The electronic payment system was a result of the merger of two other technologies which are the internet and the micro central processing unit. 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.
When it comes of the types of electronic transactions classification that exists, we mainly have two of them. The first category is identified as the one-time vendor payment method. This process requires that one gives out certain bank details to the vendor which will make it possible for any transactions to proceed. This mode of payment is mainly common on websites that support electronic payments. The next category of transactions that are electronic is the recurring customer vendor payment. In this mode of transacting, when one makes enters their banking details, they will also make sure that the transactions will happen continuously. What will then happen is that periodically money will be paid out as stated. 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 credit card is the most popular mode when it comes to matters of electronic payment. The main sections that constitute a credit card is a magnetic strip from which swiping on a card reader details can be extracted and digits that are unique from others which are used to link to a particular bank 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. Here no middle parties are involved in the transactions. What this means is that less time is taken as it brings convenience and the same time makes the payments to be fast.