Types of electronic payment transactions are one-time customer-to-vendor payment, recurring customer-to-vendor payment, digital cash, and automatic bank-to-vendor payment for a more profitable small e-business.
Electronic payment methods such as credit cards, debit cards, automated clearing house networks have changed the exchange transactions of goods and vendors on the e-business industry. E-business is a progressive industry that is becoming popular among merchants all around the world. Many individuals have put up small e-business to earn. Through electronic payments, the importance of using cash as the only means of exchange value has decreased. For small e-businesses, one would need to have these types of electronic payment to ensure maximize profit:
One-time customer-to-vendor payment
This type of electronic payment requires credit cards and e-checks as payment methods. It is a common process using the shopping cart icon and providing the credit card information to check out items. E-checks are also used in some e-commerce sites. It is done by simply providing the account number and routing number of the bank. The transfer of funds is then authorized and done between the vendor and the customer's bank through electronic fund transfer or bank check.
Recurring customer-to-vendor payment
Another type of electronic payment is by a recurring customer-to-vendor payment. Small business that ventures on insurance, loan companies, and any installment base transaction requires this type of electronic payment. The billing process is done by setting a regular schedule of payment in your bank account or direct credit card charge.
Digital cash is a series of zeros and ones that are transferred online. These zeros and ones are encrypted digits or electronic tokens that serve as means of value exchange for goods and services in the Internet. The monetary value of digital cash depends on the financial institution.
Automatic bank-to-vendor payment
It is an electronic payment that is initiated by the customers. It is a bank to vendor transaction put up by the customer. The customer would simply ensure that his or her bank offers an "online bill pay" service. This service enables the customer to provide the vendor's merchant account information to authorized a regular money transfer to pay the vendor. The debit is commonly taken from the customer's bank account to manually or automatically pay the billing cycle.
Electronic payments provide the most convenient means of transferring funds. With just a simple process of confirmed purchase means another sale and profit for a small e-business. Having the right type of electronic payment transaction that your e-business needs offers convenience to prospective customers. It is also the most practical tool since it lowers the expenditures of small e-business. By having the right type of electronic payment, payment transactions are efficiently all done electronically. This will then lower the postage and paper costs of manual payments transactions. More sales and lower expenditures will then result for higher profit.