An electronic payment refers to any payment method that does not involve cash, but rather a debit or credit card. There are many electronic payments today in the market, and they continue to develop. Here is some information about some electronic payment methods.
Some electronic payment methods to look out for…
For businesses that are brick & mortar, also known as retail shops, they incur transactions that are face-to-face with their customers. These include restaurants, department stores, hotels, store-front shops, dry cleaners, grocery stores, and any other retail business. Using a point-of-sale system or terminal, credit and debit cards are swiped and process at the time of the sale while the cardholder is present.
For businesses with customers, not present, they incur card-not-present sales. These businesses include mail-ordering business, telephone-order businesses, and eCommerce websites. With having the credit or debit card either keyed by the merchant in or entered by the cardholder, the customer is not present at the time of the sale. This is where fraudsters take advantage as they can pretend to be a cardholder by using their stolen information.
Near Field Communication
Near field communication (NFC) is a card-present, electronic payment method that enables two devices that are near each other by centimeters to exchange data. For this to work effectively, the two devices have to have an NFC chip. NFC technology enables the consumers to pay for goods or services without necessarily having a purse or a wallet. The owners of the cell phones ought to connect a credit card to the account so that they can make payments.
After the payment application launches on your cell phone, the credit card terminal taps on the phone and a link are made using NFC. You are most likely needed to scan a finger or input a passcode to give consent to the transaction. The next process is the validation of the transaction.
It is a mobile payment system based on iOS –that allows you to make payments on credit card terminals that are NFC-enabled. When you are in a store that allows the use of Apple Pay, all you need to do is tap or wield your iPhone on or over a device that is NFC-enabled. Apple Pay enables the users to put their credit card information and then issue payments with NFC. The payment system is very secure since the customer’s card number is not sent. A token is sent in its place, so the retailer does not see the number. The token is useless even if someone steals it. Apple Pay is easy to use since it takes place within seconds just by putting the thumb on the fingerprint sensor of the phone.
The electronic payment method stores the information on your credit card so that you can make swift payments at some enabled point-of-sale systems and in specific apps. The Android Pay system protects the data of the user during any transaction so when you purchase something all you need to do is tap your device to make the payment. The payment method has an advantage over others since it can work on all Android devices.
With electronic payment methods like the above ones, a day of shopping becomes a stroll with just a cell phone in hand, no wallets or purses. As a result, there are few cases of lost purses or theft since people do not have to carry credit cards or cash.