Traditional and Electronic Payment methods..

Traditional Payment Methods:

● Cash-on-delivery. Many online transactions only involve submitting purchase orders online. Payment is by cash upon the delivery of the physical goods.

● Bank payments. After ordering goods online, payment is made by depositing cash into the bank account of the company from which the goods were ordered. Delivery is likewise done the conventional way.

Electronic Payment Methods :- An electronic payment system (EPS) is a system of financial exchange between buyers and sellers in the online environment that is facilitated by a digital financial instrument (such as encrypted credit card numbers, electronic checks, or digital cash) backed by a bank, an intermediary, or by legal tender.

Five reasons why Electronic payments improve customer service – the five ‘Cs’

1.       Choice – like your competitors, you can offer a wide range of payment options

2.       Convenience – they remove the need for invoices, cheques, cash and BACs

3.       Credit – they may allow purchases that would otherwise be delayed

4.       Concessions – small discounts to encourage online purchases improve the perception of value

5.       Competitive Edge - if you don’t offer the full range of payment options but your competitors do, what does this say about your business?

Five reasons why Electronic payments increase profitability

1.       Convenience – removing administrative resources required by invoices, cheques and cash

2.       Immediacy – credit cards enable instant purchasing (without delay)

3.       Improved cash flow – payment at the time of purchase reduces the pressures caused by 30-day invoicing

4.       Growth – open additional payment channels via the phone, mail order and Internet and increase your customer base. More customers mean more revenue.

5.       Competitive advantage – match and beat the services of your competitors and gain the edge

Why is it important?

EPS plays an important role in e-commerce because it closes the e-commerce loop. Entrepreneurs are not able to accept credit card payments over the Internet due to legal and business concerns. The primary issue is transaction security.

How does e-payment work?

●      The customer places an order for a product or service he/she is interested in and chooses e-payment as the method of payment

●      Seller's system generates an electronic payment order

●      The customer confirms the payment with his/her Solo codes

●      The seller receives immediately a notofication of the payment made by the customer.

●      You can monitor the transactions through Solo Internet or Solo Multibank