An online payment system facilitates the convenient acceptance of online payments for online transactions conducted in real-time. Also referred to as a subcomponent of online payment processing, e-business payment systems have grown extensively popular owing to the widespread usage of online banking and online shopping. The benefits of this electronic money transfer are main advantages in terms of accuracy and speed, and the absence of delays that can occur when cash is transferred in person or by mail. To better understand how this system works, it is beneficial to analyze how it differs from the traditional methods of payment processing.
The Main Differences between Online Payment System and Traditional System
One of the main differences between online payment systems and traditional systems of payment processing is how debit and credit cards are accepted. When these cards are used to make purchases, the purchaser simply swipes the card through a reader on a virtual terminal device. The reader normally includes a magnetic field that attracts and holds the magnetic strip on the debit and credit cards, making the card acceptors even more secure. E-commerce sites are not capable of providing merchant services using the conventional method of payments. As a result, this virtual payment method is a more convenient and much faster means of payment.
Virtual debit cards are created through software programs that create virtual credit and debit cards. These are usually used in conjunction with electronic check systems. This enables electronic payments to be made with the same convenience …Read More