07-09-2014, 08:33 PM
Traditionally, all payment transaction involved some form of paper, whether a check, an invoice, a credit card slip or cash. Now you can pay all of your monthly bills with a few clicks of the mouse, purchase products without leaving your desk or sofa and have your paycheck directly deposited into your bank account. E-payment: It means of making payments over an electronic network such as the Internet. Characteristics of e-payments An electronic payment is a payment that is transmitted electronically either over telephone lines or between web sites on the internet. No tangible currency such as a bank note or check changes hands. Any information required to make the payment such as a credit card number or Personal Identification Number (PIN), exists only in digital form. Costs and Benefits Issues Electronic payments are intended to lower transaction costs significantly. Since less paper resources are used to process an online payment, the environment may benefit from a decreased demand for paper products. On the other hand, significant technical resources, such as high-speed internet connections, secure servers and computers capable of processing high volume transactions, are required.