Introduction: It’s is the oldest system where



Electronic Payment
is a financial transaction which takes place between buyers and sellers
electronically online without the use of actual cash or paper currency.

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Electronic payments are far cheaper than the traditional which makes it more
easy and more reliable and more adoptable by the people.


Objectives of study:


·      To understand the working of
e-payment based application.

·      To understand the security
aspects of the e-payment services.

·      To know the overall impact of
e-payments on the economy.

·      To understand the adaptiveness of
people from traditional paper currency.


History of money:


·      Barter System: It’s is the oldest system where
actual goods are exchanged for goods.

·      Commodity Money: In this system, goods which has
monetary value.  E.g.: Salt. Mostly it’s
gold & silver coins.

·      Commodity Standard: It uses special note with a
deposits of gold and silver held by the note issuer.

·      Electronic Money: In this system, traditional
currency give a way to electronic money


Advantages of E-Payments:


·      E-payments reduces the overall cost
for businesses.

·      Transacting via e-payments is very
easy and convenient.

·      Reduction of overall use of precious

·      There’s an instant transfer of
money, enables faster work completion.

·      E-transactions can be done at any
point of time.

·      E-payments are accepted globally.


Disadvantages of E-Payments:


·      Transaction fee per transaction
and monthly fees are more.

·      They are prone to hacking and
other another online threat.

·      Not all websites support a particular
payment method.


E-payment system:


·      EFT is defined as “any transfer
of funds initiated through an electronic terminal, telephonic instrument, or
computer so as to order, instruct, or authorize a financial institution to
debit or credit the account”.

·      EFT utilizes computer and
telecommunication components both to supply and to transfer money.



Classification of EFT:


EFT can be segmented into three broad categories


·      Banking and financial payments

o   Large scale payments

o   Small scale payments

o   Home payments

·      Retailing payments

o   Credit card

o   Charge card

·      On-line electronic commerce

o   Token-based payment systems.

o   Credit card-based payments


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