Points to remember

Points to remember

● Payments are the financial instruments used globally to transfer value in the form of money or its substitutes and are constantly changing due to new technology and Government regulations.

● Payment system can also be divided into two types, namely the cash payment system and the non-cash payment system based on the instruments used. In the cash payment system, the instruments used are in the form of currency (paper money and coins) while in the non-cash payment system the instruments used are card-based payment, Cheques or electronic money.

● A Credit card plays a major role in electronic payment system worldwide.

● ECS is treated as a electronic cheques by the bank. The advantages and disadvantages of the physical cheque is also extended to ECS. In electronic clearing services, bank process the instructions from the customer to debit his account and pay another automatically without much human interference.

● (POS) Point of Sale Terminal- It enables customers to make payment for purchase of goods and services by means of credit and debit cards. To facilitate customer convenience some banks also cash withdrawal using debit cards at POS terminals.