The electronic exchange of money through the internet is known as online payment or electronic payment. The payment generally involves the transfer of monetary funds from a customer’s bank, debit card, or credit card account into a seller’s bank account. A business receives money in exchange for its products or services. About 203 million people in the country currently use digital banking, of which 61% use online banking services at least once a week.

Functioning of electronics payment systems
There are several steps involved in making an electronic payment. To understand how the system works, one must know the participants involved in an electronic payment transaction. The cardholder/consumer purchases a product or service online, while a merchant/business sells goods and services to the cardholder. The issuer is the financial institution that provides the cardholder with the payment card. The cardholder’s bank usually issues this card. An acquirer (merchant account provider) is the financial institution responsible for establishing an account with the merchant. They also authorize the legitimacy of the cardholder’s account. A payments processor handles the official transaction between the cardholder and the merchant. The payment gateway is a secure portal that implements security protocols and encryptions to ensure safe transactions and process merchant payment messages.

Types of online payments
A company might use various online payments to transact with customers or other businesses. A few popular types of these payment types are listed below.

Credit cards
Credit cards are payment cards issued by a financial institution that lends money to the cardholder. A customer can use this card to purchase products and services online. These cards have revolving credit lines, which allow cardholders to pay the balance in full at the end of each billing cycle.

Bank transfers
Bank transfers are one of the oldest methods preferred for transferring funds online. The process of completing a bank transfer is also reasonably simple. The customer will require the bank routing number and account number of the destination business account so that the money can be debited from their account and credited to the latter.

ACH payments
Automated Clearing House (ACH) payments are electronic credit and debit transfers, enabling customers to make payments with bank accounts. The payments can be made towards mortgage loans, utilities, and other bills.

Digital wallets
The wallet covers software that can electronically store information like debit card numbers, credit card numbers, and loyalty car numbers on the laptop, tablet, cloud, and smartphone. These wallets help make peer-to-peer payments and online payments. The wallet can also hold loyalty cards, coupons, and funds.

Top payment gateways
If you own a business and require payment gateway software, then there are four top options for you to consider. You can find quotes for each software by visiting their respective websites.

PayPal
PayPal offers payment processing services to e-commerce vendors, auction sites, and commercial enterprises globally. The company provides a range of payment acceptance services to businesses to easily sell products and receive funds digitally. The software also comes with an Account Updater that lets you securely make batch and real-time updates for Mastercard, Visa, and Discover. The software also has an adaptive machine-learning solution to protect your business by preventing potential fraudulent transactions.

Stripe
You can own a startup or a large enterprise and still use Stripe’s software. Stripe allows businesses to send payouts and accept payments and helps individuals efficiently manage their business online. The payment gateway software enables companies to detect fraud, issue virtual and physical cards, secure financing, and send invoices. The company also has curated APIs that can easily be integrated into a business, so you can start accepting digital payments more quickly.

Authorize.net
Authorize.net is a simple payment software designed for all business types. Opting for the brand’s services can offer customers payment options, including debit cards, credit cards, eChecks, and digital payments. Authorize.net also caters to various tools, including APIs, SDKs, and other documentation resources for developers. The company also provides a Virtual Point of Sale (VPOS) value-added service that you can connect to a compatible card reader to the computer to accept payments in person. You can also manage billing in real-time, weekly, monthly, or as you are convinced, the software allows you to increase customer loyalty while saving on service costs.

Adyen
The e-commerce company offers services like data management, end-to-end payments, and financial management in a single payment solution. A few of its solutions include online payments, in-person payments, and unified commerce. The software also features machine learning technology to increase approval rates, prevent fraudulent transactions, and offer customer-friendly authentication.