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E-Commerce Assignment

Credit/debit cards are one of the most widely used payment methods internationally, allowing merchants to reach global markets. They are simple and secure to use by entering card details. Debit cards are preferred by customers who shop within their limits since the money is deducted directly from their bank account. Prepaid cards have stored value that customers select from and are gradually becoming more popular in niche categories. Bank transfers require internet banking enrollment but are the most secure method as transactions need customer authentication. E-wallets give a new shopping experience by allowing funds to be deposited and withdrawn after creating an account and linking to a bank account. Mobile payments offer a quick solution by downloading software and linking to a credit card as eCommerce shifts to mobile

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Rishi
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68 views

E-Commerce Assignment

Credit/debit cards are one of the most widely used payment methods internationally, allowing merchants to reach global markets. They are simple and secure to use by entering card details. Debit cards are preferred by customers who shop within their limits since the money is deducted directly from their bank account. Prepaid cards have stored value that customers select from and are gradually becoming more popular in niche categories. Bank transfers require internet banking enrollment but are the most secure method as transactions need customer authentication. E-wallets give a new shopping experience by allowing funds to be deposited and withdrawn after creating an account and linking to a bank account. Mobile payments offer a quick solution by downloading software and linking to a credit card as eCommerce shifts to mobile

Uploaded by

Rishi
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Types of Payment Systems for ECommerce

Credit/Debit card payments:

Payments via cards are one of the most widely used and popular methods not only
in India but on the international level. As a global payment solution, by enabling
payment acceptance via cards merchants can reach out to an international market.

Credit cards are simple to use and secure. The customer just must enter the card
number, expiry date, and CVV, which has been introduced as a precautionary
measure. The CVV helps detect fraud by comparing customer details and the CVV
number.

Coming to debit cards, they can be considered the next popular method for
eCommerce payments. Debit cards are usually preferred by customers who shop
online within their financial limits. The main difference between credit and debit card
is with a debit card one can only pay with the money that is already in the bank
account, whereas in the case of a credit card, the spent amount is billed, and
payments are made at the end of the billing period.

Prepaid card payments:

As an alternative for credit/debit cards, prepaid cards are introduced. They usually
come in different stored values and the customer has to choose from them. Prepaid
cards have virtual currency stored in them. Though the adoption rate of prepaid
cards is low, they are gradually becoming popular for certain niche categories.

Bank transfers:

Though not popular nowadays but still bank transfer is considered as an essential
payment method for eCommerce. It is considered as ‘if all else fails’ kind of payment
method. Some of the eCommerce stores are also keen on using bank transfer
payment options.

Customers enrolled in internet banking can do bank transfers for their online
purchases. Bank transfer is the most secure method as the transactions need to be
approved and authenticated by the customers. It is a simple way of paying for online
purchases and does not require the customer to have a card for payment purposes

E-Wallets:

E-wallet is one of the upcoming trends which gives a new shopping experience
altogether. The use of e-wallets is becoming popular at an alarming rate. E-Wallets
require a sign up from merchants as well as customers. After creating an e-wallet
account and linking it to the bank account they can withdraw or deposit funds.
The whole procedure with an e-wallet is easy and fast. Considered as an advanced
and instant digital payment method, e-wallets can be integrated with mobile wallets
using advanced functionalities like NFC.

Prepaid e-wallet accounts store customer information and multiple credit/ debit cards
and bank accounts. It needs one-time registration and eliminates the need for re-
entering information every time while making payments.

Cash:

Let’s face it, in India cash is the king. For eCommerce, it comes in the form of the
cash-on-delivery option. Cash is often used for physical goods and cash-on-delivery
transactions. It does come with several risks, such as no guarantee of an actual sale
during delivery, and theft. Though nowadays, cash on delivery does not necessarily
mean customers pay with cash (they can use cards, mobile payments as payment
terminals are often available with delivery agents), missing out on this is a strict NO.

Mobile payments:

Payment acceptance was no exception for mobile penetration. This digital payment
solution offers a quick solution for customers. To set up a mobile payment method,
the customer just must download software and link it to the credit card. As
eCommerce is becoming mobile mainstreamed, customers are finding it more
convenient to use mobile payment options.

Cryptocurrencies:

Though not popular yet, cryptocurrencies are rapidly but surely gaining a spot as a
favourable payment method, particularly with genZ.

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