E-commerce payment system is electronic payment process that enable customer pay into merchant’s account in business transaction. Electronic cards are used to make payments in what is call, Card Present transactions in real
stores using Point of Sales (PoS) machines. In online transaction known as, Card not Present transactions, customers use either their electronic cards or non-card payment options to pay for their purchase at check-out point.
The ATM card used in cashing money locally, is also used to pay for goods or services. Visa card and MasterCard that are the most popular electronic cards are customized to perform dual role of money withdrawal and electronic payment at local level or across the border.
In e-commerce payment transactions, not all merchants accept both credit and debit cards for payment. Merchants are at liberty to choose either of the debit or credit cards, or combine the two brands if suitable for their business need.
In payment transaction over the internet, PayPal is most popular non-card payment account across the world. With PayPal account, you’re not requested to fill your card details each time you’re buying or paying for services. Your PayPal account is confirmed through your registered e-mail account.
All payment service providers integrated e-card and non-card payment options,in their payment gateway system for optimum benefit of clients business and convenient of online shoppers. Account to Account transfer method of payment
is popular in Germany according to report, just to avoid online fraud associated with e-payment cards.
All the enumerated payment options above, are mostly associated with Business to Consumer (B-2-C) related transactions. In Business to Business (B-2-B) transactions that usually involve large money, Account to Account
transfer, Bank Cheque, Electronic Fund transfer (EFT) and Mail order, Telephone order (Mo/To) are preferable options to settle payments.
But cards usage in e-commerce payment transactions have only serve the interest of residents and indigenes of developed countries in cross-boarder trade. Africa continent and some other countries in parts of the world, are not
enjoying the full benefit of cross-boarder trade economy. Part of factors responsible for this is, the large-scale online payment scam and other financial fraudulent practice traceable to Africa and other affected countries.
Activities of internet fraudsters, constitute great concern to merchants who have been at the receiving end of consequences of e-commerce payment practice. Losses incurred by entrepreneurs and merchants in e-commerce business have cause them to shun patronage from indigenes and residence of countries identify as high risk countries.
By PCI DSS rules that regulate the operation of e-commerce payment transactions, merchants have absolute control to determine, genuine costumers base on, authentication and verification results receive. However, some payment service providers device alternative payment methods to bridge the pariah situation caused by the merchants hostility towards countries identified as high risk countries.
Indirect Online Payment
Some Payment Service Providers, aside from marketing cards and non-card payment, introduced offshore payment services to high risk countries. The non-card payment process, required interested persons to register as either;
consumer members or merchant members with the service provider. The idea is to open unique accounts in the name or business of participating members in the stable of the service providers.
consumer accounts become active as soon as the accounts are funded, while that of the merchants becomes active, when they started receiving orders from members. This system have taken root in African countries. And these service
providers are forming buck of PSP taking part in the cashless economy policy wind, blowing across the continent. Not forgetting recently the mobile money rave, that’s threatening even the e-commerce payment method. Mobile
payment in itself is another topic that’s opening the golf of electronic payment options revolution world-wide.