The below are different payment methods for an online transaction or cashless transaction. The below list is highly useful for Sofware developers working in Credit cards domain or who wish to seek more knowledge in payment process.

Credit Cards. This has been the dominant form of online payments when purchasing online. However, many people still resist the appeal and simplicity of credit-card transactions due to security concerns. Until now there are a high risk for stolen cards, identity theft thus customers fear credit-card fraud by merchants and other parties. Yet, there are some credit card issuers who have features that provide online fraud protection.

Virtual Credit Cards. This virtual credit card is an innovation in online credit cards. Credit card issuer provides a special number that can be used in place of the regular credit card number to make online purchases. This allows the user to use a credit card online without disclosing the actual number. Additionally, the user gives a transaction number instead of the credit card number – example is Private Payment by American Express.

 Debit Cards. With the debit card, the money for a purchased item comes directly out of the holder’s checking account. The actual transfer of funds from the holder’s account to the merchant’s takes place within 1 or 2 days .

Technology Jokes -Image courtesy
Technology Jokes –Image courtesy

Smart Cards. This card looks like any plastic payment card but it has a microchip embedded on its face. This can hold more information than ordinary credit cards with magnetic strips. Rather than holding only card’s information, it can also hold information for such as health care, transportation, identification and banking, and others. This enables information for different purposes to be stored in one location. The smart card can be used to make purchases over the Internet with the use of a card reader to read the card details necessary for payment and secure sending of data over the Internet.

e-Checks. An e-Check is an electronic version or representation of a paper check. It contains the same information as a paper check and based on the same legal framework. It works the same as the paper check however they are faster, cheaper and more secure. To pay by e-check, an account number is keyed in and together with the bank’s routing number. The vendor authorizes payment through the customer’s bank, which then either initiates an electronic funds transfer (EFT) or prints a check and mails it to the vendor .

Digital Cash. Digital cash is an example of a digital currency, where it allows people who do not have credit card to shop online. It is similar to a traditional bank account: consumers deposit money into their digital cash accounts to be used in the purchase online. This is often used with other technology such as
digital wallets.

e-Wallets. An e-wallet is a software component that a user downloads to their desktop and in which the user stores credit card numbers and other personal information. When a user shops at a merchant who accepts e-wallet, the user clicks the e-wallet and the forms are automatically filled in with all the necessary information in just one click. Credit card companies such as Visa and
MasterCard also offer this e-wallet.

Peer-to-Peer Payments. P2P payments are one of the fastest-growing online payment schemes as they enable the transfer of funds between two individuals.  PayPal is one of the first companies to offer this service. A user will open an account with the username, password and also an e-mail address as well as the payment card or bank account number. Then the user adds funds to their account and once account has been funded, the money can be sent to the recipient who also has an account at PayPal, for instance. The e-mail that is sent to the recipient contains a link back to the service’s (PayPal) website and can transfer the money from the PayPal account to their credit card or bank account.

e-Billing. E-Billing is also called electronic bill presentment and payment (EBPP). This enables the presentment, payment and posting of bills via the Internet. Presentment means taking the information that is typically printed on a bill and hosting it on a bill-presentment web server. Once the bill is available, the customer can view it with the browser, review and then pay online. When the payment is received, it is posted into the biller’s account receivable system and the payment is transferred from the customer’s account.

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