Electronic Payment Systems Key Terms

Maximize equipment usage by understanding electronic payment systems key terms

Learn electronic payment systems key terms to gain full understanding of how the payments work and how the equipment processing the payments work. Knowing key terminology helps you understand the process behind electronic payment systems.

When you know electronic payment systems key terms, you promote yourself in a more professional manner. Your knowledge demonstrates to others that you have expertise and know what you are talking about in this particular field.

Electronic payment

An electronic payment is when one uses electronic money to pay a bill. Electronic money comes by other names including digital money, cash or currency; e-money; and electronic cash and currency. This system digitally transfers money from financial institutions to the payee through telephones, ATMs or computers.

E-commerce systems

Also called a financial electronic data interchange (FEDI), e-commerce systems facilitate online transactions for electronic payments by accepting the transactions.

Point of sale terminals, POS

This term refers to hardware and software used at checkout, such as cash registers. Hotels, restaurants, supermarkets and other businesses use point of sale terminals.

Credit card

This small card, generally made of plastic, is part of a payment system. Payees offer payers credit based on a line of credit attached to the card. Reimbursement comes to the merchant at a later date.

Debit card

This card, also called a check card or a bank card, provides an alternate way for payers to make purchases without using cash. Similar to a credit card in looks, it differs from the credit card in the fact that it draws funds directly from the holder's bank account.

Micropayment system

This system accumulates a number of micropayments, collecting the fund in one lump sum after or before transactions. Toll roads are a fine example of micropayment systems.

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