The oldest form of payment is through bartering, where people trade goods for services rendered or vice versa. But today, the main means of payment is money. As technology advanced, numerous ways to make payments also developed. Payment can now be made via checks, cards or bank transfer. These types of payment methods are divided into two, provisioning and exchanging.
Exchanging is changing products such as coins and bank notes to their corresponding price or value. Provisioning is mainly transferring the payment from one account to another, just like bank to bank transactions. With this type of method, payment processors or third party mediums are often involved. Electronic payment is another type of provisioning. The use of a credit card, debit card or Automated Clearing House or ACH disbursement falls under the electronic payments system category.
Nowadays, more and more people conduct their business online. Online payments are in demand, and for businesses that offer their product through the Internet, a good online payment solution is a must.
Online payment solutions or electronic payment systems are a way of paying over the Internet or any electronic network. PayPro and PayPal are some examples of online payment systems.
One benefit of using online payment is that it saves you time. You do not have to wait in line inside banks to pay your dues or in stores to pay what you want. It also saves energy and money. Traveling can consume a lot of your strength. Online payment will help you conserve your energy and money for gas.
In online payment, the payer needs to give personal information for the transaction to process. If you are somehow doubtful of giving your personal data, it is best to know how electronic solutions or online payments work.
Buying stuff is now easy, as you do not need to go places to have what you want. Online shopping is a convenient way to buy goods. Almost everything is on the Internet, all you need is to visit shopping websites or e-commerce sites and have your account information ready.
Once you selected what to buy, the next thing you need to do is to give your account information to the website. The website then processes the information and stores it on its database.
The website will then verify the information of your account and process it with their processing solution and transaction solution software. Once the account is verified the website will approve the transaction and the purchase is done. Receipts are normally mailed to the customer, or you can ask your bank for a transaction slip.
Online payment comes in different methods and types. Depending on the way you want to pay you can choose from a wide variety of methods. The usage of credit cards, debit cards and ACH or Automated Cleaning House networks are types of electronic solutions or payments. Electronic checks or e-checks are included in ACH.