How does it work?Explain the process..

Is a subset of an e-commerce transaction to include electronic payment for buying and selling goods or services offered through the Internet.

http://www1.american.edu/initeb/sm4801a/epayment1.htm

How does it work?

• When it comes to payment options, nothing is more convenient than electronic

• payment. You don't have to write a check, swipe & credit card or handle any paper

• money; all you have to do is enter some information into your Web browser and click

• your mouse. It's no wonder that more and more people are turning to electronic

• payment - or e-payment ~ as an alternative to sending checks through the mail.

• http://www.nu.e-association.ca/cim/dbf/how_electronic_payment_works-english.pdf?im_id=68&si_id=305

• 1. A one-time customer-to-vendor payment is commonly used when you shop online at • an e-commerce site; such as Amazon. You click on the shopping cart icon, type in your • credit card information and click on the checkout button. The site processes your credit • card information and sends you an e-mail notifying you that your payment was received. • On some Web sites, you can use an e-check instead of a credit card. To pay by echeck, you type in your

account number and your bank's routing number. The vendor • authorizes payment through the customer's bank, which then either initiates an • electronic funds transfer (EFT) or prints a check and mails it to the vendor.• 2. You make a recurring customer-to-vendor payment when you pay a bill through a • regularly scheduled direct debit from your checking account or an automatic charge to • your credit card. This type of payment plan is commonly offered by car insurance • companies, phone companies and loan management companies. Some long -term • contracts (like those at gyms or fitness centers) require this type of automated payment • schedule.• 3. To use automatic bank-to-vendor payment, your bank must offer a service called • online bill pay. You log on to your bank's Web site, enter the vendor's information and • authorize your bank to electronically transfer money from your account to pay your bill. • In most cases, you can choose whether to do this manually for each billing cycle or • have your bills automatically paid on the same day each month.