E-commerce sites use electronic payment, wherever electronic payment refers to paperless monetary transactions. Electronic payment has rework the business process
by reducing the work, dealings prices, and labor value. Being user friendly and
less long than manual process, it helps business to expand its market reach/expansion.
Listed below square measure a number of the modes of electronic payments
• Credit Card
• Debit Card
• Smart Card
• Electronic Fund Transfer (EFT)
Payment usage with MasterCard is one in all popular mode of electronic payment. MasterCard is tiny plastic card with a isolated number attached with account. In this attach a magnetic strip implant in it in it which is used to read credit card via card readers. Once a client purchases a product via MasterCard. MasterCard establishment bank pays on behalf of the client and client surround a bound period of time when that person will pay the MasterCard bill. It’s normally MasterCard monthly payment cycle. Following square measure the actors within the MasterCard system.
• The card holder – client.
• The merchandiser – the seller of product who can accept credit card payments.
• The card establishment bank ? card holder’s bank
• The acquirer bank ? the merchant’s bank
• The card complete ? as an example, visa or MasterCard
Credit Card Payment method
There square measure six steps within the MasterCard Payment method. These steps square measure explained below:
1 Bank supply and activates a MasterCard to the client on his/her request.
2 The client presents the MasterCard data to the merchandiser web site or to the merchandiser from whom he/she desires to get a product/service.
3 Merchant validates the customer’s identity by requesting approval from the credit card company.
4 Card complete company authenticates the MasterCard and pays the amount indicates in the bill by credit. Merchandiser keeps the sales slip.
5 Merchant submits the sales slip to acquirer banks and gets the service charges paid to him/her
6 Acquirer bank requests the cardboard complete company to clear the credit amount and gets the payment.
7 Now the credit card company asks to pay the amount and its transferred to the credit card ‘company’s account.
Debit card, like MasterCard, could be a tiny plastic card with a isolated mapped with the bank account number. It’s needed to own a bank account before obtaining a debit card from the bank. The foremost distinction between a debit card and credit card is that just in case of payment through debit card, the bill amount gets subtracted from the card’s holder account immediately and there should be sufficient balance in the bank account for the transaction to get completed; whereas in case of a credit card transaction, there is no such compulsion.
Debit cards free the client to holds money and cheques. Even merchants accept a debit card instantly. Having a restriction on the amount that can be withdrawn in a day using a debit card helps the customer to keeps a check on his/her spending.
Smart card is once more the same as a mastercard or debit card, however it’s a tiny low micro chip embedded in it. It’s the capability to store a customer’s work-related and/or personal data. Smart cards also are pre-store cash and also the bill amount gets subtracted when each dealings.
Smart cards will be only accessed by using a PIN that each client is assigned with. Smart card are secure, as they store information in encoded format and are less expensive/provides faster processing. Mondex and Visa Cash cards are examples of smart cards.