ELECTRONIC

PAYMENT SYSTEM
Guided by-
Ms Anita Verma

Presented By-
Neha Wadhwani
Tarun Garg
Ayush Sharma
 CONTENTS
 Introduction to E-Payment System
 Meaning of E-Payments

 Methods of E-Payments

-Credit payment system

-Cash payment system
 How E-Payment System Works?

 Types of E-Payments
WHAT ELECTRONIC PAYMENT
SYSTEM IS?

 Electronic Payment System is a way

of paying for a goods or services
electronically, instead of using cash or a
check, in person or by mail.
SOME EXAMPLES OF EPS:-
 Online Reservation.
 Online Bill Payment.

 Online Order Placing.

 Online Ticket Booking.

WHAT E-PAYMENT
ACTUALLY IS?

 An electronic payment (e-payment), in short, can

be simply defined as paying for goods or services
on the internet. It includes all financial
operations using electronic devices, such as
computers, smartphones or tablets.
TWO STORAGE METHODS
 On-line
 Individual does not have possession personally of
electronic cash.
 Trusted third party i.e. Online Banks holds
customer’s accounts.

 Off-line
 Customer holds cash on smart card or software
wallet.
 Fraud and double spending require tamper-proof
encryption.
METHODS OF E-PAYMENTS

Credit Payment System

 Credit Card — A form of the e-payment system

which requires the use of the card issued by a
financial institute to the cardholder for making
payments online or through an electronic device,
without the use of cash.

1.
 E-wallet — A form of prepaid account that
stores user’s financial data, like debit and credit
card information to make an online transaction
easier.

 Smart card — A plastic card with a

microprocessor that can be loaded with funds to
make transactions; also known as a chip card.
 CASH PAYMENT SYSTEM

 Direct debit — A financial transaction in which

the account holder instructs the bank to collect a
specific amount of money from his account
electronically to pay for goods or services.

 E-check — A digital version of an old paper

check. It’s an electronic transfer of money from a
bank account, usually checking account, without
the use of the paper check.
 E-cash is a form of an electronic payment
system, where a certain amount of money is
stored on a client’s device and made accessible for
online transactions.

 Stored-value card — A card with a certain

amount of money that can be used to perform the
transaction in the issuer store. A typical example
of stored-value cards are gift cards.
HOW E-PAYMENT WORKS?
 Online payments are made instantly, so it’s
convenient and saves lots of time.
 It is important, especially today when every
aspect of our lives happens at a fast pace.
 The entire process behind the payment button is
complicated, so here’s the basics to make you
understand it better.
1.CUSTOMER ACTION
 The process begins when a customer visits the
merchant’s site and adds items to the cart items.
CUSTOMER ACTION
 Customer’s Cart
SELECTING ADDRESS
SELECTING PAYMENT OPTIONS
 Then need to select the Payment option.
THEN NEED TO FILL OUT THE PAYMENT FORM
WITH INFORMATION (E.G. CARD NUMBCERTAIN
ER, EXPIRATION DATE, CVV CODE, ADDRESS).
PAYMENT AUTHENTICATION BY THE OPERATOR
 The payment gateway checks whether the
payment information is valid or Authentic.
 A One Time Password is sent to the customer’s
registered mobile number by the bank for
Authentication.
REVIEW ORDER
ORDER PLACED
 TYPES OF E-PAYMENT STSTEM
1. Electronic Clearing Service(ECS)

 Introduced by RBI
 Provided an alternative method of effecting bulk
transactions.
 Avoided need for issuing and handling paper
instruments.
 User has to submit the mandate to the bank. (E.g.:
MICR- Cancelled Cheque)
 No transaction limit.
 There arte two types of ECS:
o ECS-Debit-There is multiple debit from vast secton of
people and corresponding single credit entry. E.g. : Bill
payment
o ECS – Credit - Electronic fund transfer from on account
to many transactions transfers. E.g. : Salary Payment
 2. Real Time Gross Settlement (RTGS)
 Introduced by RBI in 2004
 RTGS systems are managed by RBI. Transfer anywhere
within India.
 Funds for > Rs 2 lakh to be transferred through RTGS. Lower
funds cannot be transferred. Upper transaction limit set by
individual bank.
 Payment instruction handled individually.
 Payment is final and irrevocable and the receiver can utilize
the funds immediately.
 RGTS Timings:
 Payee & Transfer Funds
o Weekdays: 9:15 AM to 4:15 PM
o Saturdays: 9:15 AM to 1:15 PM; No settlements on sundays
and holidays.
 Service Charge applicable to customer.
 Steps for Transaction: Register
3. National Electronic Funds Transfer System
(NEFT)

 It was launcher by RBI in 2005.

 It permits to transfer funds of lower value. Neither
lower limit nor higher limit.
 Transfer anywhere within India.
 Operate on a deferred net settlement (DNS) basis
which settles trasnctions in batches.
 NEFT Timings:
 Weekdays: 12 times every hour from 8:00 AM to
7:00 PM
 Saturday: 6 times every hour from 8:00 AM to
1:00 PM
 Service Charge is applicable to the Customer.
 Steps for Transction: Register Payee & Transfer
Funds.
 4. Mobile Payment

 A transfer of funds I return for a good or

service, where the mobile phone is involved in
both the initiation and confirmation of the
payment.
TYPES OF MOBILE PAYMENT

 FUNDS TRANSFER USING-

 Mobile applications –paytm

 Sms
 Unified payment interface
 Qr code
 Merchant payment through otp
 Electonic wallets
THANK YOU