When you pay a business using an electronic medium, it’s called an online digital payment gateway and the application that carries out this process is termed digital payment gateway integration.
The increasing use of Internet-based banking and shopping has seen the growth of multiple e-commerce payment systems and technology has evolved to enhance, improve and provide secure and safe e-payment transactions.
Paperless e-commerce digital payments have revolutionized payment processing by reducing paperwork, transaction costs, and personnel cost. Also, there are many options available in the market offering companies a cheap payment gateway. These digital payment systems are user-friendly and utilize less time than manual processing and assist businesses to extend their market reach.
The best Digital Payment Methods of e-commerce in use today are:
The most famous and common method of payment for e-commerce transactions is through credit cards. It is very easy to use and the customer has to simply enter their credit card number and expiry date mentioned, on a small plastic card with a unique number attached to an account, in the appropriate field on the merchant’s website. To increase the security system, improved security measures, such as the use of a card verification number (CVN), have been included in online credit card payments. The CVN method helps identify fraud or cheating by matching the CVN number with the credit card holder’s details. When a shopper purchases a product or service via credit card, the credit card issuer bank pays on behalf of the buyer and the shopper has a certain time period after which he can pay the credit card bill which usually has a monthly payment cycle.
Debit cards are the second-highest e-commerce payment method in India. Shoppers who want to pay online within their budgetary limits prefer to pay using their Debit cards. A debit card, just like a credit card, is a small plastic card with a unique number linked with the bank account number.
With the debit card, consumers can only pay for obtained goods with the money that is already there in their bank account as opposed to the credit card where the outlay that the buyer spends is charged to him and payments are done at the end of the billing time. This is the principal difference between debit and credit cards is that the amount gets deducted from the card’s bank account directly and there should be adequate balance in the bank account for the transaction to get completed; whereas, in the case of a credit card purchase, there is no such requirement.
It is a plastic card fixed with a microprocessor that has the consumer’s personal details saved in it and can be loaded with funds to perform online transactions and instant payment of bills. The funds that are loaded in the smart card decrease as per the usage by the shopper and should be reloaded from his bank account. The smart card is again similar to a credit card or a debit card in looks, but it has a tiny microprocessor chip installed in it. It has the capacity to save a customer’s work and personal details. It is best when traveling to foreign countries for leisure or business trips. They are accessed using a PIN that every customer is assigned. Smart cards are secure, as they store data in an encrypted form and are less expensive. Smart cards can only be Smart cards are secure, as they store information in an encrypted format and are less expensive/provides faster processing.
To know how to choose the right payment solution for E-commerce click here.