The history of money was a long and winding one. In about 1200 B.C. in China, cowry shells were the first medium of exchange. From shells, people soon started using pieces of coins and several years later, banknotes in the form of leather were used. All of these lead to the paper and coin currencies we have nowadays which are more commonly known as money. We are currently living in the Information Age where electronic money or digital cash is being exchanged over the Internet.
An electronic payment is any kind payment where electronic money is used. Methods of electronic payments include credit cards, debit cards and the ACH (Automated Clearing House) network. The ACH system comprises direct deposit, direct debit and electronic checks (e-checks).
Electronic payment is certainly the most convenient payment option available. You don't have to handle any paper money, swipe a credit card or write a check. All you have to do is enter your account information, such as your credit card number and shipping address into your web browser and, with just a few mouse clicks to confirm your purchase, you're done. Its simplicity and ease are enticing more and more people to utilize electronic payment.
Businesses employing electronic payment methods or e-commerce could certainly lower their expenses because they spend less on paper and manpower. Customers who have done certain transactions with a business establishment through electronic payment would certainly be more likely to return to the same e-commerce site, thus, improving customer retention. Even banks nowadays are offering options for online bill pay services to their clients to serve them better.
The main concern regarding electronic payments are possibility of identity theft and breach of privacy. However, this is not a big problem since there are many available safeguards to protect Internet shoppers from encountering such crimes. Anti-virus protection software and firewall programs on your computer make ensure that your online business transactions are safe. You should also always make sure that you are sending your credit card information through a secure server as indicated by a key or lock icon on a bottom corner of a browser.
Regardless of the security risks, electronic payments are here to stay. A survey done on this subject shows that more than 94% of large banking companies and more than 65% of community banks have started offering these services to their clients. If you haven't used e-payment for your transactions, why not consider starting now? It's not only technically easy. It can be very convenient, too.
For a successful online business, be sure to accept credit cards as payments for your goods or services. Electronic payments are now the fastest way to do business and they will be safe as long as all necessary precautions are in place.
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