depends on the one payment system. Although there are certain legislative regulations regarding the operation of payment systems, this type of electronic payment system is still the easiest one to implement for e-business.
The examples of the electronic wallets are QIWI, Webmoney, Perfect Money, Paypal, Okpay, Paxum etc.
In addition, it should be mentioned that some of the electronic payment system (eg. PayPal and Moneybookers) offer intermediary services in financial transactions. In this case, the payment system will take the money of customers in its account and then send it to your account. You can use this if you have problems with the conclusion of agreement with banks or you just want to save your time. But keep in mind that this kind of service usually has relatively high fees that can be compared to the cost of services of a good processing center.
All the types of electronic payment system have its advantages and disadvantages. When you choose a payment method for your online service, you should take into account what type of electronic payment system your target audience prefer when it comes to paying for goods and services on the Internet, or it is even better to create multiple payment options, to reach a wider audience.
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