Traditional and Electronic Payment methods..
Traditional 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
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