Electronic payments (e-payments for short) are a form of transaction wherein an individual chooses to pay for services online, without the need or use of physical money. Due to the efficiency, convenience and security that they offer, these payment modes are highly beneficial for both online businesses and their customers. There are many types of electronic payments, but some of the most common and well-known ones are credit cards, debit cards, virtual cards and wire transfers.
Credit Cards
There are lots of kinds of electronic payment options out there. If you choose a good electronic payment you will usually have multiple optional security features to choose from, amongst other things. The most popular of these payment instruments: credit cards are most commonly used for retail purchases, as it allows the owner to borrow money from the financial service that issued the card, albeit with interest, and only up to a certain limit. Nonetheless, credit cards are highly popular due to how fast the transactions are, as well as their reward and rebate offerings. In addition, credit cards are very small and light, allowing you to carry them in your wallet with no problems at all.
Debit Cards
Debit cards, just like credit cards, are also used more so for retail purchases. The difference from credit cards however is that funds needed for the transaction are instead directly pulled from the owner’s bank account. This makes it less flexible than credit cards, but may also curb you from making any unnecessary purchases. Still, they are definitely less cumbersome to deal with than having to carry physical cash with you (you can still use them to withdraw money from ATMs). Similar to credit cards, some debit cards offer reward programs as an incentive.
Virtual Cards
Unlike credit and debit cards, virtual cards are not in fact “cards, or rather, they are not physical cards. Instead, they are randomly generated and stored on your phone. Virtual cards can be made for free, and offer the same efficiency and speed of that of a credit card. Additionally, virtual cards are not tied to your actual credit cards, so it may prevent your credentials from getting hacked from a potential data breach. Either way, virtual cards are handy to have when initiating quick online transactions.
Wire Transfers
A wire transfer is a way to transfer funds electronically, through a network of banks around the world. You can request for a wire transfer from one bank account to another, either domestically or internationally; all for a potentially hefty price. Some payment services such as Paxum offer wire transfers as part of their services; if transfer speed overseas is what you’re looking for, then a wire transfer is perfect for you.
In Conclusion
Electronic payments are generally known for their efficiency and security. Especially with businesses slowly migrating towards the online market, e-payments are now the go-to for most buyers and sellers. By being in the know of these payment methods, you can enjoy the convenience these payment methods offer. So get to shopping, because e-payments are here to make your life much easier.