An e-payment system is a system for processing electronic payments using methods like credit cards, ACH payments, and mobile wallets instead of cash or checks. 

If you’ve ever made an online purchase or paid a bill online, then you are already familiar with e-payment, or electronic payment. It’s a quick and convenient way to make transactions through the Internet. Electronic payment systems boast benefits for both customers and merchants. 

Here we’ll take a closer look at e-payment systems and what they can do for your business. 

Types of e-payment

An electronic payment is any non-cash payment other than a paper check or money order. This includes credit and debit card transactions, ACH transfers, mobile payment apps such as CashApp and Venmo, and mobile wallets such as Apple Pay or Samsung Pay. 

Common forms of e-payment are: 

• Credit card: The most popular payment method for online transactions. With proper authentication credentials in place, a user can simply enter their credit card information into an online form to make payment.
• Debit card: Debit card transactions work much the same way that credit card transactions do, but carry more risk for the customer in case of fraudulent charges, as funds are immediately deducted from the associated bank account.
• ACH: Automated clearing house transfers are direct payments or direct deposits used to transfer money from one account to another. These kinds of payments may require two-factor authentication before a transfer of funds can be completed.
• Mobile payment apps: These apps are linked to a user’s bank account or credit or debit card. Funds are withdrawn from and paid through the app. This allows users to make transactions without sharing bank account information directly with the vendor. 
• Mobile wallets: Similar to mobile payment apps, mobile wallets source funds from a user’s bank account or credit/debit card as an avenue for making purchases. 

How can you integrate e-payments into your online store? 

You generally need a payment gateway and a merchant account to process payments online. For a deeper dive on the topic, check out our Payment Gateways vs. Merchant Accounts article. 

Benefits of e-payment systems

E-payments are a must for any business operating online. As a result, e-payment systems are table stakes for any e-commerce business. 

E-payment eliminates the need for cash and creates a quick, easy, and accessible way to facilitate transactions online. This is especially convenient if you are selling a subscription-based service or use recurring payments, as transactions can occur automatically. 

Not only will an e-payment offer customers more payment options, it will also provide your company with more data and insights to further drive sales. You can use the data and metrics provided by many e-payments systems to understand your customers better and sell them more things in the future.

Risks of e-payment systems

While there are plenty of benefits to using an e-payment system, it comes with risks your business needs to account for, particularly in data security and compliance. 

Before authorizing any transactions or asking for sensitive information such as client name, address, and payment details including credit or debit card numbers or bank account information, you’ll want to make sure your site is secure and your e-payment solution PCI compliant. 

You’ll also need to make the user aware of any data that is stored on the system or shared with third parties. The vendor is responsible for safe data storage of customer information, and may be responsible if customer data is compromised.

By keeping these details in mind and with strong security practices in place, you can set up a successful e-payment system with confidence. A trusted payment processing provider like TailoredPay can help you navigate the complexity and simplify e-payments for your online business. 

Key points about e-payment systems and your customers

To sum up, here are the things to keep in mind when incorporating an e-payment system into your business:

• Know your customer: What e-payment methods are they more likely to use, and make sure to choose one they can trust with their private information.
• Practice Good Security: E-payments involve the exchange of sensitive customer information which you will need to keep private and safe.
• Offer more ways to pay: Your customer may prefer one method over another and having that option may be what secures the sale.
• Make it easy: The easier you make payment on the consumer, the more likely you will get the sale. A difficult or broken system will frustrate and drive away potential customers.
• Have a plan for fraud and illegitimate chargebacks: E-payment fraud, like credit card fraud, can cost you revenue and put your business at risk. Have a plan to protect yourself from fraud and mitigate chargebacks.

Making e-payment systems work for you

In the world of e-commerce, an e-payment system is necessary to grow your online business. A secure and reliable e-payment system will offer your customers a seamless checkout experience they feel comfortable using. 

At TailoredPay, we’re experts in the world of online payments, merchant accounts, and protecting your revenue with powerful chargeback mitigation. Our secure payment gateways integrate with a variety of popular e-commerce platforms, including Shopify, WooCommerce, Quickbooks, and Magento. 

You can apply for a TailoredPay account here, and our team of e-payment experts will get back to you within 24 business hours. We’re the experts in payment so you can be the experts in your business!