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E Payments

Computers.

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lokeshburagana6
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17 views

E Payments

Computers.

Uploaded by

lokeshburagana6
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Payment procedures

In e-commerce, payment procedures involve


multiple steps and components to ensure secure
and efficient transactions.
Steps in Payment Procedures:
1. Selection of Payment Method: Customers
choose their preferred payment method during
checkout.
2. Order Review: Customers review order
details, including costs and discounts.
3. Payment Information Entry: Customers
enter their payment details.
4. Authorization: Payment gateway processes
the payment and forwards it to the acquiring
bank, which sends it to the issuing bank for
authorization.
5. Authentication: Issuing bank verifies
payment details and may require multi-factor
authentication.
6. Transaction Approval: Issuing bank
approves or declines the transaction.
7. Confirmation: E-commerce site confirms the
transaction and sends an order confirmation to
the customer.
8. Clearing and Settlement: Issuing bank
transfers funds to the acquiring bank, which
deposits them into the merchant’s account.
9. Receipt Issuance: E-commerce site generates
a receipt for the customer.
Payment Methods:
1.Credit/Debit Cards: Common method
1.

involving card networks like Visa and


MasterCard.
2.Digital Wallets: Mobile or online applications
2.

storing payment information (e.g., Apple Pay).


3.Bank Transfers: Direct transfers between
3.

bank accounts.
4.Cryptocurrencies: Digital currencies like
4.

Bitcoin.
5.Buy Now, Pay Later (BNPL): Allows
5.

installment payments (e.g., Afterpay).


Receivable management
Receivable management in e-commerce refers to
the practices and Strategies businesses use to
effectively manage and optimize their accounts
receivable processes
1. Billing and Invoicing:
o Using software to create and send invoices
automatically.
o Making sure invoices have correct details like
item descriptions, prices, and payment terms.
2. Credit Management:
o Credit polices Setting clear rules for giving
credit to customers.
o Credit Checking customers’ credit before
giving them credit terms.
o Setting Credit limits based on customers'
creditworthiness.
3. Payment Terms:
o Clearly defining when payments are due.
o Early Payment Incentives: Offering
discounts for early payments.
o Late Payment Penalties: Charging extra for
late payments.
4. Payment Processing:
o Multi payment option Allowing various
payment methods like credit cards, digital
wallets, and bank transfers.
o Secure payment gateways Using secure
systems to process payments.
5. Collections:
o Automated Reminders Sending reminders for
due and overdue payments.
o Collection Agencies Working with agencies to
collect overdue payments.
o Legal Action Taking legal steps if necessary
to collect payments.
6. Monitoring and Reporting:
o Aging reports Tracking which receivables are
overdue.
o Performance Metric Measuring key metrics
like how quickly receivables are collected.
Strategies for Effective Receivable
Management
1. Customer Relationship Management
(CRM):
o Customer Communication: Regularly
communicating with customers about their
accounts.
o Personalized Service: Providing personalized
service to encourage prompt payment.
2. Technology and Automation:
o Invoicing Software: Using software to
automate invoicing and reminders.
o Integration: Linking payment systems with
accounting for real-time updates.
3. Risk Management:
o Customer Segmentation: Grouping
customers by payment behavior and risk
levels.
o Insurance: Using insurance to protect against
non-payment.
4. Training and Policies:
o Staff Training: Teaching staff best practices
for receivable management.
o Clear Policies: Establishing and
communicating clear credit and collection
policies.
Cyber Money
Cyber money, also known as digital currency or
electronic money, plays a significant role in e-
commerce by enabling secure, fast, and
convenient transactions.
Types of Cyber Money
1. Cryptocurrencies:
o Digital or virtual currencies that use
cryptography for security.
o Examples: Bitcoin, Ethereum, Litecoin.
2. Digital Wallets:
o Electronic devices or online services that store
payment information.
o Examples: PayPal, Apple Pay, Google Wallet.
3. Electronic Funds Transfer (EFT):
o Transfer of funds through electronic means
without the direct intervention of bank staff.
o Examples: Direct deposit, wire transfer.
4. Prepaid Cards:
o Cards preloaded with a specific amount of
money that can be used for online
transactions.
o Examples: Visa prepaid cards, gift cards.
Benefits of Cyber Money in E-Commerce
1. Convenience:
o Enables quick and easy transactions from
anywhere at any time.
2. Security:
o Advanced encryption and security measures
protect against fraud and theft.
3. Global Reach:
o Allows transactions across borders, facilitating
international e-commerce.
4. Lower Transaction Fees:
o Often involves lower fees compared to
traditional banking methods.
5. Speed:
o Transactions are processed quickly, enhancing
customer satisfaction.
6. Traceability:
o Transactions can be easily tracked and
recorded, improving transparency and
accountability.

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