After the invention of the micro central processing unit and the internet, it led to the creation of electronic payment systems. The result of this mode of payment was that one did not have to carry money when they need to buy something or get a service. What this lead to is the days of people queuing up for a long time would be a thing of the past since by just swiping or keying a few details and you had your product or service in no time. At the end of a study that was done on the increase of electronic commerce among businesses, it was established that at twenty three percent, more business were embracing it every year. What this means is that electronic payment is here to stay with us rather than it being a passing phrase.
On matters concerning electronic transactions, they are two forms of transactions which come out more prominently. The first category is identified as the one-time vendor payment method. This method entails the process whereby the person wants to purchase a given item will supply the financial details and then complete the purchase. This mode of payment is mainly common on websites that support electronic payments. The recurring customer vendor payment is the second means of electronic transactions. In this mode of transacting, when one makes enters their banking details, they will also make sure that the transactions will happen continuously. The result of that is that the customer will be parting away with some money every other time as per the agreement. This modularity of payment is well suited for loans, insurances and phone bills which one has to make continuous payment.
When it comes to the mode of payment that one can have, one is not limited to only one mode as there are several to choose from. The most commonly used mode of electronic payment is that of a credit card. The credit usually has a unique number that is attached to a magnetic strip which is linked to the card’s holder account. When the need arises that the owner of the card wants to do some transactions, they will put their card in a card reader, then key addition information to make the transaction(s) complete.
The electronic money is another mode of payment that is fast. The way in which this transfer of funds of realized, Is through transacting through a network between at least two entities. The middle party who was formerly required is no longer needed for the transaction to go through in this form of payment. The resulting benefit that is realized is that payments are faster meaning less time is required leading to convenience.