The term “Electronic Payment” is used for all kinds of payments that are processed without the involvement of paper checks or cash. Some of the electronic payment modes are credit cards, debit cards, direct debit, e – checks and Automated Clearing House or ACH.

Electronic Payment Transactions Types

At one time these electronic payments were commonly used only by e – commerce websites such as eBay. It provides a very convenient mode of payment where the customer has to only enter his credit card details to pay for the goods that he has ordered from that site. That website will verify the details given by you and send an email to you about the transaction and the verification process. A few of the websites also accept electronic checks. With this form of payment the customer has to enter the check and the routing details together with his account number to make payments.

In contrast, recurring payments are payments that are made for the long term or repeated financial payments such as electric bills, phone bills, loans, insurance payments and many others. Some services like in gyms also require this for accepting payments from their customers.

Some Benefits that you get by using Electronic Payments

1)    Convenience: The most obvious and direct benefit is the convenience that it offers your customers. With the electronic payments, your customers only have to enter their credit card details and the sale can be completed. There is no need for your customers to write a check and mail it.

2)    Lower Costs: Because the enter process is automated the cost of accepting payments from customers has drastically reduced. There are no postage fees, very less paper and personnel involved and minimum requirement of other resources making this mode of payment highly cost effective.

Security for Electronic Payments

There are several questions raised about the security issues of this mode of payment. The primary reason for such an out roar is the fear that the customers have of their private and confidential data being compromised. The issue of Identity theft is one of the biggest concerns and has cast a shadow over electronic payments.

But, there are a few basic measures that should be taken to minimize the security risks which are involved. Some of the measures are installing the best anti – spyware and anti – virus program available in the market and keeping is updated. Installing firewalls, being aware of new and more sophisticated online threats will help take the right counter measures and additional knowledge of how these threats will affect your business will be of great help to protect your business and customers from these threats.

All the online transactions done by your company should be done through a secured server. No matter how serious the security issues and risks are, these electronic payments will not go away. In fact, they are becoming more and more popular. Moreover, those businesses which provide electronic payments to their customers have seen an increase in their turnover due to customers purchasing more than planned and new customers. Contact one of our helpful account representatives to assist you in the setup of a high risk merchant account or offshore merchant account for a high risk merchant.