Some E-Payment options

With thousands of online transactions happening every day, there are many payment options one can choose to purchase online. Here are some that can be useful.

Credit cards
Credit card is the most trusted source for a transaction. A credit card has a spending limit per month. After that you cannot spend until you pay the bill. If something goes wrong with the security measures, card holder will only loose the limit of purchase and he or she can cancel the credit card.

E-Checks
A consumer can buy e-cash and store it in a digital wallet in a hard drive. This is electronically linked to the consumer’s bank account and can be re-stored with e-cash at any time. E-cash is pre authorised and anonymous. This method is often used to pay for electronic goods received over the Internet. Forms of E-cash can be purchased online and can be emailed to the recipient. The recipient can use it to purchase products that accept e-cash payments.

Smart Cards
Smart cards are used to conduct everyday transactions. Low cost integrated microprocessor chip provides ability to do every day transactions mostly via ATM machines and cash counters. Use of smart cards or debit cards is not very popular in transactions carried through cyberspace.


Electronic Wallets
Electronic wallets are also referred as digital wallets. An e-wallet is a software program that contains a user’s payment information in encrypted form to ensure its security. For example, an individual’s-wallet could contain credit card numbers, bank account numbers, contact information, and shipping location. When a consumer is ready to make a purchase, they click the buy now button and the wallet server populates the required purchase information to the selected merchant’s online order form Users can get instant access to one-click purchase from their PC.

Process of the Electronic Wallet

Virtual Credit cards
This method is closely related to e-wallet. A virtual credit card is an image of a credit card placed on the computer desktop. Users must first register and they can choose versions of the service. With one click of the credit card image, the cardholder accesses account information and pays for online purchases. The credit card number and contact information is automatically entered into the checkout form, and the customer just need to enter an identification to authorize the transaction.

Benefits of banking online

Growing number of companies allow you to make automatic payments through your online banking account to make your life easier.

Whether your bank is a traditional institution or a Web-only bank, online banking lets you connect to your bank through the Internet and do things such as view your accounts, transfer money between accounts, view images of canceled checks, print copies of those checks and pay bills online and above all they are available all the time twenty four hours a day and seven days a week. Even if you are out of the country you can always log on to your online banking account and do your business dealings. Transaction speed is quicker than ATM speed. Another advantage is you can manage all your accounts even securities from one secure site.

To make your life easy, many banks allow you to manage your checking account by allowing you set up e-mail alerts so you can be notified when checks clear or when your balance slips below a certain level. There is also a detailed listing of your canceled checks.

Getting started is easy. The bank's Web site will direct you through the steps of registering the bills you want to pay and the accounts you want to use to pay them. You can always make changes and add or subtract bills.

Once you have registered the accounts you wish to pay online, the next step is to schedule payments. Your creditors receive your online payment in one of two ways: electronic payment or check. If the company is set up to accept electronic payments, your payment is automatically debited from your account and deposited electronically into their account. If the company can't accept electronic payments, your bank issues a check based on your online payment instructions.

Security:
you’ll have a user name and password to access your online account. Just as with any information used to access any other financial account, you should keep these codes secret. Your bank will tell you what to look for -- usually an icon of a locked padlock -- to ensure you're accessing your account over a secure line.

You should also beware of scams that send out e-mails looking exactly like e-mails from your bank. They will tell that account or personal information is needed. You're asked to click on a link and fill in the information. Never click on a link in an e-mail and submit your account information. Call your bank and never use a phone number supplied in the e-mail. Ask your bank if the e-mail is legitimate. I got such e-mails twice about my PayPal account. The fact is I have never registered for a PayPal account.

Disadvantages of online banking:
Start up time. You will have to provide your ID and sign forms at a bank branch. Bank sites may be difficult to navigate first. But you get comfortable with the site after some time. Biggest hurdle for many people is learning to trust it. Always print a transaction receipt and keep it with your records until it shows up on you personal site or bank statement.