From air tickets to travel insurance, almost everything can be bought with a few clicks. According to some reports, more than 75% of people in the country shop online. Thanks to facilities like electronic payment processing systems, people can shop from the comfort of their homes while on the go. These options are not only convenient for customers but also help expand the reach of businesses worldwide in a jiffy.

What are e-payments?

E-payments or electronic payments are a mode of transaction performed through an electronic medium, such as electronic and internet-enabled devices, thereby eliminating the use of physical cash or check. Some examples of electronic payments include debit cards, credit cards, virtual cards, E-wallets, internet banking, and Automated Clearing House (ACH).

Pros of using e-payments

Here is how electronic payment processing systems are great for both businesses and customers:

Increased security

This type of payment is more secure than paper checks, and specific e-payments like virtual cards have an additional layer of security in the payment process.

Better visibility

This type of payment provides greater accessibility to payment statuses and provides a better audit trail. It is also a cost-effective way to reduce the probability of data entry mistakes.

Lowers processing cost

The electronic mode of payment ensures lesser expenditure on paper and postage. It also saves the time required to sign and mail checks, reducing payment processing costs by up to 80 percent.

Here is how it works

Electronic payment processing directly sends payments to the business’s bank account or an individual. E-payments work in the following two ways:

One-time payment

It is a single, non-recurring payment that is typically used to purchase an item. If you want to purchase an item online, you select the item from the website, add it to the card, and then add your credit/debit card details. The payment gateway verifies the details to authorize the payment. Once approved, the bank transfers your payment to the online business’ bank account. There are other independent payment gateways that can be linked to your bank account to make payments, eliminating the need to use debit or credit cards.

Recurring payment

The recurring payment mode works the same way as a one-time payment, except it happens consistently. Scheduling monthly payments to pay a mortgage loan is a form of recurring payment. All you need to do is authorize payment once by adding your checking account details and setting a monthly schedule.

Top electronic payment processing companies:

There are a number of online payment options to choose from. Here is the list of the 15 best online payment services available right now:

PayPal

Undoubtedly, PayPal is the epitome of electronic payments, both local and global. Unlike other online payment services, it allows you to send and receive money using just an email ID. PayPal is free from any setup and monthly fees; it charges 2.9% per transaction and an additional $0.3.

Due

Due specifically targets small businesses and freelancers apart from offering most features provided by online payments services. With invoicing and intuitive time-tracking tools, Due has no sign-up and monthly fee. It charges 2.7% per transaction and offers an eBank service to store your cash online productively.

Stripe

Designed specifically for web developers, this allows you to integrate Stripe into projects using its simple and powerful API. As such, there is no traditional signing up process and fees. Stripe charges 2.9% and $0.3 for each transaction.

Square

Square Cash App allows sending e-invoices for receiving payments. It has introduced the unique magstripe reader that enables business owners to swipe credit cards to make payments for a mere 2.6% + $ 0.1 fee deduction for each transaction. Square does not charge monthly and setup fees for using their payment service.